Manual on PCC Chapter 9

8/10/2019 Manual on PCC Chapter 9

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Chapter 9

Position Classification and Compensation Scheme inLocal Government Units

9.1

Historical Background

9.1.1 Before Presidential Decree (PD) No. 1136

Local governments are political units composed of provinces,cities, municipalities and barangays. They have long beenexisting with their own legislative bodies which are endowed withspecific powers as defined in the Revised Administrative Code andindividual local government unit (LGU) charters. These locallegislative bodies were then called provincial boards in the case of

provinces, city councils in cities and municipal councils inmunicipalities. These local legislative bodies were vested with thepower to determine the number of employees that each officeshould have and to fix their salary rates as agreed upon by themajority. In exercising such power, however, there were nospecific guidelines nor definite standards used in the creation ofpositions and the fixing of salaries. Position titles were notdescriptive nor reflective of the duties and responsibilities of thepositions and salaries were fixed arbitrarily. For local officials,however, laws such as Republic Act (RA) No. 268 as amended,and RA No. 4477 were passed by Congress fixing the salaries of

municipal, provincial and city officials. These salary laws createda wide gap between the salaries of rank-and-file employees andthe officials.

9.1.2 PD No. 1136

Cognizant of the need for a more effective local governmentpersonnel administration, PD No. 1136, The Local GovernmentPersonnel Administration and Compensation Plans Decree of1977, was promulgated on May 5, 1977. Its salient features areas follows:

9.1.2.1 The creation of the Joint Commission on LocalGovernment Personnel Administration (JCLGPA) toformulate policies on local government personneladministration, position classification and payadministration; and to implement the provisions of PDNo. 1136;


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9.1.2.2 The adoption by LGUs of rational personnel policy andposition classification and compensation plans, basedon the principle of equal pay for substantially equalwork, and to recognize differences in pay arising fromsubstantive differences in duties and responsibilities and

qualification requirements; and

9.1.2.3 The maximum salary rates for provincial, city andmunicipal officials by equating them to CESO ranks.

9.1.3 RA No. 6758

In pursuance of the Constitutional mandate for the adoption of aunified Position Classification and Compensation System (PCCS) inthe government, RA No. 6758, the Compensation and Position

Classification Act of 1989 popularly known as the SalaryStandardization Law, includes LGUs under its coverage.

Section 10, RA No. 6758, provides that the rates of pay shall bedetermined on the basis of the class and financial capability ofeach LGU. Such rates of pay shall not exceed the followingpercentages of the rates of the salary schedule prescribed underSection 7 of the Act:

For Provinces/Cities For Municipalities

Special Cities 100%1stClass 100% 90%2ndClass 95% 85%3rdClass 90% 80%4thClass 85% 75%5thClass 80% 70%6thClass 75% 65%

9.1.4

RA No. 7160

To enable LGUs to attain their fullest development as self-reliant

entities and make them more effective partners in the attainmentof national goals, RA No. 7160, the Local Government Code of1991, was enacted. The pertinent provisions of the Code are asfollows:

9.1.4.1 The personnel, records, equipment and other assets ofthe abolished JCLGPA shall be transferred to theappropriate office in the Civil Service Commission(CSC).


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9.1.4.2 Every LGU shall design and implement its ownorganizational structure and staffing pattern taking intoconsideration its service requirements and financialcapability, but subject to the minimum standards andguidelines prescribed by the CSC.

9.1.4.3 Pursuant to Section 81, RA No. 7160, the compensationof local government officials and employees shall bedetermined by the sanggunian concerned providedthat:

9.1.4.3.1 The increase in compensation of electivelocal government officials shall take effectonly after the terms of office of thoseapproving such increase shall have expired;

9.1.4.3.2 The increase in compensation of theappointive officials and employees shall takeeffect as provided in the ordinanceauthorizing such increase;

9.1.4.3.3 Said increase shall not exceed thepercentage limitation for personal services;and

9.1.4.3.4 Such compensation may be based upon the

pertinent provisions of RA No. 6758.

9.1.4.4 The local sanggunian is empowered to determine thepositions, salaries and wages, allowances and otherbenefits of officials and employees paid wholly ormainly from local government funds.

9.1.4.5 If the finances of LGUs allow, the local sanggunian mayprovide for additional allowances and other benefits to

judges, prosecutors, public elementary and high schoolteachers and other national government officials

stationed in or assigned in LGUs.

9.1.5

Administrative Order (AO) No. 42

9.1.5.1 Realizing the need to address issues on positionclassification and compensation in LGUs in view of theprovisions of RA No. 7160, and to effectively enforcethe provisions of the Constitution and fully rationalizethe standardization of compensation in thegovernment particularly in LGUs, AO No. 42 was issued


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by the President on March 3, 1993, to reiterate theprovision of RA No. 6758 that the Department ofBudget and Management (DBM) shall be the

Administrator of the unified Position Classification andCompensation System of the government and as such

shall undertake the following:

9.1.5.1.1 Provide guidelines on the classification oflocal government positions and on thespecific rates of pay therefor;

9.1.5.1.2 Provide criteria and guidelines for the grantof all allowances and additional forms ofcompensation to local governmentemployees;

9.1.5.1.3 Advise and assist LGUs on matters ofposition classification and compensation oflocal government personnel; and

9.1.5.1.4 Provide technical expertise in the training oflocal government personnel to enable themto administer and maintain thecompensation and position classificationsystem.

