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REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF BUDGET AND MANAGEMENT
GEN. SOLANO ST., SAN MIGUEL, MANILA

LOCAL BUDGET CIRCULAR No. 113

January 5, 2017

TO All Provincial Governors; City and Municipal Mayors;

Baran gay Chairpersons; Provincial/City/Municipal/Barangay
San ggunian Members; Provincial/City/Municipal Treasurers,
Budget Officers, Human Resource Management Officers; and
Other Officials Concerned

SUBJECT Implementation of the Second Tranche Compensation

Adjustment for Local Government Personnel

1.0 Background

Executive Order (EO) No. 201, s. 2016, entitled "Modifying the Salary Schedule
for Civilian Government Personnel and Authorizing the Grant of Additional Benefits
for Both Civilian and Military and Uniformed Personnel" was signed by the
President in accordance with the authority vested in him under Presidential Decree
(PD) No. 9851, PD No. 15972 , Republic Act (RA) No. 6758, and Congress Joint
Resolution (JR) No. 44 , s. 2009.

The issuance of EO No. 201 is consistent with the governing principle of the
Compensation and Position Classification System, as espoused under Congress
JR No. 4, that compensation of government personnel shall be generally
comparable with those in the private sector doing comparable work in order to
attract, retain, and motivate a core of competent civil servants.

EO No. 201 provided for at least a four-year (2016-2019) implementation of the

compensation adjustment.

2.0 Purpose

This Circular is issued to prescribe the guidelines, rules and regulations for the
implementation of the second tranche compensation adjustment in local
government units (LGUs) stipulated under EO No. 201, s. 2016.

' A Decree Revising the Position Classification and Compensation Systems in the National Government, and Integrating
the Same dated August 22, 1976
2 Further Rationalizing the System of Compensation and Position Classification in the National Government dated June 11,

1978
3 An Act Prescribing a Revised Compensation and Position Classification System in the Government and for Other

Purposes
Joint Resolution Authorizing the President of the Philippines to Modify the Compensation and Position Classification
System of Civilian Personnel and the Base Pay Schedule of Military and Uniformed Personnel in the Government, and for
Other Purposes

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3.0 Coverage

The following are covered by this Circular:

3.1 All positions for salaried LGU personnel, whether regular, contractual, or
casual in nature, elective or appointive, full-time or part-time, now existing
or hereafter created in LGUs; and

3.2 All positions for barangay personnel which are paid monthly honoraria.

4.0 Exclusions

The following are excluded from the coverage of this Circular:

4.1 Those hired without employee-employer relationship and funded from non-
Personnel Services (PS) appropriations, as follows:

4.1.1 Consultants and experts hired for a limited period to perform

specific activities or services with expected outputs;

4.1.2 Laborers hired through job contracts (pakyaw) and those paid on
piecework basis;

4.1.3 Student workers and apprentices; and

4.1.4 Individuals and groups of people whose services are engaged

through job orders, contracts of service, or others similarly situated.

5.0 Second Tranche Monthly Salary Schedule

The implementation of the Second Tranche Monthly Salary Schedule shall be

determined by the sanggunian, subject to the following conditions/considerations:

5.1 The salary rates shall be in accordance with the Second Tranche Monthly
Salary Schedule for Local Government Personnel, corresponding to the
LGU level and income classification as presented in Annexes "A-1" to
"A-8.

5.2 The PS limitation in LGU budgets under Sections 325(a) and 331(b) of
Republic Act (RA) No. 7160 shall be complied with.

5.3 If funds are insufficient to implement fully the salary schedule for the LGU
level and income class, or for purposes of complying with the PS limitation,
the sanggunian may formulate a modified salary schedule with lower rates
but at a uniform percentage of the rates in the applicable salary schedule
in Annexes "Al" to "A-8."

5.4 In the formulation of such salary schedule, LGUs shall ensure that they can
fund on a sustainable basis the increased salaries, bonuses and incentives,
including the government counterparts to the Retirement and Life
Insurance Premiums, Pag-IBIG Contributions, PHILHEALTH
Contributions, and Employees Compensation Insurance Premiums, taking

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 into account the regular annual income of the LGU and its expenditure and
investment programs.

5.5 The salaries of Public Health Workers (PHWs) shall be determined by the
sanggunian after considering and balancing the impact of the relevant
provisions of EO No. 201, RA No. 7160, and RA No. 7305 on fiscal
discipline, prioritization of expenditures, financial capability, and
improvement of service delivery. The sanggunian may adopt any of the
following options:

5.5.1 Adopt the salary rates authorized for personnel of Special

Cities/First Class Provinces and Cities (Annex "A-1") for the PHWs
of the LGU.

5.5.2 If LGU funds are not sufficient, adopt a modified salary schedule for
PHWs but at a uniform percentage of the salaries in Annex "A-1,"
similar to the percentage applied in item 4.3 above.

6.0 Rules for Adjusting Salaries

The following rules shall apply in the implementation of the salary adjustment:

6.1 The salaries of incumbent personnel shall be adjusted to the rates in the
salary schedule adopted by the LGU corresponding to the designated steps
of the salary grade allocations of their positions as of December 31, 2016;
provided that their positions and salary grades are in accordance with: (i)
the "Revised Index of Occupational Services, Position Titles, and Salary
Grades in the Local Government" issued through Local Budget Circular
(LBC) No. 61 dated March 18, 1996; (ii) the list of new classes of positions
under the Administrative Services Group, General Administrative Service
under item 1.2 of Budget Circular No. 2004-4, "Conversion of Positions
Performing Staff/Non-Technical Functions"; and (iii) the Re-allocated
Classes of Positions in Annex "B" of LBC No. 2009-92 dated September 3,
2009.

