RECEIVED.

Republic of the Philippines grt AUG 05 2019
HOUSE OF EPRESENTATIVES
First Regular Session

House Bill No__3410

Introduced by: Hon. Jericho Jonas B. Nograles

EXPLANATORY NOTE

This bill seeks to adjust the salaries of civilian personnel in government including those in
government-owned and controlled corporations (GOCC), government financial institutions (GF) and local
government units (LGU).

On February 19, 2016, Executive Order No. 201, Series of 2016 was issued modifying the salary
schedule for civilian government personnel and authorizing the grant of additional benefits for both civilian
and military and uniformed personnel. The adjusted compensation was to be implemented in four (4)
tranches from January 1, 2016 to April 1, 2019. On March 15, 2019, Executive Order No. 201, Series of
2016 was amended when President Rodrigo R. Duterte signed Executive Order No. 76, Series of 2019,
authorizing the fourth tranche of compensation adjustments to be charged against any available
‘appropriations under the reenacted budget of 2019. However, most government employees, especially
those occupying Salary Grade 1 to 16, considered the adjusted salaries stil inadequate to meet their
everyday needs considering the constant increase of prices of basic commodities, food and utilties.

This bill aims to implement a salary schedule that is generally comparable with those in the private
‘sector doing comparable work to attract, retain and motivate a corps of competent government personnel,
and to keep the salary of government employees fair and reasonable in recognition of fiscal realities and
‘maintain personal services cost at a reasonable proportion with over-all expenditures.

‘The proposed measures provides a three (3) year salary increase for government officials and
employees at twelve (12%) percent of the basic salary per year. The first tranche of the salary adjustment
shall be implemented on January 1, 2020 and every January 1* thereafter unti the final tranche in 2022.

Employees in the government are the prime movers towards the country’s growth and
development. It is therefore necessary to preserve their well-being and help them keep their dignity by
providing measures that will protect their economic liberties.

In view of the foregoing, approval of this bill is highly and earnestly recommended.

fe hd B, Peres

+)



Republic of the Philippines
HOUSE OF EPRESENTATIVES,
First Regular Session

3410

House Bill No.

Introduced by: Hon. Jericho Jonas B. Nograles

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

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

SECTION 1. This Act shall be known as the “Salary Standardization Law V".

‘SECTION 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 position, the State shall:

(@) Implement a salary schedule that is generally comparable with those in the private sector d.
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 servant;

(b) Keep the salary of 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.

SECTION 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
Commission, State Universities and Colleges (SUCs), Government-Owned or Controlled Corporations
(GOCCs) not covered by R.A. 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.

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



‘SECTION 5. Salary in Local Government Units.
hereof st

- The salary or wages adjustments provided in Sec. 3
ll also be applied to the LGUs in accordance with the applicable provisions of this Act.

‘SECTION 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.

SECTION 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 GFs including exempt entities and the status of implementation thereof. The reports shall be
Periodically updated and submitted to Congress and the Commission of Audit for public disclosure,
‘monitoring, compliance with established policies and as basis for future decisions.

SECTION 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 at attract and retain talents.

SECTION 9. Appropriations. ~ The funding sources for the amount necessary to implement the modified
Salary Schedule shall be as follows:

(2) 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 amount 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 implementations shall be uniform proportion of the established rate for all positions in
each government corporation; and

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

SECTION 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;
. BY January 1, 2022, the Third Tranche schedule for civilian personnel;

For GOCCs, GFls, and LGUs, the implementation period shalll be not more than three (3) years depending
n their financial capacity, 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 position for every GOCC, GFl and LGU.

‘SECTION 11. Implementing Rules and Guideline. - The DBM and GCG shal}, within sixty (60) days after
the approval of tis Act, jointly prepare and issue the necessary guidelines to implement the same.

SECTION 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, amended or modified accordingly.



