DBM LOCAL BUDGET CIRCULAR NO. 71, October 05, 2000
ADOPTION OF HIGHER SALARY SCHEDULE BY LOCAL GOVERNMENT UNITS
Budget Circular No. 56 dated January 25, 1995 on the adoption of higher
Salary Schedule by Local Government Units (LGUs) pursuant to second
paragraph Item 5 of Joint Resolution No. 1, s. 1994 of the Senate and
the House of Representatives.
2. As contemplated therein, the adoption of a higher salary
schedule by LGUs is only an option that can be exercised when the
legally mandated requirements of, among others, the Salary
Standardization Law, Part II (SSL II) have already been provided for.
3. Hence, LGUs must first implement fully the prescribed
salary schedule for its income class and assure its sustainability
before it can exercise the option to adopt a higher salary schedule
subject to the budgetary and general limitations on Personal Services
(PS) expenditures under Sections 325 and 326 of RA 7160 or the Local
Government Code.
4. The continued implementation of the SSL II for which the
PS limitations under Section 325 (c) and 331 (b) of RA 7160 may be
waived refers to the full implementation of the Salary Schedule
corresponding to the income classification of a particular LGU. Adoption
of higher salary schedule is not considered continued implementation of
the SSL for purposes of exemption from the above-cited PS limitations.
5. For the guidance of all concerned.
Adopted: 05 Oct. 2000
(SGD.) BENJAMIN E. DIOKNO
Secretary