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PD 985 Section 15

Compensation Rules.

Section 15

SEC. 15. Compensation Rules. —Subject to the avail­ ability of funds, the foregoing- Salary and Wage Schedules shall be administered according- to the following principles and rules: a. Hiring Rates —Except as provided below, the first step in the grade for a given class shall be the hiring rate. If an employee previously received a salary in the gov­ernment service under a duly approved appointment which is higher than the minimum of the grade alloca­tion of his position, he may be appointed at the next higher step to his previous salary but not exceeding the salary step below the salary of his immediate supervisor. If an employee is promoted from one class to another having an overlapping salary grade, he shall be en­titled to the step next above that at which he was paid in the lower class. If found strongly justified after proper study and re­commendation of the OCPC, the Commissioner of the Budget may approve hiring at such rates of compen­sation, including such allowances as may be considered appropriate, of persons possessing exceptional qualifica­tion and/or expertise that are considered in short supply and which are critically needed. b. Pay Reduction —If an employee is moved from a higher to a lower class he shall not suffer a reduction in salary ex­cept where his current salary is higher than the maximum step of the new class in which case he shall be paid the maximum: Provided, That such movement is not the result of a disciplinary action. c. Step Increments —Subject to certification by the head of agency that the employee's services are satisfactory, the employee shall be adjusted to the second step after one year at the first step, to the third step after one year at the second step, to the fourth step after one year at the third step, to the fifth step after two years at the fourth step, to the sixth step after two years at the fifth step, to the seventh step after two years at the sixth step, and to the eighth step after two years at the seventh step, d. Status of Appointment —Any provision of law to the con­ trary notwithstanding, all salary or wage adjustments to the minimum and within grade increments shall be paid to the employee irrespective of his civil service eligibility and shall not affect the status of his appointment.

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Other provisions in PD 985

Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗ · Data as of July 4, 2026

CitationPD 985 Section 15 (LawPlayer, data as of July 4, 2026)

Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).

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