Section 10Sec./Art. 10

Compensation Adjustment for Personnel of Local Government Units. - The modified Salary schedule and additional Incentives authorized herein may be granted to personnel of LGUs subject to compliance with the Personnel Services (PS) limitation in the LGU budget under Section 325 and 331 of Republic Act No. 7160 and authorization from the Sanggunian as provided under Sections 447(a), 458(a) and 468(a) of Republic Act No. 7160.

In the implementation of the salary increases, LGUs shall likewise ensure compliance with the following:

(a) The salaries of LGU personnel that may be authorized shall correspond to the LGU's income classification and shall not exceed the percentage of the Salary Schedule in Section 7 hereof, as follows:

Percentage of the Salary Schedule

For Provinces/Cities

For Municipalities

Special Cities

100%

1st Class

100%

90%

2nd Class

95%

85%

3rd Class

90%

80%

4th Class

85%

75%

5th Class

80%

70%

6th Class

75%

65%

(b) The basic pay of barangay personnel shall be in the form of honoraria consistent with Republic Act No. 7160, which shall not exceed the percentage of the Salary Schedule corresponding to the income classification of the LGU. They may be given Year-End Bonus based on the monthly honoraria as of October 31 of the year and Cash Gift of Five thousand pesos (P5,000.00)

However, the minimum Year-End Bonus of One thousand pesos (P1,000.00) for the Punong Barangay and Six hundred pesos (P600.00) for other mandatory barangay officials shall not be subject to the PS limitation.

(c) In case of partial implementation of the authorized compensation rates, the same shall be at uniform percentage across all positions for every LGU.