6.2 If the actual monthly basic salary of an incumbent falls between steps of
the salary grade allocation of the position as of December 31, 2016 as a
result of (i) reclassification of the position; or (ii) demotion or transfer due
to the exigency of the service, the salary shall be adjusted to the rate for
the higher step in the salary schedule to be adopted by the LGU (Illustrative
example in Annex "C").

6.3 If the actual monthly basic salary of an incumbent exceeds the rate for Step
8 of the salary grade allocation of the position as of December 31, 2016 as
a result of (i) reclassification of the position; or (ii) demotion or transfer due
to the exigency of service:

6.3.1 The salary shall be adjusted to the rate for Step 8 of the same salary
grade in the salary schedule to be adopted by the LGU; (Illustrative
example in Annex "D").

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 6.3.2 The incumbent shall not be entitled to salary increase if the salary
as of December 31, 2016 exceeds the rate for Step 8 of the same
salary grade in the salary schedule to be adopted by the LGU
(Illustrative example in Annex "E").

6.4 If the actual monthly basic salary of an incumbent as of December 31, 2016
exceeds the rate corresponding to the same step in the salary schedule to
be implemented by the LGU, on account of the adoption of the salary
schedule for a higher income class LGU under LBC No. 88, the incumbent
shall not be entitled to salary increase (Illustrative example in Annex "F").

6.5 For incumbent personnel whose position titles are not in accordance with
the Revised Index under LBC No. 61 and modifications thereto, the salary
adjustments shall be granted after their positions have been properly
classified by the DBM Regional Office concerned.

6.6 The salary of a new hire shall be the rate corresponding to Step 1 of the
salary grade allocation of the position in the salary schedule to be adopted.

6.7 The salaries/wages of contractual/casual personnel shall be adjusted to the

rates corresponding to Step 1 of the salary grade allocations of their
positions in the applicable salary schedule in Annexes "A-1" to "A-8"
effective not earlier than January 1,2017. The adjusted daily wage rates of
casual personnel shall be computed by dividing the monthly salaries by 22
work days.

7.0 No Diminution in Basic Salaries

There shall be no diminution in the actual basic salaries received by the

incumbents prior to the implementation of EO No. 201 for purposes of complying
with the PS limitation.

8.0 Honoraria Adjustments for Barangay Officials and Employees

8.1 The maximum honoraria rates prescribed for barangay officials and
employees under LBC No. 63 may be adjusted following the salary
schedule adopted by the municipality or city where the barangay belongs,
subject to the PS limitation under Section 331(b) of R.A. No. 7160.

8.2 If barangay funds are not sufficient and sustainable to implement the
honoraria rates authorized under item 7.1, the Sangguniang Baran gay may
adjust the honoraria at lower rates but at a uniform percentage of the rates
in item 7.1 for all barangay officials and employees.

9.0 Mid-Year Bonus for Government Personnel

The Mid-Year Bonus equivalent to one (1) month basic salary as of May 15 may
be granted to those who have rendered at least four (4) months of satisfactory
service and are still in the service as of same date, to be given not earlier than May
15 of every year.

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 The specific guidelines on the grant of the Mid-Year Bonus for FY 2017 shall be
issued separately by the Department of Budget and Management (DBM).

10.0 Productivity Enhancement Incentive (PEI) for Government Personnel

The PEI in the amount of P5,000 may be granted to qualified personnel not earlier
than December 15 of every year.

The specific guidelines on the grant of the PEI for FY 2017 shall be issued
separately by the DBM.

11.0 Performance-Based Bonus (PBB) for Personnel of LGUs

The grant of PBB to personnel of LGUs shall be in accordance with the guidelines
to be issued by the Inter-Agency Task Force created under Administrative Order
No. 25, series of 2011 (AO 25 IATF).

12.0 Procedural Guidelines

12.1 The Human Resource Management Officer (HRMO)/Administrative Officer

(AO) shall prepare Notices of Salary Adjustment (NOSAs) for incumbent
personnel following the format marked as Annex "B-1" or Annex "B-2,"
whichever is applicable, for approval by the Local Chief Executive.

12.2 For personnel whose actual monthly salaries as of December 31, 2016
exceed the rates corresponding to Step 8 of the salary grade allocations of
their positions in the salary schedule adopted by the LGU, the HRMO/AO
shall no longer prepare NOSAs.

12.3 The NOSAs shall be issued to the personnel concerned, copy furnished
the Government Service Insurance System (GSIS) if they are members
thereof.

12.4 The salary/honoraria adjustment under this Circular shall be subject to the
usual accounting and auditing rules and regulations, and to appropriate re-
adjustment if found not in order. The recipient personnel shall refund any
overpayments received.

13.0 Fund Source

13.1 The amounts required to implement the salary/honoraria and related fixed
expenditure adjustments of LGU personnel shall be sourced exclusively
from LGU funds, subject to the PS limitation in LGU budgets pursuant to
Sections 325(a) and 331(b) of RA No. 7160.

