· 
, 
~rn::1tf 
SIXTEENTH CONGRESS OF THE 
) 
n~tf';r (If !hr ~1'rrrtl1r U 
" 
. 
REPUBLIC OF THE PHILIPPINES) 
Second Regular Session 
) 
'14 
AUG 26 P 3 :08 
SENATE 
S. No. 2372 
Introduced by Senator Ralph G. Recto 
AN ACT 
PROVIDING FOR A TWENTY PERCENT (20%) INCREASE IN THE BASIC SALARY 
OF GOVERNMENT OFFICIALS AND EMPLOYEES, AND FOR OTHER PURPOSES 
Explanatory Note 
This bill seeks to improve the purchasin¥ power of approximately 1.248 million civil 
servants I and about 400,000 uniformed personnel in the country that was eroded by inflation by 
providing a twenty percent (20%) increase in the compensation schedule of government officials 
and employees across the board. 
The Philippine Constitution states that Congress shall provide for the standardization of 
compensation of government officials and employees, inclnding those in government-owned or - . 
controlled corporations with original charters, taking into account the nature of the 
responsibilities pertaining to and the qualifications required for their positions. 
In 1989, Republic Act (RA) No. 6758 otherwise known as the Compensation and 
Position Classification Act of 1989 was enacted in response to the aforesaid constitutional 
prOVISIOn. The law was anchored on the basic principle of equal pay for substantially equal 
work. 
Amendments to RA No. 6758 were instituted through subsequent Joint Resolutions of 
Congress. Reforms in the Compensation and Position Classification System and Pay schedule 
were further modified through Joint Resolution No. 4 of the Senate and the House of 
Representatives which was initially implemented on July 1, 2009 and on January 1, 2010, in the 
case oflocal government units (LGUs). 
One of the governing principles of the modified Compensation and Position 
Classification System is its periodic review which shall be conducted every three (3) years, 
taking into account the changes in skills and competency requirement in the bureaucracy and the 
relative demand for certain expertise. 
It has been two years since the last tranche of the salary increase mandated in Joint 
Resolution No.4, S. 2008. Hence, it is imperative upon Congress to revise further the present 
Compensation Schedule to update the same, and to further encourage excellent performance and 
productivity. 
Statistics show that the Consumer Price Index (CPI) using 2006 as the base year is 115.9 
for the period of June 2009 while that for June 2014 is 139.63 Government employees can barely 
1 Table I. Staffing Summary of the National Government. Fiscal Year 2015. 
2 Data from the Committee on National Defense for all uniformed personnel except NAMRIA is 390,000. 
3 Consumer Price Index For All Income Households And Headline Inflation Rates, January 2004 - July 2014. 
National Statistical Coordination Board. http://www.nscb.gov.phisecstatld price.asp. 


" 
afford to support their families as the inflation rate between June 2009 and June 2014 grew at a 
significant 20.44%. 
The budgetary outlay for this proposal is admittedly substantial and would require 
additional funding sources. However, from fiscal year 2010 to 2013, government was able to 
generate savings ofPSO billion to P60 billion4 annually. 
The savings derived from the national budget may be used to increase salaries of 
government personnel in order to cushion the spiraling cost of goods instead of using it to 
finance various programs and projects that may have no clear and immediate impact on the 
economy. 
This proposal will put more money in government employees' pockets and will increase 
disposable income, boost consumer spending, and in turn would stimulate activities in the 
industrial and service sector, and help generate more taxes. 
With this bill, the government would alleviate the living condition of the 1.648 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 thi 
o 
/rryma 
4 As stated by DBM SecretalY Florencio B. Abad at the Development Budget Coordinating Committee (DBCC) 
hearing on August 19,2014. 


