P70-M Capitol pay hike approved

THE Negros Occidental Provincial Government is allocating P70 million for the salary increase of its more than 2,000 employees this year.

The Provincial Board approved the request of Governor Alfredo Marañon Jr. for authority to implement the second tranche of the Salary Standardization Law 4 during the regular session Wednesday, June 7.

Second District Board Member Salvador Escalante Jr., chairman of committee on appropriations, budget, finance, ways and means, said that department heads can now start computing the payroll so the Provincial Government workers can already receive their increase by July 15.

He said the salary increase will not be a retroactive pay like last year’s implementation of the first tranche since the province will go over on the 45 percent ceiling for the Personal Services (PS) if that happens.

“We can’t include the January to June as it will go over the PS ceiling, which is not allowed. We only have to implement the increase from July to December,” the board member said.

Escalante said the Provincial Government is looking to allocate P70 million, which will be sourced from the Capitol's PS savings this year.

The monthly salary increase of the employees will be based on their salary grade, Escalante said.

He said that Capitol employees who have high salary grade will get higher increase, but they will be incurring higher tax deduction, he said.

For entry-level employees, they will have lower tax deduction, he added.

Employees who will receive P10,000 increase per month will have 30 to 35 percent tax cut, he said, adding that “workers receiving a salary of P12,000 per month will be getting about P15,000 following the increase as they will only have 12 percent tax deduction.”

Escalante said the Provincial Government is looking to implement the third tranche of salary increase early next year, depending on the Capitol’s internal revenue allotment.

“If not, then will have to wait again for July so we can have an allocation,” he added.
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