Second Tranche Salary Increase 2017 LBC-No113

PHILIPPINES
DEPARTMENT OF BUDGET AND MANAGEMENT

REPUBLIC OF THE
GEN. SOLANO ST., SAN MIGUEL, MANILA
LOCAL BUDGET CIRCULAR
113
January 5, 2017
No.
TO
All Provincial Governors; City and Municipal Mayors;

Barangay 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. 67583 , and Congress Joint
Resolution (JR) No. 44, s. 2009.
The issuance of E0 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
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 aassification 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
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 nonPersonnel 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
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
7
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 5.3 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").
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").
7.0
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.
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
9.0
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.
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.
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 readjustment 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.
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
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
9,981
10,072
10,165
10,258
10,352
10,453
10,543
10,640
10,667
10,761
10,856
10,952
11,049
11,147
11,245
11,345
11,387
11,488
11,589
11,691
11,795
11,899
12,004
12,110
12,155
12,262
12,371
12,480
12,591
12,702
12,814
12,927
12,975
13,117
13,206
13,322
13,440
13,559
13,679
13,799
13,851
13,973
14,096
14,221
14,347
14,474
14,602
14,731
14,785
14,916
15,048
15,181
15,315
15,450
15,587
15,725
15,818
15,969
16,121
16,275
16,430
16,586
16,744
16,903
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
7
ANNEX "A-2"
In Second Class Provinces and Cities
(In Pesos)
Salary
Grade
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7
Step 8
9,482
9,568
9,657
9,745
9,834
9,930
10,016
10,108
10,134
10,223
10,313
10,404
10,497
10,590
10,683
10,778
10,818
10,914
11,010
11,106
11,205
11,304
11,404
11,505
11,547
11,649
11,752
11,856
11,961
12,067
12,173
12,281
12,326
12,461
12,546
12,656
12,768
12,881
12,995
13,109
13,158
13,274
13,391
13,510
13,630
13,750
13,872
13,994
14,046
14,170
14,296
14,422
14,549
14,678
14,808
14,939
15,027
15,171
15,315
15,461
15,609
15,757
15,907
16,058
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
111,205
30
111,721 113,248
114,794
105,331 106,771 108,229 109,707

