SEVENTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
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Second Regular Session 
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•17 JUN 27 All -.55
SENATE
S.B. No. 
1493
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Introduced by; Senator Paolo Benigno "Bam" A. Aquino IV
AN ACT EXEMPTING THE BUREAU OF INTERAL REVENUE FROM THE COVERAGE OF 
REPUBLIC ACT NO. 6758, OTHERWISE KNOWN AS THE SALARY STANDARDIZATION 
LAW, AS AMENDED, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Tasked with collecting over three quarters of our country's national budget, 
the Bureau of Internal Revenue has a heavy weight on its shoulders.
But even with the importance and the technical complexity of this function, 
the Bureau of Internal Revenue's present salary structure does not adequately 
compensate Bureau professionals. What's more, comparable positions earn up to 
twice as much in other agencies like the Securities and Exchange Commission and 
the Insurance Commission.
In order to attract and retain our nation's proficient accountants and tax 
practitioners, we must ensure that the compensation packages of the Bureau of 
Internal Revenue are competitive and commensurate to the task at the revenuers' 
hands.
This bill seeks to remove the Bureau of Internal Revenue from the Salary 
Standardization Law, or RA 6768, and allow the BIR to craft its own salary structure 
that will allow them to compensate revenuers appropriately.
Doing so will not only attract and help retain top talent within the BIR, but 
can hopefully serve as a preventative measure against corrupt practices and better 
services for the Filipino taxpayer.
Compensating our nation's tax collectors appropriately does not only uplift 
their profession and uphold the importance of their field, but it also allows us to 
demand nothing but the most honest, efficient, and effective public service from 
those that diligently handle our hard-earned taxes.


In view of the foregoing, the passing of this bill is urgently sought.
PAOLO EfeNIGNO "BAM" AQUINO IV


SEVENTEENTH CONGRESS OF THE REPUBLIC 
)
OF THE PHILIPPINES 
)
Second Regular Session 
)
o{ t!)P £■■ a rln rp
•17 JUN 27 AH :55
SENATE
S.B. No. 1493
RECEIVLOir,.
Introduced by: Senator Paolo Benigno "Bam" A. Aquino IV
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AN ACT EXEMPTING THE BUREAU OF INTERAL REVENUE FROM THE COVERAGE OF 
REPUBLIC ACT NO. 6758, OTHERWISE KNOWN AS THE SALARY STANDARDIZATION 
LAW, AS AMENDED, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives o f the Philippines in 
Congress as assembled:
SECTION 1. Declaration o f 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.
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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;
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.


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SEC. 3. Incentives to Bureau Officials and Personnel. -  The BIR, subject to the 
approval of the President, may provide for other incentives not provided under 
existing laws and Civil Service laws.
SEC. 4. Approval o f 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 every three (3) years, without 
prejudice to yearly merit reviews or increases based on performance.
SEC. 5. Non-diminution o f 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. Appropriations. -  The amount necessary to implement this Act shall 
be included in the General Appropriations Act of the year following its enactment 
into law.
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SEC. 7. Separability Clause. -  Should any provision herein be declared 
unconstitutional, the same shall not affect the validity of other provisions of this Act.
SEC. 8. Repealing Clause. -  All other laws, decrees, executive orders, rules 
and regulations or parts thereof inconsistent with the provisions of this Act are 
hereby amended or modified accordingly.
SEC. 9. Effectivity Clause. -  This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in at least two (2) newspapers of general 
circulation.
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Approved,