GUIDELINES ON THE RECLASSIFICATION OF POSITIONS
DBM Budget Circular No. 2018 - 3
1.0 Purpose

This Circular is issued to amend the guidelines on the reclassification of positions as part
of the mandate of the Department of Budget and Management (DBM) to administer and
maintain the Compensation and Position Classification System (CPCS) in the government.

2.0 Coverage, Exclusion and Prohibition

2.1 Reclassification of positions shall apply only to filled regular positions in the
national government covered by or following the CPCS established under Republic
Act (RA) No. 6758', as amended.
2.2 Reclassification of positions shall not apply in the case of casual and contractual
positions in view of their limited tenure.
2.3 The reclassification of filled positions in local government units is prohibited in
view of Section 325 (f) of RA. No. 71602, s. 1991.

3.0 Class Categories

Pursuant to Section (3)(a) of Congress Joint Resolution No. 4, s. 20093, the classes of
positions under the CPCS shall be categorized as follows: 
3.1 Sub-Professional category - This category includes positions involved in
structured work in support of office operations or those engaged in crafts, trades,
manual or clerical work.
3.2 Professional category - This category includes positions performing work
requiring the exercise of profession or application of knowledge acquired through
formal training in a particular field or the exercise of a natural, creative and artistic
ability or talent in arts and letters. Also included in this category are positions
involved in research and application of professional knowledge and methods to a
variety of technological, economic, social, industrial, and governmental functions.
3.3 Executive category - This category includes managerial positions involved in the
execution of laws, rules and regulations, in the legislation of laws and ordinances,
and in the administration of justice.

4.0 Guidelines

4.1 Reclassification is a form of staffing modification or position classification action
which is applied only when there is warranted substantial change in the regular
duties of the incumbent of the position.
It generally involves a change in any or all of the position attributes, i.e., position
title, salary grade or position level. However, if the salary grade of the position is
maintained, the staffing/classification action is deemed a retitling, provided that the
new position title belongs to the same occupational group.
Reclassification of positions shall be subject to approval of the DBM.


4.2 Reclassification may be applied in the following cases:
4.2.1 There are changes in the level/category of the government entity which will
bear on the level of key positions;
4.2.2 There are changes in the quantitative and other factors used in determining
the appropriate position and level in accordance with existing position
classification standards;
4.2.3 The reclassification of a position is provided by law or Presidential
authority; or
4.2.4 Other meritorious cases as may be determined by the DBM.
4.3 The following are the only instances when reclassification is based on the
qualification of the incumbent:
4.3.1 Implementation of the Equivalents Record Forms (ERFs) of teachers
pursuant to Section 14 of Presidential Decree No. 985, as implemented by
DBM Circular Letter No. 84-4 dated May 30, 1984 and Budget Circular No.
2004-1 dated January 23, 2004;
4.3.2 Implementation of the Master Teachers career path provided under
Executive Order No. 500 dated March 21, 1978, as implemented by
National Budget Circular (NBC) No. 303 dated April 10, 1979 and National
Compensation Circular No. 24 dated May 20, 1983: and
4.3.3 Implementation of NBC No. 461 dated June 1, 1998 for faculty members of
SUCs, higher education institutions, and TESDA technical education
institutions, and of NBC No. 308 dated May 28, 1979 in the case of faculty
members of the University of the Philippines System and the Mindanao
State University System.
4.4 A position may be reclassified only within the same class category, as described
under Item 3.0 of this Circular.
Accordingly, the previous policy which allows reclassification to a different class
category is hereby rescinded.
4.5 The reclassification may involve an upward or downward change in the
classification of a position, but not to exceed one (I) position leve14, except those
enumerated under Items 4.2.1 to 4.2.3 and 4.3 of this Circular.
A series of positions usually consists of four (4) to six (6) position levels, for example:


4.6 To preserve meritocracy and fitness in the civil service, a position may be
reclassified only if the present incumbent fully meets the qualification standards
prescribed by the Civil Service Commission (CSC) for the position, as reclassified.
4.7 The reclassification shall not result in a distortion in the hierarchy and mix of
positions in the staffing pattern nor in the organizational structure, not only within
the unit where said position is deployed, but also among equivalent or parallel units
in the agency.
4.8 The following shall not be used as bases for the reclassification of position:
4.8.1 New duties/assignments which are temporary in nature;
4.8.2 Non-performance of the regular duties and responsibilities of a position by
reason of the incumbent's inability or incompetence; and
4.8.3 Qualifications of the incumbent except those enumerated under 4.3 of this
Circular.
4.9 Reclassification shall not apply to vacant regular positions which necessitate
changes in their position titles for being under any of the instances cited in Item 4.2
of this Circular. Instead, the conversion of positions shall be effected, i.e., the items
shall be abolished and in their stead, the appropriate positions shall be created.
4.10 Agency proposals for reclassification of positions, as endorsed by the respective
agency head, shall be submitted to the DBM Bureau or Regional Office concerned,
together with the following documents:
4.10.1 Duly accomplished Position Description Form (PDF), including the
Unique Item No. of the position to be reclassified per latest Personnel
Services Itemization and Plantilla of Personnel (PSIPoP);
4.10.2 Statement of functions of the unit where the position belongs;
4.10.3 Justification for the reclassification of positions;
4.10.4 A certification that the incumbent fully meets the qualification standards
set by the CSC for the position as reclassified;
4. 1 0.5 If no amount is appropriated specifically for the reclassification of
positions, identification of vacant positions to be offered for abolition
which shall be used as funding source for said purpose in accordance
with the "scrap and build" policy; and
4.10.6 Other documents that DBM may require in the evaluation of proposals.
4.11 Agencies which have been granted budget flexibilities by the DBM may reclassify
filled positions provided, that, the incumbents fully meet the CSC's qualification
standards requirement for the positions, as reclassified; such are in accordance with
position classification standards; and such are within their budget management
authorities. Any additional funding requirement shall be sourced out of the
abolition of vacant positions. If found in order, the DBM shall issue the
corresponding Notice of Organization, Staffing and Compensation Action to
formalize the change in the agency staffing pattern. However, if upon review the
reclassification actions made by the agencies are not in order, the DBM reserves
the right to make modifications therein.

5.0 Resolution of Cases
Cases not covered by the provisions of this Circular shall be referred to the DBM for resolution.

6.0 Repealing Clause
This Circular repeals and supersedes Budget Circular No. 2005-55 dated August 16, 2005.

7.0 Effectivity
This Circular shall take effect immediately.

BENJAMIN E. DIOKNO
Secretary

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