GUIDELINES FOR THE INITIAL PHASE OF IMPLEMENTATION ON THE

INCREASE IN BASE PAY OF ALL MILITARY PERSONNEL OF THE ARMED

FORCES OF THE PHILIPPINES (AFP)
AFP Comptroller Letter Number 2002-06 dated 14 October 2002
1. REFERENCES:
a. R.A. Nr 9166 dated 07 Jun 2002
b. DND IRR of R.A. Nr 9166 dated 30 Sep 2002.
2. PURPOSE:
This Comptroller Letter is issued to provide the guidelines for the initial phase of
implementation on the increase in base pay of all military personnel of the AFP at a
uniform rate of twenty percent (20%) of the amount of increase, pursuant to Republic
Act Nr 9166 and its implementing rules and regulation (IRR) dated 07 June 2002
and 30 September 2002 respectively effective 01 October 2002.
3. COVERAGE:
These rules shall apply only to all officers and enlisted personnel of the AFP
who are in the active service, cadets of the Philippine Military Academy, officer
candidates and candidate soldiers, and shall not pertain to civilian employees of the
AFP.
4. DEFINITION OF TERMS:
The following terms shall be defined as:
a. Base Pay - A fixed amount of compensation for regular work rendered
designated in the Salary Schedule for Uniformed Personnel for all ranks provided
under the National Budget Circular Nr 474 s. 2001 computed on a per month or per
annum basis, excluding fringe benefits and other allowances. Otherwise referred to
as basic pay.
b. Pay Schedule - The graduated salary scale ranked from the highest to the
lowest with its corresponding rate or amount of base pay.
c. Salary Grade - The category or level of salary attached to a certain rank or
position in the civil service.
d. Partial Implementation - The fractional implementation of an increase based
on a fixed percentage of the whole.
e. Uniform Implementation - Officers and men of the same rank shall have the
same rate of increase determined by designating a fixed rate of percentage for all
ranks (i.e. 20% uniform rate from Private to General).
f. Proportionate Implementation - Officers and men of different ranks shall
have different amounts of increases computed at the same rate of percentage.
5. POLICIES:
a. Effective 01 October 2002, adjustments in Base Pay and Longevity Pay
shall be uniformly implemented following the attached Table of Pay Schedule of AFP
Military Personnel.
b. The twenty percent (20%) increase on Year-end Benefits and Cash Bonus
shall be computed based on the adjusted Base Pay of the military personnel of the
AFP effective 01 October 2002.
c. Collateral allowances shall not be included in the implementation of the
twenty percent (20%) increase in base pay of the military personnel of the AFP.
d. For retirement and separation benefits, computation of benefits of active
military personnel who are optionally or compulsorily retired or those separated from
the service shall be based on the last pay received in whatever stage of the
implementation of the increase and not the full amount corresponding to the salary
grade in its full implementation.
6. PROHIBITION:
GHQ/Major Services/Key Budgetary Units (KBUs) Commanders are prohibited
from granting any adjustment in excess of the amounts herein authorized.
7. FUNDING SOURCE:
The amount necessary for the First Phase of implementation of the increase in
base pay shall be charged against the appropriations savings of each GHQ/Major
Services/KBUs and/or other definite sources as determined by the Department of
Budget and Management (DBM) to be sufficient and readily available.
Thereafter, such sum as may be necessary for the continued implementation of
the law providing for an increase in base pay shall be incorporated in the regular
appropriations of the AFP in the General Appropriations Act (GAA).
8. STATUS REPORT:
A periodic status report of the implementation shall be submitted to the
Secretary of National Defense thru the Chief of Staff, AFP by the Deputy Chief of
Staff for Comptrollership, J6 in coordination with the Deputy Chief of Staff for
Personnel, J1 or their equivalent in the Major Services/KBUs once every three
months to be submitted not later than the last Friday of the third month.
9. REPEALING CLAUSE:
Provision(s) of existing Circulars, guidelines and other issuances which are
inconsistent with the provisions of this Comptroller Letter are hereby
rescinded/repealed and/or modified accordingly.
10. EFFECTIVITY:
This Comptroller Letter shall take effect as of 01 October 2002.
BY COMMAND OF GENERAL DEFENSOR:
(SGD) CARLOS F GARCIA
Major General AFP
Deputy Chief of Staff
for Comptrollership, J6
Distribution:
"A"
"AUREMS"