13.2 Such amounts shall be authorized through an appropriation ordinance to

be enacted by the Sangguniang Panlalawigan/ Panlungsod/Bayan/
Baran gay.

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14.0 Responsibilities of LGUs

LGUs shall be responsible for the implementation of the provisions of this Circular.
The responsible officers shall be held liable for any payment of salary/honoraria
adjustments not in accordance with the provisions hereof without prejudice to the
refund by the employees concerned of any excess of unauthorized payments.

15.0 Resolution of Cases

Cases not covered by the provisions of this Circular shall be referred to the DBM
for resolution.

16.0 Effectivity of Salary Increase

The Second Tranche Monthly Salary Schedule authorized for LGU personnel may
be implemented not earlier than January 1, 2017, subject to the authorization from
their respective sanggunian.

17.0 Effectivity

This Circular shall take effect on January 1, 2017.

-
BENJAMIN E. DIOKNO
Secretary

06frv

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 ANNEX "A-1"

Second Tranche Monthly Salary Schedule for Local Government Personnel

In Special Cities and First Class Provinces and Cities
Effective Not Earlier Than January 1, 2017
(In Pesos)

Salary
Grade Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8
1 9,981 10,072 10,165 10,258 10,352 10,453 10,543 10,640
2 10,667 10,761 10,856 10,952 11,049 11,147 11,245 11,345
3 11,387 11,488 11,589 11,691 11,795 11,899 12,004 12,110
4 12,155 12,262 12,371 12,480 12,591 12,702 12,814 12,927
5 12,975 13,117 13,206 13,322 13,440 13,559 13,679 13,799
6 13,851 13,973 14,096 14,221 14,347 14,474 14,602 14,731
7 14,785 14,916 15,048 15,181 15,315 15,450 15,587 15,725
8 15,818 15,969 16,121 16,275 16,430 16,586 16,744 16,903
9 16,986 17,142 17,299 17,458 17,618 17,780 17,943 18,108
10 18,217 18,385 18,553 18,724 18,896 19,095 19,244 19,421
11 19,620 19,853 20,088 20,326 20,567 20,811 21,058 21,307
12 21,387 21,626 21,868 22,113 22,361 22,611 22,864 23,120
13 23,257 23,517 23,780 24,047 24,315 24,587 24,863 25,141
14 25,290 25,573 25,859 26,149 26,441 26,737 27,036 27,339
15 27,565 27,887 28,214 28,544 28,877 29,214 29,557 29,902
16 30,044 30,396 30,751 31,111 31,474 31,843 32,215 32,592
17 32,747 33,131 33,518 33,909 34,306 34,707 35,113 35,524
18 35,693 36,111 36,532 36,960 37,392 37,829 38,272 38,719
19 39,151 39,685 40,227 40,776 41,333 41,898 42,470 43,051
20 43,250 43,841 44,440 45,047 45,662 46,285 46,917 47,559
21 47,779 48,432 49,094 49,764 50,443 51,132 51,831 52,539
22 52,783 53,503 54,234 54,975 55,726 56,487 57,258 58,040
23 58,310 59,106 59,913 60,732 61,561 62,402 63,255 64,118
24 64,416 65,296 66,187 67,092 68,008 68,937 69,878 70,832
25 71,476 72,452 73,441 74,444 75,461 76,491 77,536 78,595
26 78,960 80,039 81,132 82,240 83,363 84,502 85,657 86,825
27 87,229 88,420 89,628 90,852 92,093 93,351 94,625 95,925
28 96,363 97,679 99,013 100,366 101,736 103,126 104,534 105,962
29 106,454 107,908 109,382 110,875 112,390 113,925 115,481 117,058
30 117,601 119,208 120,836 122,486 124,159 125,855 127,573 129,316

C}4 rioltv
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 ANNEX "A-2"

Second Tranche Monthly Salary Schedule for Local Government Personnel

In Second Class Provinces and Cities
Effective Not Earlier Than January 1, 2017
(In Pesos

Salary
Grade Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8
1 9,482 9,568 9,657 9,745 9,834 9,930 10,016 10,108
2 10,134 10,223 10,313 10,404 10,497 10,590 10,683 10,778
3 10,818 10,914 11,010 11,106 11,205 11,304 11,404 11,505
4 11,547 11,649 11,752 11,856 11,961 12,067 12,173 12,281
5 12,326 12,461 12,546 12,656 12,768 12,881 12,995 13,109
6 13,158 13,274 13,391 13,510 13,630 13,750 13,872 13,994
7 14,046 14,170 14,296 14,422 14,549 14,678 14,808 14,939
8 15,027 15,171 15,315 15,461 15,609 15,757 15,907 16,058
9 16,137 16,285 16,434 16,585 16,737 16,891 17,046 17,203
10 17,306 17,466 17,625 17,788 17,951 18,140 18,282 18,450
11 18,639 18,860 19,084 19,310 19,539 19,770 20,005 20,242
12 20,318 20,545 20,775 21,007 21,243 21,480 21,721 21,964
13 22,094 22,341 22,591 22,845 23,099 23,358 23,620 23,884
14 24,026 24,294 24,566 24,842 25,119 25,400 25,684 25,972
15 26,187 26,493 26,803 27,117 27,433 27,753 28,079 28,407
16 28,542 28,876 29,213 29,555 29,900 30,251 30,604 30,962
17 31,110 31,474 31,842 32,214 32,591 32,972 33,357 33,748
18 33,908 34,305 34,705 35,112 35,522 35,938 36,358 36,783
19 37,193 37,701 38,216 38,737 39,266 39,803 40,347 40,898
20 41,088 41,649 42,218 42,795 43,379 43,971 44,571 45,181
21 45,390 46,010 46,639 47,276 47,921 48,575 49,239 49,912
22 50,144 50,828 51,522 52,226 52,940 53,663 54,395 55,138
23 55,395 56,151 56,917 57,695 58,483 59,282 60,092 60,912
24 61,195 62,031 62,878 63,737 64,608 65,490 66,384 67,290
25 67,902 68,829 69,769 70,722 71,688 72,666 73,659 74,665
26 75,012 76,037 77,075 78,128 79,195 80,277 81,374 82,484
27 82,868 83,999 85,147 86,309 87,488 88,683 89,894 91,129
28 91,545 92,795 94,062 95,348 96,649 97,970 99,307 100,664
29 101,131 102,513 103,913 105,331 106,771 108,229 109,707 111,205
30 111,721 113,248 114,794 116,362 117,951 119,562 121,194 122,850

