PRESIDENT Benigno Aquino III on Friday signed Executive Order No. 201 to grant a raise for government employees, as well as additional benefits for civilian and military, and uniformed personnel, amounting to P57.9 billion.
EO No. 201 provides for the implementation of the first of the four tranches provided for in the proposed Salary Standardization Law 2015 or SSL 4 that has not been enacted by Congress.
“Authority to implement the first tranche is given in RA 10717 (or the 2016 General Appropriations Act) which provides a budget of P57.9 billion. The President approved and signed the EO upon his arrival this morning from his participation in the Special Asean-US Summit and a working visit in Los Angeles, California,” Communications Secretary Herminio Coloma Jr., said.
The pay hikes would ensure that the compensation structure of government personnel is comparable with the prevailing rates of the private sector to attract and retain competent and committed civil servants, Coloma said.
To do this, the EO revised or updated the existing Compensation and Position Classification System (CPCS) to:
• Raise the minimum salary for Salary Grade I from the current rate of P9,000 to P11,068 to make it even more competitive with the market rates;
• Bring the compensation of government personnel closer to their private counterparts to at least 70 percent of the median of the market for all salary grades;
• Eliminate overlaps in between salary grade allocations of government personnel to recognize differences in duties and responsibilities of the position;
• Maximize the net take home pay of government personnel through the inclusion of additional benefits; and
• Strengthen the performance-based incentive system in recognition of government personnel who play a greater role and carry a heavier responsibility in attaining performance targets and delivering results.
“For the military and uniformed personnel, the compensation adjustment strategy shall be aligned with the objective of mitigating the fiscal crisis building up in their pension system and pursuing the pension reform,” Coloma said.
Among the additional benefits are the hazard pay of all military and uniformed personnel, he said.
This will be raised from the current rate of P240 per month to the following rates—starting Jan. 1, 2016, to P390 per month; by Jan. 1, 2017, to P540 per month; by Jan. 1, 2018, to P690 per month; and by Jan. 1, 2019, to P840 per month.
Congressional leaders failed to resolve their differences over Senator Antonio Trillanes IV’s proposal to index retired uniformed officers’ pension to the SSL.
The House of Representatives panel said the indexation was not funded under the 2016 budget.
Aquino also said the measure would bloat the financial requirements of the government.
Budget Secretary Florencio Abad has certified the availability of more than P57 billion in funds under the 2016 General Appropriations Act for the first tranche of the SSL, Coloma said.
The SSL covers some 1.5 million government employees. Its implementation is spread out across four years.
During the time of President Gloria Macapagal Arroyo, the executive prerogative to raise the salary of state worker was invoked four times, in 2001 and yearly between 2006 and 2008.
In 2001, Arroyo issued Executive Order 22 granting a 5 percent increase over monthly salaries of civilian and uniformed personnel.
In 2006, Arroyo issued Administrative Order No. 144 granting additional compensation of P1,000 to government employees.
The following year, she signed Executive Order No. 611 granting a 10 percent increase in basic monthly salaries of civilian government personnel and likewise increasing the subsistence allowance and hazard pay of military and uniformed personnel.
In 2008, Arroyo approved the increase of 10 percent over the basic monthly salaries of civilian, military and uniformed personnel through EO No. 719.
President Joseph Estrada also exercised this prerogative, issuing EO 219 in 2000, which grants salary adjustment to all government personnel.
During the time of President Corazon Aquino, three EOs were issued–one in 1986, and two in 1987, all of which hiked government sector pay.
Under Republic Act No. 6758, known as the “Compensation and Position Classification Act of 1989” and PD 1597, the Chief Executive was granted the power to revise the compensation and classification system and approve the grant of additional allowances and other fringe benefits to employees of the national government.
Liberal Party leaders on Friday said the salary hikes for government employees was not aimed at countering the backlash against the President for vetoing a P2,000 increase in monthly pension payments to members of the Social Security System.
“We are happy that unlike what our critics are saying that the administration doesn’t know compassion or do not have a heart is a complete lie,” Rep. Barry Gutierrez, a spokesman for Liberal Party standard bearer Manuel Roxas II told reporters Friday. “Even if Congress had a hard time passing the new [Salary Standardization Law 4], what the President has done is to sign an executive order and let our government employees have their salary increases.
“This is not an issue of appeasing someone but to understand what is the proper thing to do. When PNoy vetoed the SSS, there is a clear basis. He’s protecting the welfare of many, more than 30 million would lose SSS pensions if the President approved that bill.”
“In this case, there is money available and… we just want to increase the salary of our government employees and the President has done it. He doesn’t need congressional action,” he said. With John Paulo Bencito