5 ai? 15 $433 
THIRTEENTH CONGRESS OF THE REPUBLIC ) 
First Regular Session 
OF THE PHILIPPINES 
) 
Introduced bv the HONORABLE MAR RO?CAS 
EXPLANATORY NOTE 
This bill seeks to update the standards used by government in evaluating 
compensation and position levels of public employees by allowing periodic rate adjustments 
in their salary schedule based on cost of living. 
Republic Act No. 6758, also known as An Act Prescribing a Revised Compensation 
and Position Classification System in the Government, was passed in 21 August 1989 to 
establish a unified wage and qualification system. It introduced a salary schedule for 
positions paid annually or monthly and allowed initial grade salaries that range from P,2000 
to P25,OOO to move up along eight (8) step increments based on merit andor length of 
service. 
In 1993, Congress passed Joint Resolution No. 01 increasing initial grade salaries 
from P2,OOO to P4,OOO and P25,OOO to P50,OOO. 
The fifty percent (50%) increase was 
expected to improve the quality of public service by making the system more responsive to 
the economic needs of government personnel, and to provide adequate incentive to public 
servants. The next and last adjustment was in 2001, which provided a seventeen percent 
(17%) increase on the average in initial grade salaries, on salary range P5,082 and P57,750. It 
has been four (4) years since the last adjustment, and inflation has grown at an average of six 
percent (6%) for the past ten (10) years. 
Needless to say, compensation levels of government employees fall behind industry 
standards. According to the World Bank, senior civil servants in the Philippines only receive 
twenty percent (20%) of what their private sector equivalents receive. Narrowing the gap in 
compensation levels between public and private employees could be a way to promote good 
governance in the public sector. Good governance requires a high level of effectiveness, 
accountability and transparency, which can only be achieved if government will be able 
attract and retain highly skilled and competent personnel. 
Government needs to give 
competitive salaries, otherwise, all good men will be lost to the private sector, locally and 
abroad. Failure to attract and retain competent public servants leads to weak governance and 
could result to bad decisions that could adversely affect our country. 


The success in the implementation of a compensation and position classification 
system lies not in the formalization of qualification requirements and wage differentials. Its 
success should be measured based on its effectiveness in applying equity among employees 
whether in the public or private sector, and in ensuring that workers receive appropriate 
compensation levels that correspond to the current cast of living. 
In view of the foregoing, the immediate approval of this measure is earnestly 
requested. 
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THIRTEENTH CONGRESS OF THE REPUBLIC 
First Regular Session 
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OF THE PHILIPPINES 
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Introduced by the HONORABLE MAR ROXAS 
AN ACT 
PROVIDING FOR UPGRADE OF THE STANDARD SALARY OF ALL GOVERNMENT 
PERSONNEL, PROVIDING BENEFITS FOR EARLY RETIREMENT AND VOLUNTARY 
SEPARATION FROM GOVERNMENT SERVICE, AMENDING FOR THE PURPOSE 
REPUBLIC ACT NO. 6758 ENTILED “AN ACT PRESCRIBING A REVISED 
COMPENSATION AND POSITION CLASSIFICATION SYSTEM IN THE GOVERNMENT”, 
AND FOR OTHER PURPOSES 
Be it enacted 6y the Senate and the House OfRepresentatives in Congress assern6Ied.. 
Section 1. Short Title - This Act shall be known as the “Upgrade of Standard Salary of 
Government Personnel Act of 2005.” 
Section 2. Republic Act No. 6758, Section 7 is hereby amended to read as follows: 
“SECTION7. Salary Schedule. - The Department of Budget and Management is 
hereby directed to implement the Salary Schedule prescribed below: 
Salary Schedule 
Grade 1st 
2nd 
3rd 
4th 
5th 
6th 
7th 
8th 
1 -  
2 -  
3 -  
4 -  
5 -  
6 -  
7 -  
8 -  
9 -  
10 - 
11 - 
12 - 
13 - 
14 - 
15 - 
17 - 
1G - 
18 - 
2,000 2,020 2,040 2,061 2,081 2,102 2,123 2,144 
2,073 2,094 2,115 2,136 2,158 2,179 2,201 2,223 
2,156 2,178 2,200 2,222 2,244 2,266 2,289 2,312 
2,250 2,272 2,295 2,318 2,341 2,364 2,388 2,412 
2,355 2,378 2,402 2,426 2,450 2,475 2,500 2,525 
2,473 2,497 2,522 2,547 2,573 2,599 2,625 2,651 
2,604 2,630 2,657 2,683 2,710 2,737 2,765 2,793 
2,752 2,779 2,807 2,835 2,864 2,892 2,921 2,950 
2,917 2,946 2,976 3,005 3,036 3,066 3,097 3,127 
3,102 3,133 3,164 3,196 3,228 3,260 3,293 3,325 
3,309 3,342 3,375 3,409 3,443 3,477 3,512 3,547 
3,540 3,576 3,611 3,647 3,684 3,721 3,758 3,796 
3,800 3,838 3,876 3,915 3,954 3,994 4,033 4,074 
4,091 4,132 4,173 4,215 4,257 4,300 4,343 4,386 
4,418 4,463 4,507 4,552 4,598 4,644 4,690 4,737 
4,786 4,834 4,883 4,932 4,981 5,031 5,081 5,132 
5,201 5,253 5,306 5,359 5,413 5,467 5,521 5,577 
5,670 5,726 5,784 5,841 5,900 5,959 6,018 6,079 


