Local governments told to brace for another pay hike

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Monday, July 16, 2012

AN official of the Department of Budget and Management (DBM) in Eastern Visayas told the local government units (LGUs) to get ready for new salary adjustments for their employees in 2013.

The salary adjustments follow the implementation of higher pay for central government workers last June.

“Local government officials are now preparing their 2013 annual budget. They should consider, in their computations, the higher salary for employees starting next year,” DBM Regional Director Imelda Laceras said.


Laceras reminded LGUs to strictly follow directive governing the implementation of the fourth tranche of monthly salary schedule that will take effect on January 2012.

Funding requirement will be sourced out exclusively from LGU funds subject to personnel services limitations. However, such amounts will be provided for the appropriation ordinance to be enacted by the local legislators.

She said this will save LGUs from future budgetary tight spot thus, providing workers the benefit of getting higher pay on time.

The budget department released early this month the funding for adjustments of salaries of state workers of regional agencies, but offices have already modified the pay for June to follow the wage hike schedule.

Laceras said that the implementation of the fourth tranche of the salary schedule for LGU personnel will be determined by the local council based on the province, town, or city’s income and financial capability.

“If funds are sufficient and sustainable, the salary rates in accordance with the fourth tranche salary schedule for local government personnel will take effect on January 1, 2013, corresponding to the LGU level and income class,” Laceras said.

Under the local government, the total appropriations, whether annual or supplemental for personal services of an LGU for an entire year, should not be more than 45 percent for the first to third-class LGUs and 55 percent for those in the fourth-class or lower classifications of the total annual income from regular sources realized in the next preceding year.

The DBM said that pay adjustments for barangay officials may be based on the salary schedule adopted by the city or municipality, where the village is situated.

If barangay budget is not enough, the barangay council may adopt and implement honoraria adjustments at lower rates, but uniform percentage.

The DBM earlier announced a projected 10 percent to 11 percent increase of internal revenue allotment (IRA) share of LGUs in the country, reversing the situation in 2012 appropriation where there’s a four percent slash.

IRA’s last year’s share for LGUs nationwide went up from P273 billion to P303 billion in 2013, mainly due to higher national tax collections in 2010. (Leyte Samar Daily Express)

Local news

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