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 ANNEX "A-3"

Second Tranche Monthly Salary Schedule for Local Government Personnel

In Third Class Provinces and Cities and First Class Municipalities
Effective Not Earlier Than January 1, 2017
(In Pesos

Salary
Grade Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8
1 8,983 9,065 9,149 9,232 9,317 9,408 9,489 9,576
2 9,600 9,685 9,770 9,857 9,944 10,032 10,121 10,211
3 10,248 10,339 10,430 10,522 10,616 10,709 10,804 10,899
4 10,940 11,036 11,134 11,232 11,332 11,432 11,533 11,634
5 11,678 11,805 11,885 11,990 12,096 12,203 12,311 12,419
6 12,466 12,576 12,686 12,799 12,912 13,027 13,142 13,258
7 13,307 13,424 13,543 13,663 13,784 13,905 14,028 14,153
8 14,236 14,372 14,509 14,648 14,787 14,927 15,070 15,213
9 15,287 15,428 15,569 15,712 15,856 16,002 16,149 16,297
10 16,395 16,547 16,698 16,852 17,006 17,186 17,320 17,479
11 17,658 17,868 18,079 18,293 18,510 18,730 18,952 19,176
12 19,248 19,463 19,681 19,902 20,125 20,350 20,578 20,808
13 20,931 21,165 21,402 21,642 21,884 22,128 22,377 22,627
14 22,761 23,016 23,273 23,534 23,797 24,063 24,332 24,605
15 24,809 25,098 25,393 25,690 25,989 26,293 26,601 26,912
16 27,040 27,356 27,676 28,000 28,327 28,659 28,994 29,333
17 29,472 29,818 30,166 30,518 30,875 31,236 31,602 31,972
18 32,124 32,500 32,879 33,264 33,653 34,046 34,445 34,847
19 35,236 35,717 36,204 36,698 37,200 37,708 38,223 38,746
20 38,925 39,457 39,996 40,542 41,096 41,657 42,225 42,803
21 43,001 43,589 44,185 44,788 45,399 46,019 46,648 47,285
22 47,505 48,153 48,811 49,478 50,153 50,838 51,532 52,236
23 52,479 53,195 53,922 54,659 55,405 56,162 56,930 57,706
24 57,974 58,766 59,568 60,383 61,207 62,043 62,890 63,749
25 64,328 65,207 66,097 67,000 67,915 68,842 69,782 70,736
26 71,064 72,035 73,019 74,016 75,027 76,052 77,091 78,143
27 78,506 79,578 80,665 81,767 82,884 84,016 85,163 86,333
28 86,727 87,911 89,112 90,329 91,562 92,813 94,081 95,366
29 95,809 97,117 98,444 99,788 101,151 102,533 103,933 105,352
30 105,841 107,287 108,752 110,237 111,743 113,270 114,816 116,384
 ANNEX "A-4"

Second Tranche Monthly Salary Schedule for Local Government Personnel

In Fourth Class Provinces and Cities and Second Class Municipalities
Effective Not Earlier Than January 1, 2017
(In Pesos)

