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Principles of Salary Standardization Law

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Salary Standardization in Office

Joint Resolution no. 4  authorizes the President of the Philippines to modify the compensation and  position classification system of civilian personnel and the base pay schedule of military and uniformed personnel in the government. The implementation of the law falls heavily on the Department of Budget and Management in close coordination with the Civil Service Commission, consistent with the executive orders to be issued by the President.

The DBM is likewise directed to prepare Consolidated Compensation and Position Classification Report and its status of implementation and periodically update the same  and submit to Congress and the Commission on Audit for public disclosure, monitoring and compliance with established policies and as basis for future policy decisions.

Its governing principles are as follows:

  • Just and equitable compensation in accordance with the principle of equal pay for work of equal value with differences in pay based on verifiable compensation and classification factors in due regard to the financial capability of the government
  • Comparability of compensation with the private sector to attract, retain and motivate a corps of competent civil servants.
  • Standardization and rationalization of compensation across all government agencies to create an enabling environment that will promote social justice, integrity, efficiency,   productivity, accountability and excellence in the civil service.
  • Adoption of performance-based incentive scheme
  • Periodic review of the Compensation and Position Classification System every three (3) years
  • Taking into account prevailing economic realities and create professionalism, exemplary performance, and commitment to service for Base Pay Schedule of military and uniformed personnel, and
  • Keeping fair and reasonable the compensation in recognition of fiscal realities  and an efficient allocation of personal services  cost which shall be maintained at a realistic level in proportion to the over-all expenditure of the government.

It expressly prescribes the modified Salary Schedule for Civilian Personnel to be implemented in tranches. The first tranche was implemented on July 1, 2009 for national government agencies and January  1,2010 for local government units. The third tranche of implementation had already been implemented but health workers in  some LGUs have not yet received the first tranche increase.

Mindful that the implementation on the salary increase lies heavily on the DBM for the said agency to report to Congress and the Commission on Audit for public disclosure, how is DBM doing its mandate under the law? Is DBM merely limited in its task to issue a circular on salary increase for LGUs without  overseeing its implementation under the Local Government Code?

 And finally, what is the President of the Philippines presently doing in not only issuing an executive order but also in enforcing the salary increase for devolved health workers under his control and supervisory power over the LGUs?

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