Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

6362

HOUSE BILL No.

Introduced by
BAYAN MUNA Representatives FERDINAND R. GAITE,
CARLOS ISAGANI T. ZARATE and EUFEMIA C. CULLAMAT,
ACT TEACHERS Party-List Representative FRANCE L. CASTRO,
GABRIELA Women’s Party Representative ARLENE D. BROSAS
and KABATAAN Party-List Representative SARAH JANE I. ELAGO

AN ACT
ESTABLISHING THE NATIONAL MINIMUM MONTHLY SALARY IN.
GOVERNMENT AND PROVIDING FUNDS THEREFOR

EXPLANATORY NOTE

[Article XIII Section 3 of the 1987 Constitution provides that workers “shall be entitled to
security of tenure, humane conditions of work, and a living wage”. Likewise, in the Article on
Social Justice and Human Rights (Article XIII Section 1), the Constitution exhorts Congress to
"give highest priority to the enactment of measures that protect and enhance the right of all
people to human dignity, reduce social, economic, and political inequalities."

Yet, no less than the front liners in government service provision — the government employees —
have been suffering for decades from inadequacy and disparity in salaries.

In response to the clamor of government employees, on July 1, 2019, Bayan Muna
Representatives Ferdinand R. Gaite, Carlos Isagani T. Zarate and Eufemia C. Cullamat, ACT
‘Teachers Party-List Representative France L. Castro, Gabriela Women’s Party Representative
‘Adlene D. Brosas and Kabataan Party-List Representative Sarah Jane I. Elago filed as one of
their priority bills House Bill 247 establishing the national minimum wage of P16,000. HB 247
was consolidated with other bills into House Bill 5712 which was later approved as Salary
Standardization Law of 2019.

On January 8, 2020, President Rodrigo Duterte signed into law | Republic Act No. 11466 oF
Salary Standardization Law (SSL) of 2019. Section 2 Statement of Policy states that:


SEC. 2. Statement of Policy. ~ It is hereby declared
the policy of the State to provide all government personnel a
just and equitable compensation in accordance with the
principle of equal pay for work of equal value. In pursuing
this policy, the State shall ensure that:

(@) Differences in pay shall be based upon substantive
differences in duties. responsibilities, accountabilities and
qualification requirements of the positions,

(®) The compensation for all civilian government personnel
shall be standardized and rationalized across all government
agencies to create an enabling environment that will promote
social justice, integrity, efficiency, productivity, accountability
and excellence in the civil service.

(©) The compensation of all civilian personnel shall
generally be competitive with those in the private sector doing
comparable work in order to attract, retain and motivate a
corps of competent and dedicated civil servants.

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Contrary to its supposed adherence to equality and social justice, RA 11466 or SSL. 2019 only
perpetuates the government employees’ decades- old predicament of inadequacy and disparity in
salaries.

SSL 2019 does not only disregard the call for national minimum salary, worse it further maintains
the unjust pay scale, inadequate salaries, wide disparity between higher and lower salary grades,
and lower salaries for lower income local government units.

While unheeding the demands for a P16,000 national minimum wage, P30,000 salary for nurses
and teachers, the Duterte administration doubled in 2018 the base pay of entry-level uniformed
personnel from P14,834 per month to P29,668 per month through Joint Resolution No. 1 s.
2018. It is the height of injustice that other public employees who are fulfilling just as much
duties for the public are not given the salaries rightfully due them.

‘The lowest-paid employee in the civil service based on SSL. 2019 will be given a meager monthly
increase of P1,932 increase (from P11,068 to P13,000 per month) to be delivered in four
tranches of P483 per month. This translates to a measly P21.95' per day increase, much lower
compared to the P25 increase in minimum wage in the National Capital Region in 2018. This is
historically the lowest pay hike for government employees.

The P13,000* monthly gross salary for Salary Grade 1 by the year 2023 is way below the family
living wage for a family of five pegged at P1,025 per day or P30,750 per month’.

Middle-level employees, such as teachers, and others who comprise the majority in the civilian
bureaucracy, are in the same sinking boat, as their pay also amount to less than the family living

 P483 divided by 22 working days
* Republic Act No. 11466, Section 7 Salary Schedule Including Step Increments
* IBON Databank: Year End 2019, January 24, 2020; P1,025 multiplied by 30 days


wage under SSL 2019. Teachers and other professionals under Salary Grade 11 will receive
27,000 per month by year 2023 (Step Increment 1).

‘The teachers are frequently told that their only problem is poor financial management! But,
what is there to manage when those supposed finances are quickly drained away by taxes, by
their basic needs that grow more and more expensive every day. In the case of some employees
like teachers, nurses, and doctors—even work-related expenses that should have been provided
by the government in the first place have also been increasing.

“The inadequacy of salaries is further compounded by the fact that government workers in low
income provinces and municipalities are paid less than their national counterparts.

“This grievous problem stems from the “regionalization” of wages and salaries. Republic Act
6727 of the Wage Rationalization Act (1989) allowed “regional minimum wages” set by Regional
‘Tripartite Wages and Productivity Boards and are essentially copied for the public sector.