First Tranche (at 12%)

Step1  Step2 Step3 Step4 Step5 Step6  Step7 Steps
12,396 12,499 12,604 12,710 12,816 12,923 13,031 13,140
13,172 13,273 13,375 13,478 «913,581 13,685 13,791 13,896
13,962 14,069 14,177 14,287 14,306 14,508 14,618 14,730
14800 14,914 15,028 15,144 15,260 15,376 © 15,495 15,614
15.688 15,809 15,930 16,052 16,175 16,299 16,425 16,550
16,629 16,756 16,885 17,015 17,146 17,277 17,410 17,544
17,627 17,762 17,899 18,036 18,174 18,314 18,454 18,596
18,769 18,939 19,111 19,283 19,457 19,632 19,811 19,990
20,132 20,300 20,470 20642-20814 20,988 21,164 21,340
21,541 21,721 21,903 22,086 «22,270 22,457 22,644 22,833
23,244 «23,563 «23,886 © 24,213 24,545 «24,882 25,222 25,568
25,691 26,009 26,331 26,657 26,988 «27,322 27,661 28,003
28,260 28,610 28,964 29,323 29,687 30,054 30,426 30,803
31,086 31,471 31,861 32,256 «32,655 33,059 33,469 33,883
34,195 34,618 35,047 35,482 35,921 36,365 36,816 37,272
37,614 38,080 38,552 39,029 39,512 40,002 40,498 40,999
41,375 41,888 «42,407 «42,932 43,464 «44,003 44,547 45,099
45,513 46,077 46,648 «47,225 «47,811 48,403 49,002 49,609
50,701 51,529 52,370 53,225 4,094 $4,976 55,875 56,786
587,294 $8,228 59,179 60,144 61,126 62,124 63,138 64, 168,
64,742 65,798 66,872 67,963 69,073 70,199 71,345 72,510
73,157 74,351 75,565 76,798 78,052 79,326 += 80,621 81,936
82,668 84,017 85,389 86,782 «88,199 89,638 91,101 92,588
93,415 94,939 96,489 98,064 99,664 101,282 102,945 104,625

106,493 108,231 109,997 111,793 113,617 115,472 117,357 119,272

120,337 122,301 124,298 126,326 128,388 130,483 132,612 134,777
136,980 138,200 140,456 142,748 145,078 147,446 149,853 152,299
153,658 156,166 158,715 161,306 163,938 166,615 169,334 172,097

173,634 176,468 179,348 182,276 185,250 188,274 191,346 194,470

196,206 199,408 202,663 205,971 209,332 212,750 216,222 219,751

288,746 294,385 300,135 305,997 311,975 318,068 324,280 330,614

344,249 351,192 358,273 365,499 372,869 380,389 388,061 395,886

434,668 447,708



Second Tranche (at 12%)

Salary

Grade Step1 Step2 Step3  Step4 Step5 Step6  Step7 Step8
a 13,884 13,999 14,117 14,285 14,354 14,473 14,595 14,717
2 14,753 14,866 14,980 15,095 15,211 15,328 15,445 15,563
3 15,637 15,758 15,878 + 16,001 16,124 16,247 16,372 16,498
4 16,576 16,704 16,832 16,961 «17,091 17,222 17,355 17,488
5 17,570 17,706 17,841«17,978_ 18,116 18,255 18,396 _18,536
6 18,624 18,767 18,911 19,057 19,204 19,350 19,500 19,649
7 19,742 19,894 20,047 20,201 20,355 © 20,512 «20,669 20,828
8 24,021 21,212 21,404 21,597 21,791 21,988 «22,188 22,389
9 22,548 «22,736 22,927 23,119 23,312 23,506 23,703 23,901

