On March 15, Friday, President Rodrigo R. Duterte signed Executive Order No. 76, which authorizes the fourth tranche of compensation adjustments to be charged against any available appropriations under the reenacted budget this year.
Executive Order No. 76 amended Section 15(a) of Executive Order No. 201, series of 2016, thereby modifying the funding source of the compensation adjustment in fiscal year 2019.
Section 1(a) of Executive Order No. 76 expressly states that: “[p]ending the enactment of the FY 2019 GAA, the funding requirements for the compensation adjustment for FY 2019 shall be charged against any available appropriations under the FY 2018 GAA, as reenacted, to be determined by the DBM, subject to existing budgeting, accounting and auditing rules and regulations.”
This Executive Order was issued to resolve the funding requirements of the compensation adjustment that cannot be met due to the continued budget impasse in Congress. This serves as an interim measure to release the fourth tranche of compensation adjustment to government personnel, pending the passage of the 2019 GAA.
With this EO, national government agencies may already start processing the salary differentials of eligible employees. In addition, the DBM will issue guidelines governing the grant of salary differentials and the continued implementation of the fourth tranche of compensation adjustment.
The series of compensation adjustments, culminating in the fourth tranche for FY 2019, intends to provide equitable compensation to government employees. This is in accordance with the principle of equal pay for work of equal value, as well as to enable the government to attract, retain, and motivate competent civil servants.