Transcript Joint Resolution Urging the President of the Philippines

Proposed Joint Resolution
Modification of the
Compensation and Position
Classification System
in the Government
Department of Budget and Management
Introduction
RA No. 6758
Compensation and
Position Classification
Act of 1989
+
Senate and House
of Representatives
Joint Resolution
No. 01, s. 1994
Benefits:
Standardized Compensation and Position Classification System
for Civilian Employees in the Government
Introduction
Weaknesses of the Current Compensation and Position
Classification System:
• Non-competitiveness of pay
Private sector pays more to professionals and executives
Examples: Teacher, Nurse, Accountant, Medical Officer, Attorney,
Pilot, Chief Executive Officer, Manager
Comparison of Existing Compensation in Public Sector Versus Private Sector
Salaries
250,000
240,000
230,000
220,000
210,000
200,000
190,000
180,000
170,000
160,000
150,000
140,000
130,000
120,000
110,000
100,000
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
Salary Grades
631.9%
765.2%
300.6%
272.3%
Government
Private
144%
95.8%
83.2%
3.1%
25.2%
26.2%
29.3%
1
3
5
8
Sub-Professional
-0.9%
40.3%
10 12 18 22
Professional
24
26
28 30
Executive
31
Monthly Salaries of National Government Executives
and Heads of SSL-Exempt GOCCs/GFIs
National Government
Executives
President of the Philippines
Vice-President of the Philippines
Department Secretary
Department Undersecretary
360,000
340,000
320,000
300,000
280,000
260,000
240,000
220,000
200,000
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
Monthly Salary
Monthly
Salary
69,878
55,902
48,915
34,939
Heads of the Following GOCCs/GFIs
Government Service Insurance System
Philippine Deposit Insurance Corporation
Bases Conversion Development Authority
Land Bank of the Philippines
Trade and Industry Development Corporation
Philippine Economic Zone Authority
Subic Bay Metropolitan Authority
National Power Corporation
Philippine Health Insurance Corporation
Social Security System
* CY 2003 Data
Monthly
Salary
356,979
200,000
189,750
185,750
156,417
140,073
132,333
107,427
104,450
100,000
NGAs
GOCCs/GFIs
`
Pres.
V-Pres.
Dept.
Sec.
Dept.
Usec.
69,878
55,902
48,915
34,939
GSIS
PDIC
BCDA
LBP
TIDCORP
PEZA
SBMA
NPC
PHIC
SSS
356,979 200,000 189,750 185,750 156,417 140,073 132,333 107,427 104,450 100,000
5
Comparison of Monthly Salaries (in U.S. Dollars)
For the Position of Head of Government, Per Country
45,000
40,000
35,000
Australia
China
30,000
Hongkong
India
25,000
Indonesia
Japan
Malaysia
20,000
Philippines
Singapore
15,000
South Korea
Taiwan
10,000
Thailand
United States
5,000
0
Australia
China
Hongkong
India
Indonesia
Japan
Salary per month (In $) 11,365
266
34,807
585
2,033
33,886
Malaysia Philippines Singapore
5,132
1,224
43,365
South
Korea
Taiw an
Thailand
United
States
7,658
26,951
1,694
16,667
Comparison of Monthly Salaries (in U.S. Dollars)
For the Position of Government Clerk/Entry Level (Government), Per Country
2,500
2,400
2,300
2,200
2,100
2,000
1,900
1,800
Australia
China
1,700
1,600
1,500
1,400
Hongkong
India
Indonesia
1,300
1,200
1,100
Japan
Malaysia
1,000
900
800
700
Philippines
Singapore
South Korea
Taiwan
600
500
400
Thailand
United States
300
200
100
0
Salary per month (In $)
Australia
China
Hongkong
India
Indonesia
Japan
M alaysia
1,547
72
1,258
117
20
2,292
199
Philippines Singapore
220
503
South
Korea
Taiwan
Thailand
United
States
878
1,299
93
1,736
Comparison of Monthly Salaries, Selected Positions (in Philippine Pesos)
Government vs. Private Corporations, Philippines
240,000
220,000
200,000
Government
180,000
160,000
Private
Corporations
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
Salaries
(in pesos)
Head of
Government
Finance
Minister
Member of
Parliament
Government
Clerk (Entrylevel)
Chief
Executive
Officer
50,000
35,008
27,982
8,987
241,669
Controller
Human
Resources
Director
Secretary
106,864
84,110
12,623
Weaknesses of the Current Compensation and
Position Classification System:
Substantial overlaps in salaries between
positions:
• leads to problems in relationships between superiors
and subordinates
• complexity in duties and responsibilities not well
compensated
Salary Schedule Effective July 1, 2008 Pursuant to EO No. 719
Salary
Grade
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
% Salary
Diff. Bet.
