DBM sets P21.7-B for state workers’ pay hike


Posted at May 01 2012 03:49 PM | Updated as of May 02 2012 02:52 AM

MANILA, Philippines - The Department of Budget and Management has earmarked P21.7 billion for the fourth tranche of the Salary Standardization Law III, which seeks to adjust the salary and base pay of government employees.

In a statement, Budget Secretary Florencio Abad said the early salary hike, set for June 1, will be supported by an additional P2.7 billion coming from the government savings of the 2012 General Appropriations Act. The total budget will be P21.7 billion.
“The advanced implementation of the pay increase is a gesture of appreciation by the Aquino administration to all government workers. They are after all our partners in reform, laboring tirelessly with us to institute good governance and promote accountability, transparency, and efficient leadership in government,” Abad said.
The fourth and last tranche of the SSL III, which was originally scheduled for pay out starting July 1, will cover salary adjustments until December 31 this year.
Abad said the total budget for the salary increase will be charged against the Miscellaneous Personnel Benefits Fund in the 2012 GAA as well as from available savings.
Meanwhile, the amount set for government-owned or controlled corporations (GOCCs) and government financial institutions (GFIs) will be charged against their respective corporate funds in the approved corporate operating budgets.
Abad said, however, the amount will depend on the financial capability of the GOCC or GFI.
Pay increase for president, vice president delayed
Abad said the President, Vice President and Cabinet Secretaries will not get theirs on June 1.
He also explained the SSL III will not cover individuals and groups engaged through job orders, contracts of service, and other similar agreements.
Also excluded are civilian personnel in government institutions exempted from the Compensation and Position Classification Act of 1989.
Abad also cited section 10, Article VI of the Constitution. It reads: “The salaries of Senators and Members of the House of Representatives shall be determined by law. No increase in said compensation shall take effect until after the expiration of the full term of all the Members of the Senate and the House of Representatives approving such increase.”
Meanwhile, the salary increases for employees in local government units are still scheduled for January 1, 2013, in light of the LGUs’ implementation of the third tranche in January 1, 2012.