GUIDELINES FOR THE INITIAL IMPLEMENTATION OF THE NEW SALARY STRUCTURE FOR OFFICERS AND ENLISTED PERSONNEL OF THE PHILIPPINES NATIONAL POLICE

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 Philippine National Police
pursuant to Section 36 of Republic Act (RA) No. 8551 otherwise known as
the PNP Reform and Reorganization Act and Republic Act No. 8760, the
General Appropriations Act (GAA), FY 2000.

2.0       Coverage

This Circular shall cover all officers and enlisted personnel of the PNP.

3.0       Policy Statements

3.1       Section 36 of RA 8551 provides that the lowest rank of
Police Officer (PO) shall have the same salary grade level as that of a
public school teacher which is assigned Salary Grade (SG) 10 under the
Salary Standardization Law (SSL).

3.2       Executive order (EO) 107 dated June 10, 1999 supplementing
RA 8551 provides for the equivalent SGs of each rank in the PNP
hierarchy where the lowest SG is at SG-10 for a PO I.

3.3       Under RA No. 8760 or the FY 2000 GAA, the amount of two
billion nine hundred fifty-six million pesos (P2,956,000,000) is
appropriated for the initial implementation of the new salary structure
for the officers and enlisted personnel of the PNP which is equivalent
to thirty percent (30%) of the increment cost required to fully
implement this salary structure, based on the Salary Schedule under
Joint Senate-House of representatives Resolution No. 1, s. 1994.

4.0       Implementing Rules

4.1       The present base pay of an officer and enlisted personnel
of the PNP for purpose of this Circular shall mean the basic pay
received as of December 31, 1999 as prescribed under “Annex E” of
National Budget Circular (NBC) 458 series of 1997, corresponding to
their designated ranks.

4.2       The base pay of the officers and enlisted personnel of the
PNP shall be adjusted effective January 1, 2000 in accordance with the
rates prescribed in the First Interim Salary Schedule hereto attached
and marked as Annex A (Available at Office of the National
Administrative Register, U.P. Law Center, Diliman, Quezon City) 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 other allowances and collateral benefits
shall be maintained.

5.0       Prohibition

Unless allowed by law and/or order, the Secretary of the Department
of the Interior and Local Government 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 P2,956,000,000 Billion appropriated for the
purpose under RA No. 8760 or the FY 2000 GAA.

7.0       Responsibility

The PNP Chief shall be held personally 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

Cases 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 January 1, 2000.

Adopted: 01 March 2000

(SGD.) BENJAMIN E. DIOKNO
Secretary