Guidelines on the Formulation of the FY 2022 Tier 1 and Tier

Guidelines on the Formulation of the FY 2022 Tier 1 and Tier 2 Personnel Services (PS) Levels Director Gerald R. Janda Department of Budget and Management Organization, Position Classification and Compensation Bureau

Tier 1 Composition : PS Tier 1 (Ongoing Spending) Forward Estimates Tier 2 (New Spending and Expansion of P/A/Ps) For charging against the available Fiscal Space Total Proposed Budget 2

Tier 1 Composition : PS 1. Agency-Specific Budgets: For CFAG Agencies: Salaries and allowances of all filled and unfilled positions reported in the DBM’s Government Manpower Information System (GMIS) as of December 31, 2020 3

Tier 1 Composition : PS 1. Agency-Specific Budgets: (cont’d) For All Agencies: Salary of all filled positions reported in the GMIS as of December 31, 2020 o Standard allowances, benefits and incentives of filled positions reported in the GMIS as of December 31, 2020, e.g., PERA, Uniform/Clothing Allowance, Mid-Year Bonus, Year-end Bonus, Cash Gift, PEI, RATA 4

Tier 1 Composition : PS 1. Agency-Specific Budgets: (cont’d) For All Agencies: Other Non-interface PS items such as Anniversary Bonus during milestone year, Magna Carta Benefits, and Loyalty Pay of qualified filled positions reported in the GMIS as of December 31, 2020, as well as existing authorized allowances and collaterals of Military and Uniformed Personnel (MUP) such as Hazard Pay, Subsistence Allowance, etc. 5

Tier 1 Composition : PS 1. Agency-Specific Budgets: (cont’d) For All Agencies: Step Increment Due to Length of Service, consistent with CSC-DBM Joint Circular No. 2012-1 Lump-sum for Casuals and Contractuals, subject to submission of Budget Preparation (BP) Form 204 6

Tier 1 Composition : PS 2. Miscellaneous Personnel Benefits Fund (MPBF) For Unfilled Positions: A. May be transferred to Agency Budget during Tier 2 deliberation: o 100% of the PS cost of the following unfilled positions as of December 31, 2020: – Teaching positions – Military personnel in DND – Uniformed personnel (PNP, BJMP, BFP, PCG, NAMRIA, and BuCor) 75% of the PS cost of unfilled medical and medical-allied positions 7

Tier 1 Composition : PS 2. Miscellaneous Personnel Benefits Fund (MPBF) For Unfilled Positions: B. For other agencies: o 30% of the PS cost of the unfilled positions, except those provided otherwise 8

Tier 1 Composition : PS 2. MPBF (cont’d) May be transferred to Agency Budget during Tier 2 deliberation: For New Positions: 100% of the PS cost of new positions created per population-based formulas (e.g., teaching items, and positions for MUP) 9

Tier 1 Composition : PS 3. Pension and Gratuity Fund (PGF) Pension payments for existing retirees for MUP, and agencies covered by special laws (i.e. OSG, OGCC, PRC, LRA, NAPROS, PAO, NLRC, and ERC 10

Tier 1 Composition : PS 3. PGF May be transferred to Agency Budget during Tier 2 deliberation: Terminal leave (TL) benefits of compulsory retirees, subject to submission of BP 205 TL and Retirement Gratuity (RG) of MUPs and compulsory retirees of other agencies covered by special laws Pension payments for existing retirees under CFAG, i.e, Judiciary and Office of the Ombudsman 11

Tier 2 Composition : PS 1. Agency-Specific Budgets AdjustmentS in PS due to budget policy decision such as: o Implementation of a new program or activity o Abolition or expansion of PAP o Major change in the organizational structure of an agency o Transfer of functions between agencies 12

Tier 2 Composition : PS 1. Agency-Specific Budgets: (cont’d) Additional casual and contractual positions for duly established and functioning ad-hoc bodies co-existent with the operations of the particular ad-hoc bodies 13

Tier 2 Composition : PS 2. MPBF 100% of the PS cost of new positions and staffing modifications approved by the DBM after December 31, 2020 (i.e., January to May 2021) 75% of the PS cost of positions proposed for creation and staffing modifications with legal basis, established standards, or with technical evaluation based on complete agency submission of documentary requirements 14

Tier 2 Composition : PS 2. MPBF (cont’d) Step Increment Due to Meritorious Performance per CSC-DBM Joint Circular No. 2012-1 Proposed overtime pay requirements per CSC-DBM JC No. 2015-2 15

Tier 2 Composition : PS 3. PGF TL and RG for optional retirees Pension payments for new retirees for MUP, and agencies covered by special laws, i.e., OSG, OGCC, NLRC, PRC, ERC, LRA, NAPROS, and PAO Monetization of Leave Credits 16

Tier 2 Composition : PS 3. PGF (cont’d) Separation benefits and/or incentives of affected personnel pursuant to reorganization, streamlining, rightsizing, devolution of functions to local government units, merger/consolidation, abolition, privatization, and other forms of organizational restructuring authorized under applicable laws, rules and regulations 17

Tier 2 Composition : PS 3. PGF (cont’d) May be transferred to Agency Budget during Tier 2 deliberation: Pension payments for new retirees covered under CFAG, i.e., Judiciary and the Office of the Ombudsman 18

Updating of Personal Services Itemization and Plantilla of Personnel (PSIPOP) National Budget Circular No. 549, s. 2013 “4.0 Procedural Guidelines All NGAs with authorized permanent positions shall review the PSIPOP and update the POP portion on a monthly basis and uploaded to the DBM GMIS database every last week of the month xxx.” 19

Status of Last Update, By Department (as of January 20, 2021) Department Congress of the Philippines Office of the President Office of the Vice-President Department of Agrarian Reform Department of Agriculture Department of Budget and Management Department of Education Department of Energy Department of Environment and Natural Resources Department of Finance Department of Foreign Affairs Department of Health Department of Information and Communications Technology Department of the Interior and Local Government Department of Justice Date of Last Update October 22, 2020 October 06, 2020 January 18, 2021 January 20, 2021 November 27, 2020 December 29, 2020 January 06, 2021 January 12, 2021 October 21, 2020 January 05, 2021 January 13, 2021 November 03, 2020 January 05, 2021 November 03, 2020 20

Status of Last Update, By Department (as of January 20, 2021) Department Department of Labor and Employment Department of National Defense Department of Public Works and Highways Department of Science and Technology Department of Social Welfare and Development Department of Tourism Department of Trade and Industry Department of Transportation National Economic and Development Authority Presidential Communications Operations Office The Judiciary Civil Service Commission Commission on Audit Commission on Elections Office of the Ombudsman Date of Last Update December 29, 2020 December 28, 2020 January 06, 2021 December 29, 2020 May 21, 2020 January 14, 2021 December 21, 2020 December 28, 2020 November 03, 2020 December 23, 2020 December 29, 2020 November 03, 2020 December 29, 2020 January 19, 2021 21

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