Salary
Grade Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8
1 8,484 8,561 8,640 8,719 8,799 8,885 8,962 9,044
2 9,067 9,147 9,228 9,309 9,392 9,475 9,558 9,643
3 9,679 9,765 9,851 9,937 10,026 10,114 10,203 10,294
4 10,332 10,423 10,515 10,608 10,702 10,797 10,892 10,988
5 11,029 11,149 11,225 11,324 11,424 11,525 11,627 11,729
6 11,773 11,877 11,982 12,088 12,195 12,303 12,412 12,521
7 12,567 12,679 12,791 12,904 13,018 13,133 13,249 13,366
8 13,445 13,574 13,703 13,834 13,966 14,098 14,232 14,368
9 14,438 14,571 14,704 14,839 14,975 15,113 15,252 15,392
10 15,484 15,627 15,770 15,915 16,062 16,231 16,357 16,508
11 16,677 16,875 17,075 17,277 17,482 17,689 17,899 18,111
12 18,179 18,382 18,588 18,796 19,007 19,219 19,434 19,652
13 19,768 19,989 20,213 20,440 20,668 20,899 21,134 21,370
14 21,497 21,737 21,980 22,227 22,475 22,726 22,981 23,238
15 23,430 23,704 23,982 24,262 24,545 24,832 25,123 25,417
16 25,537 25,837 26,138 26,444 26,753 27,067 27,383 27,703
17 27,835 28,161 28,490 28,823 29,160 29,501 29,846 30,195
18 30,339 30,694 31,052 31,416 31,783 32,155 32,531 32,911
19 33,278 33,732 34,193 34,660 35,133 35,613 36,100 36,593
20 36,763 37,265 37,774 38,290 38,813 39,342 39,879 40,425
21 40,612 41,167 41,730 42,299 42,877 43,462 44,056 44,658
22 44,866 45,478 46,099 46,729 47,367 48,014 48,669 49,334
23 49,564 50,240 50,926 51,622 52,327 53,042 53,767 54,500
24 54,754 55,502 56,259 57,028 57,807 58,596 59,396 60,207
25 60,755 61,584 62,425 63,277 64,142 65,017 65,906 66,806
26 67,116 68,033 68,962 69,904 70,859 71,827 72,808 73,801
27 74,145 75,157 76,184 77,224 78,279 79,348 80,431 81,536
28 81,909 83,027 84,161 85,311 86,476 87,657 88,854 90,068
29 90,486 91,722 92,975 94,244 95,532 96,836 98,159 99,499
30 99,961 101,327 102,711 104,113 105,535 106,977 108,437 109,919

`AAt/1/
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 ANNEX "A-5"

Second Tranche Monthly Salary Schedule for Local Government Personnel

In Fifth Class Provinces and Cities and Third Class Municipalities
Effective Not Earlier Than January 1, 2017
(In Pesos)

Salary
Grade Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8
1 7,985 8,058 8,132 8,206 8,282 8,362 8,434 8,512
2 8,534 8,609 8,685 8,762 8,839 8,918 8,996 9,076
3 9,110 9,190 9,271 9,353 9,436 9,519 9,603 9,688
4 9,724 9,810 9,897 9,984 10,073 10,162 10,251 10,342
5 10,380 10,494 10,565 10,658 10,752 10,847 10,943 11,039
6 11,081 11,178 11,277 11,377 11,478 11,579 11,682 11,785
7 11,828 11,933 12,038 12,145 12,252 12,360 12,470 12,580
8 12,654 12,775 12,897 13,020 13,144 13,269 13,395 13,522
9 13,589 13,714 13,839 13,966 14,094 14,224 14,354 14,486
10 14,574 14,708 14,842 14,979 15,117 15,276 15,395 15,537
11 15,696 15,882 16,070 16,261 16,454 16,649 16,846 17,046
12 17,110 17,301 17,494 17,690 17,889 18,089 18,291 18,496
13 18,606 18,814 19,024 19,238 19,452 19,670 19,890 20,113
14 20,232 20,458 20,687 20,919 21,153 21,390 21,629 21,871
15 22,052 22,310 22,571 22,835 23,102 23,371 23,646 23,922
16 24,035 24,317 24,601 24,889 25,179 25,474 25,772 26,074
17 26,198 26,505 26,814 27,127 27,445 27,766 28,090 28,419
18 28,554 28,889 29,226 29,568 29,914 30,263 30,618 30,975
19 31,321 31,748 32,182 32,621 33,066 33,518 33,976 34,441
20 34,600 35,073 35,552 36,038 36,530 37,028 37,534 38,047
21 38,223 38,746 39,275 39,811 40,354 40,906 41,465 42,031
22 42,226 42,802 43,387 43,980 44,581 45,190 45,806 46,432
23 46,648 47,285 47,930 48,586 49,249 49,922 50,604 51,294
24 51,533 52,237 52,950 53,674 54,406 55,150 55,902 56,666
25 57,181 57,962 58,753 59,555 60,369 61,193 62,029 62,876
26 63,168 64,031 64,906 65,792 66,690 67,602 68,526 69,460
27 69,783 70,736 71,702 72,682 73,674 74,681 75,700 76,740
28 77,090 78,143 79,210 80,293 81,389 82,501 83,627 84,770
29 85,163 86,326 87,506 88,700 89,912 91,140 92,385 93,646
30 94,081 95,366 96,669 97,989 99,327 100,684 102,058 103,453
 ANNEX "A-6"

Second Tranche Monthly Salary Schedule for Local Government Personnel

In Sixth Class Provinces and Cities and Fourth Class Municipalities
Effective Not Earlier Than January 1, 2017
(In Pesos)

