DBM issues guidelines for 2nd tranche of gov’t employees’ pay hike

The Department of Budget and Management (DBM) on Friday issued guidelines for second tranche of compensation adjustment for government employees, Armed Forces of the Philippines (AFP) and uniformed personnel including Philippine National Police (PNP).

According to the DBM, teachers, health workers, soldiers, policemen, and all other civil servants will receive a bigger take home pay as part of the Duterte administration's pledge to raise the compensation of the country's public sector civilian workers and military and uniformed personnel (MUP) beginning January 1 this year.

Pursuant to Executive Order No.201 s. 2016 (EO 201), which grants a compensation adjustment for government workers and additional allowances for MUP in four tranches, the Department of Budget and Management (DBM) issued National Budget Circular No. 568 and Local Budget Circular No. 113. The circulars will implement the second tranche of compensation adjustment for the said public servants.

National Budget Circular No. 568 outlines the guidelines, rules, and regulations for the implementation of the second tranche of EO 201 for civilian personnel in the Executive, Legislative, and Judicial branches, the Constitutional Commissions and other Constitutional Offices, State Universities and Colleges (SUCs), and government-owned-and-controlled corporations (GOCCs) covered by the Compensation and Position Classification System (CPCS), under Republic Act No. 6758.

Local Budget Circular No. 113, on the other hand, covers all positions for salaried local government unit (LGU) personnel and all positions for barangay personnel which are paid monthly honoraria.

With the second tranche implementation of the compensation adjustments, government workers are set to have more money in their pockets as their salaries will increase in addition to the mid-year and year-end bonus. In addition, an enhanced Performance-Based Bonus will be granted to those who meet their agency targets.

For instance, a Teacher 1 will get an annual compensation package of PHP324,962 while a Nurse 1 will get PHP398,822, bringing their total compensation to twice that of their private sector counterparts.

Meanwhile, the MUP are now entitled to a provisional allowance, mid-year and year-end bonus, an enhanced Performance-Based Bonus subject to accomplishment of performance targets, as well as an increase in the hazard pay from PHP390 to 540 per month. Certain ranks will also receive augmentation in the form of officers' allowance.

Thus, in 2017, the total annual compensation for a Police Officer 1 (PO1) and a military Private will be PHP399,396. This represents a 14 percent increase in compensation for a PO1 and a 10 percent increase in compensation for a Private. The substantial increase in allowances will more justly reward to the brave policemen and soldiers who put their lives on the line for the country.

Managers and executives will also receive substantial pay increases of 15 to 27 percent so the government may attract and retain the best talent.

A Division Chief will receive an amount of PHP1,097,863annually; a Director IV-level position PHP1,659,491 annually; a Secretary-level post PHP2,595,137 annually; and a General, PHP2,144,283 per annum. This scheme intends to position their compensation packages closer to that of the private sector, in line with the principle of "equal pay for work of equal value."

The compensation and allowances will be adjusted in accordance with the schedule provided in Executive Order No. 201 signed by former President Benigno Aquino III in February last year.

Funding for compensation adjustments of national government agencies is provided for in the General Appropriations Act (GAA) for FY 2017. For covered GOCCs and GFIs, funding will be sourced from their respective corporate operating budgets. While for LGU personnel, the amount shall be sourced from LGU funds authorized by their respective sanggunian.

Source: Philippines News Agency

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