GUIDELINES FOR THE INITIAL IMPLEMENTATION OF THE NEW SALARY STRUCTURE FOR OFFICERS AND ENLISTED PERSONNEL OF THE AFP

Purpose

This Circular is being
issued to prescribe rules and regulations to govern the initial
implementation of the new salary structure for the officers and enlisted
personnel of the AFP pursuant to Section 2 of Republic Act (RA) No.
9166, “An Act Promoting the Welfare of the Armed Forces of the
Philippines by Increasing the Rate of Base Pay and Other Benefits of its
Officers and Enlisted Personnel, and for Other Purposes”.

2.0

Coverage

This Circular cover
all officers and enlisted personnel of the AFP who are in the active
service, cadets of the Philippine Military Academy, officer candidates
and candidate soldiers.

3.0

Policy Statements

Section 2 of RA 9166
provides that the rate of base pay of officers and enlisted personnel of
the AFP shall be adjusted in accordance with the following salary grade
assignments per rank:

3.2       Section
6 of the Implementing Rules and Regulations (IRR) of RA 9166 provides,
among others, that the rate of pay for each corresponding salary grade
shall be equal to the base pay of the Philippine National Police (PNP)
uniformed personnel as adjusted under RA 8551, which was based on the
salary schedule for civilian personnel in Annex B under National Budget
Circular (NBC) No. 458 s. 1997.

3.3       Section
13 of the IRR of RA 9166 provides, among others, that the increase in
base pay shall be implemented in three (3) phases; the initial phase of
which shall be implemented not later than October 1, 2002 at a uniform
rate of twenty percent (20%) of the base pay increase/differential
authorized for each rank.

4.0

Implementing Rules

4.1       The
present base pay of an officer and enlisted personnel of the AFP for
purposes of this Circular shall mean the base pay received as of
September 30, 2002 as prescribed under Section 5.2.1 of NBC 474,
corresponding to their designated ranks.

4.2       The
base pay of the officers and enlisted personnel of the AFP shall be
adjusted effective October 1, 2002 in accordance with the rates
prescribed in the First Interim Salary Schedule hereto attached and
marked as Annex A of this Circular.

4.3       The
rates contained in said Salary Schedule shall be used as basis for
computing longevity pay, year-end bonus and retirement benefits.  The existing rates of all other allowances and collateral benefits shall be maintained.

5.0

Prohibition

Unless allowed by law and/or
executive order, the Secretary of the Department of National Defense is
prohibited from granting any adjustment in excess of the amounts herein
authorized.

6.0

Funding Source

The amount necessary to
initially implement the new Salary Schedule shall be charged against the
appropriations savings of each Major Service and KBU of the AFP.

7.0

Responsibility of the Major Service and KBU Commanders

The Commanders of the Major Services and KBUs
shall be held liable for any payment of salary adjustment not in
accordance with the provisions of this Circular, without prejudice
however, to the refund of any excess payment by the personnel concerned.

8.0

Saving Clause

Case not covered by the provisions of this Circular shall be referred to the Secretary of Budget and Management for resolution.

9.0

Effectivity

This Circular shall take effect October 1, 2002

Adopted: 29 Oct. 2002

(SGD). EMILIA T. BONCODIN
Secretary

ANNEX A

FIRST INTERIM SALARY SCHEDULE

For AFP Officers and Enlisted Personnel

Effective October 1, 2002