16 May 2016
Greetings!
The 16th Congress has appropriated an amount of P57.91 Billion under Fiscal Year 2016 General
Appropriations Act (GAA) or Republic Act (RA) No. 10717, to cover the requirement for the
compensation adjustment of civilian, military and uniformed personnel in the National Government.
This is consistent with the governments thrust to strengthen the performance-based incentive system and
to recognize the vital role of government personnel in achieving work targets and delivering results.
We are pleased to inform you that pursuant to, and on the basis of National Budget Circular No. 562 issued
last 24 February 2016, implementing Executive Order No. 201 s. 2016 which was approved by President
Benigno S. Aquino, III on 19 February 2016, your compensation for the next four (4) years, shall be
adjusted, as follows:
For the uniformed personnel of the Department, the compensation adjustment strategy shall be aligned
with the objective of mitigating financial crisis and pursuing pension reforms.
The grant of Provisional Allowance shall be an interim measure pending the modification and
rationalization of the Base Pay Schedule for military and uniformed personnel. The said
allowance shall not form part of the base pay nor increase the longevity pay, pension and other
collateral allowances which are indexed to the base pay.
Also, Hazard Pay shall be increased from the current rate of P240 to P390 per month for FY 2016
and subsequently for the next three years according to the above-cited schedule.
Isa ito sa mga paraan ng pagkilala ng ating pamahalaan sa mahalagang ambag ng bawat isang
kawani sa pagsusulong ng gobyerno ng tunay na serbisyo-publiko.
Sincerely, I thank you for your service and support to the Department and the government. You
are indeed a true public servant.