Republic of the PhilippinesOffice of the President

N~ ,~ A~"",,·,,",·~~~(PAMBANSANG PANGASIWAAN NG PATUBI

Quezon City

Office Address: National Government CenterEDSA, Diliman, Quezon City, Philippines

Telephone Nos.: (02) 929-6071 to 78Website: www.nia.gov.ph

TeJefax No. (632) 928-93403TIN 000-916-415

MCNo. 38 s. 2016

MEMORANDUM CIRCULAR

TO THE DEPUTY ADMINISTRATORS, DEPARTMENT / REGIONAL / PROJECTMANAGERS, DIVrSION MANAGERS AND ALL OTHERS CONCERNED

Subject: EXECUTIVE ORDER NO. 203, ENTITLED "ADOPTING A COMPENSATIONAND POSITlON CLASSIFICATION SYSTEM (CpeS) AND A GENERAL INDEXOF OCCUPATIONAL SERVlCES (10S) FOR THE GOCC SECTOR COVERED BYTHE REPUBLrC ACT NO. 10149, AND FOR OTHER PURPOSES"

The Office of the President (OP) or the Philippines issued EO No. 203, copy attached,"Adopt ing a Compensation and Position Classification System (CPCS) and a GeneralIndex of Occupational Services (05) for the Goer: Sector covered by the Republic ActNo. 10 Ill'), and for Other Purposes". It provides, among others, that the CPCS, which willbe implemented and administered hy the Governance Commission for GOCCs (GCG),hasbeen designed to provide (;0r.C5 with adequate operational autonomy and flexibilitytowards ensuring efficient and effective implementation of a total compensationframework within their organizations. ,The copy of the (peS and IOS Framework is available for down load at the Homepage ofthe Nli\ Websilc ( .. r,>J

Be guided accordingly.

-ENGR. FLORENCIO F. PADERNAL, DPAAdministrator

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EXECUTIVE ORDER No. 203

ADOPTING A COMPENSATION AND POSITION CLASSIFICATION SYSTEM(epCS) AND A GENERAL INDEX OF OCCUPATIONAL SERVICES (IOS)FOP< THE cocc SECTOR COVERED BY REPUBLIC ACT NO. 10149,AND FOR OTHER PURPOSES.

WHEREAS, Presidential Decree No. 1597 (s 1978) required all agencies inthe E.xecutive Branch, including all GOCCs, both Chartered and Non-chartereel, toobserve such guidelines and policies as may be issued by the President governingcompensation and position classification systems:

WHEREAS, Sectron 5, Article IX-B of the 1987 Constitution mandates that"Conqress shall provide for the standardization of compensation of governmentofficials and employees, including those in government-owned or -controlledcorporations with original charters taking into account the nature of theresponsibilities pertaining to, and the qualifications required for their positions;"

WHEREAS, Joint Resolution No 4, (s 2009) of the Senate and the House ofRerm.?sentatives authorized the President to modify the existing CPCS of civilianpersonnel in the ~Jovemment, which includes all GOCCs, both Chartered and Non-chartered, and reiterated the continuing applicability and enforceability of P 0 No1597;

WHEREAS, under Republic Act (RA) No. 10149, or the GOee GovernanceAct or 20 r 1, the Governance Commission for Government-Owned or -ControlledCorporations (GCG), as the central advisory, monitoeinq, and oversight body withauthority to formulate, implement and coordinate policies to govern GOCCs, hasbeen mandated 10

cl Classifv GOCCs as may be necessary to quide it in exercrsmq ItS powersand functions:

b Conciuct compensation studies, develop and recornrnend to theI:>resident a competitive compensation and remuneration system whichshall attract and retain talent, at the same time allowing the GOCC to betmancially sound and sustainable; and

Develop Cl CPCS which shall apply to all officers and employees ofGOCes whether under the Salary Standardization Law or exempttherefl"Olll, and shall consist of classes of positions grouped into suchcaloqorics as thE>..GC;;G.1119y-·~c.Je;terlTl~!De.,_sllbjectto approval of tile

0rflCc ur ii1r.: ~iln;i."Gi::!< IPI-eSlclpllt, ! ADMINISTRATIVE DEPARTMENT i r:\~g A

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WHEREAS, Section 9 of R.A No. 10149 provides that, any law to theCOI*ClIY notwilhstandino 110 GOCC shall be exempt from the coveraqe of theercs developed by the GCG under said Act; and

WHEREAS, the GCG, after having conducted the requisite compensationstudios, has developed the CPCS for COCCs and submitted the same to thePresident for approval

NOW, THEREFORE, I, BENIGNO S_ AQUINO Ill, President of theI->hillppincs, by virtue or the powers vested ill me by the Constitution and by law, clohereby order

SECTION 1, The CPCS and Index of Occupational Services (IOS)Framework for the GOee Sector - The CPCS and the 10S Framework Ior theGOCC S(~ctor- (attached hereto) are hereby approved and made effective to allGOCCs, GI-Is, GICPs/GCEs (hereinafter r-eferred to as "GOCCs"), including theirsubsidiaries which are cover-ed by RA No. 10149.

