REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No, 4589

Introduced by MAGDALO Party-List Representative
HON. MANUEL DG. CABOCHAN II

EXPLANATORY NOTE

While there has been an almost two-fold increase in the compensation package of thousands
of civil servants all over the country, their income remains uncompetitive as compared to that
of the private sector. It is necessary to modify and update the existing salary schedule to
further encourage excellent performance and productivity, and to clearly distinguish
differences in levels of responsibility and accountability among government officials and
employees. It should also be taken into account the diminishing purchasing power of
government employees having no change in the salary they are receiving while prices of
commodities and services continue to rise.

Thus, this measure seeks to reinvent the government’s bureaucratic structure and salary
schedule. This will take into consideration a rationalized system that equates pay with work
responsibility and skill, among others. Such a system will create an environment of fairness
and motivation which will inculcate professionalism in the workplace. The long-practiced
motivational system in the private sector in granting promotions and salary increases based
on performance evaluation will be institutionalized in this measure as a means of advancing
efficiency and competency amongst the workforce. Most importantly, the reclassified
compensation framework in this bill will further the thrust of our leadership to make the
remuneration of government workers more competitive and at par with the prevailing rate in
the private sector so that more talented and skilled employees will be attracted to join the
government workforce.

In view of the foregoing, the immediate approval of this bill is earnestly sought.

MANUEL DG] CABOCHAN Il
Representative
Magdalo Para sa Pilipino Party-List


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REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

4589
House Bill No.

Introduced by MAGDALO Party-List Representative
HON. MANUEL DG. CABOCHAN II

AN ACT
MODIFYING THE SALARY SCHEDULE FOR CIVILIAN GOVERNMENT
PERSONNEL AND AUTHORIZING THE GRANT OF ADDITIONAL BENEFITS

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Title — This Act shall be known as the “Salary Standardization Law V”.

SEC. 2. Declaration of Policy — Pursuant to the constitutional mandate that the State
shall provide for the standardization of salary of government officials and employees,
including those in government-owned or controlled corporations with original charters,
taking into account the nature of duties and responsibilities pertaining to and the
qualifications required for their positions, the State shall:

a) Implement a salary schedule that is generally comparable with those in the private

sector doing comparable work and in accordance with the provision of existing
salary and position classification laws, in order to attract, retain and motivates a
corps of competent civil servants;

b)

Keep the salary for government personnel fair and reasonable in recognition of
fiscal realities and maintain personal services cost at a reasonable proportion of

overall expenditures; and


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) Conduct a periodic review of the salary and position classification system taking
into account the changes in skills and competency requirements and the possible

erosion in the purchasing power due to inflation, and other factors.

SEC. 3. Coverage ~ The modified Salary Schedule authorized herein shall apply to all
civilian personnel in the Executive, Legislative and Judicial Branches, Constitutional
Commissions and other Constitutional Offices, Government-Owned or Controlled
Corporations (GOCCs) not covered by RA No. 10149, and local government units (LGUs),
regardless of appointment status, whether regular, contractual or casual, appointive or

elective, and on full-time or part-time basis, now existing or hereafter created.

SEC. 4. Modified Salary Schedule, including Step Increments — The modified
Salary Schedule for Civilian Personnel, to be implemented in three (3) tranches, shall be as

follows:


First Tranche

Salary
Step 1 | Step2 | Step3 | Step4 | StepS | Step6 | Step7 | Steps
Grade

1 || 12,175 | 12,276 || 12,379 | 12,483 || 12,587 | 12,692 || 12,799 | 12,905
2 || 12,937 || 13,036 | 13,136 || 13,237 | 13,339 | 13,441 || 13,544 | 13,648
3 || 13,713 || 13,818 | 13,924 || 14,032 | 14,139 | 14,247 || 14,357 || 14,467
4 || 14,535 || 14,648 || 14,760 || 14,873 | 14,988 | 15,102 || 15,219 || 15,335
5 | 15,408 || 15,527 || 15,645 | 15,765 | 15,886 || 16,008 || 16,132 || 16,255
6 || 16,332 || 16,457 || 16,584 | 16,711 | 16,840 | 16,969 | 17,100 || 17,230
7 | 17,312 | 17,445 || 17,579 | 17,714 | 17,850 || 17,987 || 18,125 || 18,264
8 || 18,434 || 18,601 || 18,769 | 18,939 | 19,109 | 19,282 || 19,457 || 19,633
9 || 19,773 || 19,938 || 20,105 || 20,273 | 20,442 | 20,613 || 20,786 || 20,959
10 || 21,156 || 21,333 | 21,512 | 21,692 || 21,872 || 22,056 | 22,240 || 22,426
11 || 22,829 | 23,142 | 23,460 | 23,781 || 24,107 || 24,438 | 24,772 || 25,112
12 | 25,232 |[ 25,544 |[ 25,861 | 26,181 || 26,506 | 26,835 || 27,167 | 27,503
13 | 27,755 || 28,100 || 28,447 || 28,799 || 29,157 || 29,517 | 29,883 | 30,253
14 || 30,531 | 30,909 |/ 31,292 | 31,680 || 32,072 | 32,469 | 32,871 | 33,278
15 || 33,584 | 34,000 | 34,421 | 34,848 | 35,279 | 35,716 | 36,158 | 36,607
16 | 36,942 | 37,400 || 37,863 | 38,332 || 38,807 | 39.288 || 39,775 | 40,267
17 || 40,636 | 41,140 || 41,649 || 42,165 || 42,688 | 43,217 | 43,751 | 44,294
18 | 44,701 | 45,254 | 45,815 | 46,382 | 46,957 || 47,539 || 48,127 | 48,723
19 || 49,796 || 50,609 | 51,435 || 52,274 || 53,128 | 53,995 || 54,877 | 55,772



[20 | 56271 | 57,188 | 58,122 | 59,070 | 60,035 | 61,015 | 62,010 || 63,022 |
21 || 63,586 || 64,623 | 65,678 | 66,749 || 67,839 || 68,946 | 70,071 |) 71,215
22 ‘|| 71,851 | 73,024 || 74,216 || 75,427 | 76,658 || 77,910 || 79,181 | 80,473
23 || 81,192 || 82,517 | 83,864 |/ 85,232 | 86,624 || 88,037 || 89,474 || 90,935
24 || 91,747 || 93.244 | 94,766 | 96,313 | 97,885 || 99,483 | 101,107 || 102,757
25 — || 104,591 || 106,299 | 108,033 || 109,797 | 111,588 || 113,410 | 115,261 | 117,142
26 || 118,188 | 120,117 | 122,078 | 124,070 | 126,095 || 128,153 | 130,244 || 132,371
27 || 133,552 || 135,732 || 137,948 || 140,199 | 142,487 || 144,813 | 147,177 || 149,579
28 — || 150,915 || 153,377 | 155,881 | 158,425 | 161,010 | 163,639 | 166,310 || 169,024
29 |[ 170,533 | 173,317 || 176,145 | 179,021 || 181,942 | 184,912 || 187,930 || 190,997
30 — || 192,702 || 195,847 | 199,044 |/ 202,293 | 205,594 || 208,951 | 212,361 | 215,827
31 |[ 283,590 || 289,128 || 294.776 | 300,533 | 306,404 || 312,388 | 318,490 || 324,710

[ 32 [338,102 || 344,920 | 351,876 | 358,972 | 366,211 || 373,596 | 381,131 | 388,817
33 || 426,906 | 439,713

Second Tranche
Salary
Step 1 | Step2 | Step3 | Step4 || StepS | Step6 | Step7 | Steps

Grade
1 || 13,392 | 13,504 || 13,617 | 13,731 | 13,846 | 13,961 | 14,078 | 14,196
2 | 14,231 | 14,340 || 14,450 || 14,561 | 14,672 | 14,785 | 14,899 | 15,012
3 || 15,084 || 15,200 || 15,316 || 15,435 | 15,553 || 15,672 || 15,793 | 15,914

