House panel OKs bill standardizing gov’t workers’ pay hike

The House of Representatives. INQUIRER.net FILE PHOTO

THE proposed pay hike for government workers hurdled the House of Representatives committee on Tuesday.

The House appropriations committee approved the House Bill 6268 or the proposed Salary Standardization Law (SSL) 2015 which determines the salary increases of government workers in four tranches from 2016 to 2019.

The authors of the bill are Speaker Feliciano Belmonte Jr., Majority Leader Neptali Gonzales II, Minority leader Ronaldo Zamora, Davao City Rep Isidro Ungab, and Romblon Rep. Eleandro Jesus Madrona.

In a presentation before the committee approval, Budget Secretary Florencio Abad defended the SSL 2015 from Act Teachers Rep. Antonio Tinio’s criticism that the hike would result in a paltry hike of P551 per month for public school teachers.

Abad said under the SSL 2015, government compensation in the average is estimated to increase by 45 percent and should be around 84 percent of private sector pay at the end of the four tranches.

Abad pointed out inaccuracies that Tinio only computed basic pay without considering bonuses such as 14th month bonus, performance-based bonus, and productivity enhancement incentive.

“I don’t think the presentation is complete, that 11.89 percent is the only salary increase … Ilagay naman natin ito sa katotohanan,” Abad said.

The committee overwhelmingly approved the bill, with Tinio the lone one against it.

Prior to committee approval, members of the Alliance of Concerned Teachers (ACT) staged a lightning rally at the hearing.

“Sahod, hindi benepisyo!” they chanted before they were escorted out of the room.

Joy Martines, a teacher from Malabon and secretary general of ACT-National Capital Region, accused the government of being insensitive to the teachers’ plight.

“Ito ang panawagan namin sa mga teachers, walang iboboto sa Liberal Party kahit isa, Zero vote ang mga teachers sa Liberal Party….Sinasabi niyong mga bayani ang mga teachers, hindi kami kinakalinga ng gobyernong ito,” Martinez said.

The House panel approved the measure just days after President Benigno Aquino III endorsed the SSL 2015 to Congress on Monday. It is now pending under second reading approval.

The president backed the bill after the budget department conducted a thorough study on the merits of adjusting the salary grades of public sector employees closer to the pay of their private sector counterparts.

In a statement last Monday, Budget Secretary Florencio “Butch” Abad said the proposed bill seeks a four-year P226-billion compensation hike for the government’s 1.53 million civilian and military and uniformed personnel.

The compensation package is composed of a salary increase, a mid-year 14th month pay, and an enhanced performance-based bonus (PBB) system, Abad said.

He added that the salary hike would increase the basic Salary Grade 1 from P9,000 to P11,068 a month.

The bill seeks to increase the basic salary of covered employees by an average of 27 percent. The 14th month pay will increase compensation by eight percent.

Meanwhile, the enhanced PBB is equivalent to one to two months’ salary or an average of 10 percent increase in salary.

“Government personnel who play a greater role and carry a heavier responsibility in improving government performance, will receive a higher bonus,” Abad said.

The bill also seeks to bridge the gap between the pay of employees in the public sector with their counterparts in the private sector.

Abad said under the bill, the lowest salary grade, Salary Grade 1, will be raised to about 154 percent of the market, while the highest salary grade belonging to the President will be about 70 percent of the market.

Government compensation in the average is estimated to increase by 45 percent and should be around 84 percent of private sector pay at the end of the four tranches, Abad said. The average government pay now is 55 percent of the market rate.

Abad said under the bill, the new compensation level for all salary grades will be at least 70 percent of the market; there will be no salary overlaps; and the link between pay and performance will be strengthened.

“The structure of the adjustment should temper the cost of benefits (i.e. Government Service Insurance System premiums and PhilHealth contributions) and allow for higher take home pay, especially for those in the lower salary grades,” Abad added.

Abad said the bill would only increase the salaries of the President and Vice President upon the expiration of their terms. This means President Benigno Aquino III and Vice President Jejomar Binay would not benefit from the salary hike.

Abad also said the current Cabinet secretaries were not included in the hike as delicadeza.

He said the salary hike for members of the House of Representatives and Senate and of the Cabinet would only take place on July 1, 2016 or after the expiration of the incumbents’ terms.

Due to the enactment of Republic Act 10653, which raised the tax exemption cap to P82,000, the 14th month pay and PBB will be tax-exempt for employees belonging to Salary Grades 1 to 11 who only receive the tax-exempt 13th month pay, the cash gift and the productivity enhancement incentive (PEI).

Meanwhile, only the 14th month pay will be tax-exempt for employees under Salary Grade 12 to 16 who receive the existing tax-exempt 13th month pay, cash gift and PEI.

The first tranche of the pay hike will take effect on Jan. 1, 2016 and thereafter until the final tranche in 2019. RAM