SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
'14 
MAY 28 P5:46 
SENATE 
S.No. 2257 
RECEIVED BY: -f. 
Introduced by Senator FRANCIS G. ESCUDERO 
EXPLANATORY NOTE 
Section 5, Article IX-B of the Constitntion provides that: 
The Congress shall provide for the standardization of 
compenslltion of government officials and employees, including 
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 consonance with the above provision, this amendatory bill proposes 
to rectify the overarching scope of Republic Act No. 10149 which includes 
even the compensation standardization of government owned or controlled 
corporations (GOCCs) without original charter. 
Hence, such GOCCs created and organized by virtne of Batas 
Pambansa Bilang 68 or the Corporation Code must be governed by the 
appropriate provisions of Presidential Decree No. 442 or the Labor Code of 
the Philippines insofar as salary or compensation standardization is 
concerned. 
Respectfully submitted. 
FRANCIS G. ESCUDERO 
1 
, ' 


SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
'14 
MAY 28 P5 :46 
First Regular Session 
) 
SENATE 
S. No. 2257 
Introduced by Senator FRANCIS G. ESCUDERO 
AN ACT 
AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO. 
10149 OR THE GOCC GOVERNANCE ACT OF 2011 
Be it enacted by tile Senate and tile House of Representatives of the Republic of the 
Philippines in Congress assembled: 
2 
SECTION 1. Paragraphs (0), Section 3 of Republic Act No. 10149 is 
3 
hereby amended to read as follows: 
4 
5 
"(0) Government-Owned or -Controlled Corporation (GOCC) 
6 
refers to [any agency] A CHARTERED OR NON-CHARTERED 
7 
GOCC, AS DEFINED HEREIN organized as a stock or nonstock 
8 
corporation, vested with functions relating to public needs 
9 
whether governmental or proprietary in nature, and owned by the 
10 
Government of the Republic of the Philippines directly or through 
11 
its instrumentalities either wholly or, where applicable as in the 
12 
case of stock corporations, to the extent of at least a majority of its 
13 
outstanding capital stock: PrOVided, however, That for purposes of 
14 
this Act, the term" GOCC" - shall include GICP I GCE and GFI as 
15 
defined herein [.]: 
PROVIDED, FURTHER, THAT FOR 
16 
PURPOSES 
OF 
CHAPTER 
III 
OF 
THIS 
ACT, 
THE 
17 
DISTINCTION 
BETWEEN 
A 
CHARTERED 
OR 
NON 
18 
CHARTERED GOCC SHALL BE RETAINED." 
19 
Sec. 2. Section 8 of Republic Act No. 10149 is likewise hereby amended 
20 
to read as follows: 
21 
22 
"SEC. 
8. 
Coverage of the 
Compensation and Position 
23 
ClnssijiCiltion System. - The GCG, after conducting a compensation 
24 
study, shall develop a Compensation and Position Classification 
25 
System which shall apply to all officers and employees of [the] 
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CHARTERED GOCCs [whether under the Salary Standardization 
27 
Law or exempt therefrom] and shall consist of classes of positions 
28 
grouped into such categories as the GCG may determine, subject 
2 


to approval of the President[.]: PROVIDED, THAT THE 
2 
COMPENSATION OF EMPLOYEES OF NON-CHARTERED 
3 
GOCCS 
SHALL 
BE 
SET 
IN 
ACCORDANCE 
WITH 
4 
PRESIDENTIAL DECREE NO. 442 OR THE LABOR CODE OF 
:; 
THE PHILIPPINES." 
6 
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Sec. 3. If any 
provision 
or 
part hereof is 
held 
invalid 
or 
8 
unconstitutional, the remainder of the law or the provision not otherwise 
9 
affected shall remain valid and subsisting. 
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Sec. 4. All laws, presidential decrees, executive orders, proclamations 
11 
and/ or administrative regulations which are inconsistent with the provisions 
12 
of this Act are hereby amended, modified, superseded or repealed 
13 
accordingly. 
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SEC. 5. This Act shall take effect immediately after its complete 
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publication itt the Official Gazette or at least two (2) newspapers of general 
16 
circulation. 
I 7 
Approved, 
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