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Philippines : House Committee on Appropriations to act on proposed Salary Standardization Law

Publish Date : 10-Nov-2015

The House Committee on Appropriations is set to approve on Wednesday the much-awaited proposed "Salary Standardization Law of 2015" that will modify the compensation and position classification system of civilian government personnel and the base pay schedule of military and uniformed personnel.

Rep. Isidro T. Ungab (3rd District, Davao City), committee chairman, said the proposal embodied in House Bill 6268 authored by Speaker Feliciano Belmonte, Jr., House Majority Leader Neptali M. Gonzales II and him was endorsed by Budget and Management Secretary Florencio Abad to Congress in a letter to the Speaker.

"I just received communication from the executive department addressed to the Speaker and signed by Secretary Abad. Immediately, upon receipt of the letter, I contacted the Speaker and the Majority Leader, and they agreed to pass this on first reading today," said Ungab.

Ungab said the Committee on Appropriations will immediately tackle the bill on Wednesday. "The appropriations committee will immediately act on it. I believe this is good news to all employees of the government from the highest official to those lowest ranked. I think there will only be one hearing on it because I'm sure everyone supports the proposal. I don't see any objection to it," said Ungab.

Ungab said they have been waiting for the SSL bill since last week as the DBM had promised during the budget hearings to provide the salary adjustment details.

"There have numerous texts and questions about a new pay hike, so to end the speculations, here it is, nandito na," said Ungab.

Ungab said the first round of the salary standardization will be implemented next year, and will require a total funding of P57.9 billion. Of this amount, P50.4 billion has already been earmarked in the 2016 General Appropriations Bill (GAB), which the House approved on third and final reading last October before adjournment.

The balance of P7.5 billion will come from adjustments they will make in the bicameral conference committee or from the Pension and Gratuity Fund (PGF).

The House has until the end of the year to act on the bill because the funds for the SSL will be taken from the GAA according to him.

"Most likely, the GAA and the SSL will be passed altogether after the bicameral committee approval or when both houses have ratified the budget (measure). I can only talk for the committee on appropriations and my colleagues in the House," said Ungab.

Ungab said the funding requirements for the succeeding compensation adjustments shall have the following budgetary requirements: second tranche, P54.3 billion; third tranche, P65.9 billion; and fourth tranche, P47.5 billion.

The bill provides the Compensation and Position Classification System (CPCS) shall apply to all civilian government personnel in the Executive, Legislative and Judicial Branches, Constitutional Commissions and other Constitutional Offices, Government-Owned or Controlled Corporations (GOCCs) not covered by Republic Act 10149, and local government units (LGUs). It shall cover government personnel whether regular, contractual or casual, appointive or elective; and on full-time or part-time basis.

Under the new SSL, those under Salary Grade 1 who are now receiving P9,000/ month will get P9,478/ month under Step 1 of the first tranche, P9,981 under the second tranche, P10,510 under the third tranche; and P11,068 under the final tranche.

Those in the highest level of Salary Grade 33 who are presently receiving P120,000/month will get P160,000/month in the first tranche, P215,804 in the second tranche, P289,4010 in the third tranche, and P388,096 in the final tranche.

The bill provides it is the declared policy of the State to provide all government personnel a just and equitable compensation in accordance with the principle of equal pay for work of equal value.

Pursuant to this, the State shall ensure that: differences in pay shall be based upon substantive differences in duties, responsibilities, accountabilities and qualification requirements of the positions; and compensation for all civilian government personnel shall be standardized and rationalized across all government agencies to create an enabling environment that will promote social justice, integrity, efficiency, productivity, accountability and excellence in the civil service.

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