EIGHTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )

First Regular Session )

SENATE

S. No1006 ·19 SEP -4 P12 :34

Introduced by Senator Ralph G. Recto REC: · "'".: n: ---~·- 1 - \ - - -

AN ACT
INCREASING THE SALARY SCHEDULE OF CIVILIAN PERSONNEL IN THE
GOVERNMENT, AND FOR OTHER PURPOSES

EXPLANATORY NOTE

This bill seeks to improve the purchasing power of approximately 1.4 million
civil servants 1 in the country that was eroded by inflation by providing an increase in
the salary of government officials and employees.

It also aims to attract and retain competent and committed civil servants and
increase productivity among the public sector workers.

By virtue of Executive Order No. 201, the national government implemented

the salary adjustments and additional benefits for government employees which was
further amended by Executive Order No. 76 dated March 15, 2019. The modified
Salary Schedule was implemented in four tranches from January 1, 2016 to April 1,
2019. However, the adjusted salary is deemed unfair and inadequate by most
government personnel especially those under Salary Grades 1 to 16 which comprise
about 84 percent of the government workforce.

This proposal will put more money in government employees' pockets and will
increase disposable income, boost consumer spending, and in turn would stimulate
the economy and help generate more revenues.

1 Table 1. Staffing Summary of the National Government. Fiscal Year 2020.

 This bill mandates the implementation of salary increases for government
officials and employees in accordance with salary schedules for three (3) tranches.
The salary schedules shall be implemented on January 1, 2020 and every January 1
thereafter until the final tranche in 2022.

The salary increase is equivalent to an accross the board annual ten percent
increase for three (3) years plus an additional total of Ten Thousand Pesos
(P10,000) in the basic monthly salary spread in three (3) years.

With this bill, the government would alleviate the living conditions of the 1.4
million public servants. Consequently, the much-needed relief that this measure
offers will further motivate government personnel and invigorate public service.

With the foregoing considered, immediate passage of this bill is earnestly

sought.

jmjmajejcv

2
 EIGHTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

SENATE
'19 SEP -4 P12 :34
s. No. 1006
RECt ·. ·~ li<
Introduced by Senator Ralph G. Recto

AN ACT
INCREASING THE SALARY SCHEDULE OF CIVILIAN PERSONNEL IN THE
GOVERNMENT, AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in

Congress assembled:

Section 1. This Act shall be known as the "Salary Standardization Law V".
2 Sec. 2. Declaration of Policy. Pursuant to the constitutional mandate that the
3 State shall provide for the standardization of salary of government officials and
4 employees, including those in government-owned or -controlled corporations with
5 original charters, taking into account the nature of duties and responsibilities
6 pertaining to and the qualifications required for their positions, the State shall:
7 (a) implement a salary schedule that is generally comparable with those in
8 the private sector doing comparable work and in accordance with the
9 provisions of existing salary and position classification laws, in order to
10 attract, retain and motivate a corps of competent civil servants;
11 (b) keep the salary for government personnel fair and reasonable in
12 recognition of fiscal realities and maintain personal services cost at a
13 reasonable proportion of over-all expenditures; and
14 (c) conduct a periodic review of the salary and position classification
15 system taking into account the changes in skills and competency
16 requirements and the possible erosion in the purchasing power due to
17 inflation, and other factors.
18 Sec. 3. Coverage. The modified Salary Schedule herein provided shall apply to
19 all positions for civilian government personnel in the Executive, Legislative and
 Judicial Branches, including Constitutional Commissions, State Universities and
2 Colleges (SUCs), Government-Owned or -Controlled Corporations (GOCCs) not
3 covered by RA No. 10149, Government Financial Institutions (GFis) and local
4 government units (LGUs); regardless of appointment status, whether regular, casual
5 or contractual in nature; appointive or elective; and on full-time or part-time basis,
6 now existing or hereafter created.
7 However, individuals whose services are engaged through job orders,
8 contracts of service, consultancy contracts, and service contracts with no employer-
9 employee relationship are excluded from the salary increase authorized herein.
10 Sec. 4. Modified Salary Schedule for Civilian Government Personnel. The
11 modified Salary Schedule for Civilian Personnel shall be as follows:

First Tranche

SG Step 1 Step 2 Step 3 Step4 Step 5 Step 6 Step 7 Step 8

1 15,475 15,576 15,679 15,783 15,887 15,992 16,099 16,205
2 16,237 16,336 16,436 16,537 16,639 16,741 16,844 16,948
3 17,013 17,118 17,224 17,332 17,439 17,547 17,657 17,767
4 17,835 17,948 18,060 18,173 18,288 18,402 18,519 18,635
5 18,708 18,827 18,945 19,065 19,186 19,308 19,432 19,555
6 19,632 19,757 19,884 20,011 20,140 20,269 20,400 20,530
7 20,612 20,745 20,879 21,014 21,150 21,287 21,425 21,564
8 21,734 21,901 22,069 22,239 22,409 22,582 22,757 22,933
9 23,073 23,238 23,405 23,573 23,742 23,913 24,086 24,259
10 24,456 24,633 24,812 24,992 25,172 25,356 25,540 25,726
11 26,129 26,442 26,760 27,081 27,407 27,738 28,072 28,412
12 28,532 28,844 29,161 29,481 29,806 30,135 30,467 30,803
13 31,055 31,400 31,747 32,099 32,457 32,817 33,183 33,553
14 33,831 34,209 34,592 34,980 35,372 35,769 36,171 36,578
15 36,884 37,300 37,721 38,148 38,579 39,016 39,458 39,907
16 40,242 40,700 41,163 41,632 42,107 42,588 43,075 43,567
17 43,936 44,440 44,949 45,465 45,988 46,517 47,051 47,594
18 48,001 48,554 49,115 49,682 50,257 50,839 51,427 52,023
19 53,096 53,909 54,735 55,574 56,428 57,295 58,177 59,072
20 59,571 60,488 61,422 62,370 63,335 64,315 65,310 66,322
21 66,886 67,923 68,978 70,049 71,139 72,246 73,371 74,515
22 75,151 76,324 77,516 78,727 79,958 81,210 82,481 83,773
23 84,492 85,817 87,164 88,532 89,924 91,337 92,774 94,235
24 95,047 96,544 98,066 99,613 101,185 102,783 104,407 106,057
25 107,891 109,599 111,333 113,097 114,888 116,710 118,561 120,442

2
SG Step 1 Step 2 Step 3 Step4 Step 5 Step 6 Step 7 Step 8
26 121,488 123,417 125,378 127,370 129,395 131,453 133,544 135,671
27 136,852 139,032 141,248 143,499 145,787 148,113 150,477 152,879
28 154,215 156,677 159,181 161,725 164,310 166,939 169,610 172,324
29 173,833 176,617 179,445 182,321 185,242 188,212 191,230 194,297
30 196,002 199,147 202,344 205,593 208,894 212,251 215,661 219,127
31 286,890 292,428 298,076 303,833 309,704 315,688 321,790 328,010
32 341,402 348,220 355,176 362,272 369,511 376,896 384,431 392,117
33 430,206 443,013

