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2025 / Sep

EXECUTIVE ORDER NO. 95 APPROVING THE COMPENSATION AND POSITION CLASSIFICATION SYSTEM II AND PAY GRADES FOR GOVERNMENT-OWNED OR -CONTROLLED CORPORATIONS, REPEALING EXECUTIVE ORDER NO. 150 (S. 2021), AND FOR OTHER PURPOSES September 16, 2025

[ EXECUTIVE ORDER NO. 95, September 16, 2025 ]

APPROVING THE COMPENSATION AND POSITION CLASSIFICATION SYSTEM II AND PAY GRADES FOR GOVERNMENT-OWNED OR -CONTROLLED CORPORATIONS, REPEALING EXECUTIVE ORDER NO. 150 (S. 2021), AND FOR OTHER PURPOSES



WHEREAS, Section 5, Article IX-B of the Constitution mandates the Congress to provide for the standardization of compensation of government officials and employees, including those in government-owned or -controlled corporations (GOCCs) with original charters, taking into account the nature of the responsibilities pertaining to, and the qualifications required for their positions;

WHEREAS,Section 8 of Republic Act (RA) No. 10149 or the "GOCC Governance Act of 2011" mandates the Governance Commission for GOCCs (GCG), after conducting a compensation study, to develop a Compensation and Position Classification System (CPCS) for GOCCs that consists of classes of positions grouped into such categories as the GCG may determine, subject to the approval of the President;

WHEREAS,on 01 October 2021, Executive Order (EO) No. 150 (s. 2021) approved the CPCS I and the Index of Occupational Services, Position Titles, and Job Grades for GOCCs (IOS0G) Framework for the GOCC Sector;

WHEREAS,EO No. 150 applied the CPCS I and the IOS-G Framework to all GOCCs, Government Financial Institutions (GFIs), Government Instrumentalities with Corporate Powers (GICPs)/Government Corporate Entities (GCEs), including their subsidiaries, unless excluded from the coverage of RA No. 10149;

WHEREAS,Section 9 of EO No. 150 provides that the GCGEn Bancshall review the CPCS three (3) years after its effectivity, and every three (3) years thereafter, taking into account the performance of GOCCs, their overall contribution to the national economy, and the possible erosion in purchasing power due to inflation and other factors;

WHEREAS,pursuant to the foregoing mandate and in consideration of emerging sectoral needs, the GCG undertook a comprehensive evaluation of the CPCS I under EO No. 150 and consulted various stakeholders to develop a more responsive compensation system for the GOCC sector;

WHEREAS,such study and consultations identified opportunities to enhanced the CPCS I, particularly in refining job grade distinctions and improving access to employee health benefits, prompting the GCG to develop CPCS II with key enhancements, including salary adjustments to address job grade distortions and the introduction of medical allowance to support employee welfare; and

WHEREAS,after exhaustive deliberation and review, the GCGEn Banc,through GCG Resolution No. 02 (s. 2025), has resolved to approve and endorse CPCS II, and submitted the same to the President of the Philippines for adoption and approval;

NOW, THEREFORE, I, FERDINAND R. MARCOS, JR.,President of the Philippines, by virtue of the powers vested in me by the Constitution and existing laws, do hereby order:

Section 1. Coverage.The CPCS II attached thereto is hereby approved and shall apply to all GOCCs, GFIs, GICPs/GCs (hereinafter collectively referred to as GOCCs), including their subsidiaries, unless excluded from the coverage of RA No. 10149.

The CPCS II is hereby confirmed not to apply to GOCCs with approved dispositive actions such as merger (exclusively referring to the GOCC to be absorbed), consolidation, abolition, deactivation, privatization, or such other related action as may be determined by GCG. The GCG shall have the authority to formulate the appropriate compensation framework for GOCCs falling under this paragraph, benchmarked against the Total Compensation Framework provided in the CPCS II.

The GCG shall have the authority to convert or revise the existing position classification system of GOCCs to align with the CPCS II under this Order. All positions in GOCCs shall then be allocated by GCG to their proper position titles and pay grades in the IOS-G to be issued by GCG pursuant to Section 14 hereof.

Section 2. No Authority to Negotiate/Bargain on the Economic Terms and Conditions of Collective Negotiation Agreements (CNAs)/Collective Bargaining Agreements (CBAs).While recognizing the Constitutional rights of workers to self-organization, collective bargaining, and negotiations, the Governing Boards of GOCCs shall not negotiate the economic terms and conditions of the CNAs/CBAs with their respective officers and employees.

CNA incentives shall be guided by the policies and guidelines established by the Department of Budget and Management (DBM) and shall be extended to cover non-chartered GOCCs to promote uniformity of allowable incentives within the GOCC Sector.

Section 3. Effective Dates of the CPCS II.GOCCs that have already implemented the CPCS I under EO No. 150 may adopt the monthly basic salaries (MBS) under this Order and the enhanced allowances, benefits, and incentives (ABIs) retroactive to 01 January 2025, upon receipt of their Authority to Implement (ATI) from GCG.

The MBS structure and ABIs of the a GOCC that has not yet implemented the CPCS I under EO No. 150, and which seeks to implement the CPCS II, shall be made effective upon issuance of their corresponding ATI from GCG.

Section 4. Non-Diminution of Authorized Salaries.In the implementation of the CPCS II, there shall be no diminution in the existing authorized salaries of incumbent officers and employees of GOCCs. For purposes of this Order, authorized salaries shall refer to the salary structure that has been duly authorized by the Office of the President (OP), GCG, and/or by law. An approval of the salary structure from the GOCC Governing Board alone, shall not be considered as authorization.

Section 5. Compensation System.The existing compensation granted by GOCCs to its officers and employees, including any approved enhancements made to the same, shall be standardized in accordance with the CPCS II approved under this Order. No additional compensation outside the CPCS II shall be granted by the GOCC Governing Board, unless the same has been endorsed by the Supervising Agency, recommended by GCG, and approved by the President.

GOCCs under the supervision of OP shall submit their request under this provision directly to GCG after approval by their respective Governing Boards. Thereafter, the GCG shall submit its recommendation to OP.

Section 6. Rationalization of the Provident Fund.The CPCS II rates on the contributions to the Provident Fund shall apply to GOCCs, subject to the rationalization measures outlined in the CPCS II.

Section 7. Application of Step Increment.All officers and employees of GOCCs that have not yet implemented the CPCS I under EO No. 150 shall automatically start at Step 1 of the prescribed MBS structures in the CPCS II, unless otherwise provided therein. The progressions in the step increments may be adjusted, subject to the implementing guidelines to be issued by GCG.

GOCCs that are already implementing the CPCS I under EO No. 150 shall continue with their salary step progression, subject to the implementing guidelines to be issued by GCG.

Section 8. Periodic Review of the CPCS.The GCGEn Bancshall review the CPCS three (3) years after its effectivity, and every three (3) years thereafter, taking into account the performance of GOCCs, their overall contribution to the national economy, their strategic importance, and the possible erosion in purchasing power due to inflation and other factors.

Notwithstanding the foregoing provision, the GCGEn Bancmay recommend specific adjustments to the CPCS II, as may be necessary, for approval of the President.

Section 9. Reports.The GCG shall submit to the President, through the Office of the Executive Secretary, a bi-annual report that shall include, among other, a summary of the authorizations issued by GCG for all covered GOCCs and the status of implementation of this Order.

Section 10. Funding.The implementation of compensation adjustments shall depend on the financial capability of a GOCC and its corporate operating budget (COB) as approved by the GOCC Governing Board and DBM.

The amounts required for the implementation of the CPCS II shall be charged against the GOCC's Personnel Services appropriations under its approved COB, provided that a GOCC shall be prohibited to source payment from the following:

a. Loans;

b. Sale of GOCC's asset/s for the sole purpose of compensation adjustment; and

c. Other schemes analogous to the foregoing.

