President Rodrigo Roa Duterte signed Executive Order No. 36 on July 28 suspending the implementation of the compensation and position classification system (CPCS) and the index of occupational services (IOS) of government-owned and -controlled corporations (GOCCs).
This is “to eliminate any excessive, unauthorized, illegal and/or unconscionable allowances, incentives and benefits,” EO 36 added.
In the interim, the compensation framework of GOCCs, including their subsidiaries, will be covered by the new measures under EO 36, subject to the approval of the Governance Commission for GOCCs (GCG)--- the central policy-making and regulatory body that monitors and oversees GOCCs' operations.
For GOCCs under the Salary Standardization Law (SSL), the GOCC will adopt the Modified Salary Schedule.
But for those SSL-covered GOCCs who have insufficient funds, partial implementation of the Modified Salary Schedule and authorized benefits will be allowed provided that it will be at uniformed percentage across all positions for every GOCC.
Meanwhile, GOCCs exempted in the SSL may maintain their current compensation framework or adopt the Modified Salary Schedule.
SSL-exempt GOCCs who adopted the Modified Salary Schedule have limited benefits and allowances, their compensation framework subject to conversion or revision (i.e., from job grade to salary grade), and their mid-year and year-end bonuses subject to GCG guidelines.
However, authorized salaries of incumbent officers and employees and collective bargaining or negotiation agreements in the GOCC sector will not be affected.
Within 30 days from the effectivity of EO 36, the GCG will come up with the implementing rules and regulations.
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