Salary
Grade Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8
1 7,486 7,554 7,624 7,694 7,764 7,840 7,907 7,980
2 8,000 8,071 8,142 8,214 8,287 8,360 8,434 8,509
3 8,540 8,616 8,692 8,768 8,846 8,924 9,003 9,083
4 9,116 9,197 9,278 9,360 9,443 9,527 9,611 9,695
5 9,731 9,838 9,905 9,992 10,080 10,169 10,259 10,349
6 10,388 10,480 10,572 10,666 10,760 10,856 10,952 11,048
7 11,089 11,187 11,286 11,386 11,486 11,588 11,690 11,794
8 11,864 11,977 12,091 12,206 12,323 12,440 12,558 12,677
9 12,740 12,857 12,974 13,094 13,214 13,335 13,457 13,581
10 13,663 13,789 13,915 14,043 14,172 14,321 14,433 14,566
11 14,715 14,890 15,066 15,245 15,425 15,608 15,794 15,980
12 16,040 16,220 16,401 16,585 16,771 16,958 17,148 17,340
13 17,443 17,638 17,835 18,035 18,236 18,440 18,647 18,856
14 18,968 19,180 19,394 19,612 19,831 20,053 20,277 20,504
15 20,674 20,915 21,161 21,408 21,658 21,911 22,168 22,427
16 22,533 22,797 23,063 23,333 23,606 23,882 24,161 24,444
17 24,560 24,848 25,139 25,432 25,730 26,030 26,335 26,643
18 26,770 27,083 27,399 27,720 28,044 28,372 28,704 29,039
19 29,363 29,764 30,170 30,582 31,000 31,424 31,853 32,288
20 32,438 32,881 33,330 33,785 34,247 34,714 35,188 35,669
21 35,834 36,324 36,821 37,323 37,832 38,349 38,873 39,404
22 39,587 40,127 40,676 41,231 41,795 42,365 42,944 43,530
23 43,733 44,330 44,935 45,549 46,171 46,802 47,441 48,089
24 48,312 48,972 49,640 50,319 51,006 51,703 52,409 53,124
25 53,607 54,339 55,081 55,833 56,596 57,368 58,152 58,946
26 59,220 60,029 60,849 61,680 62,522 63,377 64,243 65,119
27 65,422 66,315 67,221 68,139 69,070 70,013 70,969 71,944
28 72,272 73,259 74,260 75,275 76,302 77,345 78,401 79,472
29 79,841 80,931 82,037 83,156 84,293 85,444 86,611 87,794
30 88,201 89,406 90,627 91,865 93,119 94,391 95,680 96,987

--,5 ,iy7iz
12
 ANNEX "A-7"

Second Tranche Monthly Salary Schedule for Local Government Personnel

In Fifth Class Municipalities
Effective Not Earlier Than January 1, 2017
(In Pesos)

Salary
Grade Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8
1 6,987 7,050 7,116 7,181 7,246 7,317 7,380 7,448
2 7,467 7,533 7,599 7,666 7,734 7,803 7,872 7,942
3 7,971 8,042 8,112 8,184 8,257 8,329 8,403 8,477
4 8,509 8,583 8,660 8,736 8,814 8,891 8,970 9,049
5 9,083 9,182 9,244 9,325 9,408 9,491 9,575 9,659
6 9,696 9,781 9,867 9,955 10,043 10,132 10,221 10,312
7 10,350 10,441 10,534 10,627 10,721 10,815 10,911 11,008
8 11,073 11,178 11,285 11,393 11,501 11,610 11,721 11,832
9 11,890 11,999 12,109 12,221 12,333 12,446 12,560 12,676
10 12,752 12,870 12,987 13,107 13,227 13,367 13,471 13,595
11 13,734 13,897 14,062 14,228 14,397 14,568 14,741 14,915
12 14,971 15,138 15,308 15,479 15,653 15,828 16,005 16,184
13 16,280 16,462 16,646 16,833 17,021 17,211 17,404 17,599
14 17,703 17,901 18,101 18,304 18,509 18,716 18,925 19,137
15 19,296 19,521 19,750 19,981 20,214 20,450 20,690 20,931
16 21,031 21,277 21,526 21,778 22,032 22,290 22,551 22,814
17 22,923 23,192 23,463 23,736 24,014 24,295 24,579 24,867
18 24,985 25,278 25,572 25,872 26,174 26,480 26,790 27,103
19 27,406 27,780 28,159 28,543 28,933 29,329 29,729 30,136
20 30,275 30,689 31,108 31,533 31,963 32,400 32,842 33,291
21 33,445 33,902 34,366 34,835 35,310 35,792 36,282 36,777
22 36,948 37,452 37,964 38,483 39,008 39,541 40,081 40,628
23 40,817 41,374 41,939 42,512 43,093 43,681 44,279 44,883
24 45,091 45,707 46,331 46,964 47,606 48,256 48,915 49,582
25 50,033 50,716 51,409 52,111 52,823 53,544 54,275 55,017
26 55,272 56,027 56,792 57,568 58,354 59,151 59,960 60,778
27 61,060 61,894 62,740 63,596 64,465 65,346 66,238 67,148
28 67,454 68,375 69,309 70,256 71,215 72,188 73,174 74,173
29 74,518 75,536 76,567 77,613 78,673 79,748 80,837 81,941
30 82,321 83,446 84,585 85,740 86,911 88,099 89,301 90,521

tO(,"tr
13
 ANNEX "A-8"

Second Tranche Monthly Salary Schedule for Local Government Personnel

In Sixth Class Municipalities
Effective Not Earlier Than January 1, 2017
(In Pesos)

