SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 543 
) 
) 
) 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
'13 
,JUL -8 I\ 8 :50 
The Sureau of Internal Revenue (SIR) is the primary revenue raising 
agency of the government, collecting almost eighty percent (80%) of total 
government revenues. 
Inarguably, the agency's greatest asset is its pool of 
trained and hardworking personnel. Recent developments, however, show that 
many of the employees in the SIR are leaving the service to seek greener 
pasture in the private sector. Empirical evidence reveals that several high and 
middle management officials of the SIR resign from office to join large accounting 
firms or IT companies where they receive salaries double or triple the amount 
they were getting in SIR. 
This excessive turnover of employees, especially 
among lawyers, information technology analysts and programmers, undeniably 
poses a serious problem in tax administration. 
While reforms have been 
introduced to mOdernize and improve tax administration, little attention is given to 
the workforce of the SIR. Indeed, it is ironic that the SIR employees, who provide 
the very foundation of tax administration, get the least notice in reform programs. 
The current compensation schedule of SIR personnel is totally 
unacceptable and grossly disproportionate to the importance, risk and urgency 
that their work entails. Faced with enormous workloads, these employees are 
compensated with measly salaries way below those earned by their counterparts 
in the private sector. For instance, a lawyer in the SIR normally handling 100 
active cases earns a mere P20,OOO.OO monthly salary. 
A SIR Database 
administrator, on the other hand, receives only P15,OOO.OO every month, 
whereas his counterpart in a private IT firm earns P60,OOO.OO monthly. 
As a measure to correct this blatant inequity and to further .strengthen the 
employees from Republic Act No. 6758 otherwise known as the Salary 
Standardization Law, with this bill, the salary levels of SIR employees will be 
placed at par with industry standards. Hopefully, the SIR will be able to attract 
the best human resources of our nation to enter the service and encourage its 
highly-trained personnel to stay in their respective pOSitions. 
Needless to state, increase in the salaries of the SIR emplo~ees will 
promote efficiency in their performance, improve their operations and I~ad to a 
significant increase in revenue collections. 
With the aforementioned premises, the approval of this bill is earnestly 
sought. 
OY EJERCITO ESTRADA 
Senator 


~" 
_ 
1 
SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 543 
) 
) 
) 
S.~nhh' 
it1)fh;r l1f t~i' ~~.r-"(Fbru 
'13 
JUL -8 :'\8 :50 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
EXEMPTING 
THE 
BUREAU 
OF 
INTERNAL 
REVENUE 
FROM 
THE 
COVERAGE OF REPUBLIC ACT NO. 6758, OTHERWISE KNOWN AS THE 
SALARY STANDARDIZATION LAW, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
I 
, 
I 
SECTION 1. Declaration of Policy. - It is the policy of the State t9 reform 
tax administration by hiring and maintaining competent and professional 'revenue 
officials and personnel to enforce the Philippine internal revenue tax system. 
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. 
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 upgrade its human resource component 
and formulate its own compensation schedule and position qualification 
standards based on a comprehensive job analysis and audit of actual duties and 
responsibilities of its officers and employees. 
The compensation schedule and position of classification systems 
implemented pursuant to this Act shall be approved by the Department of Budget 
and Management (DBM) and shall be subject to periodic review by the BIR, in 
consultation with the 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. 3. Implementing Rules and Regulations. - The BIR shall 
promulgate the Implementing Rules and Regulations for this Act within ninety 
(90) days from approval hereof. 
SEC. 4. 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. 5. Separability Clause. - If any of the sections or provisions of this 
Act is held invalid, 'all other provisions not affected thereby shall remain valid. 
I 
SEC. 6. Repealing Clause. - All laws, decrees, issuances, rules and 
regulations inconsistent with the provisions of this Act are hereby repealed or 
modified accordingly. 
SEC. 7. Effectivity Clause. - This Act shall take effect fifteen (15) days 
after its complete publication in at least two (2) newspapers of general 
circulation. 
Approved,