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Monday, August 22, 2005
City considers halt in loan deductions to keep pay on time
AS A way of avoiding further delays in the salaries of Cebu City Government employees, City Hall is thinking of stopping the deduction of loan payments from the employees’ paychecks.
City Hall officials will be in Manila this week to study the payroll system of other local government units (LGUs) and find out what other systems can be adopted to ensure prompt release of workers’ salaries.
Rene Sanapo, the mayor’s consultant on systems management, said deductions from the salaries by loan agencies and cooperatives have caused delays in processing the payroll.
A delay in the processing of the supporting documents of the employees’ payroll also resulted in the late release of their pay.
To solve this, the City Government may adopt the Quezon City Government’s policy that disallows the deduction of any amount from the salary, unless authorized by the employee himself, Sanapo added.
“We will look at several policies and see if they are feasible here in City Hall. We have adopted several systems to improve the processing of payroll but these are not one-time improvements. We will look for better ways to address the delays,” Sanapo told Sun.Star.
Limited cuts
City Treasurer Tessie Camarillo and Human Resources Department (HRD) Head Ralph Sevilla are among those who will go to Manila this week.
Once loan payments are excluded from the deductions in a worker’s salary, the only items to be deducted would be their Government Service Insurance System (GSIS) and Philhealth contributions.
From the distributed payroll processing system, City Hall shifted to centralized processing last Aug. 1, which is handled by the HRD.
The system, however, is still vulnerable to delays, especially in the event of a computer system breakdown, as what happened with the Aug. 15 payroll.
Sanapo said city officials will also study the feasibility of the proposal for HRD to turn over the payroll to the accounting office.
HRD preferred a centralized payroll because with the distributed processing, a payroll officer was assigned to prepare the payroll of the employees and the supporting documents and to submit these to HRD.
But since the payroll officers did not finish processing the payroll at the same time, the salary of some departments was often delayed, Sanapo said. LCR
(August 22, 2005 issue)
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