GOCCs shall not increase their service fees for the purpose of augmenting deficiencies in the amounts prescribed herein, and neither shall compensation adjustments adversely affect the implementation of programs/projects, as well as the attainment of performance targets.

For GOCCs subsidized by the National Government, the amounts required for the implementation of the CPCS II shall not entail additional subsidy or equity from the National Treasury.

Section 11. Affordability.GOCCs in Category 1 of the CPCS II that do not have adequate or sufficient funds to implement the rates thereunder, as may be determined by GCG, shall partially implement the salary schedule under this Order at a lower uniform percentage across all positions for every GOCC.

GOCCs in Categories 2 and 3 of the CPCS II that do not have adequate or sufficient funds to implement the rates thereunder, as may be determined by GCG, shall adopt the salary schedule of lower tiers or that of Category 1.

Section 12. Mandatory Action and Separation Incentive Pay.Any GOCC that fails or refuses to implement the CPCS II rates, or the lower amounts provided under Section 11 as may be applicable, shall undergo a mandatory action ad be reorganized, merged, streamlined, abolished, or privatized pursuant to Section 5(a) of RA No. 10149, upon recommendation of the GOCC's Supervising Agency.

All officers and employees who will be affected by the mandatory action in view of the implementation of the CPCS II shall be granted separation incentive pay (SIP) using the following formula, unless GCG recommend lower rates to OP:

 
YEARS OF SERVICE
RATES
First 20 years
1.00 x MBS x No. of years
20 years and 1 day to 30 years
1.25 x MBS x No. of years
30 years and 1 day and above
1.50 x MBS x No. of years

"Years of Service" shall be understood as either Government Service or GOCC Service. For the purpose of computing the applicable early retirement incentive (ERI) or SIP, the specific years of service to be credited shall depend on the Category and Tier of the GOCC. In this regard, the GCG shall issue the necessary guidelines for the implementation of this provision to be submitted to the President for approval.

Section 13. Involuntary Separation and Early Retirements Incentive.Pursuant to Section 5(a) of RA No. 10149, the GCGEn Bancis hereby authorized, at its discretion, to grant ERI to officers and employees who voluntarily elect to be retired, and SIP to those involuntarily separated from service, in accordance with the rates provided under Section 12 of this Order, unless adjusted rates are recommended to and approved bu OP. The grant of ERI and SIP under this Order shall be prospective, and is in addition to retirement or separation benefits under existing laws, such as RA No. 8291 or the "Government Service Insurance System Act of 1997," RA No. 8282 or the "Social Security Act of 1997," or Presidential Decree No. 442 or the "Labor Code of the Philippines," as amended, taking into consideration the Constitutional proscription against double compensation.

The ERI and SIP authorized under this Order shall not be applicable to GOCCs which may already be entitled to ERI and/or SIP provided by other EOs issued by OP.

Upon recommended personnel action of a GOCC, whether pursuant to Section 5(a) of RA No. 10149 or otherwise, the GCGEn Banc,may also authorize the grant of ERI and/or SIP to officers and employees who may qualify. In this regard, the GCG shall submit, for approval of the President, the relevant guidelines to implement this provision.

The GCG, as the Implementing Agency of this Order, is hereby authorized to resolve any question that may arise from this provision.

Section. 14. IOS-G Framework.The GCG shall issue, upon approval of the President, the IOS-G Framework for the GOCC Sector relative to CPCS II. Pending issuance of the aforementioned IOS-G Framework, the GCG may refer to the DBM 2022 Index of Occupational Services to determine the proper position titles and for such other purposes as may deemed necessary by GCG.

Section 15. Implementing Guidelines.The GCGEn Bancis hereby authorized to issue implementing or clarificatory guidelines as may be necessary to carry out the objectives of this Order and/or the attached CPCS II, including, but not limited to, those relating to affordability, step increments, hiring rates, overtime pay, night shift differential, merit increases, separation pay programs, and grant of higher Performance-Based Bonus (PBB) rates for GOCCs under Categories 2 or 3 of CPCS II, taking into consideration prevailing practices in the private sector and the guiding principles provided in CPCS II.

The guidelines on the grant of higher PBB rates for GOCCs under Categories 2 or 3 of CPCS II shall be submitted for approval of the President.

The DBM shall provide such relevant assistance to the GCG, as may be necessary, in the issuance of guidelines on matters pertaining to compensation adjustments of GOCCs.

Section 16. Separability Clause.If any provision of this Order is declared invalid or unconstitutional, the other provisions not affected thereby shall remain valid and subsisting.

Section. 17.Repeal.EO No. 150 is hereby repealed. All other orders, rules and regulations, issuances, or any part thereof, which are inconsistent with the provisions of this Order, are hereby repealed or modified accordingly.

Section 18. Effectively.This Order shall take effect immediately upon publication in the Official Gazette or in a newspaper of general circulation.

DONE,in the City of Manila, this 16thday of September, in the year of Our Lord, Two Thousand and Twenty-Five.

 
 

(SGD.)FERDINAND R. MARCOS, JR.


 
 

By the President:

 


(SGD.)LUCAS P. BERSAMIN
Executive Secretary




CPCS II ATTACHED TO EXECUTIVE ORDER NO. 95 (S. 2025) 

COMPENSATION AND POSITION CLASSIFICATION SYSTEM II FOR THE GOCCS COVERED BY REPUBLIC ACT NO. 10149 

I. GUIDING PRINCIPLES.This Compensation and Position Classification System (CPCS) II shall be implemented, enforced, and interpreted in accordance with the following guiding principles:

1. The CPCS II has been designed to provide government-owned or -controlled corporations (GOCCs) with adequate operational autonomy and flexibility towards ensuring efficient and effective implementation of a total compensation framework within their organizations to ensure that:
(a) The adoption of reasonable, justifiable and appropriate remuneration schemes prevents or deters the granting of unconscionable and/or excessive remuneration packages;

(b) The total compensation framework shall generally be comparable with the private sector doing comparable work in order to attract, engage, and retain the right talent and in compliance with prevailing laws on minimum wages;

(c) The compensation frameworks adopted by GOCCs shall operate within their affordability limits and sustainability capacities, and in accordance with their GOCC classification as provided herein;

(d) There shall be adherence to the principle of equal pay for work of equal value, with due regard for other verifiable factors such as the sector where the GOCCs are classified; and

(e) The rewards system supports and encourages performance-driven, productive, and efficient organizations.
2. The CPCS II shall be updated periodically by the Governance Commission for GOCCs (GCG) based on the following parameters:
(a) A review of the GOCC compensation rates every three (3) years, without prejudice to the provisions of the Executive Order (EO) to which this CPCS II is attached;

(b) The performance of the GOCC and its overall contribution to the national economy;

(c) Drastic changes in market or business environment; and

(d) Implementation of new compensation schemes in National Government Agencies.
II. DEFINITION OF TERMS.

"Authorized Allowances, Benefits, and Incentives (ABIs)"refer to the financial or non-financial compensation that has been duly authorized by the President of the Philippines and/or by law. An approval from the GOCC Governing Board alone, regardless if the GOCC is chartered or non-chartered, shall not be considered as authorization.

"Authorized Salaries"refer to the salary structure that has been duly authorized by the President of the Philippines, GCG, and/or by law. An approval of the salary structure from the GOCC Governing Board alone, regardless if the GOCC is chartered or non-chartered, shall not be considered as authorization.

"Board of Directors/Trustees"or"Governing Board"refers to the collegial body that exercises the corporate powers, conducts all business and controls or holds all properties of a GOCC, whether it formally referred to as the "Board of Directors," "Board of Trustees" or some other term in its Charter, Articles of Incorporation or By-Laws.