SEC. 2, Collective Bargaining Agreements (CBAs) and CollectiveNcgotiation Agreements (CNA) in the GOCC Sector. -- While recognizing theconsttutional right of workers to self-organization, collective barqaininq anelncqotiations, the Goveming Boards of all covered GOCCs, whether Chartered orNon-chartered, may not negotiate with their officers and employees the economicterms of their CBAs

CNA lnccntives, which primarily cover savings from the COBs of CharteredGOCCs, shall continue Lo be govemed by the policies and quidelines establishedby lhc 081Vl, but shall 110W be extended to cover non-chartered GOCCs to promoteuniformitv of allowable incentives within the GOCC Sector. Incentives allowed bythe CSC such as, but not limited to, the Program on Awards and Incentives IorSelvlce Excellence, shall continue to be gover-ned by the policies and guidelines ofCSC, a s well ClS other- pertinent laws, rules and requlations.

SEC. 3_ Implementing Agency - The CPCS shall be implemented andadministered by GCG, and supplemented with the n~cessary implernentinq rulesand quidolincs on matters such as, but not limited to, hirillg rates, pr-omotions,overtime pay, night shift differential, merit increases, and Early RetirementIncentive Prcqrarns (ERIPs), taking into consideration prevailing practices in thepnvate sccto- and the principles provided III the CPCS and in this Order.

SEC. 4, Funding and Implementation Implementation of tilecompensatron adjustments shall depend on the financial capability of the GOCCand their corporate operating budget (COB) as approved by the GCG and thoseapproved by the Department of Budget and Manaqernent (DBM) for entitlesrocervmo allocations or subsidies trorn the [\Jatiollal Government

as:

-SEC_ 5. Non-Diminution of Authorized Salaries. - III the implementation of

the CPC~;, there shall be no diminution in the authorized salaries as of 31Der:emller 201 ~ Ior incumbent officers and employees

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SEC. 6. Additional Incentives Outside the CPCS. - Pursuant to Section '10nf I~ 1\ No 10149, lhe GCG may recommend for the President's approval,mccnuve.. outside of the CPCS for certain position titles in consideration of the goodperformance of the'! GOCe Provic/ccJ, That no incentives shall be granted unless theGOCC Il;:1Sfully paid ;:111taxes for which il is liable, and the GOCC has declared andjJrilci ;:-111IIle dividends required 10 be paid under its charter or any other law

SE:c. 7, Early Retirement Incentive Plan (ER/P). - All Officers andr::mploy8e~, covered by the CPCS who voluntarily elect to be retired 01' rnay beseparated from [he service, as part of Ihe performance by GCG of Its mandateuncler Section 5(Cl) of R.A 1\10 10149 to rationalize, reorganize, merge, orrcstruct.uc ~l GOCC, shall be qranted the following early retirement incentive 1!7

ar/c/itioll 10 rotrrornen: or separation benefits under existing laws- --- ~,~-.-~~- -.----'----~-

RatesGovernment Service·I~---------,- ~- ~--,

First 20 years.- ~.----.--~-- --- --,-~

20 years and 1 day to 30 years- -- --- .-------~---- --~

30 years and 1 day and above"--- -- - ---- --- --.------

'BaSIC MOfl/llly Pay (BMP)

100 X BMpk X No of years-----,

1.25 x BMFJ X No. of years------

150 x BMP x No. of years

SEC. 8, Transitory Provision - Notwithstanding the effectivity of the cpes,ellI GOCCs that have not been subjected to rationalization or reorganization andthose covered by pcndlllg recommendations from the GCG for abolition,dis solutiori, or privatization, shall maintain their current compensation framework.

SEC. 9. Repeal - All orders, circulars, issuances, board resolutions, rulesand regulations or parts thereof which are inconsistent with the provisions of thisOrder are hereby repealed m modified accordinqly.

SEC, 10, Separability Clause. - If any provision of this Order is declaredinvalid or unconstitutional, the other provisions not affected thereby shall remainvalid .ind subsistinq.

SEC. '1'1. Effcctivity. - This Order shall talee effect immediately uponpublicauon in Cl newspaper of general circulation

DONE, ttl the Cily of Manila, this __22nd __ day ofYCc-llof our l.ord Two Thousand and Sixteen.

Morch , In the

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