Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

3252
HOUSE BILL NO. _

Introduced by: HON. “KUYA” JOSE ANTONIO R. SY-ALVARADO

AN ACT MODIFYING THE SALARY SCHEDULE FOR CIVILIAN GOVERNMENT
PERSONNEL

EXPLANATORY NOTE

Our government loses talented and competent employees because of critical compensation
problems. Compensation is cited as an important factor when seeking a job. The way to entice the
best talents to the government sector is to tackle the perceived negatives, mainly lower salaries.

Different jobs such as, accountants, programmers, human resource specialists, consultants, exist
in both private and public sectors. Government employees are paid far less than their private sector
counterparts, They shift to private sector for higher paying jobs while others go abroad even if they
become underemployed.

In fact, millions of Filipinos are going abroad to work because of the attractive salaries and
benefits. According to a report released by the Philippine Statistics Authority last May 24, 2017,
there are around 2.2 million Filipinos who go abroad as Overseas Filipinos Workers (OFW)
anytime during the period April to September 2016.!

Cost-of-living adjustments (COLA) authorized for government employees can’t keep up with
inflation. To receive significant salary increases, government employees have to compete for
vacant positions with higher salaries.

Salary increase is a vital predictor in the retention and motivation of government employees
Competitive pay is also a consistently important factor in attracting professionals, experts and

highly competent job seekers.

We need to solve and address these salary and compensation problems before they become a bigger
problem.

‘Thus, the approval of this bill is earnestly sought.

HON. “KUYA” JOSE ANTONIO R. SY-ALVARADO
Representative
First District of Bulacan

(Philiopine Statistics Authoritv. 2017) Philippine Statistics Authority. (2017). 2016 Survey on Overseas Filipinos.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

3252
HOUSE BILL NO. =

Introduced by: “KUYA” JOSE ANTONIO R. SY-ALVARADO.

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

Bet enacted by the Senate and House of Representatives of the Philippines in Congress assembled.

ARTICLE I
GENERAL PROVISIONS

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

SECTION 2. Declaration of Policy. — Pursuant (o the constitutional mandate that the State
shall provide for the standardization of salary of government officials and employees, incl luding
those in government-owned or controlled corporations with original charters, taking ints
Account the nature of duties and responsibilities pertaining to and the qualifications required
for their positions, the State shall:

4) 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,

b

5

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 Commissions, State Universities and Colleges (SUCs) , Government-O2wned

or Controlled Corporation (GOCCs) not covered by RA no. 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,


ee

SECTION 4. Salary Schedule for

First Tranche
SG | Step! | Step2 | Step3 | Step4 | Step5 | Step6 | Step7
i 12,175 | 12,276 _| 12,379 | 12,483 | 12,587__| 12,692 | 12,799 _|
2 | 12,937 [13,036 [13,136 [13,237 [13,330 [13,441 | 13,544
3 [13,713 [13,818 [13,924 [14.032 [14,139 [14,247 _[ 14,357
4 | 14,535 [14,648 [14,760 [14,873 [14,988 | 15,102_| 15,219
5 15,408 15,527 15,645 15,765 15,886 16,008 16,132
6 | 16.332 [16,457 [16,584 16.711 [16,840 _| 16,969 _| 17.100
7 (17,312 117,445 [17,579 [17,714 [17,850_|17,987_| 18,125
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
[S147 {30,531 “| 30,909 7 [31,2027 [31,680 | 32,072 [32,469 | 32,871
15 | 33,5840] 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
1s] 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 | 59,0701 | 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 | 101,107
25 | 104,591 | 106,299 | 108,033 | 109,797 [111,588 | 113,410 | 115,261 | 117,142
26 | 118,188 | 120,117 | 122,078 | 124,070 | 126,095 | 128,153 | 130,244 | 132,371
27 | 133,552_| 135,732 | 137,948 | 140,199 | 142,487 | 144,813 | 147,177 | 149,579 |
28 | 150,915 | 153,377 | 155,881 | 158,425 | 161,010 | 163,639 | 166,310 | 169,024
29 | 170,533 | 173,317 | 176,145 | 179,021 | 181,942 | 184,912 | 187,930 | 190,997
30 | 192,702 | 195,847 | 199,044 | 202,293 [205,594 | 208,951 | 212,361 | 215,827
31__| 283,590 | 289,128 | 294.776 | 300,533 | 306,404 | 312,388 | 318,490 | 324,710
32 | 338,102 | 344,920 | 351,876 | 358,972 | 366,211 | 373,596 | 381,131 | 388,817
33 | 426,906 [439,713
Second Tranche
SG | Step? | Step2 | Step3 | Step4 | Step5 | Step6 Step 8
TW] 13,392 | 13,504 | 13,617 | 13,731_| 13,846 | 13,961 15,012
2. | 14.231 14,340 [14,450 | 14,561 | 14,672_| 14.785 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
S| 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 18,809 | 18,953
Bees | 49,063" 119,188." 118,337, | 19.4867 | 19,635. 19.937 | 20,091