(Boe Bee



ESE 16,360 | 16,486 | 16,612 | 16,740 | 16,869
3 || 16948 | 17,079 | 17,210 | 17,342 | 17,475 || 17,609 || 17,745 | 17,880
6 || 17,965 | 18,103 | 18,242 || 18,382 | 18,524 || 18,665 | 18,809 | 18,953
7 || 19,043 || 19,189 || 19,337 || 19,486 || 19,635 || 19,786 | 19,937 | 20,091
3 [s0a77 | Doser | 20646 | 20.835v] 21,000 | Bizi0 | 21402 | 21386 |
9 | 21,750 || 21,931 | 22,115 || 22,300 || 22,487 | 22,674 | 22,864 | 23,055
10 | 23,272 || 23,467 | 23,663 | 23,861 || 24,060 | 24,262 | 24,464 | 24,668
11 | 25,112 | 25,456 | 25,806 | 26,159 | 26,517 || 26,881 | 27,249 || 27,623
12 | 27,755 | 28,099 | 28,447 | 28,799 || 29,156 || 29,518 | 29,883 | 30,254
13 | 30,531 | 30,909 | 31,292 | 31,679 | 32,072 | 32,469 | 32,871 | 33,279
14 | 33,584 | 34,000 | 34,421 | 34,848 | 35,279 | 35,716 | 36,158 | 36,606
15 |) 36,943 | 37,400 | 37,863 | 38,333 | 38,807 | 39,287 | 39,774 || 40,268
16 || 40,637 || 41,140 | 41,649 | 42,165 | 42,688 | 43,216 || 43,752 || 44,293
17 || 44,700 || 45,254 | 45,814 | 46,382 | 46,956 | 47,538 || 48,127 | 48,723
18 | 49,171 | 49,779 | 50,397 | 51,020 | 51,652 || 52,293 || 52,940 || 53,596
19 | 54,775 | 55,670 | 56,578 | 57,502 | 58,441 || 59,394 || 60,364 | 61,349
20 || 61,898 | 62,907 | 63,934 | 64,977 | 66,038 || 67,116 || 68,211 | 69,325
21 | 69,944 | 71,085 | 72,245 || 73,424 | 74,623 | 75,840 | 77,078 | 78,337
22 || 79,036 | 80,326 | 81,637 |) 82,970 | 84,324 || 85,701 | 87,099 | 88,520
23 || 89,311 || 90,768 | 92,250 | 93,756 | 95,286 | 96,841 | 98,421 | 100,028
24 | 100,921 | 102,568 | 104,243 | 105,944 | 107,673 | 109,431 | 111,217 | 113,032
25 || 115,050 | 116,928 120,776 || 122,747 | 124,751 | 126,787 | 128,857



26 130,007 || 132,128

136,477 || 138,705 || 140,969 || 143,269 || 145,608

27 146,907 || 149,306 || 151,742 || 154,219 || 156,736 || 159,294 | 161,894 | 164,537

28 166,006 || 168,715 | 171,469 | 174,268 | 177,111 || 180,003 | 182,941 | 185,926

187,586 || 190,649 | 193,760 || 196,923 || 200,136 || 203,403 || 206,722 || 210,097

30 211,973 || 215,432 || 218,948 || 222,523 | 226,154 | 229,846 || 233,597 || 237,409

3 311,949 || 318,041 || 324,253 || 330,587 || 337,044 || 343,627 || 350,339 || 357,181

32 371,912 || 379,412 || 387,063 || 394,869 || 402,832 | 410,956 | 419,244 | 427,699

3 469,596 || 483,684

Third Tranche

Salary
Step 1 | Step2 | Step3 | Step4 || StepS | Step6 | Step7 | Steps
Grade

1 14,732 || 14,854 || 14,979 || 15,104 |) 15,231 | 15,357 | 15,486 | 15,615

2 15,654 || 15,774 || 15,895 || 16,017 | 16,140 | 16,263 | 16,389 || 16,514

3 16,592 || 16,720 || 16,848 || 16,978 || 17,109 || 17,239 || 17,372 || 17,505

4 17,588 || 17,724 || 17,859 || 17,996 | 18,135 | 18,273 | 18,414 || 18,555

5 18,643 || 18,787 || 18,931 || 19,076 | 19,222 || 19,370 || 19,519 |) 19,668

6 19,761 || 19,913 || 20,066 || 20,221 || 20,376 | 20,532 | 20,690 || 20,849

3 20,947 || 21,108 || 21,271 || 21,434 || 21,598 || 21,765 || 21,931 | 22,100

8 22,305 |} 22,507 |} 22,711 |) 22,916 | 23,122 | 23,331 |) 23,543 |) 23,756

9 23,925 || 24,124 || 24,327 || 24,530 |) 24.735 || 24,942 || 25,151 || 25,361

—— es
————E—————————



10 | 25,599 |[ 25,813 | 26,029 |[ 26.247 | 26,466 || 26,688 || 26,910 | 27,135
11 || 27,624 | 28,002 | 28,386 | 28,775 || 29,169 | 29,569 || 29,974 | 30,385
12 || 30,530 | 30,908 | 31,292 |/ 31,679 | 32,071 || 32,470 || 32,872 | 33,279
13 || 33,584 || 34,000 | 34,421 || 34,847 | 35,279 |[ 35,716 | 36,1

