Republic of the Philippines
HOUSE 0F REPRESENTATIVES
Batasan Hills, Quezon City
NINETEENTH CONGRESS
First Regular Session
HoUSE3I-i.Lrivo.6560
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Introduced by
ACT Teachers Party-List Rep. FRANCE L. CASTRO,
GABRIELA Women's Party Rep. ARLENE D. BROSAS,
and KABATAAN Party-List Rep. RAOUL DANNIEL A. MANUEL
I--.------------------------,----------I.----------,------------------------------------------------------------
AN ACT
ESTABLISHING THE NATIONAL MINIMUM MONTHLY SALARY IN
GOVERNMHNT AND PROVIDING FUNDS THEREFOR
EXPLANATORY NOTE
Article  XIII  Section 3  of the  1987  Constitution provides  that workers  "shall  be
entitled to security of tenure, humane conditions of work, and a living wage." Likewise, in
the Article on Social Justice and Human RIghts (Article XIII Section 1), the Constitution
exhorts Congress to "give highest priority to the enactment of measures that protect and
enhance the right of all people to human dignity, reduce social, economic, and political
inequalities..."
Yet, no less than the front liners in government service provision-the government
employees-have been suffering for decades from inadequacy and disparity in salaries.
In  response  to  the  clamor  of government  employees,last  18th  Congress,  Bayan
Muna  Representatives  Ferdinand  R.  Gaite,  Carlos  Isagani  T.  Zarate  and  Eufemia  C.
Cullamat, ACT Teachers Party-List Representative France L. Castro, Gabriela Women' s
Party Representative Arlene D. Brosas and Kabataan Party-List Representative Sarah Jane
I. Elago filed among their priority bills House Bill 247 establishing the national minimum
wage of P16,000. HB 247 was consolidated with other bills into House Bill 5712 which
was later approved as Salary Standardization Law of 2019.


On January 8, 2020, President Rodrigo Duterte signed into law Republic Act No.
11466  or Scz/ory Sfcz7zc7crrc7z.zczfz.o72 I,czw  /SS£J  o/20/9.    Its  Section  2  Statement  of Policy
states that:
SEC. 2. Statement of policy. -It is hereby declared the policy of the State to
provide  all  government  personnel  a just  and  equitable  compensation  in
accordance  with  the  principle  of equal  pay  for  work  of equal  value.  In
pursuing this policy, the State shall ensure that:
a) Differences in pay shall be based upon substantive differences in
duties,       responsibilities,       accountabilities       and       qualification
requirements of the positions.
b) The compensation for all civilian government personnel shall be
standardized and rationalized across all government agencies to create
an enabling environment that will promote  social justice,  integrity,
efficiency,  productivity,  accountability  and  excellence  in  the  civil
service.
c) the compensation of all civilian personnel shall be competitive with
those in the private sector doing comparable work in order to attract,
retain and motivate a coxps of competent and dedicated civil servants.
XXX
Contrary to its supposed adherence to equality and social justice, RA  11466 only
perpetuates  the  government  employees'  decades-old  predicament  of  inadequacy  and
disparity in salaries.
The  SSL  of 2019  does not only  disregard the call  for national  minimum salary,
worse it further maintains the unjust pay scale, inadequate salaries, wide disparity between
higherandlowersalarygrades,andlowersalariesforlowerincomelocalgovemmentunits.
While  unheeding  the  demands  of civilian  government  employees,  the  Duterte
administration  doubled  in  2018  the  base  pay  of entry-level  uniformed personnel  from
P14,834 per month to P29,668 per month through Joint Resolution No.1, s. 2018. It is the
height of injustice that other public employees who are fulfilling just as much duties for
the public are not given the salaries rightfully due to them.
The lowest-paid employee in the civil service based on Ssf o/20/9 will be given a
meager increase of p1,932 increase (from Pll,068 to P13,000 per month) to be delivered
in four tranches of P483 per month. This translates to a measly P21.95 per day increase,


