NBC 530: Implementing Guidelines of the Third Tranche Salary Increase for 2011

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Find out the implementing guidelines of the salary increase for government employees for 2011.

On May 11, 2011 the National Budget Circular from the Department of Budget and Management (DBM) implementing the third tranche monthly salary schedule for civilian and base pay schedule for military and uniformed personnel in the national government has finally been released. This is National Budget Circular No. 530, a directive of DBM addressed to heads of departments, bureaus, offices and agencies of the national government, including state universities and colleges (SUCs); government-owned or controlled corporations (GOCCs) and government financial institutions (GFIs). The National Budget Circular prescribes the guidelines, rules, and regulations to govern the implementation of the third tranche of salary increases due to civilian and military personnel which the Senate and House of Representatives jointly approved on June 17, 2009.

Earlier, President Benigno "Noynoy" Aquino III released Executive Order No. 40 on April 29, 2011 providing for an advanced release of the salary increases on the first day of June of 2011, mindful of the required expenses for enrolment and associated expenses during the opening of classes.

Coverage of National Budget Circular 530

The National Budget Circular, as in the previous circulars implementing the previous tranches, covers the implementation of the salary increase to civilian government employees who have the following employment status:

  • regular,
  • casual,
  • jobs which are contractual in nature,
  • appointive or elective official,
  • full-time of part-time employees in the executive, legislative and judicial branches of government,
  • constitutional commissions or offices,
  • state universities and colleges,
  • employees of government-owned and controlled corporations, and
  • government financial institutions.

These positions are covered by the Compensation and Position Classification Act of 1989 or R. A. No. 6758. R. A. No. 6758 prescribes a revised compensation and position classification system in the government. The act intended to provide equal pay for substantially equal work. It bases differences in pay upon substantive differences in duties and responsibilities, and qualification requirements of the positions. The revised position and classification system recognizes the large difference in pay between government and private employees for the same job at that time. Thus, increases to keep at par or competitive with the private sector was implemented. 

Meanwhile, the third tranche salary increase provided for by NBC 530 also covers the military and uniformed personnel of the government.

Exclusions of the Salary Increase

Not all employees working in government, however, are not covered by the salary increases for 2011. As in the previous promulgated rules and regulations, the following employees are excluded from the third tranche monthly salary increase:

  • those civilian employees who are exempted from R. A. No. 6758 who were given authorization to adopt and implement their respective compensation and position classification systems approved by the office of the President,
  • those hired without employee-employer relationship and funded from non-Personnel Services appropriations and budgets including consultants and experts hired for a limited period to perform specific activities or services with expected outputs;
  • laborers hired through job contracts or "pakyaw" and those paid for piecework (piece work is any type of employment in which a worker is paid a fixed rate for each unit produced or action performed regardless of time),
  • student workers and apprentices; and
  • individuals and groups of people whose services are engaged through job orders, contracts of service, or similar positions.

No doubt, the early release of the third tranche monthly salary increase among government employees will inspire them to work well and hard in their chosen career of public service. It is also hoped that the salary increases will help make government service a noble job bearing in mind that a public office is a public trust. The people who pay government employees' salaries through their taxes must be served with courtesy, efficiency and excellence.


Department of Budget and Management: NBC 530


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