116,362 117,951 119,562 121,194
122,850
ANN EX "A-3"
In Third Class Provinces and Cities and First Class Municipalities
(In Pesos)
Salary
Grade
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7
Step 8
8,983
9,065
9,149
9,232
9,317
9,408
9,489
9,576
9,600
9,685
9,770
9,857
9,944
10,032
10,121
10,211
10,248
10,339
10,430
10,522
10,616
10,709
10,804
10,899
10,940
11,036
11,134
11,232
11,332
11,432
11,533
11,634
11,678
11,805
11,885
11,990
12,096
12,203
12,311
12,419
12,466
12,576
12,686
12,799
12,912
13,027
13,142
13,258
13,307
13,424
13,543
13,663
13,784
13,905
14,028
14,153
14,236
14,372
14,509
14,648
14,787
14,927
15,070
15,213
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
Asl
y 9
ANNEX "A-4"
In Fourth Class Provinces and Cities and Second Class Municipalities
(In Pesos)
Salary
Grade
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7
Step 8
8,484
8,561
8,640
8,719
8,799
8,885
8,962
9,044
9,067
9,147
9,228
9,309
9,392
9,475
9,558
9,643
9,679
9,765
9,851
9,937
10,026
10,114
10,203
10,294
10,332
10,423
10,515
10,608
10,702
10,797
10,892
10,988
11,029
11,149
11,225
11,324
11,424
11,525
11,627
11,729
11,773
11,877
11,982
12,088
12,195
12,303
12,412
12,521
12,567
12,679
12,791
12,904
13,018
13,133
13,249
13,366
13,445
13,574
13,703
13,834
13,966
14,098
14,232
14,368
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
105,535
106,977
108,437
109,919
102,711 104,113
10
ANNEX "A-5"
In Fifth Class Provinces and Cities and Third Class Municipalities
(In Pesos)
Salary
Grade
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7
Step 8
7,985
8,058
8,132
8,206
8,282
8,362
8,434
8,512
8,534
8,609
8,685
8,762
8,839
8,918
8,996
9,076
9,110
9,190
9,271
9,353
9,436
9,519
9,603
9,688
9,724
9,810
9,897
9,984
10,073
10,162
10,251
10,342
10,380
10,494
10,565
10,658
10,752
10,847
10,943
11,039
11,081
11,178
11,277
11,377
11,478
11,579
11,682
11,785
11,828
11,933
12,038
12,145
12,252
12,360
12,470
12,580
12,654
12,775
12,897
13,020
13,144
13,269
13,395
13,522
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
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
11
ANNEX "A-6"
In Sixth Class Provinces and Cities and Fourth Class Municipalities
(In Pesos)
Salary
Grade
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7
Step 8
7,486
7,554
7,624
7,694
7,764
7,840
7,907
7,980
8,000
8,071
8,142
8,214
8,287
8,360
8,434
8,509
8,540
8,616
8,692
8,768
8,846
8,924
9,003
9,083
9,116
9,197
9,278
9,360
9,443
9,527
9,611
9,695
9,731
9,838
9,905
9,992
10,080
10,169
10,259
10,349
10,388
10,480
10,572
10,666
10,760
10,856
10,952
11,048
11,089
11,187
11,286
11,386
11,486
11,588
11,690
11,794
11,864
11,977
12,091
12,206
12,323
12,440
12,558
12,677
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
12
ANNEX "A-7"
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
6,987
7,050
7,116
7,181
7,246
7,317
7,380
7,448
7,467
7,533
7,599
7,666
7,734
7,803
7,872
7,942
7,971
8,042
8,112
8,184
8,257
8,329
8,403
8,477
8,509
8,583
8,660
8,736
8,814
8,891
8,970
9,049
9,083
9,182
9,244
9,325
9,408
9,491
9,575
9,659
9,696
9,781
9,867
9,955
10,043
10,132
10,221
10,312
10,350
10,441
10,534
10,627
10,721
10,815
10,911
11,008
11,073
11,178
11,285
11,393
11,501
11,610
11,721
11,832
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
13
ANNEX "A-8"
In Sixth Class Municipalities
(In Pesos)
Salary
Grade
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7
Step 8
6,488
6,547
6,607
6,668
6,729
6,794
6,853
6,916
6,934
6,995
7,056
7,119
7,182
7,246
7,309
7,374
7,402
7,467
7,533
7,599
7,667
7,734
7,803
7,872
7,901
7,970
8,041
8,112
8,184
8,256
8,329
8,403
8,434
8,526
8,584
8,659
8,736
8,813
8,891
8,969
9,003
9,082
9,162
9,244
9,326
9,408
9,491
9,575
9,610
9,695
9,781
9,868
9,955
10,043
10,132
10,221
10,282
10,380
10,479
10,579
10,680
10,781
10,884
10,987
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
c.JZ ,fit7114
ANNEX "B-1"
For Regular Positions
Notice of Salary Adjustment
Date:
dated
Pursuant to Local Budget Circular No.
implementing Executive Order No. 201 dated February 19, 2016, your salary is hereby
, as follows:
adjusted effective
Adjusted monthly basic salary effective January 1, 2017, under
the
Step
new Salary Schedule; SG
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:
dated
Pursuant to Local Budget Circular No.
implementing Executive Order No. 201 dated February 19, 2016, your salary/daily wage
, as follows:
is hereby adjusted effective
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 1st 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.
Position Title
Effectivity
Date
Administrative
Officer II, SG-11
Administrative
Officer I, SG-10
January 1,
2016
October 1,
2016
Administrative
Officer I, SG-10
January 1,
2017
Legal Basis
LBC No. 108