19 - 
20 - 
21 - 
22 - 
23 - 
24 - 
25 - 
26 - 
27 - 
28 - 
29 - 
30 - 
31 - 
32 - 
33 - 
6,199 6,261 6,323 6,386 6,450 6,515, 6,580 6,646 
6,798 6,866 6,935 7,004 7,074 7,145 ~ 7,216 7,288 
7,478 7,553 7,628 7,704 7,781 7,859 7,938 7,017 
8,250 8,333 8,416 8,500 8,585 8,671 8,758 8,845 
9,131 9,222 9,314 9,407 9,501 9,596 9,692 9,789 
10,135 10,236 10,339 10,442 10,546 10,652 10,758 10,866 
11,385 11,499 11,614 11,730 11,847 11,966 12,085 12,206 
12,650 12,777 12,904 13,033 13,164 13,295 13,428 13,563 
13,915 14,054 14,195 14,337 14,480 14,625 14,771 14,919 
15,180 15,332 15,485 15,640 15,796 15,954 16,114 16,275 
17,075 17,246 17,418 17,592 17,768 17,946 18,125 18,307 
18,975 
19,550 
22,000 
25,000 
The above Salary Schedule shall be used for positions that are paid on the annual or 
monthly rate basis. All salaries in the Salary Schedule expressed as monthly rates in 
pesos shall represent full compensation for full-time employment, regardless of where 
the work is performed. Salaries for services rendered on a part-time basis shall be 
adjusted proportionately. 
THE FOREGOING SCHEDULE SHALL BE ADJUSTED EVERY FOUR (4) YEARS, 
OR WHENEVER NECESSARY, TO THE PREVAILING COST OF LIVING INDEX 
AS DETERMINED BY THE ORGANIZATION, POSITION AND CLASSIFICATION 
BUREAU OF THE DEPARTMENT OF BUDGET AND MANAGEMENT; 
PROVIDED, THAT THE SAME SHALL BE IMPLEMENTED ONLY UPON 
APPROVAL BY CONGRESS. 
PURSUANT TO THIS, THE ORGANIZATION, POSITION AND CLASSIFICATION 
BUREAU OF THE DEPARTMENT OF BUDGET AND MANAGEMENT SHALL 
REVIEW AND RECOMMEND WITHIN SIXTY (60) DAYS FROM THE 
EFFECTIVITY OF THIS ACT, ADJUSTMENTS TO SALARY STANDARDS, IN 
CONSULTATION WITH THE NATIONAL ECONOMIC 
DEVELOPMENT 
AUTHORITY, DEPARTMENT OF FINANCE, CIVIL SERVICE COMMISSION, 
GOVERNMENT SERVICE INSURANCE SYSTEM, DEPARTMENT OF TRADE AND 
INDUSTRY, DEPARTMENT OF ENERGY, THE LAND TRANSPORTATION AND 
FRANCHISING REGULATORY BOARD, REPRESENTATIVES FROM THE 
PRIVATE SECTOR AND CIVIL SERVICE EMPLOYEES. 
THE DEPARTMENT OF BUDGET AND MANAGEMENT SHALL SUBMIT A 
REPORT TO CONGRESS AFTER EVERY REVIEW. 
[The Department of Budget and Management shall update the above Schedule 
whenever there are across-the-board salary adjustments as may be provided by law.] 
The daily wage rate shall be determined by dividing the monthly salary rate by 
twenty-two (22) working days per month. 


Section 3. A new section is hereby inserted between Sections 18 and 19 of Republic 
Act No. 6758, to read as follows: 
SECTION 19. EARLY RETIREMENT AND VOLUNTARY SEPARATION BENEFITS- 
THE ORGANIZATION, POSITION AND CLASSIFICATION BUREAU OF THE 
DEPARTMENT OF BUDGET AND MANAGEMENT SHALL ALSO REVIEW AND 
RECOMMEND AN EARLY RETIREMENT AND VOLUNTARY SEPARATION 
PACKAGE TO ALLOW GOVERNMENT OFFICIALS AND EMPLOYEES TO 
VOLUNTARILY ELECT IN WRITING TO BE RETIRED OR SEPARATED BEFORE 
THE MANDATORY RETIREMENT OR SEPARATION AS MANDATED BY LAW. 
Section 4. Separability Clause - If any part or provision of this Act shall be held 
unconstitutional or invalid, other provisions hereof that are not affected thereby shall 
continue to be in full force and effect. 
Section 5. Repealing Clause - All laws, presidential decrees, executive orders, rules 
and regulations or parts thereof which are not consistent with this Act are hereby repealed, 
amended or modified accordingly. 
Section 6. Effectivity Clause - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newpapers or general circulation. 
Approved,