EIGHTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES)
First Regular Session )

HOUSE OF REPRESENTATIVES,

H.B.No,_3436

Introduced by Rep. Vilma Santos-Recto
6" District of Batangas

AN ACT
ADJUSTING THE SALARY SCHEDULE OF CIVILIAN PERSONNEL IN THE
GOVERNMENT, AND FOR OTHER PURPOSES

EXPLANATORY NOTE

This bill 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 also 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.

" Table 1. Staffing Summary of the National Government. Fiscal Year 2019.
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1 With this bill, the government would alleviate the living conditions of the 1.42 million
2 public servants. Consequently, the much-needed relief that this measure offers will further
3. motivate government personnel and invigorate public service.

a

Yom.

With the foregoing considered, immediate passa

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EIGHTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES —_)
First Regular Session )

HOUSE OF REPRESENTATIVES

3436
H.B. No.

Introduced by Rep. Vilma Santos-Recto
6" District of Batangas

AN ACT

ADJUSTING THE SALARY SCHEDULE OF CIVILIAN PERSONNEL IN THE
GOVERNMENT, AND FOR OTHER PURPOSES

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

SECTION 1. 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 goverment 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)

(b)

©

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;

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-

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Oanon =

Owned or -Controlled Corporations (GOCCs) not covered by RA No. 10149, Government
Financial Institutions (GFls) 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_| Step 1 | Step2 | Step3 | Step4 | Step5 | Step6 | Step7

1_| 12,175 | 12,276 | 12,379 | 12,483 | 12,587 | 12,692 | 12,799

12,937 | 13,036 | 13,136 | 13,237 | 13,339 | 13,441 | 13,544

13,713 | 13,818 | 13,924 | 14,032 | 14,139 | 14,247 | 14,357

14,535 | 14,648 | 14,760 | 14,873 | 14,988 | 15,102 | 15,219

16,332 | 16,457 | 16,584 | 16,711 | 16,840 | 16,969 | 17,100

17,312 | 17,445 | 17,579 | 17,714 | 17,850 | 17,987 | 18,125

2
3
4
S| 15,408 | 15,527 | 15,645 | 15,765 | 15,886 | 16,008 | 16,132
6
7
8

18,434 | 18,601 | 18,769 | 18,939 | 19,109 | 19,282 | 19,457

9 19,773 | 19,938 | 20,105 | 20,273 | 20,442 | 20,613 | 20,786

10 | 21,156 | 21,333 | 21,512 | 21,692 | 21,872 | 22,056 | 22,240

11_| 22,829 | 23,142 | 23,460 | 23,781 | 24,107 | 24,438 | 24,772

12_ | 25,232 | 25,544 | 25,861 | 26,181 | 26,506 | 26,835 | 27,167

13_| 27,755 | 28,100 | 28,447 | 28,799 | 29,157 | 29,517 | 29,883

14 | 30,531 | 30,909 | 31,292 | 31,680 | 32,072 | 32,469 | 32,871

15_| 33,584 | 34,000 | 34,421 | 34,848 | 35,279 | 35,716 | 36,158

16 _| 36,942 | 37,400 | 37,863 | 38,332 | 38,807 | 39,288 | 39,775

17_ | 40,636 | 41,140 | 41,649 | 42,165 | 42,688 | 43,217 | 43,751

18__| 44,701 | 45,254 | 45,815 | 46,382 | 46,957 | 47,539 | 48,127

19 | 49,796 | 50,609 | 51,435 | 52,274 | 53,128 | 53,995 | 54,877

20 | 56,271 | 57,188 | 58,122 | 59,070 | 60,035 | 61,015 | 62,010

21 _| 63,586 | 64,623 | 65,678 | 66,749 | 67,839 | 68,946 | 70,071

22__| 71,851 | 73,024 | 74,216 | 75,427 | 76,658 | 77,910 | 79,181

23__| 81,192 | 82,517 | 83,864 | 85,232 | 86,624 | 88,037 | 89,474

24 | 91,747 | 93,244 | 94,766 | 96,313 | 97,885 | 99,483 | 10110

25 | 104,59 | 106,29 | 108,03 | 109,79 | 111,58 | 113,41 | 115,26 [117,14
1 9 3 7 8 0 1 2
26 | 11818 | 120,11 | 122,07 | 124,07 | 126,09 | 128,15 | 130,24 | 132,37
8 1 8 ) Bi 3 4 1
27 | 133,55 | 135,73 | 137,94 | 140,19 | 142,48 | 144,81 | 147,17 | 149,57
2 2 8 9 1 3 1 9
2g | 150,91 | 153,37 | 155,88 | 158,42 | 161,01 | 163,63 | 166,31 | 169,02
5 a 1 4 0 9 0 4

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39 | 170.53 | 173,31 | 176,14 | 179,02 | 181,94 | 184,91 | 187,93 [190,99
3 7 5 1 2 2 0 7
30 | 192,70 | 195,84 | 199,04 | 202.29 | 205,59 | 208,95 [212,36 | 215.82
2 i 4 3 4 1 1 7
31 | 28359 | 289,12 | 294,77 | 300,53 | 30640 | 312,38 | 318.49 | 324,71
0 8 6 3 4 8 0 0
32 | 33810 | 344,92 | 351,87 | 358,97 | 366,21 | 373,59 [381,13 | 388.81
2 0 6 2 1 6 1 7
426,90 | 439,71
& 6 3
Second Tranche
SG_| Step1 | Step2 | Step3 | Step4 | Step5 | Step6 | Step7 | Step8 |
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
4 | 15,989 | 16,112 | 16,236 | 16,360 | 16,486 | 16,612 | 16,740 | 16,869
3 _| 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 | 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
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
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 | 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

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32_ | 371,912 | 379,412 | 387,063 | 394,869 | 402,832 | 410,956 | 419,244 | 427,699
33__ | 469,596 | 483,684
Third Tranche
SG_| Step1 | Step2 | Step3 | Step4 | StepS | Step6 | Step7 | Step8 |
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
S| 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
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 | 23,331 | 23,543 | 23,756
9 | 23,925 | 24,124 | 24,327 | 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
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 | 32,072 | 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 | 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
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.

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SEC.
shall there be any diminution in the basic salaries of incumbent employees upon the

Non-diminution in the Basic Salaries of Incumbent Employees, — In no case

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 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 GFls, 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

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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, GFls 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,

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