PNoy orders study on gov't wage hike

Posted at 05/02/2014 3:07 PM | Updated as of 05/02/2014 3:07 PM

MANILA - President Aquino has directed the Department of Budget and Management to review the government compensation system and ascertain the budgetary implications of implementing salary increases across the entire public sector.

Communications Secretary Sonny Coloma said the President instructed the DBM to "determine the impact of the recently completed third tranche of the Salary Standardization Law on the compensation structure of the government, especially in comparison with the private sector."

Last April 29, President Aquino told labor sector representatives that the government is still working on addressing the need to identify fund sources for the large amount of unfunded pension benefits for retired AFP personnel that are indexed to compensation.

He said the government will continue to implement performance-based incentives that will give due recognition to those who render exemplary and dedicated service.

Coloma said that while the executive branch recognizes the legislature’s prerogative to propose a new salary standardization law, this also needs to be vetted at Cabinet level in terms of its rationale and its budget implications.

Coloma has kept his distance from a proposal by Senator Antonio Trillanes to adjust the salaries of government workers that would have jacked up the President's salary from P120,000 to P1 million a month.