Steps
Step 1
6,149
6,703
7,307
7,891
8,522
9,204
9,848
10,538
11,275
12,026
12,748
13,512
14,323
15,181
16,093
17,059
18,082
19,168
20,318
21,537
22,397
23,294
24,224
25,196
26,203
27,250
28,340
29,474
30,653
34,939
48,915
55,902
69,878
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7
Step 8
6,303
6,871
7,489
8,087
8,735
9,434
10,092
10,801
11,557
12,328
13,066
13,850
14,682
15,562
16,494
17,484
18,534
19,647
20,825
22,075
22,958
23,876
24,830
25,825
26,859
27,931
29,050
30,212
31,420
35,813
50,138
57,300
6,460
7,042
7,675
8,290
8,953
9,670
10,346
11,070
11,846
12,635
13,392
14,197
15,048
15,950
16,907
17,921
18,997
20,138
21,346
22,626
23,532
24,473
25,453
26,472
27,529
28,631
29,777
30,967
32,205
36,709
51,390
58,732
6,622
7,219
7,868
8,496
9,176
9,911
10,604
11,348
12,143
12,951
13,726
14,552
15,424
16,349
17,329
18,371
19,471
20,642
21,880
23,194
24,120
25,084
26,089
27,132
28,218
29,346
30,520
31,740
33,010
37,626
52,675
60,201
6,788
7,398
8,063
8,710
9,406
10,160
10,870
11,630
12,446
13,275
14,071
14,915
15,809
16,758
17,763
18,829
19,961
21,158
22,428
23,773
24,722
25,712
26,739
27,812
28,922
30,080
31,282
32,534
33,836
38,566
53,991
61,706
6,958
7,583
8,266
8,928
9,642
10,414
11,141
11,921
12,756
13,608
14,423
15,289
16,205
17,178
18,208
19,301
20,459
21,685
22,988
24,367
25,340
26,355
27,409
28,506
29,646
30,831
32,065
33,347
34,682
39,531
55,342
63,248
7,131
7,773
8,471
9,150
9,882
10,673
11,420
12,220
13,077
13,948
14,784
15,670
16,611
17,607
18,662
19,784
20,970
22,229
23,562
24,976
25,975
27,014
28,094
29,219
30,386
31,603
32,866
34,181
35,549
40,518
56,725
64,830
7,310
7,968
8,684
9,379
10,130
10,941
11,707
12,525
13,401
14,297
15,151
16,061
17,025
18,046
19,130
20,277
21,494
22,784
24,150
25,601
26,623
27,688
28,797
29,950
31,148
32,393
33,689
35,036
36,436
41,530
58,143
66,450
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
Salary Diff.
Between SGs,
Step 1
554
604
584
630
682
645
690
737
751
722
765
811
858
912
966
1,023
1,086
1,151
1,219
860
897
931
971
1,008
1,047
1,090
1,134
1,179
4,287
13,976
6,987
13,976
% Salary
Diff. Bet.
SGs
9%
8%
8%
8%
7%
7%
7%
7%
6%
6%
6%
6%
6%
6%
6%
6%
6%
6%
6%
4%
4%
4%
4%
4%
4%
4%
4%
4%
14%
40%
14%
25%
Salaries of Selected Positions Effective July 1, 2008
Attorney I, SG-16
Attorney II, SG-18
Attorney III, SG-21
Attorney IV, SG-23
Attorney V, SG-25
Attorney VI, SG-26
17,059
19,168
20,318
24,224
26,203
27,250
17,484
19,647
20,825
24,830
26,859
27,931
17,921
20,138
21,346
25,453
27,529
28,631
18,371
20,642
21,880
26,089
28,218
29,346
18,829
21,158
22,428
26,739
28,922
30,080
19,301
21,685
22,988
27,409
29,646
30,831
19,784
22,229
23,562
28,094
30,386
31,603
20,277
22,784
24,150
28,797
31,148
32,393
12%
6%
19%
8%
4%
Budget Officer
Budget Officer
Budget Officer
Budget Officer
Budget Officer
12,748
16,093
19,168
23,294
25,196
13,066
16,494
19,647
23,876
25,825
13,392
16,907
20,318
24,473
26,472
13,726
17,329
20,642
25,084
27,132
14,071
17,763
21,158
25,712
27,812
14,423
18,208
21,685
26,355
28,506
14,784
18,662
22,229
27,014
29,219
15,151
19,130
22,784
27,688
29,950
26%
19%
22%
8%
Director I, SG-25
Director II, SG-26
Director III, SG-27
26,203
27,250
28,340
26,859
27,931
29,050
27,529
28,631
29,777
28,218
29,346
30,520
28,922
30,080
31,282
29,646
30,831
32,065
30,386
31,603
32,866
31,148
32,393
33,689
4%
4%
Director III, SG-27
Director IV, SG-28
28,340
29,474
29,050
30,212
29,777
30,967
30,520
31,740
31,282
32,534
32,065
33,347
32,866
34,181
33,689
35,036
4%
Director IV, SG-28
Dept. Asst. Secretary, SG-29
29,474
30,653
30,212
31,420
30,967
32,205
31,740
33,010
32,534
33,836
33,347
34,682
34,181
35,549
35,036
36,436
4%
I, SG-11
II, SG-15
III, SG-18
IV, SG-22
V, SG-24
Dept. Asst. Secretary, SG-29
30,653 31,420
Dept. Undersecretary, SG-30
34,939 35,813
Department Secretary, SG-31 48,915 50,138
Note: Extent of overlapping of salaries between
32,205 33,010 33,836 34,682 35,549 36,436
36,709 37,626 38,566 39,531 40,518 41,530
51,390 52,675 53,991 55,342 56,725 58,143
levels of positions is denoted by same color.
