Section 12Sec./Art. 12

Exempt Entities. - Exempt entities refer to: (a) government agencies that are not covered by the CPCS authorized under Republic Act No. 6758, as amended; (b) GOCCs governed by the (CPCS) established by GCG under Republic Act No. 10149; and (c) those authorized by law and have actually adopted their own compensation and position classification system.

Exempt entities shall be governed by their respective compensation and position classification systems which shall be made effective upon the recommendation of the DBM or GCG, as the case may be, and approval by the President of the Philippines.