Duterte suspends GOCC's compensation scheme

PRESIDENT Rodrigo Duterte has signed Executive Order (EO) 36 which mandates the immediate implementation of the compensation and position classification system (CPCS) and the Index of Occupational Service (IOS) of government-owned and -controlled corporations (GOCCs).

Under EO 36, Duterte said he ordered the suspension following the findings of the Governance Commission for GOCCs (GCG) that there are “compelling reasons” to revisit and reevaluate the CPCS, as well as to institute interim measures for affected GOCCs.

“There is a need to further study and review the compensation of GOCCs and eliminate any excessive, unauthorized, illegal and/or unconscionable allowances, incentives, and benefits,” the President said in his EO inked on July 28.

The compensation framework of GOCCs, including their subsidiaries, will be covered by the new measures, subject to the approval of GCG, the central policymaking and regulatory body that monitors and oversees GOCC”s operations.

The EO mandates GOCCs covered by the Salary Standardization Law (SSL) to adopt the Modified Salary Schedule and the allowances and benefits approved by GCG.

GOCCs who have insufficient funds will partially implement the Modified Salary Schedule and authorized benefits. In the case of partial implementation, it will be at uniformed percentage across all positions for every GOCC.

GOCCs exempted in the SSL to maintain their current compensation framework or adopt the Modified Salary Schedule.

SSL-exempt GOCCs who adopted the Modified Salary Schedule have limited benefits and allowances, their compensation framework subject to conversion or revision, and their mid-year and year-end bonuses subject to GCG guidelines.

Authorized salaries of incumbent officers and employees and collective bargaining or negotiation agreements in the GOCC sector will not be affected by the implementation of EO 36.

A month after the EO takes effect, Duterte authorized the GCG to promulgate implementing rules and regulations.

In a press conference, Deputy Executive Secretary Menardo Guevarra said the GCG was also instructed to expedite the review of the implementation of the current compensation scheme.

Guevarra said the issue on the CPCS of GOCCs has to be addressed as there seemed to have the failure to comply with budgetary requirements.

“This problem pertaining to the compensation of GOCC officers and employees has been nagging for quite some time. They have been complaining about their salaries lagging behind the national government agencies. So it was really the right time to issue this executive order,” he said. (SunStar Philippines)
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