much lower compared to the P25 increase in minimum wage in the National Capital Region
in 2018. This is historically the lowest pay hike for government employees.
The P13,000 monthly gross salary for Salary Grade 1 by the year 2023 is way below
the family living wage for a family of five pegged at P 1,119 per day] or P33,570 per month.
Middle-level employees, such as teachers, and others who comprise the majority in
the civilian bureaucracy, are in the same sinking boat, as their pay also amounts to less than
the family living wage under SSL of 2019. Teachers and other professionals under Salary
Grade 11 will receive P27,000 per month by 2023 (Step Increment 1).
The   teachers   are   frequently  told  that   their   only  problem   is   poor   financial
management!    But what is there to  manage when those  supposed  finances  are  quickly
drained away by taxes, by their basic needs that grow more and more expensive every day.
In the case of some employees like teachers, nurses, and doctors-ven the work-related
expenses that should have been provided by the government in the first place have also
been increasing.
Moreover,  amid  the  COVID-19  pandemic,  the  2020  economic  crisis  and  the
international  oil  crisis,  the  Filipino  people,  including  the  government  employees,  are
suffering from rising prices of food and basic goods and services, and looming oil price
hikes. Philippine Statistics Authority data shows that the trend of the headline inflation rate
is  steadily  increasing  from  3.0%  in  January  and  February  2022  to  a  staggering  7.7%
inflation rate as of october 2022.  Inflation for food at the national level increased to 9.4%
from 1.6% in January 2022.  All food groups exhibited increases in prices with an inflation
rate ranging from 2.5% to 34.4%.  Meanwhile, inflation for education, health and transport
are at 3.4%, 2.6% and 12.5%, respectively.
The  inadequacy  of salaries  is  further  compounded  by  the  fact  that  government
workers  in  low  income  classified provinces  and municipalities  are paid  less  than their
national counterparts.
This  grievous  problem  stems  from  the  "regionalization"  of wages  and  salaries.
Republic Act 6727  or the  Wczge Rcz/I.o73cz/i.zczfz.o77 .4cf (1989)  allowed "regional minimum
wages" set by Regional Tripartite Wages and Productivity Boards and is essentially copied
for the public sector.
Republic Act 6758 or the Salary Standardization Law in 1989 institutionalized the
inadequate  salaries  and disparity  in  salaries  by  allowing different pay  scale  for certain
agencies such as the government-owned and/or  -controlled corporations and government
1  "The family living wage (as Of September 2022)." lBON  Foundation,  14 October 2022,
https://wVA^r.ibon.ora/2209-flw/


financial institutions and percentage rates for local government units (LGU) based on the
classification and capacity of each LGU.  The disparity is a clear violation of the principle
contained in the law itself: " . . .the policy of the State to provide equal pay for substantially
equal work. . ." We have a situation where employees with the same salary grade, same job
classification and same work but in different government agencies have different salaries.
In addition, LGUs are constrained from granting the same salary levels compared
to other government agencies due to the "personnel service limitation."
Republic  Act  7160  or the  Local  Government  Code Book  I  Title  Ill  Section  81
provides that "the compensation of local offlcials and personnel shall be determined by the
Sanggunian concerned." Book 2  Title V Chapter Ill Article  1  Section 325  of the Local
Government  Code  set  the  limits  of the  appropriations  for personal  services  of a  local
government unit for one (1) fiscal year to forty-five percent (45%) in the case of first to
third class provinces, cities and municipalities, and fifty-five percent (55%) in the case of
fourth class or lower, of the total annual income from regular sources realized in the next
preceding fiscal year."
Worse,  in other government agencies  exempted from the  SSL,  equivalent salary
grade 1  employees are paid even lower than the salary grade 1  pay indicated in the SSL.
Employees   in  exempt  entities  like  those  from  several  government-owned  and/or  -
controlled  corporations  (GOCCs),  which  have  their  own  compensation  and  position
classification system, will not be given any salary increase under SSL of 2019.
The  government  employees'  struggle  for P33,000  national  minimum  salary  and
salary increases for all-that is, for both civilian and military and uniformed persomel
(MUPLis waged together with the struggle of workers and employees in the private sector
for  a higher national  minimum wage.    The  highest  minimum  wage  of P570  for non-
agricultural workers in the National Capital Region (out of the more than 1,000 wage levels
across the country) is only 50.94% of the family living wage. Nationalizing and increasing
the minimum wage for all regions and industries, though still insufficient to meet the family
living wage, will bring significant relief especially to low-earning families.
The tandem struggles for a national minimum wage and just remuneration for work,
along with the fight for lower taxes, were pushed by employees and workers in the public
and private sectors for several years.   Unfortunately, these have never been sufficiently
addressed by the government.
The refusal to provide  substantial salary  increases to  ensure that the people can
afford the standards of a decent life is part of the general neoliberal framework of the
government of scrimping on funds needed to ensure the proper and humane operation of
government offices and institutions, especially those in the providing vital social services
and public institutions like schools and hospitals.