Demotion due
to the exigency
of service
EO No. 201
Authorized
Salary of
Position
(Step 1)
P19,077
Actual Salary
P19,077
P17,730
P19,077
P18,217
P19,095
(Adjusted
Salary = SG-10,
6th step)
17
Annex "D"
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.
Legal Basis
Position Title
Effectivity
Date
Senior
Administrative
Assistant I, SG-13
Administrative
Assistant VI, SG-12
January 1,
2016
LBC No. 108
February 1,
2016
Administrative
Assistant VI, SG-12
January 1,
2017
Demotion due
to the exigency
of service
EC No. 201
Authorized
Salary of
Position
(Step 2)
P18,051
Actual Salary
P18,051
P16,696
P18,051
P17,301
P18,496
(Adjusted
Salary = SG-12,
8th step)
18
Annex "E"
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, Step8); 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.
Administrative
Assistant II, SG-9
Administrative Aide
IV, SG-4
Effectivity
Date
January 1,
2016
July 1,
2016
Administrative Aide
IV, SG-4
January 1,
2017
Position Title
Legal Basis
LBC No. 108
Transfer and
involuntary
demotion
EO No. 201
Authorized
Salary of
Position
P15,005
(Step 8)
P10,581
(Step 8)
P10,988
(Step 8)
Actual Salary
P15,005
(Step 8)
P15,005
P15,005
(Exceeds Step
8 of SG-4)
19
Annex "F"
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 6" income-class municipality adopted the salary schedule of a 1st class
income municipality
Position Title
Administrative
Aide VI
(Accounting Clerk
II), SG-6
Authorized Salary of
Position
P7,112
(6th Class Municipality, 8th
Step)
P9,847
(1st Class Municipality,
8th Step)
P7,585
(6th Class Municipality,
8th Step)
P8,058
8" Step)
P8,531
(6" Class Municipality,
8th Step)
Actual Salary
P9,847
Legal Basis
LBC No. 88
(July 2008)
P9,847
LBC No. 2009-92*

(January 2010)
P9,847
LBC No. 95
(January 2011)
P9,847
LBC No. 97
(January 2012)
P9,004
P9,847
LBC No. 99
(January 2013)
8th Step)
P9,847
P9,285
LBC No. 108
(6" Class Municipality,
(January 1, 2016)
8" Step)
P9,575
P9,847
EO No. 201
(January 1, 2017)
8" 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

Second Tranche Salary Increase 2017 LBC-No113

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Second Tranche Salary Increase 2017 LBC-No113

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PHILIPPINES

DEPARTMENT OF BUDGET AND MANAGEMENT

GEN. SOLANO ST., SAN MIGUEL, MANILA

LOCAL BUDGET CIRCULAR

All Provincial Governors; City and Municipal Mayors;

Implementation of the Second Tranche Compensation

All positions for salaried LGU personnel, whether regular, contractual, or

Second Tranche Monthly Salary Schedule

The PS limitation in LGU budgets under Sections 325(a) and 331(b) of

The salaries of Public Health Workers (PHWs) shall be determined by the

Rules for Adjusting Salaries

The salaries of incumbent personnel shall be adjusted to the rates in the

If the actual monthly basic salary of an incumbent falls between steps of

If the actual monthly basic salary of an incumbent as of December 31, 2016

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

No Diminution in Basic Salaries

Honoraria Adjustments for Barangay Officials and Employees

The maximum honoraria rates prescribed for barangay officials and

If barangay funds are not sufficient and sustainable to implement the

Mid-Year Bonus for Government Personnel

14.0 Responsibilities of LGUs

113,925 115,481 117,058

117,601 119,208 120,836

105,331 106,771 108,229 109,707

101,151 102,533 103,933

111,743 113,270 114,816

Actual monthly basic salary as of December 31, 2016;

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

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

Very truly yours,

Local Chief Executive

Copy Furnished: GSIS

Monthly salary/daily wage adjustment

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

Very truly yours,

Local Chief Executive

Copy Furnished: GSIS

LBC No. 108

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

LBC No. 108

If the actual monthly basic salary of an incumbent as of December 31, 2016

LBC No. 2009-92*

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