14%
40%
11
Weaknesses of the Current Compensation and
Position Classification System:
• Magna Carta advantage of certain positions
Public School Teachers, Public Health Workers, Public Social Workers and
Science and Technology Personnel enjoy more benefits.
• Proliferation of allowances and benefits
Particularly in GOCCs, e.g.: Rice Allowance, Grocery Allowance, Staple Food
Allowance, Meal Subsidy
12
Governing Principles
• Payment of just and equitable wages in accordance with the principle
of equal pay for work of equal value
• Comparability of compensation for government personnel with those
in the private sector doing comparable work
• Standardization and rationalization of compensation to promote social
justice, integrity, efficiency, productivity, accountability and
excellence in the civil service
• Adoption of a performance-based incentive scheme that will reward
exemplary performance
• Periodic review of the Compensation and Position Classification
System to consider changes in skills and competency requirements,
demand for certain expertise, and inflation
• Compensation for government personnel to be kept modest and to be
maintained at reasonable level in proportion to the national budget
Categories of Positions
• Sub-Professional Category – positions involved in manual or
clerical work in support of office operations or those engaged in arts,
crafts, and trades.
• Professional Category – positions involved in the exercise of
profession or application of knowledge acquired through formal
training.
• Executive Category – managerial positions involved in the
executive, legislative and judicial functions.
Comparison of Proposed Compensation in Public Sector
Versus Existing Compensation in Private Sector
Salaries
300.7%
250,000
240,000
230,000
220,000
210,000
200,000
190,000
180,000
170,000
160,000
150,000
140,000
130,000
120,000
110,000
100,000
90,000
288.5%
77.3%
71.1%
80,000
70,000
60,000
50,000
14%
40,000
0.7%
-25.5%
30,000
0.3%
2.1% 1.5%
20,000
-16%
10,000
Salary Grades 1
3
5
8
10
12
18
Sub-Professional
Professional
Government
25.4%
Private
8.5%
22
24
26
28
30
31
Executive
Compensation System
Proposed Salary Schedule
Salary Grades 1-9
Average
Salary
Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 % Diff.
Grade
Bet. SGs
1
2
3
4
5
6
7
8
9
8,000
8,680
9,418
10,218
11,087
12,029
13,052
14,161
15,365
8,088
8,775
9,521
10,331
11,209
12,162
13,195
14,317
15,534
8,177
8,872
9,626
10,444
11,332
12,295
13,340
14,474
15,705
8,267
8,970
9,732
10,559
11,457
12,431
13,487
14,634
15,877
8,358
9,068
9,839
10,675
11,583
12,567
13,636
14,795
16,052
8,450
9,168
9,947
10,793
11,710
12,706
13,786
14,957
16,229
8,543
9,269
10,057
10,912
11,839
12,845
13,937
15,122
16,407
8,637
9,371
10,167
11,032
11,969
12,987
14,091
15,288
16,588
8.5%
8.5%
8.5%
8.5%
8.5%
8.5%
8.5%
8.5%
8.5%
Sample Positions
Utility Worker I
Messenger
Carpenter I
Clerk II
Carpenter II
Clerk III
Bookbinder III
Administrative Assistant
Well Drilling Supervisor I
Compensation System
Proposed Salary Schedule
Salary Grades 10-24
Salary
Grade
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Average
Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 % Diff.