"Charter"refers to a law or statute creating a chartered GOCC and defining its franchise.

"Chartered GOCC"refers to a GOCC, including Government Financial Institutions, created and vested with function by a special law.

"Chief Executive Office (CEO)"refers to the highest-ranking corporate executive who could be named as the President or the General Manager, Chief Operating Officer, Executive Director, or Administrator of a GOCC.

"Commercial GOCCs"refer to GOCCs that undertake operations or provide service that compete with the private sector. Such commercial activities can include, but not limited to:
a. Design and conceptualization of the products/services;

b. Manufacturing and production of the products/services;

c. Sales;

d. Logistics involved in delivering the products/services to the end customer;

e. Customer service;

f. Property development and management;

g. Banking operation; and

h. Extractive industries (e.g.oil, gas).
"Collection Negotiation Agreement (CNA)or"Collection Bargaining Agreement (CBA)"refers to the negotiated contract between an accredited employees' organization representing a negotiating unit and the employer/management concerning terms and conditions of employment and improvements thereof that are not fixed by law.

"Employee"when used with reference to a person in the public service, includes any person in the service of the Government or any of its agencies, divisions, subdivisions, or instrumentalities.

"Full-Time Equivalent (FTE) Employees"refer to employees holding plantilla positions in a GOCC.

"GCG or the Governance Commission"refers to the lead Implementing Agency of the CPCS, including this CPCS II, for the GOCC Sector.

"GCG En Banc"refers to the collegial body composed of the GCG Chairperson and two (2) Commissioners, and the Secretaries of the Department of Budget and Management (DBM) and the Department of Finance, that exercises regulatory, supervisory, and policy-making functions for GOCCs covered by Republic Act (RA) No. 10149 or the "GOCC Governance Act of 2011."

"Government Financial Institutions (GFIs)"refer to financial institutions or corporations in which the Government directly or indirectly owns majority of the capital stock and which are either: (1) registered with or directly supervised by theBangko Sentral ng Pilipinas(BSP); (2) collecting or transacting funds or contributions from the public and places them in financial instruments or assets such as deposits, loans, bonds and equity including, but not limited to, the Government Service Insurance System and the Social Security System.

"Government Instrumentalities with Corporate Powers (GICPs)/Government Corporate Entities (GCEs)"refer to instrumentalities or agencies of the Government, which are neither corporations nor agencies integrated within the Departmental Framework, but vested by law with special functions or jurisdiction, endowed with some if not all corporate powers, administering special funds, and enjoying operational autonomy usually through a charter including, but not limited to, the following: the Manila International Airport Authority, Philippine Ports Authority, Philippine Deposit Insurance Corporation, Metropolitan Waterworks and Sewerage System, Laguna Lake Development Authority, Philippine Fisheries Development Authority, Bases Conversion and Development Authority, Cebu Port Authority, Cagayan de Oro Port Authority, San Fernando Port Authority, Local Water Utilities Administration, and Asian Productivity Organization.

"Government-Owned or -Controlled Corporation (GOCC)"refers to any agency organized as a stock or non-stock corporation, vested with functions relating to public needs whether governmental or proprietary in nature, and owned by the Government of the Republic of the Philippines directly or through its instrumentalities either wholly or, where applicable, as in the case of stock corporations, to the extent of at least a majority of its outstanding capital stock:Provided, however,That for purposes of the CPCS II, the term "GOCC" shall include GICP/GCE and GFI as define herein.

"Job Grade"refers to the numerical representation of the relative internal values of jobs in a GOCC's plantilla in accordance with the CPCS attached to EO No. 150 (s. 2021).

"Monthly Basic Salary (MBS)"refers to the amount actually received per month by an officer or employee and determined in accordance with the applicable salary structure, policies, and guidelines of the CPCS, including this CPCS II.

"National Government"refers to the entire machinery of the central government, as distinguished from the different forms of local governments.

"Non-chartered GOCC"refers to a GOCC organized and operating under the applicable Corporation Code of the Philippines.

"Non-commercial GOCCs"refers to GOCCs whose primary operations do not compete with the private sector, such as:
a. Non-governmental business enterprises, as determined by the Commission on Audit;

b. GICPs;

c. Those organized for cultural, educational, civic, scientific, or charitable purposes;

d. Those with social protection objectives;

e. Those which have privatized operations and primarily generate revenue through collection of concession fees;

f. Those primarily derive business income from activities undertaken for developmental purposes (e.g.,interest on investments, lease or sale of properties);

g. Those which are conduits for sector development;

h. Marketing arms of the National Government to support its programs;

i. Those which primarily generate revenue through fees borne out of their regulatory powers; and

j. Registered as non-stock, non-profit corporations, including foundations.
"Officer"refers to a person whose duties, not being of a clerical or manual nature, involve the exercise of discretion in the performance of the functions of the Government. When used with reference to a person having authority to do a particular act or perform a particular function in the exercise of governmental power, "officer" includes any government employee, agent, or body having authority to do the act or exercise that function.

"Parent GOCC"refers to a GOCC that owns, holds, or controls, directly or indirectly, through one or more intermediaries, at least a majority of the outstanding capital stock of the subsidiary.

"Pay Grade (PG)"refers to the numerical representation of the relative internal values of jobs in a GOCC's plantilla. The PG will dictate the MBS of said jobs based on the Salary Structure under this CPCS II.

"Supervising Agency"refers to a government agency to which a GOCC is attached for purposes of policy and program coordination and for general supervision.

"Total Compensation Framework (TCF)"refers to all financial and non-financial compensation components such as basic salaries, ABIs, and variable pay.

III. COVERAGE.The CPCS II shall apply to all GOCCs, including their subsidiaries, which are covered by RA No. 10149.

The CPCS II shall apply to all positions on regular, contractual, or casual basis, now exiting or hereafter created in GOCCs, whether chartered or non-chartered, and whether previously covered by, or previously exempted from, RA No. 6758 or the "Compensation and Position Classification Act of 1989."

IV. EXCLUSION. The CPCS II shall not apply to the BSP, state universities and colleges, cooperatives, local water districts, economic zone authorities, and research institutions which are expressly outside the coverage of RA No. 10149.

 GOCCs with approved dispositive actions such as merger (exclusively referring to the GOCC to be absorbed), consolidation, abolition, deactivation, privatization, or such other related action as determined by the GCG shall not be covered by the CPCS II. The GCG shall have the authority to formulate the appropriate compensation for GOCCs falling under this paragraph in accordance with Section 1 of the EO on CPCS II.

Excluded also from the coverage of the CPCS II are those individuals hired by GOCCs without employer-employee relationships and paid from non-Personnel Services appropriations/budgets, as follows:
(a) Consultants and experts hired to perform specific activities or services with expected outputs;

(b) Laborer hired through job contracts (pakyaw)and those paid on piecework basis;

(c) Student workers and apprentices; and

(d) Those whose services are engaged through job orders, contracts of service, or others similarly situated.
Finally, members of the Governing Board, except for the CEO, are likewise excluded from the CPCS II.

V. GOCC CLASSIFICATION UNDER THE CPCS II.All GOCCs will be categorized and graded under the CPCS II with due regard to the financial capability of the GOCC, in accordance with RA No. 10149. Measures of a GOCC's magnitude and complexity which will determine the GOCC grade required for the organization to operate and deliver its mandate/s will also be considered to determine the GOCC's classification under the CPCS II. If circumstances so warrant, the GCG may review the category, tier, and/or GOCC grade of all GOCCs that have already implemented the CPCS, whether under EO No. 150 or this CPCS II. Until the GCGEn Bancprovides otherwise, the following rules shall apply for the classification of GOCCs for purposes of the CPCS II:

1. GOCC CATEROGIZATION- GOCCs shall be categorized based on their nature of operations and financial viability to sustain their operations/activities. The GOCCs shall be categorized based on the following descriptors:    
 
CATEGORY
DESCRIPTORS
Category 1

GOCCs that arenot self-sustainingeither because:

* They rely on National Government subsidies to fund their day-to-day operations; and/or

* They have an average net loss for the last three (3) years, regardless whether they receive subsidies or not.

