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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 2548

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

EXPLANATORY NOTE

The Philippine government is one of the country's biggest employer, employing over
2.4 million civilian personnel in 2017, including job orders and contract of service
workers. Civil servants are the foundation of a well-oiled machine that helps run the
country and ensure that every Filipino is taken cared for by its government.

An average of 200,000 people take the Civil Service Commission's Civil Service
Examination, held twice a year, in hopes of getting eligibility to work for the
government. In March of 2018, only 10% of the over 230,000 examinees passed the
Career Service Professional examinations. This method of competitive recruitment for
government workers aim to attract the cream of the crop. An adjustment to the current
salary grade system would compel prospective employees to join the government
workforce and help retain our competent and capable public servants.

This measure aims to give civil servants what is due to them and simultaneously attract
future civil servants to a fruitful career in the civil service. Through the Compensation
Adjustment Strategy being proposed herein, the existing Compensation and Position
Classification System in civil service is revised to reflect the changing times and
updated accordingly to make it competitive with the private sector. The resulting
modified Salary Schedule shall apply to all civilian personnel, including a special
compensation adjustment for LGU personnel.


The bill is a counterpart to Senator's Bong Go's version in the Senate and hopes to
uplift those who answered the call to serve.

Luis IND “LRAY” F. VILLAFUERTE, JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. eae

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT
MODIFYING THE SALARY SCHEDULE FOR CIVILIAN
GOVERNMENT PERSONNEL

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

SECTION 1. Declaration of Policy. — It is the declared policy of the State, under
Section 5 Article IX-B of the Constitution, to 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.

SECTION 2. Compensation Adjustment Strategy. — The existing Compensation and
Position Classification System (CPCS) is hereby revised or updated to conform with
the following:

a) The adoption of a compensation structure for all civilian government

Personnel that is highly competitive with the private sector, with the end in
view of attracting, retaining and motivating a corps of highly competent and
highly productive civil servants;
Raising of the minimum salary for Salary Grade 1 from the current rate of
Eleven Thousand Sixty Eight Pesos (P11,068) to Eleven Thousand Six
Hundred Fifty Six Pesos (P11,656) to make the current CPCS even more
competitive with the market rates.

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SECTION 3. Coverage. — The modified Salary Schedule authorized herein
shall apply to all civilian personnel in the Executive, Legislative and Judicial Branches,

Constitutional Commissions and other Constitutional Offices, Government-Owned or

Controlled Corporations (GOCCs) not covered by RA No. 10149, and local

government units (LGUs); regardless of appointment status, whether regular,

contractual or casual; appointive or elective; and on full-time or part-time basis, as

herein provided.

However, individuals whose services are engaged through job orders, contracts of

service, consultancy contracts, and service contracts with no employer-employee

relationship are excluded from the salary increase authorized herein.
SECTION 4. Modified Salary Schedule for Civilian Personnel. — The modified
Salary Schedule for Civilian Personnel shall be as follows:

Salary] Step | Step2 | Step3 | Step4 | StepS | Step6 | Step7 | Steps
Brace | St de : Z
1 11,656 | 11,747 | 11,842 [11,935 | 12,031 | 12,122 | 12,222 | 12,319
2 12,348 | 12,436 | 12,524 | 12,614 | 12,702 | 12,793 [12,885 | 12,975
3 | 13,042 [13,137 | 13,223 | 13,323 | 13,418 | 13,512 | 13,610 | 13,705
4 13,777 | 13,876 | 13,974 | 14,074 | 14,173 | 14,274 [14,376 | 14,478
ig 14,553 | 14,642 | 14,760 | 14,866 | 14,970 | 15,077 | 15,184 | 15,292
6 15,371 | 15,481 | 15,590 | 15,702 | 15,813 | 15,926 [16,039 | 16,153
7 16,236 | 16,353 | 16,468 | 16,585 | 16,703 | 16,823 | 16,941 | 17,061
8 17,248 | 17,401 | 17,555 | 17,707 | 17,863 | 18,021 [18,179 | 18,339
9 18,491 | 18,638 | 18,786 | 18,936 | 19,086 | 19,237 | 19,300 | 19,545
40 | 19,762 | 79,920 | 20,078 | 20,238 | 20,305 | 20.546 | 20,723 | 20,888
11 21,345 [21,657 [21,975 | 22,297 [22,620 | 22,953 | 23,268 | 23,630
42° | 23,755 [24,064 |24,375 | 24,692 | 25,014 | 25,338 | 25,667 | 26,001
13 | 26,283 [26,623 | 26,967 | 27,320 | 27,674 | 28,033 | 28,390 | 28,760
14 29,075 | 29,454 | 29,838 | 30,224 | 30,616 | 31,015 | 31,416 | 31,625
15 | 32,131 | 32,839 | 32,956 | 33,375 | 33,709 | 34,232 | 34607 | 35,108
16 [35,505 [34,960 | 36,417 | 36,769 | 37,352 | 37,827 | 38,308 | 38,794
17 39,237 | 39,737 | 40,241 | 40,757 | 41,275 | 41,288 | 42,331 | 42,874
18 | 43,360 [43,911 | 44,469 | 45,038 | 45,612 | 46,192 | 46,779 | 47,373
19 48,676 | 49,540 | 50,414 | 51,303 | 52,214 | 53,129 | 54,067 | 55,021
20 55,633 | 56,614 | 57,614 | 58,630 | 59,667 | 60,720 | 61,792 | 62,883