9.1.5.2 The issuance of this clarificatory order was anchored onthe following:

9.1.5.2.1 The abolition of the JCLGPA pursuant toSection 77, RA No. 7160, and the transferof all its personnel, records, equipment andother assets to the CSC;

9.1.5.2.2 The inability of RA No. 7160 to specificallyprovide for the transfer of the respective

functions of the member agencies of theJCLGPA;

9.1.5.2.3 Section 325 (b) of RA No. 7160 states that:"No official or employee shall be entitled toa salary rate higher than the maximumfixed for his position or other positions ofequivalent rank by applicable laws, rulesand regulations issued thereunder;


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9.1.5.2.4 The only applicable law that governs theCompensation and Position ClassificationSystem in the government is RA No. 6758which is administered by the DBM asmandated; and

9.1.5.2.5 The Compensation and PositionClassification System established inpursuance of the Constitutional mandatecovers all national and local governmentpositions, appointive or elective, on full-timeor part-time basis now existing or hereaftercreated.

9.1.6 Joint Senate and House of Representatives Resolution No.

01, Adopted on March 3, 1994

Under said Joint Resolution approved by the President on March7, 1994, LGUs other than special and 1stclass cities and provincesmay adopt the salary schedules for higher class LGUs, providedthat the salary schedules adopted shall be uniformly applied to allpositions in the said LGUs, subject to certain conditions.

9.2 The Position Classification Scheme for LGUs

Like the positions in the national government covered by RA No. 6758,positions in LGUs are classified based on duties and responsibilities andthe pertinent rules, regulations and procedures on position classificationprovided under Chapter 2 of this Manual.

9.2.1 Position Classification Guide In classifying positions, LGUsshall be guided by the following:

9.2.1.1

Index of Occupational Services, Position Titles, andSalary Grades (IOS) in the Local Government This is adocument listing the different occupational services,

occupational groups, series of classes and classes ofpositions existing in LGUs. It also shows the salarygrade assignment of each class of positions.

9.2.1.2

Class Specification This is a detailed description of aclass of positions. It serves as standard or guide forallocating positions to their proper classes. A moredetailed discussion on class specifications is found inChapter 2 of this Manual.


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9.2.1.3 Salary Grade Allocation of Elective Officials - RA Nos.6758 and 7160 and their implementing rules andregulations provide the salary grade allocations ofelective officials in LGUs that correspond to specificsalary rates in the salary schedules prescribed for LGUs.

9.2.1.3.1 Elective Officials of Provinces

PositionSalaryGrade

Provincial Governor 30

Provincial Vice-Governor 28

Sangguniang Panlalawigan Member 27

9.2.1.3.2 Elective Officials of Cities

Special Cities (Manila and Quezon City) andHighly Urbanized Cities

PositionSalaryGrade

City Mayor 30

City Vice Mayor II 28

Sangguniang Panlungsod Member II 27

Component Cities

PositionSalaryGrade

City Mayor 30

City Vice Mayor I 26

Sangguniang Panlungsod Member I 25

9.2.1.3.3

Elective Officials of Municipalities

Within Metropolitan Manila


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PositionSalaryGrade

Municipal Mayor II 28

Municipal Vice Mayor II 26

Sangguniang Bayan Member II 25

Outside Metropolitan Manila

PositionSalaryGrade

Municipal Mayor I 27

Municipal Vice Mayor I 25

Sangguniang Bayan Member I 24

9.2.1.4 Salary Grade Allocation of Appointive Officials RA No.6758 and its implementing rules and regulationsprovide the salary grade allocation of appointiveofficials in LGUs that corresponds to a specific salaryrate in the salary schedule prescribed for LGUs.

9.2.1.4.1

Appointive Officials of Provinces

PositionSalaryGrade

Provincial Government Department Head 26

Provincial Government AssistantDepartment Head

24

9.2.1.4.2

Appointive Officials of Cities

Special Cities (Manila and Quezon City)

PositionSalaryGrade

City Government Department Head III 27

City Government Office Head 26


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City Government Assistant DepartmentHead III

25

Highly Urbanized Cities/Other

Metropolitan Manila Cities

PositionSalaryGrade

City Government Department Head II 26

City Government Assistant DepartmentHead II

24

Component Cities

PositionSalaryGrade

City Government Department Head I 25

City Government Assistant DepartmentHead I

23

9.2.1.4.3 Appointive Officials of Municipalities

Within Metropolitan Manila

PositionSalaryGrade

Municipal Government Department HeadII

25

Municipal Government AssistantDepartment Head II

23

Outside Metropolitan Manila

PositionSalaryGrade

Municipal Government Department Head I 24

Municipal Government AssistantDepartment Head I

22


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9.2.1.5 Other Positions The highest position below the rankof an assistant department head may be allocated inaccordance with the following standard leveling ofpositions based on the level and income class of theLGU:

LocalGovernment Unit

Highest Positions Below theAssistant Department Heads

Provinces SG-22, examples: Licensing OfficerIV, Project Development Officer IV

Special Cities SG-24, examples: Licensing OfficerV, Project Development Officer V

Highly UrbanizedCities

SG-22, examples: Licensing OfficerIV, Project Development Officer IV

Component Cities SG-22, examples: Licensing OfficerIV, Project Development Officer IV

1stto 3rdClassMunicipalities

SG-18 to 19, examples: LicensingOfficer III, SG-18, and Engineer III,SG-19

4thto 6thClassMunicipalities

SG-14 to 16, examples: RegistrationOfficer II, SG-14, ProjectDevelopment Officer II, SG-15, andDentist II, SG-16

N.B.

