The increase in salaries of government workers will push through as scheduled this month despite the delay in the signing into law of the P4.1-trillion 2020 national budget.
Acting Budget Secretary Wendel Avisado told the Inquirer that the implementation of the Salary Standardization Law (SSL) 5 would be effective January.
President Rodrigo Duterte is expected to sign this year’s budget before Jan. 6.
SSL 5 (for civilian government employees) is also awaiting Mr. Duterte’s signature.
The government had more than 1.2 million civilian workers as of mid-2019, according to Department of Budget and Management (DBM) data.
The annual increase in salaries of soldiers and other uniformed personnel is covered by congressional Joint Resolution No. 1 issued in 2018.
Advances for salaries
While the 2020 budget was yet to be signed by the President, Avisado said he had already issued guidelines for the advances to pay for personnel services as well as maintenance and other operating expenses at the start of the year.
As for the programmed expenditures for capital outlay and regular programs, the funds will be released “after completion of publication following the signature of the President of the 2020 GAA [General Appropriations Act],” Avisado said.
Last month, Sen. Sonny Angara, who chairs the Senate finance committee, said SSL 5 would cover yearly increases in government personnel salaries starting this year until 2023.
For 2020, P33.2 billion was included in the national budget to fund the salary hike under SSL 5.
Until 2023, a total P130.5 billion will be spent by the government for the pay adjustments.
Lowest salary grade
Once SSL 5 is in place, employees in the lowest salary grade will see their monthly salaries grow from P11,068 last year to P11,551 this year and to P13,000 in 2023, according to Angara.
In the case of entry-level teachers with Salary Grade (SG) 11, their monthly pay will rise from P20,754 to P22,316 in 2020 and to P27,000 in 2023.
Up to 30-percent hike
According to Angara, the largest yearly wage increments—double-digit percentages of up to 30 percent—would be enjoyed by those belonging to SG 11 to 16 or “professionals,” who account for the big chunk of the bureaucracy.
The pay of workers in the “subprofessional” levels of SG 1 to 10 would be hiked by between 17.5 percent and 20.5 percent on average from 2020 to 2023.
Managers, top execs
Annual increases in salaries of middle managers, executives and the country’s top officials from SG 25 to 33, would average 8 percent.
“The executives were already covered by significant increases in the previous round of salary increases or SSL 4. So for SSL 5, the decision was to focus on the employees in the middle,” Angara said.
President, VP, lawmakers
Angara also noted that “under the Constitution, the salaries of the President and Vice President will remain the same and whatever increases provided by the new law will only be enjoyed after their terms.”
“The same applies to the incumbent members of Congress. This means that only the newly elected members of the Senate and the House of Representatives in 2022 will be able to enjoy the new salary rates under SSL 5,” Angara said.
Last year, the government implemented the last tranche of SSL 4 under Executive Order No. 201 issued by former President Benigno Aquino III in 2016.
The fourth and final tranche of SSL 4 in 2019 had a bigger budget of P51 billion.
The previous administration had lacked time to enact the salary adjustments into law as the measure came too close to the national elections in 2016.
The last tranche of salary increases under SSL 4 had been nonetheless delayed due to the late passage of the P3.7-trillion 2019 budget.
Between January and April last year, the government underspent P1 billion a day as it operated using the reenacted 2018 budget when Congress failed to pass the appropriations bill on time due to squabbles over pork barrel funds.