The wage increases for government workers will take effect Friday or a month ahead of schedule, according to Budget Secretary Florencio B. Abad.
Salary and base pay increases under the Salary Standardization Law III were originally set for July 1, but President Benigno Aquino III’s announcements on Labor Day advanced its implementation, said Abad.
He said P24.7 billion had been earmarked to fund the fourth installment of pay increases provided for in SSL III.
Of the total, P21.7 billion will come from the miscellaneous personnel benefits fund of the General Appropriations Act of 2012 while P2.7 billion will be charged against savings from the national budget.
“The implementation of the fourth tranche should help government employees respond better to the rising cost of living and price increases for basic commodities,” Abad said.
“The pay raise may give them a much-needed boost for paying tuition and academic fees, especially since schools will be reopening soon,” he added.
Abad said the President, the Vice President and all Cabinet members will not be getting their pay increases until July 1.
He also clarified that individuals and groups engaged through job orders, contracts of service and other similar agreements were not covered by the salary increase.
Also excluded are civilian personnel in government institutions that are exempt from the Compensation and Position Classification Act of 1989. These institutions are authorized by law to adopt and implement their own compensation and position classification systems, provided that the Office of the President approves such systems.
Abad said pay increases for employees of government-owned or -controlled corporations (GOCCs) and government financial institutions (GFIs) would be charged against their respective corporate funds in their approved corporate operating budgets.
On the other hand, the pay increases for those working for local government units would be charged against the respective local government funds.
Last month, Abad said the fourth tranche of the salary increase for employees in GOCCs and GIFs may also be implemented today, provided that they had the financial capability to do so.
As for the salary increases of employees in LGUs, Abad said these were still scheduled for Jan. 1, 2013, considering that the LGUs implemented the third tranche on January 1.
Abad said pay hikes in LGUs were subject to the decision of provincial and municipal boards, and would also depend on the availability and sustainability of local government funds.