Government to release pay hike a month ahead

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Tuesday, May 1, 2012


MANILA -- The government will source savings amounting to P2.7 billion from this year’s national budget to release on June 1 or one month in advance the last tranche of the Salary Standardization Law III (SSL III).

Department of Budget and Management (DBM) Secretary Florencio Abad said the additional budget will bring to P21.7 billion the total budget for the last tranche of the SSL III, originally set for implementation on July 1, and will be charged against this year’s Miscellaneous Personnel Benefits Fund.

“The advanced implementation of the pay increase is a gesture of appreciation by the Aquino administration to all government workers. They are after all our partners in reform, laboring tirelessly with us to institute good governance and promote accountability, transparency, and efficient leadership in government,” he said.

President Benigno Aquino III on Tuesday announced the early implementation of the SSL III as his gift to National Government employees for this year’s Labor Day celebration.

Abad, however, cited that employees of government-owned or controlled corporations (GOCCs) and government financial institutions (GFIs) may also receive the last tranche of the SSL III starting June 1 “provided that they have the financial capability to do so.”

Budget for the salary increase of GOCC and GFI employees will be charged against their respective corporate funds in the approved corporate operating budgets.

Relatively, employees of local government units (LGUs) will be given salary increase on January 1, 2013 as scheduled since the previous salary increase for workers in LGUs was on January 1 this year.

Abad said: “the increase will also be subject to the determination of the LGUs’ respective sanggunian (council), and will also depend on the availability and sustainability of local government funds.”

He said the President “pushed for the pay hike to help government employees keep up with the rising cost of living and the effects of inflation on the local economy.”

“The increase will also enable them to cope with the recent spike in oil and commodity prices. The fund boost is also very well-timed, especially since tuition fees will need to be paid around June, when schools will be reopening” he said.

Meanwhile, Abad disclosed that pay increase for the President, Vice President and Cabinet secretaries will not be implemented until July 1, 2012.

He also said the last tranche of the SSL III will not cover individuals and groups engaged through job orders, contracts of service, and other similar agreements.

Civilian personnel in government institutions not covered by Republic Act (RA) 6758, otherwise known as the “Compensation and Position Classification Act of 1989,” are also excluded from the implementation of the last tranche of the SSL III.

Abad added that senators and members of the House of Representatives are also not covered by the salary increase, citing Section 10, Article VI of the Constitution.

It states that “salaries of senators and members of the House of Representatives shall be determined by law. No increase in said compensation shall take effect until after the expiration of the full term of all the Members of the Senate and the House of Representatives approving such increase.” (PNA)

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