Republic Act 6758 or the Salary Standardization Law in 1989 institutionalized the inadequate
salaries and disparity in salaries by allowing different pay scale for certain agencies such as the
government-owned and/or -controlled corporations and government financial institutions and
percentage rates for local government units (LGU) based on the classification and capacity of
each LGU. The disparity is a clear violation of the principle contained in the law itself, to wit
‘...the policy of the State to provide equal pay for substantially equal work...” We have a
‘uation where employees with the same salary grade, same job classification and same work but
in different government agencies having different salaries.

For example, salary rates for first class municipalities is set at 90%, while for sixth class
provinces/cities and municipalities, at 75% and 65%, respectively. Such variations in the salaries
of public sector employees were maintained in succeeding salary standardization laws such as
Joint Resolution No. 1 (1994), Joint Resolution No 4 (2009), Executive Order 201 (2016) and
the most recent RA 11466 (2020).

In addition, LGUs are constrained from granting the same salary levels compared to other
government agencies due to the “personnel service limitation.”

Republic Act 7160 or the Local Government Code Book I Title III Section 81 provides that “the
compensation of local officals and personnel shall be determined by the Sanggunian
concerned.” Book 2 Title V Chapter ITI Article 1 Section 325 of the Local Government Code set
the limits of the appropriations for personal services ofa local government unit for one (1) fiscal
year to forty-five percent (45%) in the case of first to third class provinces, cities and
municipalities, and fifty-five percent (55%) in the case of fourth class or lower, of the total
‘annual income from regular sources realized in the next preceding fiscal year.”

Worse, in other government agencies exempted from the SSL, equivalent salary grade 1
employees are paid even lower than the salary grade 1 pay indicated in the SSI.- Employees in
‘exempt entities like those from several Government Owned and Controlled Corporations
(GOCCs) which have theit own compensation and position classification system will not be
given any salary increase under SSL 2019.

‘The government employees’ struggle for national minimum salary and salary increases for all
that i for both civilian and military and uniformed personnel (MUP)—is waged together with
the struggle of workers and employees in the private sector for a national minimum wage of at


least P750 per day. ‘The highest minimum wage of P537‘ for non-agricultural workers in the
National Capital Region (out of the more than 1,000 wage levels across the country) is only 53%
of the family living wage. A national minimum wage of at least P750 per day for all regions and
industries nationwide, though still insufficient to meet the family living wage, will bring
significant relief especially to low-earning families.

“The tandem struggles for a national minimum wage and just remuneration for work, along with
the fight for lower taxes, were pushed by employees and workers in the public and private
sectors for several years. Unfortunately, these were never been sufficiently addressed by the
government.

"The refusal to provide substantial salary increases to ensure that the people can afford the
standards of a decent life is part of the general neoliberal framework of the government of
scrimping on funds needed to ensure the proper and humane operation of government offices
and institutions, especially those in the providing vital social services and public institutions like
schools and hospitals.

“The regionalization of salaries and wages contradicts the principle of equal pay for equal work. It
discriminates against local government employees. It has caused demoralization and low self-
esteem among workers and employees in the local government units.

Establishing the national minimum salary for the public sector employees throughout the
country is a matter of social justice. Its the role of the government to case the hardships of
public sector employees amidst the increasing prices of basic commodities and services a8 a
fesult of the implementation of new taxes under the ‘Tax Reform for Acceleration and Inclusion
(IRAIN) Law. The national government should provide assistance to lower income provinces
and municipalities so that the LGUs can provide the salaries due to their employees.

In the name of justice, fairness and equality, the urgent approval of this bill is earnestly sought.

Approved,
INAND R. GAITE
Bayan Muna Partyist
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REP. Uetea 5 E REP, EUFEMIA C. CULLAMAT
Bayan Muna Partylist Bayan Muna Partylist

“ hattpy/;www nwpe. dole gov ph’stats/summary-of-current-regional-daily-minimum-wage-rates-by-region-non-
agriculture-and-agriculture/


REP. FRAN
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Partylist

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Partylist

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Women’s Party


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 636 2

Introduced by
BAYAN MUNA Representatives FERDINAND R. GAITE,
CARLOS ISAGANI T. ZARATE and EUFEMIA C. CULLAMAT,
ACT TEACHERS Party-List Representative FRANCE L. CASTRO,
GABRIELA Women’s Party Representative ARLENE D. BROSAS
and KABATAAN Party-List Representative SARAH JANE I. ELAGO

AN ACT
ESTABLISHING THE NATIONAL MINIMUM MONTHLY SALARY IN
GOVERNMENT AND PROVIDING FUNDS THEREFOR

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

SECTION 1. Tide. This Act shall be known as the "National Minimum Salary for
Government Employees Act."

SECTION 1. Declaration of Policy. It is hereby declared the policy of the State to alleviate
the living conditions of government employees, to guarantee employees’ right to a living wage,
and to ensure optimal public service by according sufficient budgetary priority to the human
resource aspect in the running of government agencies and institutions.