Further, at the time of initial CPCS II implementation, GOCCs that failed to submit the required information on their financials and FTE employees will also be included in Category 1.

Category 2
GOCCs that are self-sustaining through sources of funds generated fromnon-commercial activities.
Category 3
GOCCs that are self-sustaining through sources of funds generated fromcommercial activities,with products and services that directly compete with the private sector.

2. GOCC GRADING- Each GOCC shall be classified by its GOCC grade based on the weighted average grade in these three (3) factors:
(a)Company Financials- 60%

(b)Complexity- 30%

(c)Number of FTE Employees- 10%
GOCC grading is the foundation of the job evaluation process for each GOCC. The GOCC grade sets a cap to the number of grades in the organization and determines the grade of the CEO.

Newly created GOCCs shall be subject to the guidelines to be issued by the GCGEn Banc.
2.1.Company Financials- GOCCs shall have a grade based on the average relevant financial indicators over the last three (3) years as reported in their audited financial statements and DBM and/or Board-approved corporate operating budgets:   
   
GOCC GRADE
FINANCIALS (P)
16
< 3.975 billion
17

≥ 3.975 billion and < 7.95 billion   

18
≥ 7.95 billion and < 26.5 billion
19
≥ 26.5 billion and < 53 billion
20
≥ 53 billion and < 106 billion
21
≥ 106 billion and < 265 billion
22
≥ 265 billion and < 530 billion
23
≥ 530 billion and < 2.65 trillion
24
≥ 2.65 trillion and < 5.3 trillion
25
≥ 5.3 trillion

In consideration of the financial viability and source of funds to sustain an organization's full operations and activities, the financial indicators applicable for each GOCC shall be dependent on the Category of the GOCC. The three (3) years financials will be averaged based on the following formula for each category:
 
CATEGORY
DESCRIPTORS
Category 1

Operating expense plus operating subsidies

Category 2

Operating expense (plus investment income, if any).

Program subsidies will not be included in the computation of financials of GOCCs under this category.

Category 3
Annual revenue or operating expense plus annual revenue minus statutory contributions.

2.2.Complexity- GOCCs shall have a grade for its complexity based on the fixed grade equivalent to its categorization:
 
GOCC GRADE
CATEGORY
16

Category 1

18
Category 2
20
Category 3

2.3.Number of FTE Employees- GOCCs shall have a grade based on the number of FTE Employees as follows:

GOCC GRADE
NO. OF FTE EMPLOYEES
16

Less than 91

17
91 to 240
18
241 to 620
19
621 to 1,600
20
1,601 to 4,100
21
4,101 to 10,600
22
10,601 to 27,500
23
27,501 to 75,000
24
75,001 to 200,000
25
More than 200,000

2.4.Official GOCC Grade- The GOCC shall have a weighted average grade based on Chapter V, Sections 2.1 to 2.3 to derive the official grade of the GOCC. A sample computation is provided as follows:
 
COMPONENT
WEIGHT
GRADE
WEIGHTED GRADE
Financials
60%
16
9.60
Complexity
30%
18
5.40
FTE Employees
10%
18
1.80
GOCC Final Grade
  
17
The resulting weighted average grade shall be rounded off to get the final GOCC Grade under the CPCS which shall be capped at Grade 20.

The conversion of the GOCC grade into the new salary tables will be included in the guidelines that will be issued by the GCG.

IV. COMPENSATION SYSTEM.The total compensation grated to officers and employees for services rendered shall hereinafter be limited to the following:
(a)Basic Salaries, including Step Increments

(b)ABI

(c)Variable Pay (Performance-Based Bonus)
Provided,That the CPCS II does not cover indirect compensation that is not specified herein and is regulated under existing laws such as, but not limited to: life and retirement insurance benefits, employee compensation insurance, health insurance, and PAG-IBIG Fund benefits:Provided further,That the GCGEn Bancmay issue clarificatory guidelines relative to the aforementioned indirect compensation as may be necessary.

All GOCCs shall migrate to the rationalized and standardized TCF that shall be implemented for their offices and employees in accordance with the basic salaries, including step increments, ABIs, and variable pay provided therein. The TCF to be adopted by GOCCs that have not yet migrated into the CPCS under EO No. 150 and seek to implement the CPCS II shall be allowed upon authorization of the GCG based on the GCG-certified GOCC Classification under Chapter V, and the job evaluation of all positions of the GOCC based on the Index of Occupational Services, Position Titles, and Job Grades for GOCCs in accordance with Section 15 of the EO on CPCS II.

A. BASIC SALARIES, INCLUDING STEP INCREMENTS

1.Basic Salaries- The MBS provided under the CPCS II is the maximum amount that the GOCC can grant to its officers and employees which shall be differentiated for Category 1 and Categories 2 and 3. A lower uniform percentage of the prescribed rates herein may be implemented by the GOCC based on its own implementation scheme of the CPCS II, provided that such scheme is based on:
(a) Affordability and sustainability of the GOCC top continually implement the CPCS rates for its offices and employees;

(b) Provision of gradual annual salary increase with the salary rates of the CPCS II as the cap, as authorized by the GOCC Governing Board; and/or

(c) Flexibility of the GOCC to provide its own salary tranches such that the amounts in the salary structure herein shall be the amount of the GOCC's final tranche and shall only be applied on the third year of implementation.
1.1.Salary Structure- There are a total of six (6) salary structures which GOCCs can implement depending on their profitability and sustainability of operations. Categorization and Tiering shall then be applied for GOCCs to adopt the appropriate structure that is within their financial capacity.
1.1.1By Categorization- GOCCs under Category 1 shall follow one structure and shall not be classified further into Tiers.

GOCCs under Categories 2 and 3 shall have a total of five (5) structures wherein the applicable structure shall be based on the Tiers provided herein.
1.1.2By Tiering- GOCCs under Categories 2 and 3 shall be subjected to Tiering which shall determine the corresponding salary structure that the GOCC can implement based on the following financials using the same formula provided under Chapter V, Section 2.1:
 
TIERS
FINANCIALS (P)
Tier 1
Between 1.98 billion to 3.97 billion
Tier 2
≥ 3.97 billion
Tier 3
≥ 20.32 billion
Tier 4
≥ 36.6 billion
Tier 5
≥ 53 billion
All GOCCs under Categories 2 and 3 with financials falling at P1.98B and below will automatically follow the pay structure for a Category 1 GOCC.

The GCGEn Bancmay adjust or set an appropriate Tier for a GOCC by reason of its strategic importance to national economy and development:Provided,That the GOCC's financial viability to sustain its operations/activities is considered and that the source of funds for the adjustment shall not be subsidized by the National Government or the parent GOCC, as may be applicable.

