Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No. 7231

Introduced by Representative Evelina Escudero

EXPLANATORY NOTE

Section 5, Article [X-B of the Constitution provides that:

The Congress 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
the responsibilities pertaining to. and the qualifications required for, their
positions.

In consonance with the above provision, this mandatory 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 virtue 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,

EVELINA ESCUDERO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No._@231

Introduced by Representative Evelina Escudero

AN ACT
AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO. 10149
OR THE GOCC GOVERNANCE ACT OF 2011

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

SECTION 1. Paragraph (0), Section 3 of Republic Act No.10149 is hereby amended
to read as follows:

"(0) Government-Owned or Controlled Corporation (GOCC) refers to [any agency]
A CHARTERED OR NON-CHARTERED GOCC, AS DEFINED
HEREIN organized as a stock or non-stock corporation, vested with functions relating
to public needs whether environmental or proprietary in nature, and owned by the
Government of the Republic of the Philippines directly or through its instrumentalities
cither wholly or where applicable as in the case of stock corporations, to the extent of
at least a majority of its outstanding capital stock: Provided, however, That for purposes
of this Act, the term "GOCC" - shall include GICP/GCE and GFI as defined herein [.]:
PROVIDED, FURTHER, THAT FOR PURPOSES OF CHAPTER III OF
THIS ACT, THE DISTINCTION BETWEEN A CHARTERED OR NON
CHARTERED GOCC SHALL BE RETAINED."

SEC. 2. Section 8 of Republic Act No. 10149 is likewise hereby amended to read as
follows:

"SEC. 8. Coverage of the Compensation and Position Classification System. The
GCG, after conducting a compensation study, shall develop a Compensation and
Position Classification System which shall apply to all officers and employees of [the]
CHARTERED GOCCs [whether under the Salary Standardization Law or exempt
therefrom] and shall consist of classes of positions grouped into such categories as the


GCG may determine, subject to approval of the President(.]: PROVIDED, THAT
THE COMPENSATION OF EMPLOYEES OF NON-CHARTERED GOCCS
SHALL BE SET IN ACCORDANCE WITH PRESIDENTIAL DECREE
NO. 442 OR THE LABOR CODE OF THE PHILIPPINES."

SEC. 3. In the event any portion or provision of this Act is declared unconstitutional,
the remainder of this Act or any provisions not affected thereby shall remain in force
and in effect.

SEC. 4. All laws, presidential decrees, executive orders, proclamations and/or
administrative regulations which are inconsistent with the provisions of this Act are
hereby amended. modified, superseded or repealed accordingly.

SEC. 5. This Act shall take effect immediately after its complete publication in the
Official Gazette or at least two (2) newspapers of general circulation

Approved,