Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House BrLLNo. 3473 _

Introduced by: Hon. Angelina “Helen” D.L. Tan, M.D.

AN ACT
ADJUSTING THE SALARY SCHEDULE OF CIVILIAN PERSONNEL IN THE
GOVERNMENT

EXPLANATORY NOTE

This bill, which serves as a counterpart version to Senator Ralph G. Recto’s Senate Bill No. 49,
seeks to improve the purchasing power of approximately 1.42 million civil servants in the country that
was eroded by inflation by providing an increase in the salary of government officials and employees.

It aims to attract and retain competent and committed civil servants and promote performance-
based work among the public sector workers.

By virtue of Executive Order No. 201, the national government implemented the salary
adjustments and additional benefits for government employees which was further amended by
Executive Order No. 76 dated March 15, 2019. The modified Salary Schedule was implemented in four
tranches from January 1, 2016 to April 1, 2019. However, the adjusted salary is deemed unfair and
inadequate by most government personnel especially those under Salary Grades 1 to 16 which
comprise about 84 percent of the government workforce.

This proposal will put more money in government employees’ pockets and will increase
disposable income, boost consumer spending, and in turn would stimulate the economy and help
generate more revenues.

This bill mandates a three-year salary increase for government officials and employees at 10%
of basic salary per year. The first tranche of the salary adjustment shall be implemented on January 1,
2020 and every January 1 thereafter until the final tranche in 2022.

With this bill, the government would alleviate the living conditions of the 1.42 million public
servants. Consequently, the much-needed relief that this measure offers will further motivate
government personnel and invigorate public service.

With the foregoing considered, immediate passage of this bill is earnestly sought.

OGin

ANGELINA “HELEN” D.L. TAN, M.D.
4th District, Quezon


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 3479

Introduced by: Hon. Angelina “Helen” D.L. Tan, M.D.

AN ACT
ADJUSTING THE SALARY SCHEDULE OF CIVILIAN PERSONNEL IN THE
GOVERNMENT

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

SECTION 1. Short Title. - This Act shall be known as the “Salary Standardization Law
vv’.

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 provisions of existing salary and
position classification laws, in order to attract, retain and motivate 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 over-all
expenditures; and

(©) 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 Salary Schedule herein provided shall apply to all positions for
civilian government personnel in the Executive, Legislative and Judicial Branches, including
Constitutional Commissions, State Universities and Colleges (SUCs), Government-Owned or -
Controlled Corporations (GOCCs) not covered by RA No. 10149, Government Financial
Institutions (GFIs) and local government units (LGUs), whether regular, casual or contractual
in nature, appointive or elective, on full-time or part-time basis, now existing or hereafter
created.

SEC. 4. Salary Schedule for Civilian Government Personnel. - The modified Salary
Schedule for Civilian Personnel shall be as follows:

FIRST TRANCHE
SG | Stepi | Step2 | Step3 | Step4 | Step5 | Step6 | Step7 | Steps
1 12,175 | 12,276 | 12,379 | 12,483 | 12,587 | 12,692 | 12,799 | 12,905
Zz 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 | 14130 | 14,247 | 14357 | 14,467
4 14,535 | 14648 | 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 | 16711 | 16840 | 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
il 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 | 26835 | 27,167 | 27,503
3B 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
7 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 56,271 | 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 | 361,131 | 388,817
33__| 426,906 | 439,713
SECOND TRANCHE
SG__| Stepi | Step2 | Step3 | Step4 | Step5 | Step6 | Step7 | Steps
1 13,392 | 13,504 | 13,617 | 13,731 | 13846 | 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
4 15,989 | 16,112 | 16,236 | 16360 | 16,486 | 16,612 | 16,740 | 16,869
5 16,948 | 17,079 | 17,210 | 17,342 | 17,475 | 17,609 | 17,745 |” 17,880
6 17,965 | 18,103 | 18,242 | 18,382 | 18524 | 18,665 | 18,809 | 18,953
7 19,043 | 19,189 | 19,337 | 19,486 | 19635 | 19,786 | 19,937 | 20,091
8 20,277 | 20,461 | 20,646 | 20,833 | 21,020 | 21,210 | 21,402 | 21,596
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
i 25,112 | 25,456 | 25,806 _| 26159 | 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 | 34421 | 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
7 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] 89311 | 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 | 118,837 | 120,776 | 122,747 | 124,751 | 126,787 | 128,857
26 | 130,007 | 132,128 | 134,286 | 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
29 | 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
31 | 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
33 | 469,597 | 483,684
THIRD TRANCHE
SG 1 | Step2 | Step3 | Step4 | Step5 | Step6 | Step7 | Steps
1 14,732 | 14854 | 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 | 16389 | 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 | 18135 | 18,273 | 18,414 | 18,555
5 18,643 | 18,787 | 18,931 | 19,076 | 19,222 | 19,370 | 19519 | 19,668
6 19,761 | 19,913 | 20,066 | 20,221 | 20,376 | 20,532 | 20,690 | 20,849
7 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 | 23331 | 23,543 | 23,756
9 73,925 | 24,124 | 24327 | 24,530 | 24,735 | 24,942 | 25,151 | 25,361
10 | 25,599 | 25,813 | 26,029 | 26,247 | 26,466 | 26,688 | 26,910 | 27,135
1i__|_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 | 32,072 | 32,470 | 32,872 | 33,279
13 33,584 | 34,000 | 34,421 | 34,847 | 35,279 | 35,716 | 36,158 | 36,606
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 | 46381 | 46,956 | 47,538 | 48,128 | 48,723
17 |_49,170 | 49,79 | 50,396 | 51,020 | 51,652 | 52,292 | 52,930 | 53,595
18 | 54,088 | 54,757 | 55,436 | 56,122 | 56818 | 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 | 116538 | 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
39 | 206,345 | 209714 | 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
[731] 343,144 | 349,845 | 356,679 | 363,645 | 370,749 | 377,989 | 385,372 | 392,899
32 | 409,103 | 417,354 | 425,770 | 434,356.| 443,115 | 452,052 | 461,169 | 470,469
33 | 516,556 | 532,053

SEC. 5. Salary in Local Government Units - The Salary or wage adjustments, provided in Sec. 3

hereof shall also be applied to the LGUs in accordance with the applicable provisions of this Act.

be any
For this purpose, they shall
less than their existing salary rates.

SEC. 6. Non-diminution in the Basic Salaries of Incumbent Employees. - In no case shall there
diminution in the basic salaries of incumbent employees upon the implementation of this Act.
receive the new salary rates prescribed herein which in no case shall be

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 and GFls including exempt entities and the status of 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.

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 which shall attract and retain talent.

SEC. 9. Appropriations. - The funding sources for the amounts necessary to implement the
modified Salary Schedule shall be as follows:

(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 and GFis, the amounts shall come from their respective corporate funds in the
approved corporate operating budgets. Government corporations which do not have adequate or
sufficient funds shall only partially implement the established rates: Provided. That any partial
implementation shall be at uniform proportion of the established rates for all positions in each
government corporation; and

(©) For LGUs, the amounts shall be charged against their respective local government funds in
accordance with the pertinent provisions of this Act and Republic Act No. 7160.

SEC. 10. Implementation Schedule. - The modified Salary Schedule as provided herein shall be
implemented in National Government Agencies as follows, subject to appropriations by Congress:

a. Starting January 1, 2020, the first tranche schedule for civilian personnel;
b. By January 1, 2021, the second tranche schedule for civilian personnel; and
c. By January 1, 2022, the third tranche schedule for civilian personnel

For GOCCs, GFIs and LGUs, the implementation period shall be for not more than three (3)
years depending on their financial capability, with each tranche starting not earlier than the dates
stated above. GOCCs, GFIs 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, GFI and LGU.

SEC. 11. Implementing Rules and Guidelines. - The DBM and GCG shall, within sixty (60) days
after the approval of this Act, jointly prepare and issue the necessary guidelines to implement the
same.

SEC. 12. General Repealing and Amendatory Clause. - All provisions of laws, decrees, executive
orders, corporate charters, implementing rules and regulations, circulars, and other issuances
prescribing salary grades for government officials and employees which are inconsistent with the
provisions of this Act are hereby repealed, amended or modified accordingly.

SEC, 13. Separability Clause. - If any provision of this Act is subsequently declared
unconstitutional, the validity of the remaining provisions hereof shall remain in full force and effect.

SEC. 14. Effectivity Clause. - The Act shall take effect fifteen (15) days following its publication
in the Official Gazette or in at least two (2) newspapers of general circulation.

Approved,