The regionalization of salaries and wages contradicts the principle of equal pay for
equal   work.   It   discriminates   against   local   government   employees.   It   has   caused
demoralization and low self-esteem among workers and employees in the local government
units.
Establishing   the   national   minimum   salary   for   the   public   sector   employees
throughout the country is a matter of social justice. It is the role of the government to ease
the hardships of public sector employees amidst the increasing prices of basic commodities
and services as a result of the implementation of new taxes under the Tax Reform for
Acceleration  and  Inclusion  (TRAIN)  Law.  The  national  goverrment  should  provide
assistance to lower income provinces and municipalities so that the LGUs can provide the
salaries due to their employees.
In the  name  of justice,  fairness  and  equality,  the urgent  approval  of this  bill  is
earnestly sought.
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Republic of the Philippines
HOUSE 0F REPRESENTATIVES
Batasan Hills, Quezon City
NINETEENTH CONGRESS
First Regular Session
HOUSE B-|i£ `No.  6 5 6 0
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Introduced by
ACT Teachers Party-List Rep. FRANCE L. CASTRO,
GABRIHLA Women's Party Rep. ARLENE D. BROSAS,
and KABATAAN Party-List Rep. RAOUL DANNIEL A. MANUEL
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AN ACT
ESTABLISHING THH NATIONAL MINIMUM MONTHLY SALARY IN
GOVERNMENT AND PROVIDING FUNDS THEREFOR
Be it enacted by the Senate and House Of Representatives Of the Republic Of the Philippines
in Congress assembled:
SECTION  I.  ri.fJe.    This Act shall be known as the  "IV¢/I.o#¢/ h4li.#g.mwm S¢/¢ry /or
Government Employees Act."
SEC. 2.  Dcc/ara/i.o# a/Po/I.cj7.   It is hereby declared the policy of the State to alleviate
the living conditions of government employees, to guarantee employees' right to a living
wage, and to ensure optimal public service by according sufficient budgetary priority to
the human resource aspect in the running of government agencies and institutions.
The State shall uphold the principle of "equal pay for equal work." Persons who
work with substantially equal qualifications, skill, effort and responsibility, under similar
conditions, shall be paid similar salaries. In determining the rates of pay, due regard shall
be given to the cost of living needed to provide a decent life for the family of the workers.
SEC. 3. jvafJ.oH¢/ mJ.#J.mwm so/¢ry i.# govcr#mc#f.  There shall be only one (1) national
minimum salary for all employees in the government sector.


SE:C. 4. Amount Of minimum salary Of emplayees in government. The saLlary of irn erfuy-
level position in government service shall not be less than Thirty Three Thousand Pesos
(P33,000.00) a month. The salaries of those occupying higher positions shall be adjusted
accordingly.
SEC. 5. Uniform Implementation Of the National Minimum Salary for All Governmerit
Emp/o}7ee§.  The national minimum salary shall apply to all government instrumentalities
regardless of classification.
(a) All goverrment agencies shall implement the national minimum salary.
(b)The  national  minimum  salary  shall  be   implemented  in  the  government  and
government-owned   and/or   -controlled   corporations   and   financial   institutions,
regardless whether covered or not under RA  6758  (SSL)  as amended,  and local
government units throughout the country, regardless of the classification of the local
goverrment units.
(c) The national minimum salary shall apply to all positions, regardless of appointment
status, whether regular, contractual or casual, appointive or elective, and on full or
part-time basis, including job orders and contract of service workers; now existing
or hereafter created in the government.
S;EC.  6.  Compensation for  Local  Government  Unit  (LGU)  personnel.  The  "edro"al
minimum  salary  shall  be  implemented  among  LGU  personnel.  For  this  purpose,  the
following laws are hereby amended:
(a) Section 10 (a), (c) of Republic Act 11466, is hereby repealed.
(b) Section 81  of Republic Act 7160 shall be amended, to read as follows:
Section   81.   Compensation   of  Local   Officials   and   Employees.   -   The
compensation of local officials and personnel shall be  [determined by the
sanggunian  concerned:  Provided,  That  the  increase  in  compensation  of
elective local officials shall take effect only after the terms of office of those
approving  such  increase  shall  have  expired:  Provided,  further,  That  the
increase in compensation of the appointive officials and employees shall take
effect  as  provided  in  the  ordinance  authorizing  such  increase:  Provided,
however, That said increases shall not exceed the limitations on budgetary
allocations for personal services provided under Title Five, Book 11 of this
Code: Provided,  finally, That such compensation  [may be based upon the
pertinent provisions of Republic Act Numbered Sixty-seven fifty-eight (R.A.
No    6758),    otherwise    known    as    the    "Compensation    and    Position
Classification Act of 1989".I SHALL BE IN CONFORMITY WITH THH