The position titles of the positions below the AssistantDepartment Heads must be in accordance with theIndex of Occupational Services, Position Titles andSalary Grades (IOS) in the Local Government issuedunder Local Budget Circular No. 61 dated March 18,

1996.

9.2.1.6 Other Positions Assigned to LGU Officials Theclassification of Private Secretary, Executive Assistantand Driver positions is dependent on the level/rank ofthe position they serve. Per established standards, theallowable level of these positions for the said officialsare as follows:


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LocalExecutive

Private Secretary Executive Assistant Driver

ProvincialGovernor

Private Secretary II,SG-15

Executive AssistantIV, SG-22

DriverII, SG-4

ProvincialVice-Governor

Private Secretary I,SG-11

Executive AssistantII, SG-17

Driver I,SG-3

City Mayor Private Secretary II,SG-15

Executive AssistantIV, SG-22

DriverII, SG-4

City ViceMayor



Driver I,SG-3

MunicipalMayor

Private Secretary II,SG-15


DriverII, SG-4

MunicipalVice Mayor


Executive AssistantI, SG-14

Driver I,SG-3

Pursuant to Budget Circular No. 2004-3, dated March 6,2004, however, the following positions were retitled asfollows:

From To

Private Secretary I, SG-11 Administrative Assistant V, SG-11

Private Secretary II, SG-15 Senior Administrative Assistant III,SG-15

Driver I, SG-3 Administrative Aide III, SG-3Driver II, SG-4 Administrative Aide IV, SG-4

9.2.1.7 Heads of Administrative/Support Units Generally,there shall be only one (1) administrative unit in a LGUand this is placed under the Office of the Local ChiefExecutive. If found necessary, administrative supportunits in other departments of the LGU may be allowed.

The head of these satellite units should be classifiedone (1) rank lower than the head of the administrativemother unit.

9.2.1.8 Municipal Health Officers (MHOs) and Rural HealthPhysicians (RHPs) The MHO as a mandatory positionis the municipal department head in charge offormulating and implementing the health and medicalprograms for the whole municipality. It assumessupervision, coordination and monitoring of rural health


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units (RHUs) within the municipality. The RHP isordinarily in charge of a small medical team of healthservice personnel assigned in a RHU which renderspreventive and medical services in specific area ofassignment within the municipality, usually consisting ofat least one (1) barangay. Notwithstanding that theRHP pursuant to RA No. 7305 is given the same salarygrade as the MHO, the MHO has ascendancy over theRHP in the hierarchical ranking of positions in LGUs.

9.2.1.9 Changes in Nomenclature of Positions - In line withSection 325 (f) of RA No. 7160, changes in designationor nomenclature of positions resulting in promotion ordemotion in ranks or increase or decrease incompensation shall not be allowed, except when the

positions are actually vacant.

9.2.2 Creation of New Positions/Offices - Creation of newpositions in LGUs may be allowed subject to the followingconditions that:

9.2.2.1 All the mandatory positions listed under RA No. 7160have been created and provided for;

9.2.2.2 The Salary Standardization Law has been fullyimplemented;

9.2.2.3

The absorption of national government personnel byLGUs on account of the devolution of functions hasbeen fully effected;

9.2.2.4 The general limitations on personal servicesexpenditures are not exceeded;

9.2.2.5

The classification of the positions should be consistentwith the standards and implementing rules and

regulations of RA No. 6758;

9.2.2.6 The creation of new positions or offices is subject to theconditions prescribed under Civil Service CommissionMemorandum Circular No. 19, s. 1992; and

9.2.2.7 The classification of the heads of new offices shall bedependent on the level of the organizational structureof the new offices. If the new office is considered adepartment, the head shall be classified as Department


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Head. If lower than a department but higher than adivision, the head shall be classified as AssistantDepartment Head.

9.2.3 Creation of a New Class of Positions A proposal to create a

new class of positions not found in the IOS for Local Governmentshall be submitted to the DBM for approval together with thefollowing documents/information:

9.2.3.1 Justification for the creation of the new class;

9.2.3.2 Duly accomplished Position Description Form; and

9.2.3.3 Structural, functional and position charts.

9.3 The Compensation Scheme for LGUs

9.3.1 Basic Salaries

The salary rates of positions in LGUs shall be based on theirincome classifications as determined by the Department ofFinance (DOF), and their financial capabilities. These ratesshall conform with the percentages of the rates in the SalarySchedule prescribed for national government personnel pursuantto Section 7, RA No. 6758, and are indicated in item 9.1.3 of thisChapter.

9.3.1.1 Salary Schedule (SS) - The SS consists of 30 salarygrades for provinces and cities and 27 formunicipalities. Each salary grade in the SS has 8 salarysteps to provide for the hiring rate and incentive forlength of service in the position. There are 8 salaryschedules for LGUs with each salary schedulecorresponding to a specific income class of a LGU.

A - Special Cities and First Class Provinces and

CitiesB - Second Class Provinces and CitiesC - Third Class Provinces and Cities and First

Class MunicipalitiesD - Fourth Class Provinces and Cities and

Second Class MunicipalitiesE - Fifth Class Provinces and Cities and Third

Class MunicipalitiesF - Sixth Class Provinces and Cities and Fourth

Class Municipalities


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G - Fifth Class MunicipalitiesH - Sixth Class Municipalities

9.3.2Adoption of Higher Salary Schedule

To minimize disparity in pay between the devolved personnel ofnational government agencies and the organic personnel of theLGU and pursuant to Joint Senate and House of RepresentativesResolution No. 1, s. 1994, LGUs lower than Special Cities and FirstClass Provinces and Cities may adopt the salary schedule forhigher class LGUs.

