President Rodrigo Duterte has issued an government order (EO) suspending the Compensation and Position Classification System (CPCS) and the Index of Occupational Services (IOS) Framework for government-owned and managed firms (GOCC).
In EO No. 36 signed final Friday, the President stated there was a “need to further study and review the compensation of GOCCs and eliminate excessive, unauthorized, illegal, and/or unconscionable allowances, incentives, and benefits.”
“The GCG (Governance Commission for GOCCs) finds that there are compelling reasons to revisit and/or reevaluate the CPCS under EO No. 203 and institute an interim measure for affected GOCCs at the meantime,” Duterte stated.
EO No. 203, which was signed in March 2016 by then President Benigno Aquino III, accredited the present CPCS that served as the idea for the computation of GOCC staff’ compensation, bonuses and incentives.
In the interim, Duterte ordered that GOCCs coated by the Salary Standardization Law (SSL) shall undertake, as their compensation framework, the Modified Salary Schedule beneath EO No. 201 (s. 2016), in addition to the allowances and bonuses supplied therein.
As for SSL-exempt GOCCs, they shall have the choice to both keep their present compensation framework or undertake the Modified Salary Schedule.
EO NO. 36 orders that the interim measures shall be applied efficient January 1, 2017 upon the approval of the GCG.