Second Tranche

SG Step 1 Step 2 Step 3 Step4 Step 5 Step 6 Step 7 Step 8

1 16,692 16,804 16,917 17,031 17,146 17,261 17,378 17,496
2 17,531 17,640 17,750 17,861 17,972 18,085 18,199 18,312
3 18,384 18,500 18,616 18,735 18,853 18,972 19,093 19,214
4 19,289 19,412 19,536 19,660 19,786 19,912 20,040 20,169
5 20,248 20,379 20,510 20,642 20,775 20,909 21,045 21,180
6 21,265 21,403 21,542 21,682 21,824 21,965 22,109 22,253
7 22,343 22,489 22,637 22,786 22,935 23,086 23,237 23,391
8 23,577 23,761 23,946 24,133 24,320 24,510 24,702 24,896
9 25,050 25,231 25,415 25,600 25,787 25,974 26,164 26,355
10 26,572 26,767 26,963 27,161 27,360 27,562 27,764 27,968
11 28,412 28,756 29,106 29,459 29,817 30,181 30,549 30,923
12 31,055 31,399 31,747 32,099 32,456 32,818 33,183 33,554
13 33,831 34,209 34,592 34,979 35,372 35,769 36,171 36,579
14 36,884 37,300 37,721 38,148 38,579 39,016 39,458 39,906
15 40,243 40,700 41,163 41,633 42,107 42,587 43,074 43,568
16 43,937 44,440 44,949 45,465 45,988 46,516 47,052 47,593
17 48,000 48,554 49,114 49,682 50,256 50,838 51,427 52,023
18 52,471 53,079 53,697 54,320 54,952 55,593 56,240 56,896
19 58,075 58,970 59,878 60,802 61,741 62,694 63,664 64,649
20 65,198 66,207 67,234 68,277 69,338 70,416 71,511 72,625
21 73,244 74,385 75,545 76,724 77,923 79,140 80,378 81,637
22 82,336 83,626 84,937 86,270 87,624 89,001 90,399 91,820
23 92,611 94,068 95,550 97,056 98,586 100,141 101,721 103,328
24 104,221 105,868 107,543 109,244 110,973 112,731 114,517 116,332
25 118,350 120,228 122,137 124,076 126,047 128,051 130,087 132,157
26 133,307 135,428 137,586 139,777 142,005 144,269 146,569 148,908
27 150,207 152,606 155,042 157,519 160,036 162,594 165,194 167,837
28 169,306 172,015 174,769 177,568 180,411 183,303 186,241 189,226
29 190,886 193,949 197,060 200,223 203,436 206,703 210,022 213,397
30 215,273 218,732 222,248 225,823 229,454 233,146 236,897 240,709
31 315,249 321,341 327,553 333,887 340,344 346,927 353,639 360,481

3
 SG Step 1 Step 2 Step 3 Step4 Step 5 Step 6 Step 7 Step 8
32 375,212 382,712 390,363 398,169 406,132 414,256 422,544 430,999
33 472,896 486,984

Third Tranche

SG Step 1 Ste~ 2 Step 3 Step4 Step 5 Step 6 Step 7 Step 8

1 18,132 18,254 18,379 18,504 18,631 18,757 18,886 19,015
2 19,054 19,174 19,295 19,417 19,540 19,663 19,789 19,914
3 19,992 20,120 20,248 20,378 20,509 20,639 20,772 20,905
4 20,988 21,124 21,259 21,396 21,535 21,673 21,814 21,955
--
5 22,043 22,187 22,331 22,476 22,622 22,770 22,919 23,068
6 23,161 23,313 23,466 23,621 23,776 23,932 24,090 24,249
7 24,347 24,508 24,671 24,834 24,998 25,165 25,331 25,500
8 25,705 25,907 26,111 26,316 26,522 26,731 26,943 27,156
9 27,325 27,524 27,727 27,930 2~,135 28,342 28,551 28,761
10 28,999 29,213 29,429 29,647 29,866 30,088 30,310 30,535
11 31,024 31,402 31,786 32,175 32,569 32,969 33,374 33,785
12 33,930 34,308 34,692 35,079 35,472 35,870 36,272 36,679
13 36,984 37,400 37,821 38,247 38,679 39,116 39,558 40,006
14 40,342 40,800 41,263 41,733 42,207 42,687 43,174 43,667
15 44,037 44,540 45,050 45,566 46,088 46,616 47,151 47,694
16 48,100 48,654 49,214 49,781 50,356 50,938 51,528 52,123
17 52,570 53,179 53,796 54,420 55,052 55,692 56,339 56,995
18 57,488 58,157 58,836 59,522 60,218 60,922 61,634 62,355
19 63,653 64,637 65,636 66,652 67,685 68,733 69,801 70,884 --
20 71,487 72,597 73,727 74,875 76,042 77,228 78,432 79,657
21 80,338 81,594 82,870 84,166 85,485 86,824 88,186 89,570
22 90,340 91,758 93,201 94,667 96,156 97,671 99,209 100,772
23 101,642 103,245 104,875 106,531 108,215 109,925 111,664 113,431
24 114,413 116,225 118,067 119,938 121,840 123,774 125,739 127,735
25 129,955 132,021 134,120 136,254 138,422 140,626 142,866 145,142
26 146,408 148,741 151,114 153,525 155,975 158,465 160,996 163,569
27 164,998 167,636 170,317 173,041 175,810 178,623 181,484 184,391
28 186,007 188,987 192,016 195,095 198,222 201,404 204,635 207,919
29 209,745 213,114 216,536 220,015 223,550 227,144 230,795 234,507
30 236,570 240,375 244,243 248,175 252,169 256,230 260,356 264,550
31 346,544 353,245 360,079 367,045 374,149 381.,389 388,772 396,299
32 412,503 420,754 429,170 437,756 446,515 455,452 464,569 473,869
33 519,956 535,453

Sec. 5. Salary Adjustment in LGUs. - The salary or wage adjustments,

2 provided in Section 3 hereof shall also be applied to the LGUs in accordance with the
3 applicable provisions of this Act.