"NATIONAL   MINIMUM   SALARY   FOR   ALL   GOVERNMENT
EMPLOYEES ACT".
The punong barangay, the sangguniang barangay member, the sangguniang
kabataan chairman, the barangay treasurer, and the barangay secretary shall
be entitled to such compensation, allowances, emoluments, and such other
privileges as provided under Title One Book Ill of this Code.
XXX
(c) Section 325 of RA 7160 or the Local Government Code is hereby repealed.
(d) Sections 447 (a) (viii), 458 (a) (viii) and 468 (a) (viii) of Republic Act 7160
shall be read as follows:
(viii) Determine the positions  and  [salaries,  wages,I  allowances and other
emoluments and benefits of officials and employees paid wholly or mainly
from municipal funds and provide for expenditures necessary for the proper
conduct  of programs.  projects,  services,  and  activities  of the  municipal
government;
SEE_.7.Automati€AnnualReviewandAdlfustmentofsalary.TheDepairtmenlo£Bndgct
and Management is hereby mandated to automatically conduct an annual review of the
salaries  of all  government  employees,  and  recommend  appropriate  salary  adjustments,
taking into account inflation and the prevailing prices of basic commodities and services.
SEC.  8.  Fw#dJ.Hg Sowrce  a#d 4FTrapri.¢fJ.o#s.  The  funding  sources  for  the  amounts
necessary to implement this Act shall be as follows:
(a)FornationalgovemmentagenciesfundedintheGeneralAppropriationsAct(GAA),
the amount needed for the compensation shall be charged against the appropriations
provided in the GAA.
(b) For GOCCs, the amounts shall come from their respective corporate funds in the
corporate   operating   budgets   approved   by   the   Department   of  Budget   and
Management/Governance Commission for GOCCs (GCG).
(c) For LGUs, the amounts shall be charged against their respective funds in accordance
with the pertinent provisions of RA No. 7160, as hereby amended.
(d) Immediately after the approval of this law and after consultations with the DBM,
DILG and concerned LGUs, a special fund called the Subsidy to LGU Personnel is
hereby created under the General Appropriations Act - Miscellaneous Personnel


Benefits Fund, to assist LGUs which cannot fully implement the National Minimum
Salary Act due to limitations in financial capacity.
SEC. 9.  Jiw/es ¢"d j{cgw/¢fI.o#s. Within ninety (90) days the Department of Budget and
Management  and  Civil  Service  Commission  shall  promulgate  the  necessary  rules  and
regulations for the implementation of the provisions of this Act.
SEC.  10.   Sep¢rabJ./dy C/a.4sc.  If for any reason any section or provision of this Act is
declared unconstitutional,  other provisions  hereof which  are  not  affected thereby  shall
continue to be in full force and effect.
SEC.11. R€pc¢/i.#g Cy¢usc.  Any laws, decrees, or laws, decrees, or rules and regulations
which are inconsistent with or contrary to the provisions of this Act are hereby amended
or repealed.
SEC.12.  ELorectl.vjfy.  This Act shall take effect fifteen (15) days from the publication in
the Official Gazette or in any newspaper of general circulation.
Approved,