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PIA Press Release

DBM issues guidelines for 10%-salary adjustment for local gov't personnel

Tacloban City (June 23) -- In view of the issuance of Executive Order No. 611 dated March 19, 2007, Department of Budget and Management Secretary Rolando Andaya Jr. has issued on June 18, 2007 Local Budget Circular No. 86 setting up the rules and regulations for the grant of ten percent salary adjustment to local government personnel effective July 1, 2007.

Executive Order No. 611 signed by President Gloria Macapagal Arroyo provided among others, for a ten percent salary adjustment over the monthly basic salaries as of June 30, 2007 of civilian government personnel effective July 1, 2007.

Local Budget Circular No. 86 is addressed to all provincial governors, city and municipal mayors. Barangay chairpersons, provincial/city/municipal and barangay sanggunian members, regional directors of the Department of Interior and Local Government, Department of Finance, and Department of Budget and Management, provincial/city/municipal treasurers, budget officers/auditors and other officials concerned.

Covered by the Circular are all authorized permanent, contractual, casual positions, appointive or elective, ion full-0time or part-time basis, now existing or hereinafter created in local government units.

Not covered are consultants and experts hired by LGUs for a limited period to perform specific activities or services with expected outputs; student laborers and apprentices, laborers hired as part of a job contract, those paid on piecework bases and those whose services are hired without employee-employer relationship and funded from MOOE appropriations.

DBM has prepared salary schedules appropriate for the Local Government Unitís income classes, which have been sent to the local government units as annexes to the circular. If the present monthly salary as of June 30 already exceeds the salary corresponding to the salary grade in the new salary schedule, he is no longer entitled to the ten percent salary adjustment. The employee will continue to receive such excess which is referred to as Transition Allowance.

The amounts necessary to implement the ten percent salary adjustment shall be sourced exclusively from the funds of the concerned LGU.

DBM advised the concerned officials to study and be guided accordingly by the circular. Any querry or clarifications may be directed to the Department of Budget and Management Regional Office. (PIA 8) [top]

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