14 || 36,942 | 37,400 | 37,863 || 38,333 | 38,807 || 39,287 | 39,774 | 40,267
15 | 40,637 | 41,140 | 41,650 || 42,166 || 42,688 || 43,216 | 43,751 | 44,294
16 | 44,700 | 45,254 | 45,814 || 46,381 | 46,956 | 47,538 | 48,128 | 48,723
17 || 49,170 || 49,779 || 50,396 |/ 51,020 || 51,652 || 52,292 || 52,939 | 53,595
18 | 54,088 | 54,757 || 55,436 || 56,122 | 56,818 | 57,522 | 58,234 | 58,955
19 | 60,253 || 61,237 || 62,236 || 63,252 || 64.285 | 65,333 | 66,401 || 67,484
20 || 68,087 | 69,197 | 70,327 | 71,475 || 72,642 | 73,828 | 75,032 | 76,257
21 || 76,938 | 78,194 || 79,470 || 80,766 || 82,085 | 83,424 | 84,786 | 86,170
22 || 86,940 | 88,358 || 89,801 || 91,267 || 92,756 | 94.271 | 95,809 | 97,372
23 || 98,242 | 99,845 |/ 101,475 | 103,131 || 104,815 || 106,525 || 108,264 | 110,031
24 | 111,013 | 112,825 || 114,667 | 116,538 || 118,440 || 120,374 || 122,339 |[ 124,335
25 — || 126,555 | 128,621 || 130,720 | 132,854 || 135,022 || 137,226 || 139,466 |/ 141,742
26 — || 143,008 || 145,341 | 147,714 | 150,125 | 152,575 || 155,065 || 157,596 || 160,169
27 — || 161,598 | 164,236 | 166,917 || 169,641 | 172,410 | 175,223 || 178,084 || 180,991
28 — | 182,607 || 185,587 | 188,616 | 191,695 | 194,822 || 198,004 | 201,235 || 204,519
29 || 206,345 |/ 209,714 | 213,136 || 216,615 | 220,150 || 223,744 || 227,395 || 231,107
30 || 233,170 | 236,975 || 240,843 | 244,775 || 248,769 || 252,830 | 256,956 | 261,150
31 || 343,144 | 349,845 || 356,679 | 363,645 || 370,749 || 377,989 | 385,372 | 392,899



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32 409,103

417,354 || 425,770

434,356

443,115

452,052

461,169

470,469

[ 33 (|| 516,556

532,053

SEC. 5. Compensation Adjustment for LGU Personnel - The modified Salary

Schedule and additional benefits authorized herein for civilian personnel may likewise be

granted to LGU personnel, subject to the following:

a) Authorization from their respective sangeunian as provided under Sections 447(a),

458(a) and 468(a) of RA No. 7160; and

b) Compliance with the Personnel Services (PS) limitation set under Sections 325 and

331 of RA No. 7160.

LGUs shall likewise comply with the following rules in the implementation of the

modified salary schedule and grant of additional benefits:

a) The implementation of the modified Salary Schedule for LGU personnel, including

the rate of Representation and Transportation Allowances, shall further correspond to

the LGU’s income classification, as determined by the Department of Finance (DOF)

and approved by the Office of President; and which shall not therefore exceed the

percentage of the Salary Schedule in Section 3 hereof, as follows:

Percentage of the Salary Schedule

3rd Class

For Provinces/Cities|For Municipalities]
‘Special Cities! 100%
Ist Class 100% 90%
2nd Class 95% 85%
90% 80%



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4th Class 85% 75%

5th Class 80% 70%

| 6thClass | 75% 65%

b) The basic pay of barangay personnel shall be in the form of honoraria which shall not
exceed the percentage of the Salary Schedule corresponding to the income
classification of the LGU. They may likewise receive Mid-Year Bonus and Year-End
Bonus based on the monthly honoraria as of May 15 and October 31 of the year,
respectively, and Cash Gift of Five Thousand Pesos (PS.000).