'. 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES) 
Second Regular Session 
) 
'14 
~UG 26 P 3 :08 
SENATE 
S.No. 2372 
Introduced by Senator Ralph G. Recto 
AN ACT 
PROVIDING FOR A TWENTY PERCENT (20%) INCREASE IN THE BASIC SALARY 
OF GOVERNMENT OFFICIALS AND EMPLOYEES, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Declaration of Policy. Pursuant to the constitutional mandate that the State 
shall provide for the standardization of compensation 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 compensation schedule that is generally comparable with those in 
the private sector doing comparable work and in accordance with the 
provisions of existing compensation and position classification laws, in order 
to attract, retain and motivate a corps of competent civil servants; 
(b) 
(c) 
keep the compensation 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 compensation and position classification 
14 
system taking into account the changes in skills and competency requirements 
15 
and the possible erosion in the purchasing power due to inflation, and other 
16 
factors. 
17 
SEC. 2. Coverage. The Compensation Schedule herein provided shall apply to all 
18 
positions for civilian government personnel in the Executive, Legislative and Judicial Branches, 
19 
including the military personnel of the Armed Forces of the Philippines and all uniformed 
20 
personnel under the Department of Interior and Local Government, the Philippine Coast Guard 
21 
and the National Mapping and Resource Information Authority, Constitutional Commissions, 
22 
State Universities and Colleges (SUCs), Government-Owned or -Controlled Corporations 
23 
(GOCCs), Government Financial Institutions (GFls) and local government units (LGUs), 
24 
whether regular, casual or contractual in nature, appointive or elective, on full-time or part-time 
25 
basis, now existing or hereafter created. 
Page 1 ofS 


" 
1 
SEC. 3. Salary Schedule for Civilian Government Personnel. The modified Salary 
2 
Schedule for Civilian Personnel shall be as follows: 
I 
10,800 
10,908 
11,017 
!l,128 
11,238 
11,351 
11,465 
11,579 
-_ 
.. __ ._._-_ 
.. __ . 
11,610 
12,481 
11,7~6 
12,606 
11,843 
11,96:c:2~---,1:.:::2:,082_12,203 ~~12,32'L_~1,448_ 
12,7.",-32 __ 12,859 
12,988 
.X~,117 ___ 13,2.±8_~I1.2.~I_ 
13,417 
13,550 
13,686 
13,823 
13,.~~ __ 14,10I_.J.4,2L1l._.J4,3§4_ 
14,713 
14,860 
15,00.8 
15,158 
_ 
~6_. 15,505 
15,660 _-,-,15:2.,816 
15,974",-_-"-16,-,-,, 13~_J~,296 __ .l6,452 __ ~,()~4 _ 
7 
16,668. 
16,835 
17,003 
17,173 
17,345_171518 ~_lZ,693 ___ L7-,87G_ 
8 
17,917 
18,097 
18,278 
18,461 
18,64L_.J..8,83~_..J2,Q~0_ .. .19-,211_ 
__ 9.. 
19,261 
19,454 
19,649 
19,846 
20,044_20,244 
20,447 
2Q,.t'~_I_ 
.. _lQ. __ ..19,70(5. 
20,914 
21,122 
21,334 
21,547 
.. .?1,76L __ 21J2.80 
22,~QO _ 
~_U. 