1.1.3. The MBS Structure for Category 1 GOCC shall be as follows:

Pay Grade
Category 1
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7
Step 8
1
15,208
15,304
15,423
15,442
15,663
15,784
15,906
16,030
2
16,118
16,233
16,349
16,466
16,582
16,700
16,820
16,939
3
17,120
17,244
17,366
17,490
17,616
17,740
17,868
17,994
4
18,180
18,309
18,440
18,571
18,704
18,836
18,971
19,106
5
19,296
19,434
19,573
19,712
19,852
19,994
20,137
20,280
6
20,474
20,620
20,767
20,916
21,065
21,215
21,367
21,520
7
21,872
22,034
22,196
22,362
22,526
22,693
22,860
23,030
8
23,399
23,603
23,808
24,014
24,221
24,432
24,644
24,859
9
25,433
25,627
25,823
26,021
26,220
26,421
26,624
26,828
10
28,247
28,462
28,678
28,896
29,116
29,337
29,561
29,787
11
33,387
33,501
33,790
34,082
34,378
34,679
34,983
35,292
12
35,650
35,771
36,059
36,350
36,645
36,944
37,246
37,552
13
37,828
37,987
38,303
38,623
38,948
39,276
39,608
39,945
14
40,505
40,882
41,263
41,650
42,040
42,436
42,837
43,243
15
44,148
44,564
44,985
45,412
45,844
46,281
46,723
47,172
16
47,829
48,286
48,750
49,219
49,694
50,175
50,662
51,154
17
51,877
52,381
52,891
53,407
53,929
54,459
54,993
55,536
18
56,332
56,885
57,447
58,013
58,589
59,171
59,760
60,356
19
61,916
62,729
63,556
64,395
65,249
66,116
66,999
67,895
20
76,594
77,628
78,679
79,747
80,833
81,936
82,982
84,121
21
95,296
96,612
97,952
99,320
100,814
102,331
103,873
105,308
22
107,022
108,627
110,260
111,918
113,603
115,317
116,952
118,719
23
121,559
123,385
125,242
127,128
129,047
130,995
132,977
134,989
24
155,217
157,550
159,921
162,184
164,630
166,512
169,030
171,587
25
173,788
176,411
179,077
181,457
184,205
186,999
189,319
192,196
26
194,570
197,521
200,519
203,567
206,663
209,044
212,230
215,469
27
218,237
221,556
224,726
227,943
231,209
234,743
238,113
241,758
28
308,730
314,460
320,302
353,952
331,707
337,758
343,862
350,080
29
364,586
371,607
378,767
385,708
393,154
400,750
408,500
416,040
30
459,469
464,551
469,690
474,886
480,139
485,450
490,820
500,129


1.1.4 The MBS structures for a Category 2 or 3 GOCC shall be as follows:

Pay Grade
Category 2 and 3 - Tier 1
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7
Step 8
1
15,451
15,849
16,246
16,643
17,041
17,438
17,835
18,233
2
18,451
18,628
18,806
18,983
19,160
19,337
19,514
19,691
3
19,888
20,001
20,113
20,226
20,338
20,451
20,563
20,676
4
20,882
21,207
21,532
21,857
22,182
22,507
22,832
23,157
5
23,388
23,455
23,521
23,587
23,653
23,719
23,785
23,852
6
24,090
24,158
24,226
24,294
24,363
24,431
24,499
24,567
7
24,813
24,883
24,953
25,023
25,094
25,164
25,234
25,304
8
25,557
25,955
26,353
26,750
27,148
27,545
27,943
28,341
9
28,624
28,826
29,029
29,231
29,434
29,636
29,839
30,041
10
30,341
30,772
31,202
31,633
32,063
32,494
32,924
33,354
11
33,688
34,521
35,354
36,187
37,020
37,853
38,686
39,519
12
39,914
40,219
40,524
40,829
41,134
41,439
41,477
42,049
13
42,470
42,793
43,115
43,438
43,761
44,083
44,406
44,729
14
45,176
45,640
46,104
46,567
47,031
47,495
47,958
48,422
15
48,906
49,465
50,025
50,584
51,143
51,703
52,262
52,821
16
53,350
53,911
54,473
55,034
55,596
56,157
56,719
57,280
17
57,853
58,472
59,091
59,711
60,330
60,949
61,568
62,187
18
62,809
63,491
64,173
64,856
65,538
66,220
66,902
67,584
19
68,260
69,370
70,479
71,589
72,698
73,807
74,917
76,026
20
76,787
79,274
81,761
84,248
86,735
89,222
91,709
94,196
21
96,080
98,392
101,647
104,901
108,156
111,411
114,665
117,920
22
119,099
121,076
123,053
125,030
127,007
128,983
130,960
132,937
23
134,267
136,679
139,092
141,505
143,917
146,330
148,743
151,156
24
155,721
158,306
163,944
169,583
175,221
180,860
186,498
192,137
25
194,058
197,888
201,718
205,548
209,377
213,207
217,037
220,867
26
249,845
260,800
271,755
282,710
293,665
304,620
315,575
326,530
27
249,845
260,800
271,755
282,710
293,665
304,620
315,575
326,530
28
329,795
340,990
453,185
363,381
374,576
385,771
396,967
408,162
29
412,244
426,238
440,232
454,226
468,220
482,214
496,208
510,202
30
515,304
532,797
550,290
567,782
585,275
602,768
620,260
637,753



Pay Grade
Category 2 and 3 - Tier 2
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7
Step 8
1
15,699
16,147
16,596
17,044
17,493
17,941
18,390
18,838
2
19,064
19,247
19,430
19,613
19,796
19,979
20,162
20,345
3
20,549
20,665
20,781
20,898
21,014
21,130
21,246
21,363
4
21,576
21,912
22,248
22,583
22,919
23,255
23,590
23,926
5
24,165
24,234
24,302
24,370
24,439
24,507
24,576
24,644
6
24,890
24,961
25,031
25,102
25,172
25,242
25,313
25,383
7
25,637
25,710
25,782
35,855
25,927
26,000
26,072
26,145
8
26,406
26,817
27,228
27,639
28,050
28,460
28,871
29,282
9
29,575
29,784
29,993
30,202
30,412
30,621
30,830
31,039
10
31,349
31,794
32,239
32,684
33,128
33,573
34,018
34,462
11
34,807
35,668
36,528
37,389
38,250
39,110
39,971
40,832
12
41,240
41,555
41,870
42,185
42,501
42,816
43,131
43,446
13
43,881
44,214
44,548
44,881
45,214
45,538
45,881
46,215
14
46,677
47,156
47,635
48,114
48,593
49,072
49,551
50,031
15
50,531
51,109
51,687
52,265
52,842
53,420
53,998
54,576
16
55,122
55,702
56,282
56,863
57,443
58,023
58,603
59,183
17
59,775
60,415
61,054
61,694
62,334
62,974
63,613
64,253
18
64,896
65,600
66,305
67,010
67,715
68,420
69,125
69,830
19
70,528
71,674
72,820
73,967
75,113
76,259
77,406
78,552
20
79,337
81,907
84,477
87,046
89,616
92,186
94,755
97,325
21
98,298
101,661
105,024
108,386
111,749
115,112
118,475
121,837
22
123,056
125,098
127,141
129,183
131,226
133,268
135,311
137,353
23
138,727
141,220
143,713
146,206
148,698
151,191
153,684
156,177
24
157,739
163,565
169,391
175,216
181,042
186,868
192,694
198,520
25
200,505
204,501
208,498
212,495
216,491
220,488
224,485
228,481
26
230,766
234,683
238,600
242,517
246,434
250,350
254,267
258,184
27
260,766
272,569
284,371
296,174
307,977
319,779
331,582
343,385
28
346,819
359,082
371,346
383,610
395,874
408,137
420,401
432,665
29
436,991
452,444
467,896
483,348
498,801
514,253
529,705
545,158
30
550,609
570,079
589,549
609,019
628,489
647,959
667,429
686,899


