General limitations.
Section 28
SEC. 28. General limitations.— The total annual appropriations for salaries and wages of provincial, city and municipal officials and employee for one fiscal year shall not exceed forty-five per cent (45%), in the case of all first and second class provinces, cities and municipalities and fifty-five per cent (55%), in the case of those lower than second class, of the total annual income actually realized from regular sources during the next preceding fiscal year or the current fiscal year estimates from the same sources certified as collectible by the provincial or city treasurer concerned, whichever is lower. The appropriations for salaries and wages of officials and employees in the public schools, hospitals, health and agricultural services, public utilities, markets and slaughter-houses, and other economic enterprises owned, operated and maintained by the province, city or municipality, as well as representation and emergency cost-of-living allowances, shall not be included in the computation of the maximum amount expendable for salaries and wages. The Secretary of Finance, however, may authorize appropriations in excess of the percentages hereinabove fixed subject to such conditions as he may impose, but in no case shall the excess in appropriations for salaries and wages be more than twenty-five per cent (25%) of the maximum expendable amounts nor shall such exemption be granted in case of overdraft or imminence thereof. No official or employee shall receive a salary rate higher than the maximum fixed by law or regulation for his position or other positions of equivalent rank. No local fund shall be appropriated to increase or adjust salaries or wages of officials and employees of the national government assigned in the local government, except as may hereafter be expressly authorized by law. In case a reduction of salaries and wages becomes necessary, such reduction shall be general in character and the percentage thereof shall be uniform for similar rates of salaries and wages. In cases of abolition of positions in the competitive or career service, such abolition shall be made in accordance with pertinent provisions of the Civil Service Law and Rules, and in the case of officials or employees appointed at the national level such reduction in that portion of their salary paid out of local funds as authorized by law or abolition of position shall not be given effect unless approved by the Head of the National Department or Commission concerned. Non-funding of existing positions in the competitive or non-competitive services which are occupied by incumbents holding permanent appointments shall be unlawful. Changes in designation or nomenclature of positions resulting in a promotion or demotion in rank and/or increase or decrease in compensation shall not be authorized, except when the position is actually vacant, and the filling of such positions shall be strictly made in accordance with the Civil Service Law and Rules. Except as may be expressly authorized by law, creation of new positions and salary increases or adjustments shall not be retroactive but, rather, invariably prospective in effect. The annual appropriations for discretionary purposes of the local chief executive shall not exceed one per cent of the real property tax collections actually realized during the next preceding fiscal year or P100,000.00, whichever amount is lower.