Pay Rationalization Plan
Memorandum from the Executive Secretary

July 13, 2001


TO : All Heads and Officers of Government-Owned and Controlled Corporations (GOCCs), Government Financial Institutions (GFIs) and Subsidiaries
SUBJECT : Pay Rationalization Plan

In accordance with the agreements reached during the meeting of the Presidential Committee on Effective Governance (PCEG) on July 6, 2001 with some GOCC/GFI heads, the following is the summary of the decisions/clarifications made in response to the issues and queries raised concerning the preparation and implementation of the Pay Rationalization Plans (PRPs) of GOCCs/GFIs/Subsidiaries pursuant to

1.0 The Actual Pay Package of Senior Officer Positions refers to the base pay/salary plus all other allowances, incentives, benefits as a consequence of their employment. The actual package should likewise include emoluments received for other positions held, whether public or private, by virtue of or traceable to the government position held. The pay package of comparable National Government (NG) positions as shown in Annex "A" hereof shall be used as basis for the PRPs.

2.0 Full disclosure shall be made of all allowances and benefits granted, i.e., Signing Privileges, Credit Card, Provident Fund, Housing Privileges/Allowance, and Car Plans, as well as funds under the control or discretion of the officer concerned, such as discretionary funds, intelligence funds and other similar allowances or funds regardless of how they are called. The disclosure shall also indicate the manner of payment thereof.

3.0 Senior Officer Positions shall be determined by the GOCCs/GFIs/Subsidiaries using equivalent position in NG as benchmark. The highest ranking shall be equivalent to a Department Secretary.

4.0 Promotion of Senior Officer Positions shall be deferred until the PRP of the GOCC/GFI/Subsidiary concerned is approved. Where necessary, promotions may be effected but with a clear written provision that the corresponding pay adjustments shall be subject to the approved PRP.

5.0 Government Officers holding Ex-Officio positions are not entitled to receive any form of compensation, allowances or similar remuneration from GOCCs/GFIs/ Subsidiaries.

6.0 Members of Board of Directors/Trustees of GOCCs/GFIs/Subsidiaries shall be guided by the maximum rates prescribed under

7.0 Implementation of PRPs shall take effect only upon approval thereof.

8.0 PRPs shall be submitted to the Department of Budget and Management on or before July 25, 2001.