DBM supports salary increase for gov’t workers; study underway

Budget Secretary Amenah “Mina” Pangandaman

MANILA, Philippines — Budget Secretary Amenah “Mina” Pangandaman said that the Philippine government is set to finalize a comprehensive study on the potential salary adjustment for government workers by the first half of 2024.

This initiative, spearheaded by the Department of Budget and Management (DBM), and the Governance Commission for GOCCs (GCG), aims to ensure a competitive and equitable compensation package that aligns with the Administration’s commitment to a resilient and future-ready civil service.

“We recognize that the rising cost of the basic commodities and services in the country highlights the need to review the current state of compensation of government employees. It is for this reason that the DBM and the GCG engaged the services of a consultancy firm this year to conduct a Compensation and Benefits Study in the Public Sector with the end in view of setting a competitive, financially sustainable, and equitable compensation package for government personnel,” Pangandaman said.

“The proposed compensation adjustment should consider not only the inflation rates and cost of living adjustments, but also standard market practices to ensure that working in government remains desirable and comparable to working in the private sector. Further, the additional costs must be within the government’s financial capacity to ensure its long-term viability, which shall be maintained at a realistic level in proportion to the overall expenditure of government,” Pangandaman emphasized.

According to the Budget secretary, the Compensation and Benefits Study currently being conducted will explore various aspects of the current compensation system, including salaries, benefits, and allowances, to identify areas for improvement. By benchmarking against the private sector and considering the effects of inflation, the government seeks to establish a fair and sustainable pay structure that will enhance the welfare and productivity of its employees.

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The DBM chief likewise noted that the results of the study will serve as basis for making the necessary changes in the Total Compensation Framework (TCF) of civilian government personnel to ensure fair and timely salary adjustment for government workers.

“Our civil servants are the backbone of our nation, and it’s our priority to provide them with a fair and motivating compensation system. This study marks a crucial step towards a civil service that is not only efficient and productive but also just and rewarding,” Pangandaman added.

“As we anticipate the completion of this pivotal compensation and benefit study, our resolve remains firm: to uphold the dignity of public service by ensuring our civil servants are rewarded in a manner that truly reflects their worth to the nation,” the Budget secretary said.

The results of the study shall be used to refine/enhance the compensation of civilian government personnel to foster an environment that promotes social justice, integrity, efficiency, productivity, accountability and excellence in the civil service while supporting fiscal prudence.

Such improvements/enhancements may be in the form of salary increases, adjustment in the rate of benefits and allowances, rationalization of benefits, and/or fine tuning of the current Total Compensation Framework of government.

The cost for the implementation of said compensation adjustment shall be sourced from the available appropriations under the FY 2024 General Appropriations and the succeeding annual appropriations.