9.3.2.1 The following conditions/limitations shall be observed inadopting a higher salary schedule:

9.3.2.1.1

That the LGU must first implement fully theprescribed salary schedule for its incomeclass and assure sustainability before it canexercise the option to adopt a higher salaryschedule;

9.3.2.1.2 That the LGU is financially capable;

9.3.2.1.3 That the salary schedule to be adopted shallbe uniformly applied to all positions in theLGU concerned;

9.3.2.1.4

That the salary grade allocation of positionsand the salary steps of personnel shall beretained;

9.3.2.1.5 That the difference arising from theadoption of the higher salary schedule shallbe subject to the budgetary and generallimitations on personal servicesexpenditures mandated under Sections 324

and 325 of RA No. 7160 as implemented byLocal Budget Circular (LBC) No. 75 datedJuly 12, 2002;

9.3.2.1.6 That in the case of component cities andmunicipalities, the salary schedule to beadopted shall not be higher than that of theprovince where they belong;


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9.3.2.1.7 That the adoption of a higher salary scheduleshall not in any manner alter the existingincome classification of the LGU concerned;and

9.3.2.1.8

That the following mandatories or activitieshave been fully provided for:

Statutory and contractual obligations ofthe LGU;

Continued implementation of RA No.6758;

Creation of mandatory positions;

Absorption of devolved positions; and

Payment of the Magna Carta benefits of

public health workers pursuant to theprovisions of RA No. 7305.

9.3.2.2 A LGU which has adopted a higher salary schedule asauthorized and which cannot afford to sustain suchschedule, may revert to the prescribed or lower salaryschedule.

For instance, a municipal government of a 4th classmunicipality which adopted the salary schedule for a 1stclass municipality may revert to the salary schedule fora 2ndclass municipality.

To maintain the integrity and consistency of the PayPlan the following rules shall apply in reverting to theprescribed/lower salary schedule:

9.3.2.2.1 No personnel whose salaries have beenadjusted based on the higher salaryschedule shall suffer diminution in pay as aresult thereof.

9.3.2.2.2

For new hirees/appointees, their salariesshall be at the hiring rates of their positionsbased on the prescribed/lower salaryschedule.


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9.3.3 Step Increments

The rules and regulations on step increments as discussed underChapter 3 of this Manual also apply to LGUs. However, in case aLGU reverts to the prescribed or lower salary schedule, the

following rules on step increment shall be observed:

9.3.3.1 Notwithstanding the actual salary rate of the employeebased on the higher salary schedule, his/her stepincrement after reversion to the prescribed or lowersalary schedule shall be based on the years of service inthe position. Thus, an employee with 6 years of servicein the position shall be at the third step regardless ofhis/her higher salary rate. To illustrate: A PlanningOfficer I, SG-11, with six years of service in the

position in a municipal government of a 4th

classmunicipality which adopted the salary schedule for a 1stclass municipality later reverted to the salary schedulefor a 2ndclass municipality:

4thClass Adopted 1stClassReverted to

2ndClass

P8,3013rdstep

P9,9613rdstep

P9,961 *3rdstep

* same salary rate due to no diminution in pay policy

Upon serving 9 years in the position, he/she will beentitled to the salary corresponding to the 4thstep, butwill not receive any adjustment in pay since his/heractual salary is still higher than the 4thstep. This shallcontinue until such time that his/her salary rateequalizes the prescribed rate for his/her step in thesalary schedule being implemented by the LGU. Thisrule is also applicable to municipalities converted to

cities with lower salary schedules.

9.3.4

Other Compensation, Allowances and Benefits

The following other compensation, allowances and benefitsauthorized for national government personnel are likewisegranted to local government personnel subject to the criteria,rules and regulations issued for the purpose as discussed underChapter 3 of this Manual and to the additional rules applicableonly to LGUs:


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9.3.4.1 Representation and Transportation Allowances

9.3.4.1.1 The following LGU officials are entitled torepresentation and transportation

allowances (RATA) based on the rates andconditions indicated in the annual General

Appropriations Act (GAA):

Provincial Governors and City/MunicipalMayors;

Provincial Vice-Governors, City/MunicipalVice Mayors;

Members of the SangguniangPanlalawigan/ Panlungsod/ Bayan;

Local Government Department Headsand their equivalents;

Local Government Assistant DepartmentHeads and their equivalents; and

Division Chiefs (for Special Cities only).

The equivalent ranks of LGU officials tonational government officials entitled toRATA under the GAA are indicated in Annex

A of this Chapter. The maximum rates foreach type of allowance shall be based onthe percentage application of the RATArates for national government officialsindicated in Annex A.

9.3.4.1.2 RATA for Personnel Devolved to LGUsPursuant to RA No. 7160

Municipal Agricultural Officers (MAOs)

The MAO position is not entitled to

RATA since it is neither aDepartment Head nor an AssistantDepartment Head. However, inline with the no-diminution-in-payprovision of Executive Order (EO)


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No. 503 dated January 22, 1992,the devolved MAOs shall continueto receive the total monthly RATAin the amount of P2,200 they havebeen receiving as of thedevolution.