22,259 
22,482 
22,706 
22,933 
23, 162_2~,394 _23,6~~ __ 23,2~'±. __ 
_ . __ 
1~ 
2.3,92~_ ?4,1QL.~4,409_. 24,654 __ 2':£.220_ ._~-,..Q.O._ }5,400 ___ ?~)§55 __ 
13 
25,723 
25,980 
26,240 
26,503 
26,767 
27,035..17,306 
27,278~ 
14 
27,653 
15 
29,864 
3 0,193 _-=3-=0'-'-,5"'2.6"--.--'-3_=_0 ,,,,-8.:;.6,2,,----,-3-'21 ,'-'.20,-,0,---__=_3 ",-1 ,.:..54-=3_~31:=c' 
8 91 . __ . 32,242 ._ 
_~16 __ 
.:c3 2=z,2",5,-,4. _.c.3=2,c:.60.:c9_--=.c32=Z':c..96,-,8_ 33,330 
33,696 
34,820 
_. __ ._17 __ . 34,834 
35,218 
35,605 
35,996 .. 36,39?_._}6,793_.}},19..8_ .. 37,607 
. .:..018'---_.::.37,621 
38,035 
38,453 
38,876 
39,304 
39,736 
4.0,174 
40,()12~ 
___ 12..___ 
40,631 
41,077 
41 ,5~0 
41,986 
42,448 
42,914 
43,:3_E ___ 43_,-8.65. __ 
20 
43,88.0 
44,364 
44,851 
45,346 
45,844 _-,4-,-,6,,,-34-,-,8~_4.:.:6J858_._±7,3}4~ 
21 
47,392 ._-'4-'-'7,c...9c..c12=------.:.48.:.z,_=_44-'-'0 __ 48,973 
49,511 
50,056 __ 50,<5..06 __ 
51163 __ 
22 
51,182 
51,745 
52,315 
52,890 
53,472 
54,060 
54,6_5~_._.s5,-2.5§_ 
23 
55,277 
55,885 
56,5 . 
.::.00=----=-57'-'-,.:.:12::..:1_-=57,7:,2....~8,38s.. __ 59,028_....?9/lJL_ 
24 
59,700 
60,35'C..6 ___ 6'-"1"',0..::.20"--_61,69?_-"-62=z,3Z0_· 61,056 ___ 63,75.2 __ ~4,i51_ 
25,,--_.64,476 
65,185. __ 
6",5",,9:...::0..::.2 _ 
66,626 
67,360 
68,100 
68,850 
69,607 
____ ~~. 
69,634 
70,423 _-,-7.::.o1,..:.:17c.:4 __ 71,957_...:7-=2,749 _ 
73,5~_ 
74,1~_~ _____ J5,175 
._::::..27'--. _7:...:5.2:,2:.:0-,-4 __ -,7-=62.:,0c::.3..::.2 _--,7-=62,.=8..::.6.:..8 _-,-7..'-7 ,'..:.7.:c13=-----.:..7",8 ,.=-=5 69 __ 
79, ~..Jl.o,3 O_? 
81,190 
87,685 
28 
81,221 
82,114 
83,017 
83,930 
84,853 
85,787 
86,731 
30 
_-=9...:41.:,7.::..35=--_95,778 
. 26,§~_.~-,~~6 __ 
98,97_4_J Oo.,o..t'~} o.l-,L6~_} 0.2,27<5... 
3=-1 _---=-=108,0.00 
109,188 
110,389 
1ll,6o.4 
112,831 
114,072 ___ ~15_':3_2L __ U~,5<)<5... 
32 
123,60.0 
124,960. 
126,334 
)27,724 
129,l28_J10,549._1~},98_() __ L3:3,'13_L 
33 
144,000 
3 
SEC. 4. Salary Local Government Units - The salary or wage adjustments, provided in 
4 
Sec. 3 shall also be applied to the LGUs in accordance with the applicable provisions of this Act. 