Salary
Grade Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8
1 6,488 6,547 6,607 6,668 6,729 6,794 6,853 6,916
2 6,934 6,995 7,056 7,119 7,182 7,246 7,309 7,374
3 7,402 7,467 7,533 7,599 7,667 7,734 7,803 7,872
4 7,901 7,970 8,041 8,112 8,184 8,256 8,329 8,403
5 8,434 8,526 8,584 8,659 8,736 8,813 8,891 8,969
6 9,003 9,082 9,162 9,244 9,326 9,408 9,491 9,575
7 9,610 9,695 9,781 9,868 9,955 10,043 10,132 10,221
8 10,282 10,380 10,479 10,579 10,680 10,781 10,884 10,987
9 11,041 11,142 11,244 11,348 11,452 11,557 11,663 11,770
10 11,841 11,950 12,059 12,171 12,282 12,412 12,509 12,624
11 12,753 12,904 13,057 13,212 13,369 13,527 13,688 13,850
12 13,902 14,057 14,214 14,373 14,535 14,697 14,862 15,028
13 15,117 15,286 15,457 15,631 15,805 15,982 16,161 16,342
14 16,439 16,622 16,808 16,997 17,187 17,379 17,573 17,770
15 17,917 18,127 18,339 18,554 18,770 18,989 19,212 19,436
16 19,529 19,757 19,988 20,222 20,458 20,698 20,940 21,185
17 21,286 21,535 21,787 22,041 22,299 22,560 22,823 23,091
18 23,200 23,472 23,746 24,024 24,305 24,589 24,877 25,167
19 25,448 25,795 26,148 26,504 26,866 27,234 27,606 27,983
20 28,113 28,497 28,886 29,281 29,680 30,085 30,496 30,913
21 31,056 31,481 31,911 32,347 32,788 33,236 33,690 34,150
22 34,309 34,777 35,252 35,734 36,222 36,717 37,218 37,726
23 37,902 38,419 38,943 39,476 40,015 40,561 41,116 41,677
24 41,870 42,442 43,022 43,610 44,205 44,809 45,421 46,041
25 46,459 47,094 47,737 48,389 49,050 49,719 50,398 51,087
26 51,324 52,025 52,736 53,456 54,186 54,926 55,677 56,436
27 56,699 57,473 58,258 59,054 59,860 60,678 61,506 62,351
28 62,636 63,491 64,358 65,238 66,128 67,032 67,947 68,875
29 69,195 70,140 71,098 72,069 73,054 74,051 75,063 76,088
30 76,441 77,485 78,543 79,616 80,703 81,806 82,922 84,055

cs.)Z
14
 ANNEX "B-1"

For Regular Positions

Notice of Salary Adjustment

Date:

Pursuant to Local Budget Circular No. dated

implementing Executive Order No. 201 dated February 19, 2016, your salary is hereby
adjusted effective as follows:

1 Adjusted monthly basic salary effective January 1, 2017, under

the
new Salary Schedule; SG , Step

Actual monthly basic salary as of December 31, 2016;

SG , Step

Monthly salary adjustment effective January 1, 2017 (1-2)

It is understood that this salary adjustment is subject to usual accounting and

auditing rules and regulations, and to appropriate re-adjustment and refund if found not in
order.

Very truly yours,

Local Chief Executive

Position Title:
Salary Grade:
Item No., FY Plantilla of Personnel:

Copy Furnished: GSIS

15
 ANNEX "B-2"

For Contractuals/Casuals

Notice of Salary Adjustment

Date:

Pursuant to Local Budget Circular No. dated

implementing Executive Order No. 201 dated February 19, 2016, your salary/daily wage
is hereby adjusted effective , as follows:

Monthly basic salary/daily wage rate,

under the new Salary Schedule; SG

Actual monthly basic salary/daily wage rate

as of December 31, 2016;
SG

Monthly salary/daily wage adjustment

effective January 1, 2017 (1-2)

It is understood that this salary/daily wage adjustment is subject to usual

accounting and auditing rules and regulations, and to appropriate re-adjustment and
refund if found not in order.

Very truly yours,

Local Chief Executive

Position Title:
Salary Grade:
Item No., FY Plantilla of Personnel:

Copy Furnished: GSIS

16
 Annex "C"

Illustrative Example

Rule: If the actual monthly basic salary of an incumbent falls between steps of the
salary grade allocation of the position as of December 31, 2016 as a result
of (i) reclassification of the position; or (ii) demotion or transfer due to the
exigency of the service, the salary shall be adjusted to the rate for the
higher step in the salary schedule to be adopted by the LGU.

Scenario: An incumbent of Administrative Officer II, SG-11 in a 1s1 class province was
demoted to Administrative Officer I, SG-10 due to exigency in service effective
October 1, 2016. His salary for the position of Administrative Officer II, SG-11,
Step 1 is P19,077; the authorized salary for the position of Administrative
Officer I, SG-10, Step 1 is P17,730. Due to the non-diminution of pay,
employee gets to keep his actual salary of P19,077.

His salary shall be adjusted to P19,095 (SG-10, Step 6) beginning January

2017 since the actual salary (P19,077) of the incumbent as of December 31,
2016 falls between Step 5 (P18,896) and Step 6 (P19,095) of SG-10 in the
Salary Schedule under Annex "A-1" hereof.

