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President Benigno S. Aquino III endorsed to Congress today a proposed nib entitled, “Salary Standardization Law of 2015,” or SSL 2015, for its consideration as well as enactment into law. The nib mandates a four-year P226 billion compensation increase for the national government’s 1.53 meg civilian as well as armed services as well as uniformed personnel.
Photo from the Department of Labor as well as Employment.
According to Department as well as Management (DBM) Secretary Florencio B. Abad, “the compensation bundle is composed of a salary increase, a mid-year 14th calendar month pay, as well as an enhanced performance-based bonus (PBB) system. The nib seeks to increment the basic salary of covered employees on the average past times 27%, spell the 14th calendar month pay volition farther lift compensation past times 8%. The enhanced PBB is equivalent to 1 to ii months’ salary or an average 10% increment inward salary. Government personnel who play a greater purpose as well as bear a heavier responsibleness inward improving authorities performance, volition have a higher bonus.
“At the terminate of the iv tranches,” according to Abad, “government compensation, on a weighted average basis, is estimated to increment past times 45% as well as should live only about 84% of individual sector pay. The lowest salary grade, Salary Grade 1, volition live virtually 154% of the market, spell the highest, Salary Grade 33, which is the President, volition live virtually 70% of the market.” Currently, authorities pay, on the average, is alone 55% of marketplace rates.
“The adjustment,” Abad added, “is mandated past times the Joint Resolution No 4 of Congress of 2009, which provided for a review of the compensation as well as put classification organization afterwards 3 years from the lastly twelvemonth of the adjustment (which was June 1, 2012) to attain upwards one’s heed “the competitiveness of authorities pay inward relation to the individual sector” as well as “the compensation strategy to convey authorities pay closer to marketplace rates”. Accordingly, amongst the assist of individual sector consultants, Towers Watson, the DBM undertook as well as completed the report inward July 2015.
“In structuring the compensation adjustment, nosotros were guided past times v parameters: (1) The minimum basic salary—Salary Grade 1—shall live raised from P9,000 to P11,068 a month; (2) To attract as well as retain competent as well as committed personnel, the novel compensation flat for all salary grades shall live at to the lowest degree 70% of the market; (3) To recognize differences inward duties as well as responsibilities, at that spot shall live no salary overlaps; (4) The link betwixt pay as well as functioning shall live strengthened, particularly for those inward the higher salary grades, as well as (5) The construction of the adjustment should temper the toll of benefits (i.e. GSIS premiums as well as PhilHealth contributions) as well as allow for higher conduct keep habitation pay, particularly for those inward the lower salary grades,” Abad clarified.
As a number of Republic Act 10653, which raised the sum of benefits exempted from revenue enhancement to P82,000, for bulk of civilian employees, those belonging to Salary Grades 1-11, as well as who are alone receiving the existing tax-exempt 13th calendar month pay, the cash gift as well as the productivity enhancement incentive (PEI), their total 14th calendar month pay as well as total PBB volition also live exempt from tax. For those belonging to Salary Grades 12-16, who also are alone receiving the existing tax-exempt 13th calendar month pay, cash gift as well as PEI, alone their total 14th calendar month pay volition live exempt from tax.
“The start tranche of the adjustment volition conduct keep effect on January 1, 2016, as well as the subsequent 3 tranches on everyJanuary 1 thereafter until the terminal tranche inward 2019,” Abad added.
Abad farther clarified that “under the Constitution, no increment inward the compensation of the President as well as the Vice-President shall conduct keep effect until afterwards the expiration of the term of the incumbent during which such increment was approved. Similarly, no increment inward compensation shall conduct keep effect until afterwards the expiration of the total term of all the members of the Senate as well as the House of Representatives blessing such increase.”
For the regular members of the Cabinet, Abad said, “the compensation adjustment shall conduct keep effect alone on July 1, 2016.”