10 24,126 24,328 © 24,531 24,737 «24,942 25,152 25,361 25,573
" 26,034 26,390 26,753 27,119 27,490 27,868 «28,249 -28,637
12 28,773 29,130 29,491 29,856 © 30,226 © «30,601 30,980 31,364
13 31,651 32,044 32,440 32,841 33,249 «33,661 34,077 34,500
14 34,816 35,247 35,684 36,127 36,573 37,026 37,485 «37,949
15 38,298 38,772 39,253 39,739 «40,231 40,729 41,233 41,745
16 42,128 42,650 43,178 43,712 44,254 44,802 45,358 45,919
7 46,340 46,915 47,495 48,084 48,680 49,283 49,893 50,511
18 50,975 51,606 52,246 52,892 53,548 54,211 54,883 ‘55,562
19 56,785 57,712 58,654 59,612 60,585 61,573 62,580 63,601
20 64,169 65,215 66,280 67,361 68,461 «69,579 70,714 71,868
2 72,511 73,693 74,896 76,118 77,361 78,623 «79,907 81,211
22 81,936 83,273 84,633 86,014 87,418 88,845 90,295 91,768
23 92,589 94,099 95,635 97,196 98,783 100,395 102,033 103,699
24 104,624 106,332 108,068 109,832 111,624 113,447 115,298 117,180
25 119,272 121,219 123,197 125,208 127,251 129,329 131,440 133,585
26 134,778 136,977 139,213 141,485 143,794 146,141 148,526 150,951
27 152,298 154,784 157,311 159,878 162,487 165,139 167,835 170,575
28 172,097 174,906 177,761 180,662 183,610 186,608 189,654 192,749
29 194,470 197,645 200,870 204,149 207,480 210,867 214,308 217,806
30 219,751 223,337 226,982 230,688 234,452 238,280 242,168 246,121
34 323,396 329,712 336,152 342,717 349,412 356,236 363,194 370,288
32 385,559 393,335 401,266 409,358 417,614 426,036 434,628 443,393

33 486,828 501,433


Third Tranche (at 12%)

Salary

Grade Stop1 Step2 Step3 Step4 StepS Step6 Step7 Steps
4 15,550 15,679 15,811 15,943 16,077 16,210 16,346 16,483
2 16,523 16,650 16,778 16,907 17,036 17,167 17,299 17,431
3 17,514 17,649 17,784 17,921 18,059 18,197 18,337 18,478
4 18,565 18,708 18,851 18,996 19,142 19,288 19,437 19,586
5 19.679 19,831 19,982 20,135 20,280 20448 «20,603 20,761
6 20,869 24,019 21,181 21,344 21,508 21,672 21,840 22,007
7 22,111 22,281 22,452 «22,625 «22,798 © 22,973 23,149 23,327
8 23,544 23,757 23,972 24,189 24,406 24,627 24,850 25,075
9 25,254 25,464 25,678 25,893 26,109 26,327 26,548 26,769

10 27,021 27,247 «27,475 27,705 27,936 28,170 28,405 28,642
"1 29,158 29,557 29,963 30,373 30,789 «31,212 31,639 32,073
12 32,226 32,625 33,030 33,439 «33,853 34,273 «34,698 35,127
13 35,449 35,889 36,333 36,782 37,239 «37,700 38,166 38,640
14 38,994 39,477 39,966 40,462 40,962 41,469 41,983 42,503
15 42,894 43,425 43,963 44,508 45,059 45,617 46,181 46,755
16 47,183 47,768 48,359 48,958 49,564 50,178 50,801 51,429
7 51,901 52,544 53,195 53,854 54,521 55,197 55,880 56,672
18 57,092 57,799 58,515 59,239 59,974 60,717 61,468 62,230
19 63,600 64,638 «65,693 66,765 67,855 68,962 70,089 71,233
20 71,869 73,041 74,234 «75,445 «76,677 77,929 79,200 80,493
24 81,212 82,537 83,884 85,252 86,645 88,058 89,495 90,956
22 91,768 93,266 94,789 96,336 © 97,908 99,507 101,131 102,780
23 103,699 105,301 107,112 108,859 110,637 112,442 114,277 116,143,
24 117,179 119,092 121,036 123,011 125,019 127,060 129,134 131,241
25 133,585 135,765 137,981 140,233 142,522 144,848 147,213 149,615
26 150,951 153,414 155,919 158,463 161,050 163,678 166,349 169,065
27 170,574 173,358 176,188 179,064 181,986 184,956 187,975 191,044
28 192,749 195,895 199,092 202,342 205,644 209,001 212,412 215,878
29 217,806 221,362 224,974 228,646 232,378 236,171 240,025 243,943
30 246,121 250,138 254,220 258,370 262,587 266,873 271,228 275,655
31 362,203 369,277 376,490 383,843 391,341 398,984 406,777 414,722
32 431,826 440,535 449,418 458,481 467,727 477,160 486,784 496,600

33 545,247 561,605