I. Overview of the Positions and the “Salary Grade Problem”

In the Philippine Department of Education (DepEd), the career tracks for teaching personnel are not strictly linear. A Master Teacher II (MT II) belongs to the Teacher IV–VII/Master Teacher track, while a Head Teacher (HT) belongs to the school-level instructional leadership track. Because of how the Salary Standardization framework assigns grades to these tracks, it is possible for a Master Teacher II to have a higher salary grade than certain Head Teacher items.

This creates a recurring legal and administrative question: what happens to salary when an MT II is appointed to a Head Teacher position that may be lower, equal, or higher in salary grade? The answer depends on the nature of the appointment under civil service and compensation rules.

II. Governing Legal Framework

Several layers of law and regulation control compensation consequences:

Republic Act No. 6758 (Salary Standardization Law / SSL)
- Establishes the standardized salary grades (SG) and steps for government positions.
- Sets the baseline rule that positions are assigned fixed SGs by DBM.
Subsequent Salary Standardization laws (SSL II–V)
- Adjust salary rates and may regrade certain positions, but do not change the core mechanics of salary upon promotion/transfer.
DBM issuance on salary step and adjustment rules
- DBM circulars and budget orders explain how to compute step movement when an employee changes positions.
Civil Service Commission (CSC) rules on appointments and movements
- The CSC determines whether a movement is a promotion, transfer, or demotion, and the required employee consent and salary treatment.
DepEd Orders on ranking, selection, and qualification standards (QS)
- Define eligibility and requirements for HT items and the process that leads to appointment.

III. Typical Salary Grades (Teaching-Related)

While actual SGs must always be verified against the current DBM Index of Occupational Services, the long-standing alignment has been roughly:

Master Teacher II – SG 19
Head Teacher I–VI – often SG 14 to SG 19 in ascending levels

So:

HT I–V are usually lower SG than MT II.
HT VI is typically equivalent to MT II.

This grading reality drives the rules below.

IV. Key Definitions Under Philippine Personnel Law

A. Promotion

A movement is a promotion if it results in:

a higher salary grade, or
a position with increased responsibilities AND a higher rank recognized by the staffing pattern.

Promotion is not just about the title. It must be upward in grade/rank.

B. Lateral Transfer

A transfer is movement to:

the same salary grade, or
another position that is not higher in grade, often requiring consent.

C. Demotion

A movement is a demotion if it results in:

a lower salary grade, or
reduced rank/compensation.

Demotion cannot be forced without due process and usually requires the employee’s written consent if voluntary.

V. Salary Rule When MT II Is Appointed to Head Teacher

Scenario 1: Appointment to Head Teacher With Higher SG than MT II

Example: MT II (SG 19) → HT item regraded to SG 20+ (rare, but possible if the HT item is very high level).

Rule: Standard salary upon promotion applies. Mechanics:

Compute the employee’s current salary step in MT II.
Add one (1) step increment based on the MT II step schedule.
Place the employee in the Head Teacher SG at the nearest step not lower than the computed amount.

Effect:

Employee receives a real promotion increase.
Step placement may skip steps if needed to avoid lowering the calculated amount.

Scenario 2: Appointment to Head Teacher With the Same SG as MT II

Example: MT II (SG 19) → HT VI (SG 19).

Rule: This is usually treated as a lateral movement with change in position, not a grade promotion.

Possible salary outcome:

The employee is placed in HT VI at a step equivalent to current salary, subject to DBM rules on step matching.
If exact matching is not possible, the rule is to place the employee at the nearest step not lower than existing salary.

Effect:

No automatic step increase purely because of appointment (unless DepEd/DBM processes it as promotion based on responsibilities AND organizational rank).
Practically, salary is retained or minimally adjusted upward if step mapping demands it.

Scenario 3: Appointment to Head Teacher With Lower SG than MT II

Example: MT II (SG 19) → HT I–V (SG 14–18).

This is the most controversial situation.

1. Nature of the Movement

Legally, the CSC typically views this as:

not a promotion, because SG goes down;
a transfer or demotion, depending on the specific item and rank.

