State Workers' Pay Hike Takes Effect July 1

MANILA, June 19 - The salary increase of government workers nationwide takes effect July 1, 2009, Malacañang said today.

Executive Secretary Eduardo R. Ermita said that President Gloria Macapagal Arroyo signed Executive Order (EO) No. 811 on June 18 to effect the hike in the salaries of government workers.

The directive provides for the appropriation of P18.4 billion from the 2009 General Appropriations Act and savings of different departments, bureaus, offices and agencies of the national government.

Ermita said the said EO, entitled "Adopting the First Tranche of the Modified Salary Schedule of Civilian Personnel and Base Pay Schedule of Military and Uniformed Personnel in the Government, as well as the Modified Position Classification System Pursuant to Senate and House of Representatives Joint Resolution No.4 S. 2009," aims to attract competent manpower to work for the public sector, as well as to retain the best and most skilled and capable workers who are already in the government workforce.

"Specifically, EO No. 811 will increase salaries by an average of 50 percent spread over four years, while setting the minimum wage of civil servants higher than those of their private sector counterparts," Ermita said.

The modified Compensation and Position Classification System covers all positions for civilian personnel in the Executive, Legislative and Judicial Branches, the Constitutional Commissions, State Universities and Colleges (SUCs), Government-Owned or Controlled Corporations (GOCC), Government Financial Institutions (GFI), and Local Government Units, whether regular, casual or contractual in nature, appointive or elective, on full-time or part-time basis already existing or created after.

The increase in salaries of local government workers will come from their respective local funds, based on their income class and subject to limitations on personnel services as provided under the Local Government Code.

GOCCs and GFIs on the other hand, will tap their corporate funds under their approved corporate operating budgets to implement the program.

Under the new program, allowances would be rationalized and categorized as Standard Allowances and Specific Benefits (PERA, year-end bonus, cash gifts); Specific Purpose Allowance and benefits (RATA, subsistence allowance, hazard pay); and Incentives (loyalty incentive, anniversary bonus, productivity enhancement incentive).

Ermita said with regard to the salaries of the President and Vice President of the Philippines, and Members of Congress, the increase would take effect only after the expiration of the respective terms of the present incumbents pursuant to the provisions laid down in the 1987 Constitution. (PNA)