‘The State shall uphold the principle of "equal pay for equal work." Persons who work with
substantially equal qualifications, skill, effort and responsibility, under similar conditions, shall be
paid similar salaries. In determining the rates of pay, due regard shall be given to the cost of
living needed to provide a decent life for the family of the workers.

SECTION 2. National minimum salary in government. There shall be only one (1) national
minimum salary for all employees in the government sector.

SECTION 3. Amount of minimum salary of employees in government. The salary of
entry-level position in government service shall not be less than Sixteen Thousand Pesos
(16,000) a month. The salaries of those occupying higher positions shall be adjusted
accordingly.

SECTION 4. Uniform Implementation of the National Minimum Salary for All
Government Employees. ‘The national minimum salary shall apply to all government
instrumentalities regardless of classification.

@) All government agencies shall implement the national minimum salary.

(b) The national minimum salary shall be implemented in the government and
government-owned and/or -controlled corporations and financial institutions,


regardless whether covered or not under RA 6758 (SSL) as amended, and local
government units throughout the country, regardless of the classification of the local
government units.

(©) ‘The national minimum salary shall apply to all positions, regardless of appointment
ipply to all posit poi
status, whether regular, contractual or casual, appointive or elective, and on full or
part-time basis; now existing or hereafter created in the government.

SECTION 5. Compensation for Local Government Unit (LGU) personnel. The national
minimum salary shall be implemented among LGU personnel. For this purpose, the following
laws are hereby amended:

(a) Section 10 (a), (c) of Republic Act 11466, is hereby repealed.
(b) Section 81 of Republic Act 7160 shall be amended, to read as follows:

“Section 81. Compensation of Local Officials and Employees. - The compensation of
local officials and personnel shall be [determined by the sanggunian concerned:
Provided, That the increase in compensation of elective local officials shall take effect
only after the terms of office of those approving such increase shall have expired:
Provided, further, That the increase in compensation of the appointive officials and
employees shall take effect as provided in the ordinance authorizing such increase:
Provided, however, ‘That said increases shall not exceed the limitations on budgetary
allocations for personal services provided under Title Five, Book II of this Code:
Provided, finally, That such compensation [may be based upon the pertinent provisions
‘of Republic Act Numbered Sixty-seven fifty-eight (R.A. No 6758), otherwise known as
the "Compensation and Position Classification Act of 1989".] SHALL BE IN
CONFORMITY WITH THE “NATIONAL MINIMUM SALARY FOR ALL
GOVERNMENT EMPLOYEES ACT”.

“The punong barangay, the sangguniang barangay member, the sangguniang kabataan
chairman, the barangay treasurer, and the barangay secretary shall be entitled to such
compensation, allowances, emoluments, and such other privileges as provided under
Title One Book III of this Code.

xxx
(© Section 325 of RA 7160 or the Local Government Code is hereby repealed.

(@ Sections 447 (a) (vii), 458 (a) (vii) and 468 (a) (viii) of Republic Act 7160 shall be read as
follows:

(viii) Determine the positions and salaries, wages,] allowances and other emoluments
and benefits of officials and employees paid wholly or mainly from municipal funds and
provide for expenditures necessary for the proper conduct of programs. projects,
services, and activities of the municipal government,”

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SECTION 6. Automatic Annual Review and Adjustment of Salary. The Department of
Budget and Management is hereby mandated to automatically conduct an annual review of the
salaries of all government employees, and recommend appropriate salary adjustments, taking into
account inflation and the prevailing prices of basic commodities and services.

SECTION 7. Funding Source and Appropriations. The funding sources for the amounts
necessary to implement this Act shall be as follows:

(a) For national government agencies funded in the General Appropriations Act (GAA), the
amount needed for the compensation shall be charged against the appropriations
provided in the GAA.

(b) For GOCCs, the amounts shall come from their respective corporate funds in the
corporate operating budgets approved by Department of Budget and Management/
Governance Commission for GOCCs (GCG).

(©) For LGUs, the amounts shall be charged against their respective funds in accordance
with the pertinent provisions of RA No. 7160, as hereby amended.

(@ Immediately after the approval of this law and after consultations with the DBM, DILG
and concerned LGUs, a special fund called the Subsidy to LGU Personnel is hereby
created under the General Appropriations Act Miscellaneous Personnel Benefits Fund,
to assist LGUs which cannot fully implement the National Minimum Salary Act due to
limitations in financial capacity.

SECTION 8. Rules and Regulations. Within ninety (90) days the Department of Budget and
Management shall promulgate the necessary rules and regulations for the implementation of the
provisions of this Act.

SECTION 9. Separability Clause. If for any reason any section ot provision of this Act is
declared unconstitutional, other provisions hereof which are not affected thereby shall continue
to be in full force and effect.

SECTION 10. Repealing Clause. Any laws, decrees, or laws, decrees, of rules and regulations
which are inconsistent with or contrary to the provisions of this Act are hereby amended or
repealed.

SECTION 11. Efectivity. This Act shall take effect fifteen (15) days from the publication in
the Official Gazette ot in any newspaper of general circulation.

Approved,