 
Pay Grade
Category 2 and 3 - Tier 3
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7
Step 8
1
15,950
16,405
16,861
17,317
17,773
18,228
18,684
19,140
2
19,369
19,555
19,741
19,927
20,113
20,299
20,485
20,671
3
20,878
20,996
21,114
21,232
21,350
21,468
21,586
21,704
4
21,921
22,263
22,604
22,945
23,286
23,627
23,968
24,309
5
24,552
24,621
24,691
24,760
24,830
24,899
24,969
25,038
6
25,289
25,360
25,432
25,503
25,575
25,646
25,718
25,789
7
26,047
26,121
26,195
26,268
26,342
26,416
26,489
26,563
8
26,829
27,246
27,663
28,081
28,498
28,916
29,333
29,751
9
30,048
30,261
30,474
30,686
30,898
31,111
31,323
31,536
10
31,851
32,303
32,755
33,206
33,658
34,110
34,562
35,014
11
35,364
36,238
37,113
37,987
38,862
39,736
40,610
41,485
12
41,900
42,220
42,540
42,860
43,181
43,501
43,821
44,141
13
44,583
44,922
45,260
45,599
45,938
46,277
46,616
46,954
14
47,424
47,911
48,397
48,884
49,371
49,858
50,344
50,831
15
51,339
51,926
52,514
53,101
53,688
54,275
54,862
55,449
16
56,004
56,593
57,183
57,772
58,362
58,951
59,541
60,130
17
60,731
61,381
62,031
62,681
63,331
63,981
64,631
65,281
18
65,934
66,650
67,366
68,082
68,798
69,515
70,231
70,947
19
71,656
72,821
73,986
75,150
76,315
77,480
78,644
79,809
20
80,607
83,218
85,828
88,439
91,050
93,661
96,271
98,882
21
99,871
103,287
106,704
110,121
113m537
116,954
120,370
123,787
22
125,025
127,100
129,175
131,250
133,325
135,401
137,476
139,551
23
140,947
143,479
146,012
148,545
151,078
153,610
156,143
158,676
24
160,263
166,182
171,101
178,020
183,939
189,858
195,777
201,696
25
203,713
208,483
213,253
218,024
222,794
227,564
232,334
237,104
26
239,475
244,254
249,033
253,812
258,591
263,370
268,149
272,928
27
275,658
287,744
299,831
311,918
324,005
336,092
348,179
360,265
28
363,868
379,823
395,777
411,732
427,687
443,641
459,596
475,550
29
480,306
494,465
508,623
522,782
536,941
551,100
565,259
579,417
30
585,11
603,597
621,983
640,368
658,754
677,139
695,525
713,910


 
Pay Grade
Category 2 and 3 - Tier 4
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7
Step 8
1
16,205
16,668
17,131
17,594
18,057
18,520
18,983
19,446
2
19,679
19,868
20,057
20,246
20,435
20,624
20,813
21,002
3
21,212
21,332
21,452
21,572
21,692
21,812
21,932
22,052
4
22,272
22,619
22,965
23,312
23,658
24,005
24,351
24,698
5
24,945
25,015
25,086
25,157
25,227
25,298
25,368
25,439
6
25,693
25,766
25,839
25,911
25,984
26,057
26,129
26,202
7
26,464
26,539
26,614
26,689
26,763
26,838
26,913
26,988
8
27,258
27,682
28,106
28,530
28,954
29,378
29,802
30,227
9
30,529
30,745
30,961
31,177
31,392
31,608
31,824
32,040
10
32,361
32,820
33,279
33,738
34,197
34,656
35,115
35,574
11
35,930
36,818
37,707
38,595
39,483
40,372
41,260
42,149
12
42,570
42,895
43,221
43,546
43,872
44,197
44,522
44,848
13
45,296
45,640
45,985
46,329
46,673
47,017
47,361
47,706
14
48,183
48,677
49,172
49,666
50,161
50,665
51,150
51,644
15
52,161
52,757
53,354
53,950
54,547
55,144
55,740
56,337
16
56,900
57,499
58,098
58,697
59,296
59,894
60,493
61,092
17
61,703
62,364
63,024
63,684
64,345
65,005
65,665
66,326
18
66,989
67,716
68,444
69,172
69,899
70,627
71,354
72,082
19
72,803
73,986
75,169
76,353
77,536
78,719
79,902
81,086
20
81,897
85,549
87,202
89,854
92,507
95,159
97,812
100,464
21
101,469
104,940
108,411
111,882
115,354
118,825
122,296
125,767
22
127,025
129,133
131,242
133,350
135,439
137,567
139,675
141,784
23
143,202
145,775
148,348
150,922
153,495
156,068
158,641
161,215
24
162,827
168,841
174,854
180,868
186,882
192,896
198,909
204,923
25
206,972
212,837
218,701
224,566
230,430
236,294
242,159
248,023
26
250,503
258,298
266,093
273,888
281,683
289,478
297,273
305,068
27
308,119
322,937
337,754
352,572
367,390
382,207
397,025
411,842
28
415,961
428,316
440,671
453,027
465,382
477,737
490,092
502,448
29
507,472
525,417
543,361
561,306
579,250
597,195
615,140
633,084
30
639,415
660,216
681,018
701,819
722,620
743,422
764,223
785,024


 
Pay Grade
Category 2 and 3 - Tier 5
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7
Step 8
1
17,015
17,453
17,890
18,328
18,765
19,203
19,640
20,078
2
20,319
20,514
20,709
20,904
21,099
21,294
21,489
21,684
3
21,901
22,025
22,149
22,273
22,397
22,521
22,644
22,768
4
22,996
23,354
23,712
24,069
24,427
24,785
25,143
25,501
5
25,756
25,828
25,901
25,974
26,047
26,120
26,193
26,266
6
26,528
26,603
26,678
26,753
26,828
26,903
26,978
27,054
7
27,324
27,401
27,479
27,556
27,633
27,711
27,788
27,865
8
28,144
28,582
29,020
29,457
29,895
30,333
30,771
31,209
9
31,521
31,744
31,967
32,190
32,413
32,636
32,859
33,081
10
33,412
33,886
34,360
34,834
35,308
35,782
36,256
36,730
11
37,098
38,015
38,932
39,849
40,767
41,684
42,601
43,518
12
43,954
44,290
44,625
44,961
45,297
45,633
45,969
46,305
13
46,768
47,124
47,479
47,834
48,190
48,545
48,901
49,256
14
49,749
50,259
50,770
51,280
51,791
52,302
52,812
53,323
15
53,856
54,472
55,088
55,704
56,320
56,936
57,552
58,168
16
58,749
59,368
59,986
60,604
61,223
61,841
62,459
63,078
17
63,709
64,390
65,072
65,754
66,436
67,118
67,799
68,481
18
69,166
69,917
70,668
71,420
72,171
72,922
73,673
74,425
19
75,169
76,391
77,612
78,834
80,056
81,278
82,499
83,721
20
84,558
87,297
90,036
92,774
95,513
98,252
100,990
103,729
21
104,766
108,351
111,935
115,519
119,103
122,687
126,271
129,855
22
131,153
133,330
135,507
137,684
139,861
142,038
144,215
146,392
23
147,856
150,513
153,170
155,827
158,483
161,140
163,797
166,454
24
168,119
174,328
180,537
186,746
192,956
199,165
205,374
211,583
25
213,699
220,661
227,622
234,584
241,546
248,507
255,469
262,431
26
265,055
274,427
283,800
293,173
302,545
311,918
321,290
330,663
27
333,969
347,668
361,367
375,066
388,765
402,464
416,163
429,861
28
434,160
448,898
463,636
478,374
493,112
507,851
522,589
537,327
29
542,700
561,123
579,545
597,968
616,391
634,813
653,236
671,658
30
678,375
706,201
734,027
761,853
789,678
817,504
845,330
873,156

The GCG shall issue an Authority to Implement (ATI) the CPCS II to each GOCC for the conversion of their existing Job Grades (pursuant to CPCS attached to EO No. 150) into the salary compensation framework under this CPCS II.
2.Step Increments- Officers and employees of a GOCC may progress from Step 1 to Step 8 within the particular PG of the position based on the following:
* Meritorious performance based on a Performance Management System approved by the Civil Service Commission (CSC) for chartered GOCCs and by the Board for non-chartered GOCCs;

* Length of service in accordance with the rules and regulations to be promulgated by the Governance Commission; and

* Adjustments for a specific person and/or position as approved by the GOCC Governing Board and recommended by the Supervising Agency of the GOCC to the GCG for final review and approval shall only be allowed once and within six (6) months from the issuance of the ATI to the GOCC.
Guidelines for the grant of step increment may use as reference the rules and regulations issued by the DBM.
2.1.For incumbents of GOCCs which have not yet implemented the CPCS under EO No. 150.- Upon implementation of the CPCS II, all incumbent officers and employees of GOCCs shall be assigned to Step 1. If the current salary of the GOCC personnel is higher than the Step 1 rate of his/her assigned PG, his/her MBS shall be in accordance with the following rules:
* If the current salary falls between two (2) Steps of the assigned PG, the higher Step shall be granted to the personnel.