A devolved MAO appointed to the

optional local position of MunicipalAgriculturist (MA) shall be entitledto the RATA for a Department Heador Assistant Department Head asthe case may be in a particularLGU.

A new appointee to the MAOpsition shall no longer be entitledto RATA.

Social Welfare Officers (SWOs)

The devolved SWOs inmunicipalities are not entitled toRATA. However, when thedevolved SWO is appointed to theoptional local position of MunicipalSocial Welfare and DevelopmentOfficer (MSWDO), he/she shall beentitled to the RATA for aDepartment Head or AssistantDepartment Head as the case maybe in a particular LGU.

Rural Health Physicians (RHPs)

RHPs, whether devolved or

appointed, shall be entitled tomonthly RATA of P2,200 pursuantto RA No. 7305 or the Magna Cartaof Public Health Workers.

A RHP who is appointed to themandatory department headposition of Municipal Health Officer(MHO) is entitled to the RATA for a


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Department Head in a particularLGU.

9.3.4.2 Personnel Economic Relief Allowance

9.3.4.2.1 The rates of Personnel Economic ReliefAllowance (PERA) for all appointive LGUpersonnel under permanent, temporary,contractual, casual, substitute or emergencystatus, shall be a percentage of the PERAat P500 per month based on the incomeclassification of the LGU, as follows:

Class Provinces/Cities Municipalities

Special Cities 100%

1st Class 100% 90%

2nd Class 90% 80%3rd Class 90% 80%

4th Class 80% 70%

5th Class 80% 70%

6th Class 80% 70%

9.3.4.2.2 In the event that a LGU has no sufficientfund for the purpose, the grant of thesame may be partial but uniform for allpositions in the LGU.

9.3.4.2.3

However, LGUs which can afford to payhigher than the rates authorized in theabove schedule for their particular incomeclasses are allowed to do so, at ratesuniformly applied to all their respectivepersonnel, but not exceeding P500 permonth.

9.3.4.2.4 Elective officials are not granted the PERAsince they are not among those covered bythe grant thereof pursuant to the pertinentgeneral provision in the annual General

Appropriations Act.

9.3.4.3 Additional Compensation

9.3.4.3.1

The rules and regulations relative to thegrant of additional compensation (ADCOM)at P1,500 per month to nationalgovernment personnel provided under


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Chapter 3 of this Manual likewise apply toLGU personnel.

9.3.4.3.2 The grant of ADCOM covers all officials andemployees of LGUs.

9.3.4.3.3 Payment thereof is subject to availability oflocal government funds.

9.3.4.3.4

In the event that a LGU has no sufficientfund for the purpose, the grant of the samemaybe partial but uniform for all positionsin the LGU.

9.3.4.4 Year-End Bonus and Cash Gift

The rules and regulations on the grant of the year-endbonus and cash gift to national government personnelunder Chapter 3 of this Manual are also applicable tosalaried local government personnel.

Item 3.9.6.3.7 of said Chapter also provides the rulesand regulations on the grant of cash gifts to barangayofficials who are paid honoraria.

9.3.4.5 Honoraria

9.3.4.5.1

Honoraria for Barangay Volunteer FrontlineWorkers

The rules and regulations on the grant ofhonoraria to Barangay Frontline Workersare as follows:

The honoraria for Day Care Workersshall not exceed the minimum salary

rate of SG-6 of the salary schedulebeing implemented by the LGUconcerned.

The honoraria for Barangay Health

Aides/Workers (including BarangayNutrition Scholars, Barangay HealthWorkers and other volunteer workersof similar nature) shall not exceed theminimum salary rate of SG-4 of the


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salary schedule being implemented bythe LGU concerned.

A Barangay Health Worker whosimultaneously serves as a Barangay

Nutrition Scholar may be granted thehonorarium as Barangay HealthWorker or as Barangay NutritionScholar which is more advantageous tohim/her, but not to both honoraria.

The grant of honoraria shall be subjectto the following conditions:

That the volunteer worker is

actively performing his/herfunctions relative to theimplementation of assignedprograms and projects in thebarangay;

That the volunteer workerconcerned has undergone thenecessary skills and capabilitytraining which is duly recognized byappropriate authority or body either

in the national or local level;

That the grant of honoraria shall becharged against barangay funds.However, this does not precludehigher local governments toundertake projects in the barangaywhich may include payment ofhonoraria to its volunteer workerscharged from their funds;

That the amount of honoraria shallnot equal nor exceed thosereceived by the barangay officials.In case these officials are receivingthe aforestated minimum salaryrates, the allowable honoraria forvolunteer frontline workers shouldbe adjusted accordingly so as tomaintain a reasonable pay gap with


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the lowest paid barangay official;and

That the grant of honoraria shall besubject to availability of funds,and budgetary limitation onpersonal services under RA No.7160.

9.3.4.5.2 Honoraria for Barangay Human RightsAction Officers (BHRAOs)

The BHRAO implements the BarangayHuman Rights Action Program of theCommission on Human Rights which isaimed to promote and protect human rights

in the grassroots level. Each BarangayHuman Rights Action Center (BHRAC)serves as the center for complaints andadvocacy on human rights in a barangay. Abarangay is limited to one BHRAO.

