Proposed new salary law to give gov't employees higher pay

Posted at 08/27/2008 7:01 PM | Updated as of 08/27/2008 7:02 PM

Government employees could expect higher salaries if congress will pass the proposed overhaul of the Salary Standardization Law (SSL).

Budget secretary Rolando Andaya, Jr. presented today a proposed restructuring of the law that covers the compensation and position structure that guides how the 1.14 million government workers nationwide are paid.

Andaya said the P109 billion budget for the implementation of the salary restructuring has been included in the proposed P1.415 trillion budget proposal for 2009 that President Gloria Arroyo submitted to Congress today.

The proposed restructuring hopes to help stem the migration of government-trained professionals to the private sector, and the salary overlaps and distortions that the current compensation and position classification system allows.

The Arroyo government has been steadily increasing government workers salaries—an average of once every 300 days in the past 30 months—but previously approved exemptions to the government’s salary point system has led to many loopholes.

For example, a janitor in a Government Financial Institution exempted from the SSL can be paid more than a state college president, whose pay is subject to salary ceilings based on his position and rank.

Allowances and benefits could also differ from office to office, further distorting how much the fat cats in government are receiving compared to their counterparts in other government offices.

The SSL was last reviewed in a Joint Resolution of Congress in 1994. It preceded the passing of the law in 1989 when Andaya’s father, Rolando Andaya Sr., pushed for it.

“Our Constitution calls for the standardized employee compensation scheme in the public sector, with the level of work and qualifications for the job as main guideposts,” the budget secretary told the Congress today.
He said they considered the following when they were crafting the proposal: equal pay for work of equal value; comparability with private sector compensation; performance-based incentive scheme, and; [that it should be] fiscally-supportable, modest and reasonable.

A new plantilla would be in place once the proposed SSL is approved. This would result in a higher “Salary Grade” to some government employees, translating to higher salaries.

For example, the Salary Grade of the 522,000 public teachers, who account for about half of the total government workforce, would be upgraded by one notch to “SG 11.” This means their basic pay will increase by 50 percent to between P18,088 to P19,527.

The pay increases will be given on a four-year instalment from 2009 to 2012. About P20 billion is programmed for the first year.

The new SSL will cover employees of the national government employees, local government units, and government owned and controlled corporations. Uniformed personnel will be covered as well.

 
Government employees could expect higher salaries if congress will pass the proposed overhaul of the Salary Standardization Law (SSL).

Budget secretary Rolando Andaya, Jr. presented today a proposed restructuring of the law that covers the compensation and position structure that guides how the 1.14 million government workers nationwide are paid.

Andaya said the P109 billion budget for the implementation of the salary restructuring has been included in the proposed P1.415 trillion budget proposal for 2009 that President Gloria Arroyo submitted to Congress today.

The proposed restructuring hopes to help stem the migration of government-trained professionals to the private sector, and the salary overlaps and distortions that the current compensation and position classification system allows.

The Arroyo government has been steadily increasing government workers salaries—an average of once every 300 days in the past 30 months—but previously approved exemptions to the government’s salary point system has led to many loopholes.

For example, a janitor in a Government Financial Institution exempted from the SSL can be paid more than a state college president, whose pay is subject to salary ceilings based on his position and rank.

Allowances and benefits could also differ from office to office, further distorting how much the fat cats in government are receiving compared to their counterparts in other government offices.

The SSL was last reviewed in a Joint Resolution of Congress in 1994. It preceded the passing of the law in 1989 when Andaya’s father, Rolando Andaya Sr., pushed for it.

“Our Constitution calls for the standardized employee compensation scheme in the public sector, with the level of work and qualifications for the job as main guideposts,” the budget secretary told the Congress today.
He said they considered the following when they were crafting the proposal: equal pay for work of equal value; comparability with private sector compensation; performance-based incentive scheme, and; [that it should be] fiscally-supportable, modest and reasonable.

A new plantilla would be in place once the proposed SSL is approved. This would result in a higher “Salary Grade” to some government employees, translating to higher salaries.

For example, the Salary Grade of the 522,000 public teachers, who account for about half of the total government workforce, would be upgraded by one notch to “SG 11.” This means their basic pay will increase by 50 percent to between P18,088 to P19,527.

The pay increases will be given on a four-year instalment from 2009 to 2012. About P20 billion is programmed for the first year.

The new SSL will cover employees of the national government employees, local government units, and government owned and controlled corporations. Uniformed personnel will be covered as well.