Bet. SGs
16,671
18,088
19,625
21,293
23,103
25,067
27,198
29,510
32,018
34,644
37,415
40,408
43,641
47,132
50,903
16,854
18,287
19,841
21,528
23,358
25,343
27,497
29,834
32,370
35,025
37,827
40,853
44,121
47,651
51,463
17,040
18,488
20,059
21,765
23,615
25,622
27,800
30,163
32,726
35,410
38,243
41,302
44,606
48,175
52,029
17,227
18,691
20,280
22,004
23,874
25,904
28,105
30,494
33,086
35,799
38,663
41,756
45,097
48,705
52,601
17,417
18,897
20,503
22,246
24,137
26,189
28,415
30,830
33,450
36,193
39,089
42,216
45,593
49,240
53,180
17,608
19,105
20,729
22,491
24,402
26,477
28,727
31,169
33,818
36,591
39,519
42,680
46,095
49,782
53,765
17,802
19,315
20,957
22,738
24,671
26,768
29,043
31,512
34,190
36,994
39,953
43,150
46,602
50,330
54,356
17,998
19,527
21,187
22,988
24,942
27,062
29,363
31,858
34,566
37,401
40,393
43,624
47,114
50,883
54,954
8.5%
8.5%
8.5%
8.5%
8.5%
8.5%
8.5%
8.5%
8.5%
8.2%
8.0%
8.0%
8.0%
8.0%
8.0%
Sample Positions
Records Officer I
Budget Officer I
Engineer I
Budget Officer II
Nurse II
Administrative Officer II
Engineer II
Airport Project Supervisor
Administrative Officer III
Dentist III
Judicial Staff Officer V
Attorney III
Medical Officer V
Associate Professor V
Division Chief
Compensation System
Proposed Salary Schedule
Salary Grades 25-33
Salary
Grade
25
26
27
28
29
30
31
32
33
Average
Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 % Diff.
Bet. SGs
54,975
59,373
64,123
69,125
74,309
80,254
91,000
102,000
120,000
55,580
60,026
64,828
69,885
75,126
81,136
92,001
56,191
60,686
65,541
70,653
75,952
82,028
93,013
56,809
61,354
66,262
71,430
76,787
82,930
94,036
57,434
62,029
66,991
72,216
77,632
83,843
95,071
58,066
62,711
67,728
73,011
78,487
84,766
96,116
58,705
63,401
68,473
73,814
79,350
85,698
97,174
59,350
64,098
69,226
74,626
80,223
86,641
98,243
8.0%
8.0%
8.0%
7.8%
7.5%
8.0%
13.4%
12.1%
17.6%
Sample Positions
Director I
Director II
Director III
Director IV
Department Assistant Secretary
Department Undersecretary
Department Secretary
Vice-President of the Philippines
President of the Philippines
Compensation System
Total Compensation Framework
• Basic Salaries, including Step Increments
• Standard Allowances and Benefits – given to all employees
across agencies, e.g., PERA, Additional Compensation, Year-End Bonus
• Specific-Purpose Allowances and Benefits – given under
specific conditions, based on actual performance of work
e.g., RATA, Honoraria, Subsistence Allowance, Hazard Pay
• Incentives – rewards to recognize employee loyalty, for exceeding
performance targets and to motivate productivity
e.g., Loyalty Incentive, Productivity Enhancement Incentive
Compensation System
Magna Carta Benefits
• To be categorized by DBM per Total Compensation
Framework
• Henceforth, DBM will issue guidelines on conditions,
qualifications for grant, and rates of benefits
Compensation System
Local Government Units
•
Position titles, salary grades, salary rates, allowances, benefits and
incentives of LGU employees shall be in accordance with the provisions
of the Joint Resolution.
• Salaries of LGU employees shall be based on income class and financial
capability of LGU, not to exceed the following percentages :
For Provinces/Cities
For Municipalities
Special Cities
100%
1st Class
100%
90%
2nd Class
95%
85%
3rd Class
90%
80%
4th Class
85%
75%
5th Class
80%
70%
6th Class
75%
65%
Compensation System
Non-Diminution in Basic Salaries of Incumbent Employees
•
There shall be no diminution in basic salaries of incumbent
employees upon implementation of this Joint Resolution.
•
For this purpose, they shall receive the new salary rates
prescribed herein, to be implemented in tranches, which shall in
no case be less than their existing salary rates.
Implementation Period
• SSL III to be implemented in 4
tranches
• From July 2009 to 2012
23
Support the Joint Resolution
on SSL III
24
Thank You
Department of Budget and Management
2008
25