Salary standardization scheme for government workers passed on 3rd reading

MANILA, Philippines – The Senate approved Wednesday night Joint Resolution No. 26 seeking to increase the salaries and benefits of government employees to make them competitive with those of the private sector.

Sen. Edgardo Angara, chairman of the Senate finance committee, said this would address the distortions and faults in the present pay scale system of the government.

The joint resolution adopts a “Total Compensation Framework” or the TCF, which will rationalize and standardize the basic salaries, allowances, benefits and incentives for government officials and employees. The TCF’s primary component is the basic salary, including step increments.

In the resolution, all existing and authorized allowances, benefits and incentives shall be categorized into standard allowances and benefits; specific-purpose allowances and benefits; or incentives.

Any allowances, benefits and incentives that shall be granted to any and all government employees shall be limited to those three categories.

However, the TCF excludes all indirect compensation under existing laws, such as retirement benefits, insurance, employee compensation insurance, Pag-IBIG Fund and Provident Fund benefits.

“This joint resolution seeks to benchmark the government compensation with the private sector. This provides higher basic pay increases for positions where the disparities in pay are largest,” Angara said.

“The modified pay scale of the government ensures our country of a competent and well-motivated corps of public servants capable of rising to the challenges of modern society. Armed with adequate incentives for exemplary performance, and an emphasis on the basic principle of equal pay for work of equal value, the new pay scale will boost our government’s effort to heighten our civil servants’ commitment to public service,” Angara added.

He further said the resolution would make the government pay scale and structure more responsive to the pressing economic needs of public servants.

Angara said the current compensation and position classification system was “riddled with many inconsistencies,” pointing out that there was “an overlapping of salaries between salary grades in the present schedule.”

“Also, there are certain classes who enjoy much higher pay scale. This results in salary inequities between positions, fostering demoralization,” Angara said.

“The bureaucracy is the backbone of any government and if we are to keep the government machinery well-oiled and running smoothly, we need to invest in this human development. The world as we know it is in the midst of a global financial crisis resulting in widespread unemployment, financial chaos and uncertainty. At this time, the best capital is human capital,” he said.

Angara said the proposal would benefit at least 1.5 million government employees. The upgrade under the new system shall be implemented within four years beginning July 1, 2009. –Aurea Calica, Philippine Star