21 63,578 | 64,707 | 65,844 | 67,007 | 68,191 | 69,395 | 70,622 [71,871

22 72,665 | 73,950 | 75,250 | 76,580 | 77,934 | 79,314 | 80,707 | 82,134

23 83,027 | 84,505 | 86,001 | 87,521 | 89,062 | 90,639 | 92,306 | 93,866

24 94,909 | 96,579 | 98,290 | 100,019 | 101,792 | 103,584 | 105,419 | 107,275
25 109,666 | 111,603 | 113,574 | 115,579 | 117,620 | 119,697 | 121,811 | 123,962
26 125,333 | 127,547 | 129,800 | 132,089 | 134,421 | 136,795 | 139,210 | 141,670
27 | 143,239 | 145,765 | 148,340 | 150,960 | 153,622 | 156,339 | 159,096 | 161,901
28 163,698 | 166,589 | 169,530 | 172,524 | 175,570 | 178,673 | 181,829 | 185,041
29 187,076 | 190,383 | 193,747 | 197,172 | 200,658 | 204,206 | 207,790 | 211,491
30 213,821 | 217,577 | 221,426 | 225,344 | 229,330 | 233,360 | 237,460 | 241,693
31 335,383 | 342,669 | 350,097 | 357,682 | 365,440 | 373,360 | 381,450 | 389,722
32 | 403,981 | 413,057 | 422,338 | 431,830 | 441,531 | 451,454 | 461,602 | 471,973
33 520,445 | 536,059

SECTION 5. Compensation Adjustment for LGU Personnel. — The modified
Salary Schedule authorized herein for civilian personnel may likewise be granted to
LGU personnel, subject to the following:

a) Authorization from their respective sanggunian as provided under Sections
447(a), 458(a) and 468(a) of RA No. 7160; and
b) Compliance with the Personnel Services (PS) limitation set under Sections 325
and 331 of RA No. 7160.

LGUs shall likewise comply with the following rule in the implementation of the
modified salary schedule:

The implementation of the modified Salary Schedule for LGU personnel,
including the rate of Representation and Transportation Allowances, shall
further correspond to the LGU’s income classification and shall not therefore
exceed the percentage of the Salary Schedule in Section 3 hereof, as

follows:
Percentage of the Salary Schedules
For Provinces/Cities For Municipalities
Special Cities 100%
1* Class 100% 90%
2 Class 95% 85%



37 Class 90% 80%
[4™ Class 85% 75%
5” Class 80% 70%
6" Class 75% 65%

SECTION 6. Implementation Schedule. — The modified Salary Schedule for
civilian personnel authorized herein shall be implemented in National Government
Agencies, subject to appropriations by Congress, beginning January 1, 2020.

For covered GOCCs and LGUs, the implementation of the compensation
adjustments shall begin on January 1, 2020 depending on their respective financial
capability. GOCCs and LGUs which do not have adequate or sufficient funds shall
partially implement the modified Salary Schedule. In case of partial implementation,
the same shall be at uniform percentage across all positions for every GOCC/LGU.

SECTION 7. Retroactive Application. — The implementation of the modified
Salary Schedule for civilian personnel, shall be effective January 1, 2020. For covered
GOCCs and LGUs, the retroactive application shall be subject to their financial
capabilities and compliance with other requirements under existing laws.

SECTION 8. Exempt Entities. — The following exempt entities shall not be
covered by the modified Salary Schedule authorized herein:

(i) Government agencies, including GOCCs that are exempted from the
coverage of RA No. 6758, as amended, as provided in their respective
enabling law or charter; and

(ii) | GOCCs governed by the CPCS established by the Governance
Commission for GOCCs (GCG) and approved by the President of the
Philippines, under RA No. 10149.

They shall be governed by their respective CPCS which shall be made effective
upon the recommendation of the Department of Budget and Management (DBM) or
the GCG, as the case may be, and approval by the President of the Philippines.

SECTION 9. Applicability to Certain Officials. — Consistent with the policy
under Section 6 of Article VII and Section 10 of Article VI of the Constitution, the
salaries authorized herein for the President, Vice President and Members of Congress
shall take effect only after the expiration of the respective terms of the incumbents.
The implementation of this Act with respect to the regular members of the Cabinet


shall be effective starting July 1, 2020.
SECTION 10. Funding Source. — The funding sources for the amounts
necessary to implement this Act shall be as follows:

a) For national government agencies, the amount needed for the compensation
adjustment for the year 2020 shall be charged against appropriations to be
provided in the 2020 General Appropriations Act (GAA). The DBM, following
the compensation adjustment strategy embodied in Section 2 hereof, and
consistent with its authority under Section 7 of RA No. 6758, as amended, shall
then be authorized to implement or adjust the compensation corresponding to
the appropriations provided in the GAA.

b) For GOCCs, the amounts shall come from their respective corporate funds in

the corporate operating budgets approved by DBM.

For LGUs, the amounts shall be charged against their respective funds in
accordance with the pertinent provisions of this Act and RA No. 7160.
SECTION 11. Implementing Guidelines. — The DBM, within 30 days from the
effectivity of the FY 2020 GAA, shall issue the guidelines necessary to implement the
provisions of this Act.

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SECTION 12. Separability Clause. — Should any provision of this Act be
declared invalid or unconstitutional, the other provisions unaffected thereby shall
remain valid and subsisting.

SECTION 13. Repealing Clause. — All other laws, decrees, executive orders,
proclamations and other executive issuances, which are not consistent with or contrary
to the provisions of this Act, are hereby repealed or amended.

SECTION 14. Effectivity Clause. — This Act shall take effect fifteen (15) days
after its complete publication in the Official Gazzette or in a newspaper of general
circulation.

Approved,