* If the current salary is already above Step 8 of the assigned PG, such current salary shall be retained as the MBS of the personnel and there shall be not increase or diminution in the same.
2.2. For newly hired and newly promoted officers and employees- All officers and employees of GOCCs who are hired or promoted after the implementation of the CPCS II shall be assigned to Step 1 of the PG assigned to his/her position.

2.3. GOCCs that are already implementing the CPCS under EO No. 150 shall continue with their existing salary step progression, subject to the implementing guidelines to be issued by the GCG.
B. ALLOWANCES, BENEFITS, AND INCENTIVES

1.Standard Allowances and Benefits- These refer to allowances and benefits that are given across-the-board to officers and employees based on the prescribed rates, guidelines, and regulations to be promulgated by the GCG pursuant to the applicable standardized compensation laws and issuances for National Government Agencies. These shall be limited to the following:

1.1.Year-End Bonus (YEB)- The YEB shall be granted annually based on the one (1) month basic salary, subject to the eligibility conditions under the applicable guidelines to be released by the GCG.

1.2.Cash Gift- Cash Gift shall be granted annually as a year-end benefit.

1.3.Uniform/Clothing Allowance (UCA)- The UCA shall be granted annually to provide the required proper uniform/clothing to employees.

1.4.Personnel Economic Relief Allowance (PERA)- The PERA shall be granted monthly to augment the compensation of government personnel against the rising cost of living.

1.5.Medical Allowance- All GOCCs may provide an annual medical allowance to each qualified employee with the following maximum allowable amounts:

*Category 1- P7,000.00, or the amount provided for National Government Agencies, whichever may be higher;

*Category 2 and 3-

* Tier 1 - P10,000.00

* Tier 2 - P15,000.00

* Tier 3 - P20,000.00

* Tier 4 - P27,000.00

* Tier 5 - P35,000.00
The grant of the medical allowance shall be in accordance with the guidelines to be established by the GCG using as reference the applicable standardized procedures and issuances for National Government Agencies.

2.Specific-Purpose Allowances and Benefits- These refers to allowances and benefits given to officers and employees in GOCCs under specific conditions and situations related to the actual performance of work. The prescribed rates, guidelines, and regulations to be promulgated by the GCG shall be based on the applicable compensation laws and issuance for National Government Agencies. These shall be limited to the following:
2.1.Hazard Pay- This is a compensation given to employees who, in the actual performance of their duties and responsibilities, are actually exposed to hazardous situations, such as, but not limited to, assignment in strife-torn or embattled areas, distressed or isolated stations, prison camps, mental hospitals, leprosaria, radiation-exposed clinics/laboratories/workshops, disease-infested areas and areas declared under state of calamity or emergency which pose occupational risks or perils to life.

2.2.Compensation for Overtime Work-This shall serve as the compensation for services rendered beyond the required forty (40) hours of work in a week and those performed on rest days, holidays, and non-working days. This can either be in the form of Compensatory Tome-Off or Overtime Pay.

2.3.Night Shift Differential Pay- This is a compensation premium given to employees whose regular working hours fall within a specified period od time.

2.4.Honorarium- This is a form of compensation that may be given for services rendered beyond the regular duties and responsibilities of the positions they occupy.

2.5.Special Counsel Allowance- This is an allowance given to lawyer-personnel assigned in the legal office of GOCCs for their appearance or attendance to court1hearings.

2.6.Representation and Transportation Allowance (RATA)- This is a collective term for two distinct but complementary monthly allowances: Representation Allowance (RA) and Transportation (TA). This is given to officials of GOCCs down to Heads of Division or their equivalent for their transportation and representation expenses while in the actual performance of their duties and responsibilities.

2.7.Subsistence Allowance- This is an allowance given to employees who, by nature of their duties and responsibilities, have to make their services available in their places of work even during mealtimes.

2.8.Magna Carta Benefits for Public Health Workers (PHWs)- The PHWs, as defined in RA no. 7305 or the "Magna Carta of Public Health Workers" are entitled to the benefits provided under the said law.

2.9Magna Carta Benefits for Scientists, Engineers, Researchers, and Other Science and Technology (S&T) Personnel- Employees considered as S&T personnel as defined in RA No. 8439 or the "Magna Carta for Scientists, Engineers, Researchers, and other S&T Personnel in the Government" are entitled to the benefits provided under the said law.

2.10Magna Carta Benefits for Public Social Workers (PSWs)- All registered PSWs as defined in RA No. 9433 or the "Magna Carta for Public Social Workers" and employed in government service are entitled to the benefits provided under the said law.
3.Incentives- These refer to rewards granted for services for, and contributions to, the GOCC. The prescribed rates, guidelines, and regulations of the items herein shall be promulgated by the GCG based on the applicable standardized compensation laws and issuances for National Government Agencies. These shall be limited to the following:
3.1.Loyalty Award- This is an incentive in recognition of loyalty to government service.

3.2.Anniversary Bonus- This is an incentive given during the milestone years of the GOCC as authorized by Administrative Order No. 263 (s. 1996).

3.3.Mid-Year Bonus- This is an incentive given to qualified officers and employees equivalent to one (1) month basic salary.

3.4Productivity Enhancement Incentive- This is a cash incentive meant to improve the productivity of officers and employees.

3.5CNA Incentive- This is an incentive given to officials and employees of GOCCs with approved and successfully implemented CNAs in recognition of their efforts in accomplishing performance targets at a lesser cost.

The grant of the CNA Incentive shall be based on the guidelines to be established by the Governance Commission, using as reference the guidelines released by the DBM and/or the CSC.

3.6.Program on Awards and Incentives for Service Excellence (PRAISE)- This is a program to provide monetary and/or non-monetary incentives to recognize, acknowledge, and reward productive, creative, innovative, and ethical behavior of employees.
Chartered GOCCs shall follow the guidelines issued by the CSC for the establishment and maintenance of the PRAISE Program. Non-chartered GOCCs may opt to adopt the PRAISE Program, provided that they establish their own program using as reference the guideline sunder CSC issuances, and provided further, that the rates of monetary and/or non-monetary incentives shall not exceed the rates under the CSC issuances.

4.Additional Allowances, Benefits, and Incentives- Upon receipt of the authorization from the GCG (i.e.,the ATI) to implement the CPCS II, all the ABIs of GOCC officers and employees, whether they are incumbents or new hires, shall be limited to those provided under the CPCS II. All additional compensation outside of the CPCS II shall be approved by the Governing Board, endorsed by the Supervising Agency, recommended by the GCG, and approved by the President of the Philippines.

All orders, issuances, and memoranda that are contrary or inconsistent to the provisions and grants provided under CPCS II shall automatically be repealed upon implementation of the CPCS II.

