Tuesday, 2 June 2009

Pay adjustment for Philippine government employees ensured

Bernard U. Allauigan
BusinessWorld
http://www.bworldonline.com/BW060209/content.php?id=074

A CONFERENCE committee yesterday approved a measure that would upgrade and rationalize state employee compensation, scheduling its ratification today to meet the targeted July 1 implementation.

Acting Senate panel chairman Richard J. Gordon and House panel chairman Quirino Rep. Junie E. Cua said the measure, in the form of a joint resolution, that was certified as urged by President Gloria Macapagal-Arroyo, would be approved by Congress today.

Congressional sessions end tomorrow even if the second regular session is scheduled to adjourn on Friday.

Mr. Cua said the amendments to the Salary Standardization Law would increase pay by half within a four-year period.

He said the 2009 budget has allotted P20 billion for the purpose, adding Congress should appropriate an additional P100 billion to raise the total to P120 billion for the four-year implementation.

Under the reconciled measure, the total pay will be limited to:

  • basic salaries, including increments;
  • standard allowances and benefits;
  • specific-purpose allowances and benefits; and
  • incentives.

Excluded are indirect compensation under existing laws such as retirement benefits, insurance, employee compensation insurance, Home Development Mutual Fund or Pag-IBIG Fund benefits and Provident Fund benefits.

Mr. Cua said the proposal would benefit 1.1 million workers, including 200,000 military personnel.

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