All officially designated BHRAOs maybe granted honoraria at rates notexceeding P1,000 each per monthsubject to the following conditions:

That the BHRAO concerned is dulyrecognized by the BHRAC NationalSecretariat;

That the BHRAO has satisfactorilyundergone the skills capabilitytraining of the Commission onHuman Rights;

That the BHRAO concerned is

actively performing his/herfunctions relative to thepromotion and protection of humanrights in his/her community;

That the grant of honoraria shall becharged against barangay funds,subject to the discretion of thebarangay concerned after taking


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Health Workers) have been fullyprovided for in the budget;

That the LGU has fully implementedthe devolution of functions/personnelin accordance with RA No. 7160.

That the delivery of basic services andfunctions mandated under RA No.7160 are not jeopardized;

That the grant thereof shall be subjectto a regular review and may bewithdrawn as deemed necessary bythe LGU; and

That the expense shall be presented inthe LGU budget under themaintenance and other operatingexpenses pursuant to item 5.5 of LocalBudget Circular No. 75 dated July 12,2002.

9.3.4.6 Anniversary Bonus

The rules and regulations on the grant of anniversarybonus (AB) in the national government under Chapter 3of this Manual are also applicable to LGUs. However,the following additional rules and regulations areapplicable only to LGUs:

9.3.4.6.1

The AB shall be granted only duringmilestone years which refer to the 15thanniversary and to every 5thyear thereafterof the founding of the LGUs;

9.3.4.6.2

The founding year of LGUs shall be asindicated in the authentic documentsshowing their establishment, or in theenabling acts or laws creating suchlocalities;

9.3.4.6.3 The counting of milestone years shall startfrom the year the LGUs were foundedregardless of whether they weresubsequently renamed, reclassified or


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converted from one level to another, suchas barangay to municipality, municipality tocity;

9.3.4.6.4 The counting of the milestone years of an

LGU which was created by law out of thesplit of an LGU and became a distinct andseparate LGU shall begin from the time ofthe LGUs separation/splitting or creation asa separate entity; and

9.3.4.6.5 The counting of milestone years of mergedLGUs shall reckon from the date they weremerged.

9.3.4.7

Free Quarters

Provincial Governors and Provincial Vice-Governors whohave no residences within 50-kilometer radius from theprovincial capitol may be allowed free quarters, subjectto the following guidelines:

9.3.4.7.1 LGUs may provide free quarters within theiroffice premises to the officials concernedwho have no residences within 50-kilometerradius from the provincial capitol.

9.3.4.7.2 Where there is not enough space to beused as quarters, the LGU may rent housesor rooms which shall serve as quarters atreasonable rates based on the prevailingcost of rental in the area or locality asdetermined under Chapter 4 of the Manualof Building Services and Real PropertyManagement issued under Joint DBM,DENR and DPWH Circular No. 1, dated

September 30, 1989, provided that suchrates shall not exceed 25% of their monthlybasic salaries, and subject to the following:

9.3.4.7.2.1

The rental contract shall beentered into by and betweenthe LGU concerned and theowners of the dwelling units;and the rental payments shallbe paid to the latter and not


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commuted in favor of theofficials concerned.

9.3.4.7.2.2 Said rates shall be inclusive ofthe amount for telephone,water and electric bills, whichshall likewise be paid directlyto the utility companies.

9.3.4.7.2.3

Those who desire moreexpensive/extensive quartersother than those rented by theLGUs may secure suchpreferred quarters, providedthat the difference between

the rental cost and theamount authorized thereforshall be paid by the former.

9.3.4.7.3 Provision of free quarters outside of the 50-kilometer radius from the provincial capitol,such as in Metropolitan Manila, shall not beallowed.

9.3.4.7.4 The amount necessary for the provision offree quarters to the Provincial Governor and

Provincial Vice-Governor shall be chargedagainst the respective LGU funds.

9.3.4.8 Other Compensation, Allowances and Benefits

9.3.4.8.1 The pertinent rules and regulations on thefollowing other compensation, allowancesand benefits provided under Chapter 3 ofthis Manual are also applicable to LGUpersonnel:

Productivity Incentive Benefits;

Uniform/Clothing Allowance;

Overtime Pay;

Night Shift Differential Pay;

Subsistence Allowance; and


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Laundry Allowance.

Their grants are subject to the personalservices limitation under RA No. 7160.

9.3.4.8.2 The rules and regulations on travelallowance/expenses provided under Chapter3 of this Manual are also applicable to LGUpersonnel.

9.3.4.9 Compensation for Local Government PersonnelDesignated to Fill Temporary Vacancies

The following rules shall apply relative to the payment

of compensation to officials and employees designatedby competent authority to fill temporary vacancies asauthorized under RA No. 7160.

9.3.4.9.1 An official or employee in an LGU otherthan a special city, designated bycompetent authority on a concurrentcapacity to a position lower than AssistantDepartment Head but nevertheless heads aspecific area of responsibility like divisionchief in provinces and cities, or section

chiefs in municipalities, may be allowedhonoraria at the rate not exceeding P1,000per month in provinces and cities, P800 permonth in municipalities belonging to 1st to3rdclass and P600 per month for lower than3rd class.

9.3.4.9.2 An official or employee not entitled to RATAin his/her permanent position, designatedby competent authority on a concurrent

capacity to a position entitled to RATA, maybe granted the RATA, provided it is sospecified in the order of designation, orhonorarium at a rate not exceeding the rateof RATA for the position where designated.

9.3.4.9.3 An official or employee entitled to RATA inhis/her permanent position designated bycompetent authority on a concurrentcapacity to a higher position with higher


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rate of RATA may be entitled to thedifference between the RATA of the twopositions, or honorarium authorized underitem 9.3.4.9.1, whichever is higher.