Authorized
Position Title Effectivity Legal Basis Salary of Actual Salary
Date Position
(Step 1)
Administrative January 1, LBC No. 108 P19,077 P19,077
Officer II, SG-11 2016
Administrative October 1, Demotion due P17,730 P19,077
Officer I, SG-10 2016 to the exigency
of service
Administrative January 1, EO No. 201 P18,217 P19,095
Officer I, SG-10 2017 (Adjusted
Salary = SG-10,
6th step)

17
 Annex "D"

Illustrative Example

Rule: If the actual monthly basic salary of an incumbent exceeds the rate for Step
8 of the salary grade allocation of the position as of December 31, 2016 as a
result of (i) reclassification of the position; or (ii) demotion or transfer due to
the exigency of service:

The salary shall be adjusted to the rate for Step 8 of the same salary grade
of the position in the salary schedule to be adopted by the LGU.

Scenario: An incumbent of Senior Administrative Assistant (SAA) I (Data Controller IV)

SG-13 of a 3rd class municipality was involuntarily demoted effective February
1, 2016 to Administrative Assistant (AA) VI (Computer Operator III), SG-12
due to the reorganization of the 3rd class municipality.

The employee's salary as SAA I was P18,051 (SG-13, Step 2);while the
authorized salary for AA VI is P16,696 (SG-12, Step 2). Incumbent gets to
receive the salary of P18,051 until December 31, 2016 due to non-diminution
of pay.

Since the current actual salary of P18,051 exceeds the rate for SG-12, Step
8 (P17,786) in the salary schedule adopted in 2016, his rate shall be adjusted
to P18,496 (SG-12, Step 8) not earlier than January 1, 2017 of the Salary
Schedule under Annex "A-5" hereof.

Authorized
Position Title Effectivity Legal Basis Salary of Actual Salary
Date Position
(Step 2)
Senior January 1, LBC No. 108 P18,051 P18,051
Administrative 2016
Assistant I, SG-13
Administrative February 1, Demotion due P16,696 P18,051
Assistant VI, SG-12 2016 to the exigency
of service
Administrative January 1, EO No. 201 P17,301 P18,496
Assistant VI, SG-12 2017 (Adjusted
Salary = SG-12,
8th step)

18
 Annex "E"

Illustrative Example

Rule: If the actual monthly basic salary of an incumbent exceeds the rate for Step 8
of the salary grade allocation of the position as of December 31, 2016 as a
result of (i) reclassification of the position; or (ii) demotion or transfer due to
the exigency of service:

The incumbent shall not be entitled to salary increase if the salary as of

December 31, 2016 exceeds the rate for Step 8 of the same salary grade in
the salary schedule to be adopted by the LGU.

Scenario: An incumbent of Administrative Assistant III (Secretary II), SG-9 in a 2nd class
municipality was transferred effective July 1, 2016 to a new office in the same
LGU due to phasing out or abolition of his old organizational office. His new
position effective July 1, 2016 is Administrative Aide IV, SG-4.

The employee's salary as Administrative Assistant III is P15,005 (SG-9, Step-

8); the authorized salary for Administrative Aide IV is P10,581 (SG-4, Step
8). He will continue to receive his salary of P15,005 for 2016 due to involuntary
demotion.

Beginning January 1, 2017, the incumbent may no longer be entitled to

salary increase since his present actual salary (P15,005) is already higher
than the rate provided for SG-10, Step 8 (P10,988) of the Salary Schedule
under Annex "A-4" hereof.

Authorized
Position Title Effectivity Legal Basis Salary of Actual Salary
Date Position
Administrative January 1, LBC No. 108 P15,005 P15,005
Assistant II, SG-9 2016 (Step 8) (Step 8)
Administrative Aide July 1, Transfer and P10,581 P15,005
IV, SG-4 2016 involuntary (Step 8)
demotion
Administrative Aide January 1, EO No. 201 P10,988 P15,005
IV, SG-4 2017 (Step 8) (Exceeds Step
8 of SG-4)

19
 Annex "F"

Illustrative Example

Rule: If the actual monthly basic salary of an incumbent as of December 31, 2016
exceeds the rate corresponding to the same step in the salary schedule to be
implemented by the LGU, on account of the adoption of the salary schedule
for a higher income class LGU under LBC No. 88, the incumbent shall not be
entitled to salary increase.

Scenario: A 6th income-class municipality adopted the salary schedule of a 1st class
income municipality

Authorized Salary of
Position Title Position Actual Salary Legal Basis
Administrative P7,112 P9,847 LBC No. 88
Aide VI (6th Class Municipality, 8th (July 2008)
(Accounting Clerk Step)
II), SG-6
P9,847
(1st Class Municipality,
8th Step)
P7,585 P9,847 LBC No. 2009-92*
(6th Class Municipality, (January 2010)
8th Step)
P8,058 P9,847 LBC No. 95
(6th Class Municipality, (January 2011)
8th Step)
P8,531 P9,847 LBC No. 97
(6th Class Municipality, (January 2012)
8th Step)
P9,004 P9,847 LBC No. 99
(6th Class Municipality, (January 2013)
8th Step)
P9,285 P9,847 LBC No. 108
(6th Class Municipality, (January 1, 2016)
8th Step)
P9,575 P9,847 EO No. 201
(6th Class Municipality, (January 1, 2017)
8th Step)
*Pursuant to LBC No 2009-92, the salary rates shall be based on the LGU's actual income
class (in this case the municipality shall adopt the salary schedule for a 6th class
municipality)

As the present salary of the incumbent is already higher than the rate provided for SG-10,
Step 8 of the Salary Schedule under Annex "A-8" hereof, the incumbent is no longer
entitled to salary increase.

20