Therefore:

It must be voluntary, with written consent from the employee.
DepEd cannot style this as a “promotion” in the strict compensation sense if SG is lower.

2. Salary Protection / Non-Diminution Principle

Government compensation policy strongly disfavors salary reduction due to mobility initiated by the agency. Two overlapping doctrines apply:

Non-diminution of compensation Salary should not be reduced when an employee moves without fault and when movement is part of career progression.
Salary protection / “personal to the incumbent” concept If a movement would place an employee into a lower-SG item, agencies may allow the employee to retain their higher existing salary, treated as protected pay. In practice, this can be reflected as:
- retention of the MT II rate as a protected salary, or
- placement at the highest step of HT item, plus a transition/adjustment to avoid reduction.

However, salary protection is not automatic. It generally requires:

DBM authority, or
a clear legal basis in the specific circular/instruction used by DepEd for the appointment processing.

3. Practical DepEd Reality

DepEd often prefers appointments that do not result in a lower SG, precisely to avoid:

audit disallowances,
complications in step computation,
confusion over whether the movement is a promotion.

Thus, if an MT II is offered an HT I–V item, the teacher should expect:

either a protected salary arrangement approved by DBM, or
the possibility that the item offered will be HT VI or another equivalent/higher post, to make it a clean promotion.

Effect:

If salary protection is approved: no take-home pay decrease.
If not approved: appointment risks being treated as voluntary demotion with corresponding pay drop, which most employees should avoid unless strategically necessary.

VI. Step Increment Rules: What You Can and Cannot Expect

Promotion step increase is tied to SG increase, not title change alone.
If SG does not go up, any increase must be justified by:
- step mapping rules to avoid diminution, or
- a separate authorized step increment (e.g., longevity, performance-based, or merit under existing rules).

Therefore:

MT II → HT VI: expect salary retention, not guaranteed new step.
MT II → lower HT: expect salary protection or written waiver if reduction happens.

VII. Qualification Standards and Ranking Considerations (Why Salary Grade Is Only One Piece)

Even if salary grade issues are resolved, appointment must still comply with QS and selection rules:

Eligibility: usually at least Professional Teacher / LET, plus required leadership training.
Experience: DepEd QS for HT positions require a defined number of years in teaching and satisfactory performance.
Training and Performance: points-based ranking system under DepEd orders.
RQA/Selection Board: appointment must come from a ranked list (RQA) for a vacancy.

A salary grade mismatch does not invalidate appointment outright, but it changes how the appointment is classified, which then changes salary handling.

VIII. Common Legal Pitfalls and How They’re Handled

Calling a lower-SG HT appointment a “promotion.”
- Risk: CSC may correct classification; DBM may disallow computed promotion increase.
Reducing salary without written consent.
- Risk: violates CSC rules and audit standards.
Failure to obtain DBM authority for protected salary.
- Risk: disallowance by COA.
Mismatch between plantilla item and actual duties.
- Risk: reversion or appointment protest if duties/title don’t align.

IX. Practical Guidance for MT II Considering a Head Teacher Appointment

Check the actual SG of the specific HT item offered. HT items vary by level and school classification.
Ask whether the appointment is processed as promotion or transfer. The wording in the appointment paper matters.
If SG is lower, insist on clarity on salary protection. Get written confirmation of how your pay will be handled.
Do not sign consent to demotion lightly. Signing can be treated as voluntary lowering of rank and pay.
Consider strategic value. Some accept HT posts to enter the leadership track, but do so only if salary is protected or if the HT SG is equal/higher.

X. Bottom Line

For a Master Teacher II moving to a Head Teacher position in DepEd:

If the Head Teacher item has a higher SG → it is a true promotion; promotion salary rules apply (one-step increase then nearest step in new SG).
If the Head Teacher item has the same SG → usually lateral; salary is matched/retained, not automatically increased.
If the Head Teacher item has a lower SG → not a promotion; it is a transfer/demotion requiring consent, and salary should be protected if properly authorized; otherwise reduction may follow.

The decisive legal hinge is salary grade, not job title. In DepEd practice, the cleanest path is appointment to a Head Teacher item equal or higher in SG to avoid reclassification and pay protection disputes.