9.3.4.9.4

An official or employee entitled to RATAdesignated by competent authority to alateral position in a concurrent capacity forone full calendar month or more may bepaid honorarium at the rate prescribed initem 9.3.4.9.1.

9.3.4.10Compensation for Members of Local RegulatoryBoards/Quasi-Judicial Bodies and Similar Bodiesin LGUs

The following rules shall apply on the payment ofcompensation to members of local regulatory boards/quasi-judicial bodies and similar bodies in LGUs:

9.3.4.10.1

A member of a local regulatory and quasi-judicial body, e.g., Peoples LawEnforcement Board (PLEB), MiningRegulatory Board (MRB) or similar bodycreated pursuant to a law or Presidentialauthority shall be compensated in the form

of per diem at a rate not exceeding P1,000per meeting/session actually attended butnot to exceed 4 paid sessions or P4,000 permonth.

9.3.4.10.2 Each administrative support staff renderingservices to a board/body may becompensated in the form of honoraria notexceeding P200 per session but not toexceed 4 paid sessions or P800 per month.

9.3.4.10.3 The grant of compensation shall be subjectto the following conditions:

That no law bars them from receivingcompensation as members.

That the grant thereof is subject to thebudgetary limitation on personal


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services under Section 325 of RA No.7160, and to availability of funds.

That when the law expressly providesthe rate of compensation, the

pertinent provision of the law shallprevail.

9.3.4.11Compensation for Ex-Officio Members of theLocal Sanggunian

The rules and regulations relative to the compensationfor ex-officio members of the local sanggunian are asfollows:

9.3.4.11.1 Ex-officio members of locallegislativebodiesshallreceivethesamecompensation as thatof their counterpart elective sanggunianofficials.

9.3.4.11.2 The Municipal and City Chapter Presidentsof the Liga ng mga Barangay and thePresidents of the Pederasyon ng mgaSangguniang Kabataan who serve as ex-officio members of the SangguniangBayan/Panlungsod as the case may be

shall receive in full their salaries andallowances from the concerned municipal orcity governments.

9.3.4.11.3 The elected Presidents of the ProvincialChapter of the Liga and the Pederasyonwho sit as ex-officio members of theSangguniang Panlalawigan shall receive infull their salaries and allowances from theconcerned provincial governments.

9.3.4.11.4

The respective Vice-Presidents of the Ligaand the Pederasyon who sit as ex-officiomembers in the SangguniangPanlungsod/Bayan in lieu of the Presidentswho were elevated to the SangguniangPanlalawigan shall receive their full salariesand allowances from the concernedcity/municipal governments.


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9.3.4.11.5 The Presidents of the Provincial Federationof Sanggunian Members of Municipalitiesand Component Cities who sit as ex-officiomembers in the Sanggunian Panlalawiganshall receive their salaries and allowancesfrom the component city or municipalgovernments which they represent. Theprovincial governments shall appropriateonly the difference in the salary andallowances of said officials such that theirtotal compensation shall be equivalent tothe compensation actually being received bytheir elective counterparts in theSangguniang Panlalawigan.

9.3.4.11.6

The Punong Barangay and SK Chairmanwho were elected as Chapter/FederationPresidents and therefore sit as ex-officiomembers in the SangguniangBayan/Panlungsod may collect honoraria aschairman of the barangay and as ex-officiomember of the Sangguniang Barangay atrates not exceeding P1,000 and P600 permonth, respectively, provided that theycontinue to perform their functions in thebarangay.

They shall not be entitled to the honorariaadjustments authorized under Local BudgetNo. 63 and the Christmas bonus from thebarangay government in line with theconstitutional prohibition on the receipt ofdouble compensation.

9.3.4.11.7

In the event that other officials are validlydesignated to perform the functions of the

Punong Barangay and the SangguniangKabataan Chairman in the barangay, thedesignated officials shall be entitled tocollect reimbursable traveling and incidentalexpenses not exceeding P1,000 per monthfor the representative of the PunongBarangay and P600 for the SangguniangKabataan Chairman representative. Saiddesignated officials shall not be entitled toChristmas bonus.


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9.3.4.12Classification of Positions and Compensation forBarangay Personnel

Pursuant to Executive Order No. 332 dated May 16,

1996, barangay government officials are covered by thePosition Classification and Compensation System underRA No. 6758.

The following rules on position classification andcompensation apply to barangay government officials:

9.3.4.12.1 Barangay officials shall be compensated inthe form of honoraria at the minimum rateof P1,000 per month for the Punong

Barangay and P600 each per month forthe Sangguniang Barangay Members,Barangay Secretary, Barangay Treasurerand the Sangguniang Kabataan (SK)Chairman as ex-officio member of theSangguniang Barangay. These minimumrates may be increased to a maximum rateequivalent to the first step of the followingsalary grades of the salary schedule beingimplemented by the city or municipalitywhere the barangay belongs:

SG-14 for the Punong Barangay; and

SG-10 for the Sangguniang BarangayMembers, Barangay Secretary, BarangayTreasurer and the SK Chairman.

