SEVENTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHIUPPINES 
First Regular Session
^eiiptr
of tljf 
I’frrMij*
'17 
FEB -6 P6 03
S E N
S.B. No
lN f 5
received BV;
Introd uced by Senator Juan M iguel "M igz" F. Zubiri
AN ACT EXEMPTING THE BUREAU OF INTERNAL REVENUE 
FROM THE COVERAGE OF REPUBLIC ACT NO. 6758,
OTHERWISE KNOWN AS THE SALARY STANDARDIZATION LAW,
AS AMENDED, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The role of the Bureau of Internal Revenue (BIR) in advancing President Rodrigo 
R. Duterte's Ten-Point Economic Agenda can never be highlighted enough. The taxes 
that the BIR collects primarily funds infrastructure, education, health, rural development 
and the internal revenue allotment of all local government units. In light of the 
upcoming Comprehensive Tax Reform, the BIR should be equipped to take on the 
President's challenge of funding the Administration's programs.
With a total allowed plantilla of 21,491 employees1, the Bureau should be 
providing top-notch taxpayer service and unparalleled tax administration. However, this 
is not the case since the BIR lacks the needed personnel to deliver such high-quality 
service. In recent years, the BIR seems to have become merely a "last option" for 
professional, technical and skilled job seekers. With 27,219,916 registered taxpayers to 
service, the BIR only has 9,835 in its complement, which amounts to a ratio of 2,767 
taxpayers to 1 revenuer.
Considering taxation is a power of the State that is so vital that even without a 
Constitutional provision must be exercised, revenuers should be given a premium and 
should enjoy higher pay than those that have functions which may be considered 
secondary to revenue collection. The entry-level accountant in the BIR receives 
P19,077.00 while an entry-level Accountant 1 in the Securities and Exchange 
Commission (SEC) and the Insurance Commission (IC) receives P50,238.00 and 
P46,104.00, respectively. Newly recruited lawyers in the SEC and IC are paid 
P53,754.00 and P66,524.00, respectively, while BIR entry-level lawyers are paid 
P35,693.00.
The disparity is appalling and should be immediately addressed through 
legislative intervention as it seems that no matter how hard the Bureau works to 
employ more, the numbers—the present cost of living and the existence of jobs with 
more competitive salaries—negate any amount of recruitment effort.
This bill, therefore, seeks to address this urgent concern through the removal of 
the BIR from the coverage of Republic Act No. 6758 otherwise known as the
1 Executive Order No. 366


"Compensation and Position Classification Act of 1989," or the "Salary Standardization 
Law."
With competitive salaries it is expected that corruption of need shall be 
eliminated, and that more job seekers shall see the BIR as a worthy employer and 
revenue collection for the betterment of the Philippines a worthy cause to fight for. The 
increase in salaries of Bureau officials and employees would also be a symbolic 
recognition that Tax Administration is a very technical and specialized field. In the end, 
this measure is viewed as a long-term solution to the waning taxpayer service, which 
has hounded the Bureau for some time now.
In view of the foregoing, it is earnestly requested that the Bureau of Internal 
Revenue be exempted from the coverage of Republic Act No. 6758.
GUEL "M IG Z" F. ZU BIR I


SEVENTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
S E N A T E
S.B. No. 
1 3 1 5
(ilfrilp o( the £
■'7 FT8-6 P6 03
received EV;
P
-
Introduced by SENATOR JUAN MIGUEL "M IG Z" F. ZU BIR I
AN ACT EXEMPTING THE BUREAU OF INTERNAL REVENUE 
FROM THE COVERAGE OF REPUBLIC ACT NO. 6758, 
OTHERWISE KNOWN AS THE SALARY STANDARDIZATION LAW, 
AS AMENDED, AND FOR OTHER PURPOSES
1 
Be it enacted by the Senate and House o f Representatives o f the Philippines in
2 
Congress assembled:
3
4
5
6
7
8
SECTION 1. D eclaration o f Policy. -  It is the policy of the State to reform tax 
administration and ensure efficient and effective collection of taxes by employing and 
maintaining competent and professional revenue officials and personnel to collect taxes 
and enforce internal revenue tax laws. Towards this end, the State shall exempt the 
Bureau of Internal Revenue (BIR) and its employees from the coverage of Republic Act 
No. 6758, otherwise known as the Salary Standardization Law, as amended.
9 
SEC. 2. Exemption from Salary Standardization. -  The BIR and its employees
10 
shall be exempt from the coverage of the Salary Standardization Law.
11 
The BIR is hereby authorized to formulate its own Compensation and Position
12 
Classification System based on the following principles:
13 
(a) BIR personnel shall be paid just and equitable wages in accordance with the
14 
principle of equal pay for work of equal value;
15 
(b) Basic compensation for BIR personnel shall generally be comparable with
16 
those in the private sector doing comparable work and must be in accordance with
17 
prevailing laws on minimum wages;
18 
(c) The BIR Compensation and Position Classification System shall be determined
19 
through a comprehensive analysis and audit of actual duties and responsibilities of the
20 
Bureau's officials and employees;
21 
(d) The total compensation provided for government personnel must be
22 
maintained at a reasonable level in proportion to the national budget; and
23 
(e) A review of government compensation rates, taking into account the
24 
performance of the Bureau, its overall contribution to the national economy, and the
25 
possible erosion in purchasing power due to inflation and other factors, shall be
26 
conducted periodically;


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18 
19
SEC. 3. Incentives to Bureau Officials and Personnel. -  The Bureau, subject to 
the approval of the President, may provide for other incentives not provided under 
existing laws and Civil Service laws.
SEC. 4. Approval o f the President. -  The BIR Compensation and Position 
Classification System implemented pursuant to this Act shall be approved by the 
President, and shall be subject to periodic review by the BIR, in consultation with the 
Department of Budget and Management (DBM), Department of Finance (DoF) and the 
Civil Service Commission (CSC), not more than once every three (3) years, without 
prejudice to yearly merit reviews or increases based on performance.
SEC. 5. Non-diminution o f Salaries. -  The BIR Compensation and Position 
Classification System to be developed and recommended by the BIR, as approved by 
the President, shall apply to all positions, on full or part-time basis, now existing or 
hereafter created: Provided, That in no case shall there be any diminution in the 
authorized salaries of incumbent employees of the BIR as of December 31, 2016, upon 
the implementation of the approved BIR Compensation and Position Classification 
System.
SEC. 6. Appropriation Clause. -  The amount necessary to implement this Act shall 
be included in the General Appropriations Act of the year following its enactment into 
law.
20 
SEC. 7. Separability Clause. - If any of the sections or provisions of this Act is held
21 
invalid, 'all other provisions not affected thereby shall remain valid.
22 
SEC. 8. Repealing Clause. - All laws, decrees, issuances, rules and regulations
23 
inconsistent with the provisions of this Act are hereby repealed or modified accordingly.
24 
SEC. 9. 
Effectivity Clause. - This Act shall take effect fifteen (15) days after its
25 
complete publication in at least two (2) newspapers of general circulation.
Approved,