Pay hike for gov't employees sought

MANILA, Philippines - The Aquino administration is proposing a P226-billion compensation package for government employees composed of a salary increase, a higher performance-based bonus and a 14th month pay to be given every June.

"Payment of just and equitable compensation to government personnel (is) in accordance with the principle of equal pay for work of equal value," Budget Secretary Florencio Abad said on a briefing on Monday.

The package enclosed in a bill  endorsed by President Benigno Aquino III to Congress, will boost basic salaries of the 1.53-million state employees by an average of 27 percent over a four-year period beginning next year.

From 2016 to 2019, the monthly basic salary of those under Salary Grade (SG) 1 will rise to P11,068 from P9,000. The president, who tops the salary ladder at SG 33, will see a pay increase to P388,096 from P120,000.

"Under the Constitution, no increase in the compensation of the president and vice-president shall take effect until after the expiration of the term of the incumbent," Abad said.

"So for us, it will only be in effect by July 2016," he added.

The pay hikes will put state salaries at about 84 percent of those offered by the private sector. According to a DBM study leading to the proposal, current average compensation only accounts for 55 percent of market rates. 

"Roughly 89 percent of salary increases will go to those at the lower salary grades," Abad said.

The pay adjustments will cost the government P225.82 billion from 2016 to 2019 divided as follows: P57.906 billion in 2016, P54.393 billion in 2017, P65.976 billion in 2018 and P47.544 billion in 2019.

"We do hope that Congress give this priority... We were assured that the speaker and the senate president that by Dec. 19, they will be able to passed this," Abad said.