5 
SEC. 5. Military and Uniformed Personnel-The military personnel of the Department of 
6 
National Defense (DND) and the uniformed personnel of the Department of the Interior and 
Page 2 of5 


Local Government (DILG), the Philippine Coast Guard (PCG) and the National Mapping and 
2 
Resource Information Authority (NAMRIA) shall be covered by only one Base Pay Schedule 
3 
modified as follows: 
--------r---- ---nILc;----
-----,-
--- -- --------lM~~thl Bas;1 
, 
DND 
r-"BJ1\ip;;;:d-BFP-r'PNPandPPsc-"! PGC and NAMRIA I 
pa~ 
I 
C~;;drd;t~-----'~I ~~""--"-----~-'--~=--"T==--- ------"-----=-=I==~--=-=~=--~-=--=r~= -. ------ --~~-1' 
Soldier 
I 
I 
: 
i 
P13,518 
, .. -.- --- --------- ---------- -- -I -- ------ ----- ---+---.---- --------
--l-
--
--1 
iApprentice 
I 
I 
I 
I 
-
-
-
I 
I 
ISeaman/Seaman 
i 
~~vat~_ -; ____ lIFi~~fJailQff~c.e~I.iOlic.e_ ()!flc~U __ ~:ri1ir~(;la~~_ 
_~_ ~ 
___ 17 &O~ 
Pnvate First 
i 
i - I  
;class 
i 
ISeaman Second Class I 
19,1421 
WZ~~~F':=-1~ir~!~iI~!f1:c~r I~iOlic~()[f"~ceE!~--l~~if{5f~~~Hfl~ss~~F~~--==~~~}~] 
is taffS~i:g~~t WireIJ ailOff;~er I I(-Ipo ii~eOff;ce;:Tii lP etty oifi-;;erff------T---.-- ---·22:3-§ill 
r--
. 
-··-r----·-----·-------r--·-·------·-·-··----,.--------·--._.-_ .. -.,---- '---'·--'--1 
iTechmcal I 
I 
I 
I 
I 
!Sergeant 
!Petty Officer I 
24,1911 
~~~:~~----I~~;:~~;~i;:~;-j;;f- -l~~~~;:rolice----lhief pe:~ Of~~:r··T----~~,o~~1 
[:;~:~astel:~~R:~~;:~iJail-- 'l~~~:~;r~~li-;;~ . 
--I~~~:~;}~hieTpetiy·-r . 
28'21~1 
:CfiTef Miisi~; '~en;Ol:-FireTTaiC--Tseniol'-PoiTce~=·-JMast~;:-chief P ettY'--','-' -----·---·=-1 
i~_erg~~E~ ____ Of~c:~~_I!!... ______ J()!!1(;~r_~I __ ----+Qf!1c.~r--------.-.--.--rl ___ ~~0'~2~ 
:First Chief 
! ,  
I 
Master 
Senior Fire/ Jail 
ISenior Police 
IFirst Master Chief 
I 
! 
i~~1eial1t .. -.- fffi~e.r ~Y--------i6i~:{I}~. ______ .j~<:!!y_officer . --- +---... ~~~} ~I 
l~:~~~~ary----'---.----- ---r----
--l-
...... -·--T 
--I 
~~::: t~,", ·~=t~"'-:-hr~~,~;ru~, ········1·· .•• :~:J 
['~a;~:~--'----I~ e~;-or;~:::~~:r--ls eni~: '~:sp:ct:r--Wr::~~a;;t Se;lio~-··-·· T . . 4 
2,~~~1 
, .. -··---------·-T··--· ----·----····-·-r---·--·--------·--1-' -
. ----.--.. -------.-,---- ------.-. -.. -. ~ 
: 
I 
I, 
LIeutenant 
i 
I 
iMajor 
ChiefInspector 
IChiefinspector 
ICommander 
I 
44,7761 
i~~~~~~fnt-r~:;:r~:~:~::~----l~p:~int::d~::- --l::::n:el:--- .. ~ -T-- .- -:~-,3;81 
c---- -_ .. -l------ ------ -T- --.-
- - T- --- - --- .... - -- -- ; --
-- - ---
-, 
: 
: 
S 
. 
S 
. 
1]1 
emor 
emor 
1 
Captain 
-r~ .. "~~"-
[Lie~t;;lant "-1--- .-... -.--.-.-. ---- -IDep~ty"- .------.-----.-.-... -.-.-- --1-' ···--·-_·--···1 
;General 
I 
IDirector General 
!Admiral 
I 
71,0521 
Qej1~ral=:~:_~T:_-~~:~==~-=~-~=J~~e~!O'r q·e.~~T.-T~~·_-___ ==.·._~ __ ====[_. __ =.~I:()()oJ 
Page 3 of 5 


" 
1 
SEC. 6. Non-diminution in the Basic Salaries of Incumbent Employees. - In no case shall 
2 
there be any diminution in the basic salaries of incnmbent salaries of incumbent employees upon 
3 
the implementation of this Act. For this purpose, they shall receive the new salary rates 
4 
prescribed herein which in no case shall be less than their existing salary rates. 
