You are here: Home » Government » Update on The Second Tranche of Salary Increase for Government Employees

Update on The Second Tranche of Salary Increase for Government Employees

Salary increase to Philippine government employees will push through in the next few weeks. This was already appropriated in the 2009 and 2010 General Appropriations Act.

(Update on the Second Tranche Release as of June 30, 2010)

Government employees in the Philippines are eagerly waiting the implementation of the second tranche of the Salary Standardization Law III this July 2010. This was initially implemented in July last year with the issuance of Executive Order 811 which adopts the First Tranche of the Modified Salary Schedule of Civilian Personnel and Base Pay Schedule of Military and Uniformed Personnel in the Government, as well as the Modified Position Classification System Pursuant to Senate and House of Representatives Joint Resolution No. 4, S.2009. This is part of the four tranche (2009 to 2012) release of the allocated PhP20 billion budget covering some 1.141 million state workers.

First Installment of the Four-Year Hike

Despite the financial crisis last year, the first installment of the four-year pay hike program pushed through. This helped government employees cope up with rising prices and high cost of living. This increase, however, appears to be insufficient for many government employees.

Many of those who complain belong to the lower rung of the ladder. They believe that the increase is insufficient to address their economic needs. Details and criticisms on the implemented increase can be found in the comments section of this author’s previous article about the salary standardization law.

Second Tranche

The release of the fund for the second tranche under the Salary Standardization Law is guaranteed as this was already programmed and approved in the 2009 national budget. PhP20 billion of the PhP109 billion has already been released for the first tranche. For 2010, specific allocations have already been incorporated in the approved General Appropriations Act for the Fiscal Year 2010 and under the Miscellaneous Personnel Benefits Fund  or MPBF. The total new appropriations amount to more than PhP74 billion. Guidelines for implementation were released on February 16, 2010 through National Budget Circular 523.

The amount appropriated for payment of MPBF shall be used for:

1. Deficiencies in authorized salaries, bonuses, allowances, associated premiums and other similar personnel benefits for national government employees,
2. requirements for the first tranche implementation of the salary increases authorized under Senate and House of Representatives Joint Resolution No. 4, s. 2009, as implemented by E. O. No. 811, s. 2009,

a. full year requirement for those covered by the salary increase effective July 1, 2009, and
b. for newly-elected President, Vice-President and Members of the Congress effective July 1, 2010.

3. Requirement for the second tranche implementation of the salary increase authorized under Senate and House of Representative Joint Resolution No. 4, s. 2009.

Details on implementation of the table of salary increases have not been released yet. Last year’s Executive Order to implement the first tranche was on June 18, 2009.

The new salary increase among the government workers will not only reduce their economic woes but also reduce corruption in government offices. This is especially relevant to education, which receives a substantial amount in government pay increase. According to the Education Minister of Turkey, low salary is the main reason for corruption in the education sector. In the long run, improved teacher salaries will help fuel the country’s economic and social development.

(Update on the Second Tranche Release as of June 30, 2010)

(Update on the Third Tranche Release for 2011)

Additional Resources

Department of Budget and Management Website.

Liked it
User Comments
  1. Lord Banks

    On June 10, 2010 at 6:25 am

    Very intersting the internal politics of Governments vary so much. The UK is set for the biggest general hike in taxes and cut backs in government spending ever. LB

  2. rolly

    On June 21, 2010 at 4:31 am

    July is already fast approaching, yet the DBM has not yet posted the table for the second tranche increase for govermment employees. why?

  3. Patrick Regoniel

    On June 30, 2010 at 11:47 am

    DBM has already posted the schedule of the second tranche salary schedule. You may click the update link at this date, June 30 in the first and last part of the article above.

Post Comment
Powered by Powered by Triond