Section 8Sec./Art. 8

Guidelines in Cases Where a Fourth or Lower Income Class LGU Receive a Third or Higher Income Class Reclassification. - A fourth or lower income class LGU which is reclassified as first, second, or third income class following the first general income reclassification provided herein shall be exempted from providing for additional personal services and may maintain existing personal services prior to the reclassification, pursuant to civil service rules and regulations, until the next fiscal year. In case of personnel transfers, resignation or deaths, the local government may not cause the filling up of vacant position nor provide for its funding until the succeeding fiscal year.

LGUs exceeding the limitations provided in Section 325(a) of Republic Act No. 7160 despite maintaining the status quo after it received a first, second, or third income class designation following the first general income reclassification shall not be considered in violation of Section 325 of Republic Act No. 7160.