However, the minimum Year-End Bonus of One Thousand Pesos (P1,000) for the
punong barangay and Six Hundred Pesos (P600) for other mandatory barangay

officials shall not be subject to the PS limitation.

SEC. 6. Non-diminution in the Basic Salaries of Incumbent Employees ~ In no case
shall there be any diminution in the basic salaries of incumbent employees upon the
implementation of this Act. For this purpose, they shall receive the new salary rates

prescribed herein which in no case shall be less than their existing salary rates.

SEC. 7. Compensation and Position Classification Report — The DBM shall prepare
a Compensation and Position Classification Report for all government entities in the national
government, GOCCs including exempt entities and the status of their implementation thereof.
‘The reports shall be periodically updated and submitted to Congress and the Commission on
Audit for public disclosure, monitoring, compliance with established policies and as basis for

future policy decisions.


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SEC. 8. Periodic Review of the Compensation and Position Classification System.—
‘The DBM and Civil Service Commission shall jointly review the Compensation and Position
Classification System every three (3) years, develop and recommend to the President a

competitive compensation and remuneration system.

SEC. 9. Implementation Schedule - The modified Salary Schedule and additional
benefits authorized herein shall be implemented in National Government Agencies as
follows, subject to appropriations by Congress:

a) Starting January 1, 2020, the first tranche salary schedule for civilian personnel and
the Mid-Year Bonus;
b) By January 1, 2021, the second tranche salary schedule for civilian personnel and the

Mid-Year Bonus and half of the enhanced PBB,

c) By January 1, 2022, the third tranche salary schedule for civilian personnel and the

Mid-Year Bonus and full amount of the enhanced PBB.

For covered GOCCs and LGUs, the implementation of the compensation adjustments
shall be in at least three (3) years depending on their respective financial capability, with each
tranche starting not earlier than the dates stated above. GOCCs and LGUs which do not have
adequate or sufficient funds shall partially implement the modified Salary Schedule and
authorized benefits. In case of partial implementation, the same shall be at uniform

percentage across all positions for every GOCC/LGU.

SEC. 10. Retroactive Application - The first tranche implementation of the modified

Salary Schedule for civilian personnel shall be effective January 1, 2020,


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For covered GOCCs and LGUs, the retroactive application of the first tranche shall be
subject to their financial capabilities and compliance with other requirements under existing

laws.

SEC. 11. Exempt Entities - The following exempt entities shall not be covered by the
modified Salary Schedule and additional benefits authorized herein: (i) government agencies,
including GOCCs that are exempted from the coverage of RA No. 6758, as amended, as
provided in their respective enabling law or charter, and (ii) GOCCs governed by the CPCS
established by the Governance Commission for GOCCs (GCG) and approved by the
President of the Philippines, under RA No. 10149.

They shall be governed by their respective CPCS which shall be made effective upon
the recommendation of the DBM or the Governance Commission for GOCCs, as the case

may be, and approval by the President of the Philippines.

SEC. 12. Applicability to Certain Officials - Consistent with the policy under Section
6 of Article VII and Section 10 of Article VI of the Constitution, the salaries authorized
herein for the President, Vice President and Members of Congress shall take effect only after
the expiration of the respective terms of the incumbents.

The implementation of this Act with respect to regular members of the Cabinet shall

be effective starting July 1, 2020.

SEC. 13. Funding Source - The funding sources for the amounts necessary to

implement this Act shall be as follows:


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a) For national government entities, the amount necessary for the immediate
implementation of this Act shall be included in the General Appropriations Act
(GAA),

b) For GOCCs, the amounts shall come from their respective corporate funds in the
corporate operating budgets approved by DBM.

©) For LGUs, the amounts shall be charged against their respective funds in accordance

with the pertinent provisions of this Act and RA No. 7160.

SEC. 14. Implementing Rules and Guidelines - The DBM shall issue the guidelines

necessary to implement the provisions of this Act

SEC. 15. Separability Clause - Should any provision of this Act be declared invalid

or unconstitutional, the other provisions unaffected thereby shall remain valid and subsisting.

SEC. 16. Repealing Clause - All other rules, regulations and issuances, or parts

thereof which are inconsistent with this Act are hereby repealed or modified accordingly.
SEC. 17. Effectivity Clause~ This Act shall take effect immediately upon its
publication in the Official Gazette or in two (2) newspapers of general circulation, whichever

comes first.

Approved,