13TH CONGRESS OF THE REPUBLIC ) 
F THE PHILIPPINES 
) 
gular Session 
1 
S E N A T E  
S. BILL NO. 
2 19 6 
.Introduced.bv SENATOR RALPH G. RECTO 
Explanatory Note 
The last salary increase our government employees had was five years 
ago. Over the years, prices of basic commodities and services have increased. 
The current compensation scheme for our government workforce must be 
commensurate with our desire of providing them decent living standard. It is 
public knowledge that the compensation of our national government employees 
is below their private counterparts. They can no longer cope with the current 
standard of living. 
More than one million national government employees are eagerly looking 
forward to the proposed compensation adjustment for 2006 and would be 
extremely disappointed if the passage of the FY 2006 budget is much delayed. 
By way of response to their clamor for pay hike, this bill will expedite the 
implemeritation of the adjustment in compensation of national government 
employees. The passage of this bill will further augment the income of our 
government workers especially those under low salary grades. 
For such purpose, this bill seeks to authorize a special appropriation for 
FY 2006 in the amount of Thirteen Billion One Hundred Million Pesos 
(p13,100,000,000.00) to fund the adjustment in compensation of national 
government employees. 
This special appropriations bill shall be considered as the first tranche of 
the FY 2006 General Appropriations Act (GAA) intended to decrease any 
dissatisfaction that the public may feel in view of the late passage of the GAA. 
It is in this light that immediate passage of this bill is earnestly sought. 


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13TH CONGRESS OF THE REP.UBLIC ) 
Second Regular Session 
OF THE PHILIPPINES 
SENATE 
S. BILL NO. 2 1 9  6 
Introduced by Senator Ralph G. Recto 
AN ACT 
APPROPRIATING THE SUM OF THIRTEEN BILLION ONE HUNDRED 
MILLION PESOS (P13,100,000,000.00) TO FUND THE ADJUSTMENT IN 
COMPENSATION OF NATIONAL GOVERNMENT EMPLOYEES AND FOR 
OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of fhe Philippines 
in Congress assembled: 
SECTION 1. Appropriations and Use of the Fund - The amount of 
Thirteen Billion One hundred million Pesos (P13,100,000,000.00), or so much 
thereof as may be necessary, is hereby appropriated to cover the funding 
requirements for the additional allowance of national government employees for 
the FY 2006. 
SEC. 2. Release of Fund - The amount herein appropriated shall be 
released to the departments, bureaus, offices and agencies by the Department of 
Budget and Management (DBM) in accordance with budgeting laws, rules and 
regulations. 
SEC. 3. Authority to Grant Additional Allowance to Government-Owned 
and/or Controlled Corporations and Local Government Units - Subject to the 
availability of funds;' government-owned andlor controlled corporations covered 
by Republic Act No. 6758 (the Compensation and Position Classification Act of 
1989), as amended, and local government units, are likewise authorized to grant 
additional allowance chargeable against their respective funds. 
SEC. 4. lmplementing Rules and Regulations - The DBM shall issue the 
necessary rules and regulations to implement the grant of the additional 
allowance. 
SEC. 5. Effectivity- This Act shall take effect beginning January 1, 2006. 
Approved,