5.Discontinued Allowances, Benefits, and Incentives- The authorized ABIs currently being received by incumbents of GOCCs that are implementing compensation frameworks different from what is provided in the CPCS under EO No. 150 or the CPCS II shall be paid the three (3)-year present value of such authorized ABIs that will be discontinued under and upon implementation of the CPCS II, using the following formula:
 
3 year present value

= Total authorized excess ABIs for the first year
    ___________________________________
      1.02250

 + Total authorized excess ABIs for the second year
___________________________________
1.02251
 + Total authorized excess ABIs for the third year
___________________________________
1.02252

Only ABIs that are duly authorized by the President of the Philippines and/or by law shall be included in the computation of ABIs to be paid out to each incumbent, subject to availability of the corporate funds and financial viability of the GOCC.

This provision shall only be applicable to GOCCs that will migrate to the CPCS II after the effectivity of this Order.

C. VARIABLE PAY OR PERFORMANCE-BASED BONUS

1.Performance-Based Bonus (PBB)- This is a cash bonus given to qualified officers and employees in recognition of their contribution to the accomplishment of the GOCC's overall targets and commitments.
1.1. Coverage - All officers and employees of GOCCs who occupy regular, casual, or contractual positions with employer-employee relationship. 

1.2. Rules and Regulations
1.2.1. Eligibility for GOCCs
1.2.1.1. Only GOCCs that have achieved a weighted-average score of at least 90% in their Performance Scorecard for the applicable year.

1.2.1.2. GOCCs shall satisfy other conditions set by the GCG for the grant of PBB.
1.2.2. Eligibility Requirements for individual officers and employees
1.2.2.1. Officers and employees must have rendered an aggregate period ot at least nine (9) months of government service for the applicable year to be entitled to the full-grant of PBB. Those who do not meet the nine (9)-month service requirement but have served for at least three (3)-months shall be entitled to PBB on apro-ratabasis.

1.2.2.2. Officers and employees shall satisfy other conditions set by the GCG to be entitled to the grant of PBB.
1.2.3. PBB rates - The rate of PBB is dependent on the performance of an officer or employee, his/her MBS as of 31 December of the applicable the applicable year, and the actual length of service he/she has rendered.
 
Percentile
PBB as % of MBS
Top:Maximum 10%
65.0%
Next:Maximum 25%
57.5%
Remaining:Minimum 65%
50.0%

All qualified officers and employees shall be entitled to PBB not lower than P5,000.00 and not exceeding 65% of their individual MBS as of 31 December of the applicable year. The percentage of PBB to be paid to officers and employees based on their length of service shall be as follows:

Length of Service
% of PBB
At least 9 months
100%
8 months but less than 9 months
90%
7 months but less than 8 months
80%
6 months but less than 7 months
70%
5 months but less than 6 months
60%
4 months but less than 5 months
50%
3 months but less than 4 months
40%

1.2.4. Grant of higher PBB rate - GOCCs categorized either as Category 2 or 3 under CPCS II may grant to a specific incumbent a higher PBB rate of up to 150% of the incumbent's MBS, subject to the approval of the GOCC Governing Board, endorsement of the Supervising Agency of the GOCC, and final approval of the GCG.
1.3. To ensure consistency with the policies and guiding principles enshrined in EO No. 61 (s. 2024), the grant of PBB shall be in accordance with the guidelines to be established by the GCG, using a reference the applicable standardized compensation laws and issuances for National Government Agencies. In this regard, the GCG shall submit to the Office of the President the guidelines for the grant of PBB.
VII. ENTITLEMENTS.The entitlements herein are indirect compensation and/or are outside the TCF of GOCCs. These entitlements shall be based on the prescribed rates, guidelines, and regulations to be promulgated by the GCG using as reference the applicable standardized compensation laws and issuances for National Government Agencies. These shall be limited to the following:

1.Communication Allowance- Officers and employees of GOCCs may be paid communication expenses incurred for the performance of their official duties and responsibilities.

2.Leave Credits- All officers and employees of GOCCs, whether permanent, temporary, casual, or contractual, who are employed with an employer-employee relationship are entitled to earn leave credits.

3.Monetization of Leave Credits- All officers and employees of GOCCs entitled to earn leave credits shall be allowed to monetize their unused leave credits.

4.Terminal Leave Benefits- Officers and employees who retire, voluntarily resign, or are separated from services shall be entitled to the commutation of their leave credits.

5.Rehabilitation Privilege- Officers and employees who sustained wounds and/or injuries while in the performance of official duties may avail of rehabilitation privilege.

6.Cost of Participation in Conferences, Seminars, etc.- Officers and employees may participate in conventions, seminars, conferences, symposia, and similar gatherings, subject to the allowable cost for the participation.

7.Official Vehicles and Transport- Government motor transportation may be used by the personnel of GOCCs for official business.

8.Allowances for Local and Foreign Travel- This is an allowance for official local and foreign travel of GOCC officers and employees.

9.Cultural and Athletic Activities- This is an annual authorized expense for the purchase of uniforms or costumes and other related expenses in the conduct of cultural and athletic activities.

10.Quarters Privileges- This is benefit for GOCC officers or employees assigned or transferred to a place other than their domicile or residence and who do not own houses or rooms therein, by virtue of the GOCC's policies on reshuffling or rotation.

11.Relocation Allowance- This is an annual authorized expense meant to cover expenses incidental to the transfer or assignment of GOCC officers or employees due to internal policies or reshuffling or rotation.

12.Extraordinary and Miscellaneous Expenses (EME)- An annual authorized expense for specified officials and those of equivalent rank occupying key positions in GOCCs in recognition of the need to grant some form of expense to enable them to meet various financial demands of their incumbency in their positions. An annual miscellaneous expense is also authorized for each of the office under the specified officials and their equivalent ranks who are entitled to EME.

VII. PROVIDENT FUND (PF).The PF of GOCCs shall be in accordance with the following:
  
CATEGORY
RATIONALIZATION OF PF
Category 1
* PF shall be subjected to DBM Budget Circular No. 2008-32, or any subsequent issuances thereof, provided that theemployer's shareshall be limited to 10%.
Category 2 and 3
    * Theemployer's shareshall be limited to 10%.     

* Theemployer's shareshall be at minimum rate of 3%. Any rate above 3% is subject to written approval of the concerned employee.   


The conditions on GOCCs with existing PF shall also be in accordance with the following rationalization measures:
* GOCCs with current PF employer's share that is lower than the maximum of 10% shall have to request for approval from the President of the Philippines should they intent to increase such employer's share. The request should include a computation of the financial impact of the proposed increase in the PF employer' share on the GOCC, aprproved by the Governing Board, and endorsed by the Supervising Agency to the GCG for review and recommendation to the President.
* GOCC with current PF employer's share that is higher than the maximum of 10% shall be limited to up to the applicable maximum rate listed above.

* GOCCs may choose to liquidate their exiting PF and pay out their member employees if thet are not amenable to the new PF rates.

* Those GOCCs that intent to set up a PF shall request for approval from the Office of the President, provided that the new PF is subject to the rationalization of PF under CPCS II.

* GOCCs with financial falling under P1.98 billion shall follow the PF rates for Category 1.
IX. IMPLEMENTATION SCHEDULE OF THE CPCS II ABIs.GOCCs that have implemented the CPCS under EO No. 150 may implement the enhanced ABIs undr this CPCS II retroactive to 01 January 2025, upon receipt of their ATU from GCG. 

GOCCs that have not yet implemented the CPCS under EO No. 150 shall implement prospectively the ABIs under this CPCS II, upon issuance of their corresponding ATIs.

X. GUIDELINES PENDING THE ISSUANCE OF THE CPCS II GUIDELINES.Pending the issuance of the applicable implementing guidelines by the GCG, GOCCs shall use existing GCG, DBM, and CSC issuances for the rules , regulations, and, whenever applicable, the rates for the grant of the ABIs provided therein.

XI. UPDATES ON RULES AND REGULATIONS.The GCG may issue updates on any rules and regulations implementing the CPCS II, and/or new guidelines on the CPCS II, as may be deemed necessary.