4
 The basic pay of barangay personnel shall be in the form of honoraria which
2 shall not exceed the percentage of the Salary Schedule corresponding to the income
3 classification of the LGU.
4 Sec. 6. Implementation Schedule. - The modified Salary Schedule as provided
5 herein shall be implemented in National Government Agencies as follows, subject to
6 appropriations by Congress:
7 a. Starting January 1, 2020, the first tranche schedule for civilian personnel;
8 b. By January 1, 2021, the second tranche schedule for civilian personnel;
9 and
10 c. By January 1, 2022, the third tranche schedule for civilian personnel
11 For covered GOCCs, GFis and LGUs, the implementation period shall be in at
12 least three (3) years depending on their financial capability, with each tranche
13 starting not earlier than the dates stated above. GOCCs, GFis and LGUs which do
14 not have adequate or sufficient funds shall partially implement the modified Salary
15 Schedule. In case of partial implementation, the same shall be at uniform
16 percentage across all positions for every GOCC, GFI and LGU.
17 Sec. 7. Non-diminution in the Basic Salaries of Incumbent Employees. -In no
18 case shall there be any diminution in the basic salaries of incumbent employees
19 upon the implementation of this Act. For this purpose, they shall receive the new
20 salary rates prescribed herein which in no case shall be less than their existing salary
21 rates.
22 Sec. 8. Compensation and Position Classification Report. - The DBM shall
23 prepare a Compensation and Position Classification Report for all government
24 entities in the national government; GOCCs and GFis including exempt entities and
25 the status of implementation thereof. The reports shall be periodically updated and
26 submitted to Congress and the Commission on Audit for public disclosure,
27 monitoring, compliance with established policies and as basis for future policy
28 decisions.
29 Sec. 9. Periodic Review of the Compensation and Position Classification
30 System. The DBM and Civil Service Commission shall jointly review the
31 Compensation and Position Classification System every three (3) years, develop and

5
 ' .

recommend to the President a competitive compensation and remuneration system

2 which shall attract and retain talent.
3 Sec. 10. Appropriations. -The funding sources for the amounts necessary to
4 implement the modified Salary Schedule shall be as follows:
5 (a) For national government entities, the amount necessary for the
6 immediate implementation of this Act shall be included in the General
7 Appropriations Act (GAA);
8 (b) For covered GOCCs and GFis, the amounts shall come from their
9 respective corporate funds in the approved corporate operating budgets.
10 Government corporations which do not have adequate or sufficient funds shall
11 only partially implement the established rates: Provided, That any partial
12 implementation shall be at uniform proportion of the established rates for all
13 positions in each government corporation; and
14 (c) For LGUs, the amounts shall be charged against their respecttve
15 local government funds in accordance with the pertinent provisions of this Act
16 and Republic Act No. 7160.
17 Sec. 11. Implementing Rules and Guidelines. -Within sixty (60) days after the
18 effectivity of this Act, the DBM, Civil Service Commission and Governance
19 Commission on GOCCs shall formulate the rules and regulations to effectively
20 implement the provisions of this Act.
21 Sec. 12. General Repealing and Amendatory Clause. -Any law, presidential
22 decree or issuance, executive order, corporate charters, implementing rules and
23 regulations, circulars, and other issuances prescribing salary grades for government
24 officials and employees which are inconsistent with the provisions of this Act are
25 hereby repealed, amended or modified accordingly.
26 Sec. 13. Separability Clause. - If any portion or provision of this Act is
27 declared unconstitutional, the remainder of this Act or any provisions not affected
28 thereby shall remain in force and effect.
29 Sec. 14. Effectivity Clause. - This Act shall take effect fifteen (15) days
30 following its complete publication in two (2) newspapers of general circulation or in
31 the Official Gazette.
Approved,