Lawmakers to GMA: Include LGU workers in wage hike

Congressmen urged President Arroyo yesterday to include local government personnel in the planned wage increase for state employees and to give workers “salary extenders,” including an exemption from paying income tax.

Davao del Norte Rep. Anton Lagdameo said employees of local government units (LGUs) and profitable government corporations should be included in the next round of salary increase.

He said last year’s salary adjustment included personnel of LGUs and state companies, which were required to fund the increase instead of the money coming from the national government.

“In this case, then the internal revenue allotments of towns, cities, provinces, and barangay communities in the amount of P210.7 billion this could be released soon so they will know if they can give the pay increase in full or just a fraction of it,” he said.

Valenzuela City Rep. Magtanggol Gunigundo II said Malacanang should push for the enactment of a bill exempting millions of minimum wage earners from paying income tax.

He said in the government sector alone, the exemption would benefit about 95,000 personnel occupying salary grade 5 and below positions, who are receiving between P7,457 and P9,209 a month in basic salary.

He said though the government will lose millions, perhaps billions, in income tax payments, the money would later be recaptured in the form of value added taxes consumers pay for practically all commodities they buy.

On Labor Day last year and in 2006, Mrs. Arroyo promised to work for exempting minimum wage earners from paying income tax.

To make her promise a reality, her allies in the House approved an exemption bill in 2006, but the Senate sat on it because senators were preoccupied with campaigning for the May 2007 elections.

Quezon Rep. Proceso Alcala said another form of “non-wage salary extender” is allowing employees’ associations and cooperatives in state corporations that own idle lands to develop these agriculturally.

He said the call on private companies to go into corporate farming “should have a government version – and that is allowing willing employees’ associations to plant on vacant lands.”

“If Ateneo can grow its own corn from a football field, imagine the potential of agencies, state colleges, military camps with huge land grants to do the same,” he said.

To encourage employee unions, Alcala suggested that land rent should be waived.