Republic of the Philippines
HOUSE 0F REPRESENTATIVES
Quezon City, Metro Manila
Nineteenth Congress
Third Regular Session
HouseBillNo.10613
Introduced by REP. JOEY SARTE SALCEDA
AN ACT
EXEMPTING THE BUREAU 0F INTERNAL REVENUE
FROM THE COVERAGE 0F REPUBLIC ACT NO. 6758,
OTHERWISE KNOWN AS THE SALARY STANDARDIZATION LAW,
AS AMENI)ED, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
This bill  seeks the removal  of the Bureau of Internal Revenue (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."
The BIR performs one of the most critical functions of the government -the collection of taxes
necessary for the government to fulfill its mandate of uplifting the lives of the Filipino people.
Without taxes, the government could not provide for the basic needs of the Filipinos, such as
education, healthcare, infrastructure, and national defense.
Taxation is a highly technical field that requires mastery not only of laws but also of accounting
principles.  The BIR must adopt international standards to ensure the accuracy, fairness, and
transparency of its tax collection processes.
In 2012, the BIR has an authorized plantilla of 21,482 positions, and only 47% is filled up. At
that tim, the Bureau was serving 20,833,287 registered taxpayers.
The  total  number of registered taxpayers has  now grown to 49,318,497  or 237%  increase
compared to 2012  and to date, the BIR only has  15,666 employees, which is  seventy-three
percent (73%) of its authorized staffing.
The plantilla for authorized positions established  12 years ago no longer meets the current
needs of the Bureau and the demands of the taxpayers, emphasizing the necessity for highly
effective,  efficient,  and  competitive  employees  to  cany  out  their  mandated  duties  and
functions. This is the current situation notwithstanding the continuous efforts of the BIR to hire
revenue personnel.


In this  light,  we  can  infer that job-seekers  nowadays  exhibit a preference  for employment
opportunities in the private sector or with other government agencies/instrumentalities, and we
believe that one of the contributory factors is the current compensation package of the BIR.
Please note that an entry-level accountant for the BIR receives Php29,165.00 a month, whereas
in the Securities and Exchange Commission (SEC), an agency attached to the Department of
Finance  similar to  the BIR,  and the  Commission  on Audit (COA),  such  position receives
Php60,206.00 and Php71,511.00 per month, respectively. On the other hand, for lawyers, the
entry-level salary in the BIR amounts to Php46,725.00, whereas in the SEC and COA, they are
paid Php64,505.00 and Php80,003 per month, respectively.  Administrative staff salaries are
also lower in comparison to those in similar agencies. Due to such low wages, professionals
tend to work with other agencies/companies or, if they have joined the BIR, they leave after a
few years in pursuit of a "greener pasture." In the last year alone (2022), transferees to COA
represented 50% of the total transferees among the top 3 agencies where BIR employees have
transferred.
Moreover,  the  BIR's  role  has  been  critically  highlighted  during  the  pandemic,  where  tax
collection  was  crucial  for  funding  the  govemment's  response  to  the  crisis.  Despite  the
pandemic, BIR employees were not allowed to work from home due to the essential nature of
their functions.  Digitalization of tax processes does not equate to reduction of the need for
personnel,  especially  with  the  increasing  complexity  of tasks  and  demands  for  frontline
services from the taxpayers.
Considering the deep-rooted Filipino values of prioritizing and sustaining the financial well-
being of their families, particularly in the current economic status of the country, we believe
that enhancing the compensation package offered by the BIR would serve as a strong incentive
for highly skilled individuals in the Philippines to consider joining the BIR and effectively
fulfill   their   duties   to   the   Filipino   people.   Moreover,   the   provision   of  a   competitive
compensation package would enable employees to concentrate on their responsibilities without
the burden of flnancial concerns. We are confident that this will also result in the mitigation or,
if not, reduction of corruption within the BIR. Consequently, the Bureau would be guaranteed
to achieve operational effectiveness, efficiency, and a high level of competence, particularly in
tax administration, enforcement and collection.
Indeed, if no action is taken under the foregoing situation, tax collection could suffer severely,
affecting  the  govemment's  ability  to  provide  essential  services  to  the  Filipino  people.  To
address the above urgent concerns of the BIR, we humbly propose that the BIR 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.
In view of the foregoing, the support of the Members of the Nineteenth (19th) Congress is
earnestly sought for the approval of this bill.


Republic of the Philippines
HOUSE 0F REPRESENTATIVES
Quezon City, Metro Manila
Nineteenth Congress
Third Regular Session
HouseBillNo.10613
Introduced by REP. JOEY SARTE SALCEDA
AN ACT
HXEMPTING THE BUREAU OF INTERNAL REVENUE
FROM THE COVHRAGE OF REPUBLIC ACT NO. 6758,
OTHERWISE KNOWN AS THH SALARY STANDARDHATI0N LAW,
AS AMENDED, AND FOR OTHER PURPOSHS
Be  it  enacted  by  the  Senate  and  House  Of Representatives  Of the  Philippines  in Congress
assembled:
SECTION  1.  Dec/fl!r¢fl.oJ.  a/ Po/I.cj7.  - 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. EcexpfJ.om/ram S¢/fl!ry Sf¢"d¢rdJ.z¢fl.om. -The BIR and its employees shall
be exempt from the coverage of the Salary Standardization Law.
The BIR is hereby authorized to fomulate 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 and also with the public 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 detemined through
a comprehensive analysis and audit of actual duties and responsibilities of the Bureau's
officials and employees;
d)   The total compensation provided for government persormel 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;


All positions of the Bureau shall be governed by a compensation and position classification
system and qualification standards approved by the Bureau comparable with the prevailing
compensation plan of government owned and controlled corporations  (GOCCS)  and other
government financial institutions and shall be subject to periodic review by the Bureau no more
than once every three (3) years without prejudice to yearly merit review or increases based on
productivity  and  efficiency.  The  Bureau  shall,  therefore,  be  exempt  from  laws,  rules,  and
regulations on compensation, position classification and qunlifications standards. The Bureau
shall, however, endeavor to make its system conform as closely as possible with the principles
under the Compensation and Position Classification Act of 1989.
SE:C. 3. Incentives to Bureau Officials and Personnel. -The BNIean, subject to the
approval of the President, may provide for other incentives not provided under existing laws
and Civil Service laws.
SEC.   4.  4pprov¢/  a/  ffec  PresJ.dc"J.   -  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), 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.  IVo„-dJ.mr."#fl.o„   a/  S¢/¢r!.es.  -  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 now existing or hereafter created: Prov7.c7ec7,  That in no
case shall there be any diminution in the authorized salaries of incumbent employees of the
BIR as of December 31, 2024, upon the implementation of the approved BIR Compensation
and Position Classification System.
SEC. 6. 4ppropri.¢fl.om C/¢wse. - The amount necessary for the implementation of this
Act shall be included in the General Appropriations Act (GAA).
SIC. 7. Sep¢nzbl./rty CJ¢#sc. -If any of the sections or provisions of this Act is held
invalid, all other provisions not affected thereby shall remain valid.
SEC.  8.  Repe¢/i.mg  CJa!#se.  -  All  laws,  decrees,  issuances,  rules  and  regulations
inconsistent with the provisions of this Act are hereby repealed or modified accordingly.
SHC.  6.  EJj7recfl.trty  CJa!#sc.  -  This  Act  shall  take  effect  fifteen (15)  days  after  its
complete publication in the Offlcial Gazette or two (2) newspaper of general circulation.
Approved,