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RMC No. 77-2017: Publishes the full text of Executive Order (EO) No. 36, entitled “Suspending the Compensation and Position Classification System Under EO No. 203 (S. 2016), Providing for Interim Compensation Adjustments, and for Other Purposes”

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Summary

RMC No. 77-2017, issued on September 26, 2017, publishes the full text of Executive Order (EO) No. 36, which suspends the Compensation and Position Classification System under EO No. 203 (S. 2016) and provides interim compensation adjustments.

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Key points

  1. Suspension. The Compensation and Position Classification System (CPCS) and Index of Occupational Services (IOS) for the GOCC sector under EO No. 203 are suspended.
  2. GOCCs under the SSL. GOCCs covered by the Salary Standardization Law adopt the Modified Salary Schedule under EO No. 201 (s. 2016) and its allowances and benefits, upon approval by the Governance Commission for GOCCs (GCG). GOCCs with insufficient funds implement it partially, at a uniform percentage across all positions.
  3. SSL-exempt GOCCs. These GOCCs may keep their current compensation framework or, with GCG approval, adopt the Modified Salary Schedule under EO No. 201. Those that adopt are limited to benefits under Joint Resolution No. 4, and the GCG may convert their framework, for example from Job Grade to Salary Grade.
  4. Bonuses. A Mid-Year bonus of one (1) month basic salary goes to those with at least four (4) months of satisfactory service who are still in service, given not earlier than May 15 each year. The Year-End bonus of one (1) month basic salary and the Cash Gift are given in November, subject to GCG guidelines, and replace similar bonuses and incentives under the current framework.
  5. Limits of the Order. No diminution applies to the authorized salaries of incumbents. Section 2 of EO No. 203 on Collective Bargaining Agreements and Collective Negotiation Agreements is not suspended.

Who is affected

  • GOCCs, Government Financial Institutions, Government Instrumentalities with Corporate Powers and Government Corporate Entities, including subsidiaries, covered by Republic Act No. 10149
  • SSL-covered and SSL-exempt GOCCs

Deadlines and effectivity

  • Effective January 1, 2017, upon GCG approval
  • Mid-Year bonus: not earlier than May 15 each year
  • Year-End bonus and Cash Gift: November each year

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.

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