Government workers to enjoy pay hike

MANILA, Philippines — Government employees will enjoy higher salaries beginning this month with the implementation of the second tranche of the Salary Standardization Law (SSL), an official said yesterday.

Budget Secretary Wendel Avisado has issued National Budget Circular No. 548, which lays out the guidelines for the implementation of the second tranche of salary hike for civilian personnel pursuant to Republic Act 11466.

The circular also provides the new Salary Schedule to be followed by government agencies in adjusting the salaries of employees.

The Department of Budget and Management (DBM) said the salary adjustments for personnel employed by national government agencies are chargeable against their respective Personnel Service budget under the 2021 General Appropriations Act.

In case of deficiency, the agency may submit a request to the DBM for the release of additional funding charged to the Miscellaneous Personnel Benefits Fund.

The DBM said pay hike for employees of government-owned and -controlled corporations (GOCCs) should be implemented as determined by their respective governing boards, charged against their approved corporate operating budget.

State-run corporations without sufficient funds to implement the DBM-prescribed Salary Schedule may adopt their own at lower rates, but at the same percentage of increase in salaries.

The DBM also released Local Budget Circular No. 132, which prescribes the salary adjustment rules for local government personnel.

This also covers the honoraria rates of barangay officials and employees, which will depend on the salary schedule adopted by their respective municipalities or cities.

Like GOCCs, local government units may also formulate a modified salary schedule if their funds are insufficient to implement the ones prescribed in the circular, or for purpose of complying with the PS limitation in LGU budgets.

Signed into law last year, Republic Act 11466 or the Salary Standardization Law seeks to raise the wages of government employees, including nurses and teachers, in four tranches from 2020 to 2023.

Under the law, the minimum basic salary of a first-level government employee (Salary Grade 1) will increase from P11,068 to P13,000 after all tranches.