5 
SEC. 7. Functions and Responsibilities. -
6 
(a) Governance Commission for GOCCS (GCG). - For GOCCs and GFls whether 
7 
under the Salary Standardization Law or exempt therefrom, the GCG, in 
8 
consultation with the DBM, shall: 
9 
(1) Prepare and issue the guidelines, rules and regulations necessary to 
10 
implement the modified Compensation Schedule which shall apply to 
11 
all officers and employees of the GOCCs consistent with the executive 
12 
order to be issued by the President; 
13 
(2) Administer the modified Compensation Schedule; and 
14 
(3) Conduct compensation studies. 
15 
SEC. 8. Consolidated Compensation and Position Classification Report. - The DBM and 
16 
the GCG shall jointly prepare a Consolidated Compensation and Position Classification Report 
17 
for all government entities in the national government; GOCCs and GFls including exempt 
18 
entities and the status of implementation thereof. The reports shall be periodically updated and 
19 
submitted to Congress and the Commission on Audit for public disclosure, monitoring, 
20 
compliance with established policies and as basis for future policy decisions. 
21 
SEC. 9. Periodic Review of the Compensation and Position Classification System. The 
22 
DBM, Civil Service Commission and GCG shall jointly review the Compensation and Position 
23 
Classification System every three (3) years, develop and recommend to the President a 
24 
competitive compensation and remuneration system which shall attract and retain talent. 
25 
SEC. 10. Appropriations. - The funding sources for the amounts necessary to implement 
26 
the modified Compensation Schedule shall be as follows: 
27 
(a) For national government entities, the amount necessary for the immediate 
28 
implementation of this Act shall be included in the General Appropriations Act (GAA); 
29 
(b) For GOCCs and GFls, the amounts shall come fi'om their respective corporate 
30 
funds in the approved corporate operating budgets. Government corporations which do 
31 
not have adequate or sufficient funds shall only partially implement the established rates: 
32 
Provided, That any partial implementation shall be at uniform proportion of the 
33 
established rates for all positions in each government corporation; and 
34 
(c) For LGUs, the amounts shall be charged against their respective local 
35 
government funds in accordance with the pertinent provisions of this Act and Republic 
36 
Act No. 7160. 
Page 4 of5 


· -
SEC. 11. Implementation. - The Compensation Schedule as provided herein shall take 
2 
effect on January I, 2015. 
3 
For GOCCs, GFls and LGUs, the implementation period shall be for not more than four 
4 
(4) years depending on their financial capabilities: Provided, That the initial implementation 
5 
shall take effect January I, 2015, 
6 
SEC. 12. Implementing Rules and Guidelines. - The DBM and GCG shall, within sixty 
7 
(60) days after the approval of this Act, jointly prepare and issue the necessary guidelines to 
8 
implement the same. 
9 
SEC. 13. General Repealing and Amendatory Clause. - All provisions of laws, decrees, 
10 
executive orders, corporate charters, implementing rules and regulations, circulars, and other 
11 
issuances prescribing salary grades for government officials and employees which are 
12 
inconsistent with the provisions of this Act are hereby repealed, amended or modified 
13 
accordingly. 
14 
SEC. 14. Separability Clause. - If any provision of this Act is subsequently declared 
15 
unconstitutional, the validity of the remaining provisions hereof shall remain in full force and 
16 
effect. 
17 
SEC. 15. Flfoctivity Clause. - The Act shall take effect fifteen (15) days following its 
18 
publication in the Official Gazette or in at least two (2) newspapers of general circulation. 
Approved, 
Page 5 of5