ian Government Personnel. The modified Salary
Schedule for Civilian Personnel shall be as follows:

ii
?



20,461 _ |

8 [20277 20,646 | 20,833 | 21,020 [21,402 | 21,402 [21,596 |
9 {21,750 | 21,931_['22,115_ [22,300 [22,487 | 22,864 | 22,864 | 23,055 _|
10 | 23,272 | 23,467 | 23,663 _| 23,861 | 24,060 | 24,464 | 24,464 | 24,668
ii | 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 69 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 | 49,79 | $0,397 | 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 | 257,181
32__ | 371,912 | 379,412 | 387,063 | 394,869 | 402,832 | 410,856 | 419,244 | 427,699 |
33. | 469,596 | 483,684

Third tranche
SG Step1 | Step2 | Step3 | Step4 | StepS | Step6 | Step7 | StepS
¥ | 44,732 | 14.854_[14,979 [15,104 |15.231_| 15357 [15,486 _| 15,615
2 | 15,654 | 15,774 | 15,895 | 16,017 | 16,140 | 16,263 | 16,389 | 16514
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
5 | 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
7 120,947 [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 | 56,652 _| 57,522 _| 58,234 _| 58,955

“19 [60.253 [61,237 | 62,236 | 63,252 [64,285 | 65,333 | 66,401 | 67.484



i

20 | 68,087 | 69,197 | 70,327 [71,475 | 72,642 | 73,828 | 75,032
21 76,938 | 78,194 | 79,470 | 80,766 | 82,085 | 83,424

22 | 86,940 | 88,358 | 89,801 | 91,267 | 92,756 | 94,271

23 98,242 | 99,845 | 101,475 | 103,131 | 104,815 | 106,525
24 111,013 | 112,825 | 114,667 | 116,538 | 118,440 | 120,374 124,742
25 | 126,555 | 128,621 | 130,720 | 132,854 | 135,022 | 137,226 141,742 |
26 | 143,008 | 145,341 | 147,714 | 150,125 | 152,575 | 155,065 | 157,596 | 160,
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

| 86,170
97,372
110,031

30 233,170 | 236,975 | 240,843 | 244,775 | 248,769 256,956 | 261,150
349,845 | 356,679 | 363,645 | 370,749 392,899
417,354 | 425,770 | 434,356 | 443,115 470,469

33 | 516,556 | 532,053

See. 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

Sec. 6. Non-diminution in the Basic Salaries of Incumbent Eniployees. - 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

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. j

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. Appropriation. ~The funding sources for the amounts necessary to implement
the modified Salary Schedule shall be as follows:

j (a) For national government entities, the amount necessary for the immediate
implementation of this Act shall be included in the General Appropriation
Act (GAA);

(b) For: GOCC’s and GIFs, the amounts shall come from their respective

Ce c ‘corporate funds in the approved corporate operating budgets. Government

i corporations which do not have adequate or sufficient funds shall only

Mies partially implement the established: rates; Private, that any partial


implementation shall be at uniform proportion of the established rates for
all positions in each government corporation; and

(c) For LGUs, the amounts shall be charged against their respective local
government rules 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 hercin
shall be implemented in National Government Agencies as follows, subject to appropriations
by Congress:

e

Starting January 1, 2020, the first tranche schedule for civilian personnel;
b, By January 1, 2021, the second tranche schedule for civilian personnel; and
¢. By January 1, 2022, the third tranche schedule for civilian personnel

For GOCCs, GFls 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.

|. See. 12, General Repeating and Amendatory Clause. - All provisions of laws, dectees,
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 emain in ful force and
effect.

isity Clause. =, The Act shall take, effect fifteen (15) days following its
jazette, or in at least two (2) newspapers of general circulation,