9.3.4.12.2 At the discretion of the barangaygovernment and in consideration of itsservice requirement and the 55% limitationon personal services appropriation, other

positions may be created and may becompensated in the form of salaries orhonoraria at rates not exceeding the firststep of the salary grade allocation of thefollowing indicative positions based on thesalary schedule being implemented in thecity/municipality where the barangaybelongs:


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PositionsSalaryGrade

Utility Worker I 1

Clerk I 3

Accounting Clerk I 4

Barangay Health Aide 4

Revenue Collection Clerk I 5

Day Care Worker I 6

Administrative Assistant 8

Pursuant to Budget Circular No. 2004-3dated March 6,2004, however, the above-listed positions have been retitled asfollows:

From To

Utility Worker I, SG-1

Administrative Aide I,SG-1

Clerk I, SG-3 Administrative AideIII, SG-3

Accounting Clerk I,SG-4

Administrative Aide IV,SG-4

AdministrativeAssistant, SG-8

AdministrativeAssistant II, SG-8

9.3.4.12.3 Positions compensated in the form of

salaries shall be allocated to their properposition titles and salary grades inaccordance with the IOS for the LocalGovernment. Position titles not consistentwith the IOS shall be submitted to the DBMfor approval.

9.3.4.12.4 Barangay personnel paid salaries and whosepositions are classified in accordance withRA No. 6758 and issued appointments in


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accordance with the Civil Service law, rulesand regulations may be entitled to thefollowing benefits in accordance with law,rules and regulations pertaining thereto,provided that the total compensation of

concerned employees shall not exceed thecompensation received by the lowestbarangay officials:

Personnel Economic Relief Allowance;

Additional Compensation;

Year-End Bonus and Cash Gift;

Productivity Incentive Benefit; and

Other benefits accruing to regulargovernment employees.

9.3.4.12.5

Barangay Tanods and Members of theLupong Tagapamayapa may be grantedhonoraria, allowances and otheremoluments provided the total amount shallnot exceed the minimum salary rate for SG-1 of the salary schedule being implemented

by the city/municipality where the barangaybelongs and provided further that suchcompensation shall not exceed those of thelowest paid barangay officials.

9.3.4.12.6 A City/Municipal Accountant who keeps andmaintains the financial records of barangaygovernments are not entitled to honorariafrom the latter since such functions are partof their regular functions in the Office of the

City/Municipal Accountant.

9.3.4.12.7

Monetization of Leave Credits of BarangayOfficials

The monetization of the leave credits ofbarangay officials reckoned from theservices they rendered starting April 15,2004, shall be paid by following the rulesand regulations provided under Civil Service


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Commission and Department of Budget andManagement Joint Circular No. 1, s. 2004.

Annex A

EQUIVALENT RANKS OF LOCAL GOVERNMENT OFFICIALS

TO NATIONAL GOVERNMENT OFFICIALS ENTITLED TO RATA

Category LGU/Class% Application

on National

RATA Rates

Department

Secretary,

SG-31

Department

Undersecretary,

SG-30

Department

Assistant

Secretary,

SG-29

Director IV,

SG-28

(Bureau

Director)

Director III,

SG-27 (Assistant

Bureau Director)

Director I, SG-25

(Assistant Bureau

Regional Director)

Division Chief,

SG-24

A Provinces

1stClass

2ndClass

3rdClass

4thClass

5thClass

6

th

Class

100%

95%

90%

85%

80%

75%

Provincial

Governor,

SG-30

Provincial

Vice-

Governor,

SG-28

Sanggunian

Panlalawigan

Member, SG-27

Provincial

Government

Department Head,SG-26

Provincial

Government

Assistant

Department Head,

SG-24

Chief of Hospital

II, SG-25

Chief of Hospital

I, SG-24

B Special Cities

(Manila and

Quezon City

only)

100% City Mayor,

SG-30

City Vice

Mayor II,

SG-28

Sanggunian

Panlungsod

Member II,

SG-27

City

Governmen

t

Department

Head III,

SG-27

City Government

Assistant Department

Head III, SG-25

Division Chief,

SG-24

C Highly

Urbanized

Cities

100% City Mayor,

SG-30

City Vice

Mayor II,

SG-28

Sanggunian

Panlungsod Member

II, SG-27

City Government

Department Head II,SG-26

City Government

Assistant

Department

Head II, SG-24

Chief of Hospital

II, SG-25

Chief of Hospital

I, SG-24

D Component

Cities

1stClass

2ndClass

3rdClass

4thClass

5thClass

6thClass

100%

95%

90%

85%

80%

75%

City Mayor,

SG-30

City Vice

Mayor I,

SG-26

Sanggunian

Panlungsod

Member I, SG-25

City Government

Department

Head I, SG-25

City Government

Assistant

Department

Head I, SG-23

Chief of Hospital

II, SG-25

Chief of Hospital

I, SG-24

E

F

Municipalities

within

Metropolitan

Manila

Municipalities

outside Metro

Manila

1stClass

2ndClass

3rdClass

4thClass

5thClass

6thClass

100%

90%

85%

80%

75%

70%

65%

Municipal

Mayor II,

SG-28

Municipal

Mayor I,

SG-27

Municipal

Vice Mayor II,

SG-26

Municipal

Vice Mayor I,

SG-25

Sangguniang

Bayan Member

II, SG-25

Municipal

Government

Department HeadII, SG-25

Sangguniang

Bayan Member I,

SG-24

Municipal

Government

Department Head I,

SG-24

Municipal

Government

Assistant

Department Head

II, SG-23

Municipal

Government

Assistant

Department Head

I, SG-22

Manual on PCC Chapter 9

Documents

Transcript of Manual on PCC Chapter 9