P24B to be released for state workers compensation hike

A TOTAL of P24 billion will be released to agencies starting Monday to implement the compensation adjustments for civilian personnel and additional allowances for military and uniformed personnel (MUP), the Department of Budget and Management (DBM) said Saturday.

This release, sourced from the Miscellaneous Personnel Benefits Fund (MPBF) of the 2016 General Appropriations Act, is part of the P57-billion appropriation covering the first tranche of compensation adjustments mandated by Executive Order no. 201, series of 2016.

The amount is based on the data generated from the Government Manpower Information System (GMIS) on the number of filled positions as of December 31, 2015, according to DBM Secretary Florencio Abad.

“Of the P24 billion, P18.64 billion will augment the compensation of civilian personnel, while P5.36 billion will go to the allowances and hazard pay of MUP. The remaining P33 billion appropriated for compensation adjustments has been set aside for newly-filled positions, and for the mid-year bonus, which will be released not earlier than May 15 of this year,” he said.

The amount for civilian personnel includes the following differentials as a result of salary adjustment: salary differential, step increment due to length of service, 13th month pay differential, PhilHealth differential, ECIP differential, and RLIP differential. The amount for MUP includes monthly Provisional Allowance, monthly Officers’ Allowance and Hazard Pay increase from P240 to P390 per month.

“We want to ensure the immediate implementation of the new salary rates and the release the MUP differentials, as well as the release of the pay and allowance differentials as the compensation adjustments apply retroactively to the start of the year,” Abad said.

“We also want to emphasize that the first tranche of salary adjustments includes a mid-year bonus equivalent to one month’s salary and a Productivity Enhancement Incentive (PEI) in the amount of P5,000. Given that benefits not exceeding P82,000 are exempt from tax, public servants with salary grades 1 to 11 will receive both bonuses tax-free, while salary grades 12 to 16 will receive the entirety of their mid-year bonus,” he added.

Abad clarified that Government-Owned or –Controlled Corporations (GOCCs) are included in the compensation adjustment, provided that they are not covered by Republic Act 10149, which establishes a separate compensation and classification system for GOCC personnel. For covered GOCCs, the funds needed for the adjustments shall be charged against their corporate funds. (SDR/Sunnex)

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