Government allots P6.23 billion for incentives to state workers

Manila, Philippines -  The Aquino administration will spend P6.23 billion as incentives for state workers who will be affected by the government’s rationalization program.

 This is according to Executive Order 77 issued by President Aquino which provides better incentives for government employees who will be given the option to retire from public service.

Under a previous order, funding for employee incentives would only amount to P4.10 billion but Budget Secretary Florencio Abad said the new order sets a new basis for computing employees’ incentives.

Under EO 77, rationalization incentives will now be computed using the latest monthly salary of affected employees, instead of their pay as of June 30, 2007.

Abad said the government wants to be “fair” in compensating state workers.

 “Even as we aim to reorganize our agencies to improve employee efficiency and the effectiveness of our services, we also want to be fair in compensating government workers who have long served the public,” Abad said.

Under the rationalization program, state workers who perform “redundant, duplicating, or obsolete functions” will be given the option to retire or separate from their mother departments.

Furthermore, according to the program, employees may remain in their departments or transfer to another agency where their skills are deemed relevant.

However, this is on the condition that their positions will not be permanent and instead be “co-terminus to the incumbent agency heads.”

The government will provide the funding for the rationalization program, to be charged against appropriate funds.

 “Because the monthly pay for government workers has increased since 2007, the incentives due them should likewise reflect these changes. Commodity prices and the cost of living have also jumped considerably in the last five years. These should be accounted for when we implement the rationalization program for all affected employees,” Abad said.

As for employees of government-owned and controlled corporations (GOCCs) and government financial institutions (GFIs), funding for their incentives will come from their respective corporate funds, Abad said.

“Initially, the government will have to spend more just to ensure that affected personnel will receive benefits that match their current pay. However, the cost-efficiencies in the long run are remarkable. For one, the incentive package will be more attractive to personnel due for rationalization, and we won’t have to retain employees whose functions are no longer relevant to their respective agencies,” Abad said.