SEVtNTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
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iSfficf of tijr S'rtrrt.iiy
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FEB-6  
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S E N A T E  
S.B. No. 
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RECEIVtOBV;
Introduced by Senator SONNY ANGARA
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 OTFIER PURPOSES
EXPLANATORY NOTE
The Bureau of Internal Revenue (BIR) pertornis one of the most critical functions 
of the government; collecting the funds necessary for the government to fulfill its 
mandate in uplifting the lives of the Filipino people. Without the funds collected by the 
BIR, the government could not provide for the basic needs of the Filipino, such as 
education, healthcare, infrastructure and national defense. Despite this fact, the BIR 
chronically suffers from lack of competent personnel. Currently, the BIR has an allowed 
plaiitilla of 21,491 employees. However, the BIR only has 9,835 employees within its 
ranks.
For quite sometime, the government suffers from losses due to tax leakages 
brought about by aggressive tax avoidance schemes employed by certain taxpayers, or 
tax evasion schemes employed by unscrupulous taxpayers, sometimes in collusion with 
corrupt revenue officials. More often than not, incidences of corruption were brought 
upon by dire financial needs of involved revenue employees, given the salaries they are 
currently receiving. Thus, there is a need for keeping our tax administrators honest, 
competitive, and professional.
In fact, BIR employees should be enjoying higher pay considering the importance 
of their duties. For example, an entry level accountant for the BIR receives Php 19,077.00 
a month whereas in the Securities and Exchange Commission (SEC) and the Insurance 
Commission (1C) receives Php 50,238.00 and Php 46,104.00, respectively. For lawyers, 
the entry level salary in the BIR amounts to Php 35, 693.00 whereas for entry level 
lawyers in the SEC and 1C they are paid Php 53,754.00 and Php 66,524.00, respectively. 
Due to such low wages, professionals such as experienced accountants and lawyers 
usually leave the BIR after a few years for "greener pastures", so to speak. Moreover, 
given these conditions, prospective applicants for government positions usually go for 
higher paying agencies or branches such as the Judiciary or the Public Attorney's Office, 
to name a few.
Such glaring disparity in compensating our revenuers would help explain why 
the BIR is flooded with complaints of BIR personnel who are unprofessional, 
incompetent, or w<.)rse, corrupt. The current structure for position and compensation 
classification only encourages and worsens the current system of incompetence and


corruption. Due to these problems, tax collection suffers and large scale tax evaders get 
away.
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 
"Compensation and Position Classification Act of 1989", or the "Salary Standardization 
Law".
With competitive salaries, we expect that corruption would be eliminated, or at 
the very least minimized. Moreover, competitive salaries can attract young and 
idealistic professionals which can revitalize the BIR which would translate into better 
tax administration and enforcement.
In view of the foregoing, it is proposed that the Bureau of Internal Revenue be 
exempted from the coverage of Republic Act No. 6758 otherwise known as the 
"Compensation and Position Classification Act of 1989", or the "Salary Standardization 
Law".
SONNY ANGARA


SEVENTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILUTINES 
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First Regular Session 
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S E N A T E
S.B. No. 1314
.■%>cnn(c
o f tljr  # ri [ r t lo r p
■17 FEB-6 P5-46
RECEIVED ffl1:
Introduced by Senator SONNY ANGARA
AN ACT EXEMI’TING 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
Be it emu ted by the Semite and Ftoiise of Representatives of the PInlippines in Congress 
assembled:
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SECTION 1. Declaration of 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.
SEC. 2. Exemption from Salary Standardization. - The BIR and its employees shall be 
exempt from the coverage of the Salary Standardization Law.
The BIR is hereby authorized to formulate its own Compensation and Position 
Classification System based on the following principles:
(a) 
BIR personnel shall be paid just and equitable wages in accordance 
with the principle of equal pay for work of equal value;
(b) 
Basic compensation for BIR personnel shall generally be comparable 
with those in the private sector doing comparable work and must be in 
accordance with prevailing laws on minimum wages;
(c) 
The BIR Compensation and Position Classification System shall be 
determined through a comprehensive analysis and audit of actual 
duties and responsibilities of the Bureau's officials and employees;


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(d) 
The total compensation provided for government personnel must be 
maintained at a reasonable level in proportion to the national budget; 
and
(e) 
A review of government compensation rates, taking into account the 
performance of the Bureau, its overall contribution to the national 
economy, and the possible erosion in purchasing power due to 
inflation and other factors, shall be conducted periodically;
SEC. 3. Incentives to Bnreim Officials atid Persoiniel. - 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 of 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-diniinntion of 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.
SEC. 7. Separability Clause. - If any of the sections or provisions of this Act is held 
invalid, all other provisions not affected thereby shall remain valid.


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SEC. 8. Repealing Clause. - All laws, decrees, issuances, rules and regulations 
inconsistent with the provisions of this Act are hereby repealed or modified 
accordingly.
SEC. 9. Effectivihj Clause. - This Act shall take effect fifteen (15) days after its complete 
publication in the Official Gazette or two (2) newspapers of general circulation.
Approved,