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PIA Press Release
2010/05/19

State workers to receive annual salary increases until 2013

by T. Villavert

Iloilo City (19 May) -- As prescribed under the Salary Standardization law III, more than 1.5 million government employees are assured to benefit from the law enacted during the Macapagal-Arroyo administration.

The Malacanang press report disclosed that the salary increases will be given in four yearly tranches until 2013.

President Arroyo said in her speech keynoting the 16th anniversary of the Commission on Higher Education, that the Salary Standardization was derived from the "bitter but necessary economic and financial reforms" implemented to increase revenues.

The President said that the next round of salary increases for government workers is slated to be given this July.

"Because of the Salary Standardization Law that we enacted during my administration, even when I am no longer President, you will continue to receive increases for the next three years," Arroyo said.

The basic salary, including step increments, where an employee may progress from step 1 to step 8 of the salary grade allocation, will be the primary component of the compensation framework.

The framework seeks to rationalize and standardize the basic salaries, allowances, benefits and incentives for government officials and employees.

She explained in her speech that the value added tax law (E-VAT) which increased the VAT on taxable items to 12 percent was the main source of "fresh funds which we reinvested in our people through expanded and improved education, social services, infrastructure and salary increases."

President Arroyo said that the salary increase granted in July last year covered everyone in government service including teachers in the SUCs (state universities and colleges), specialized schools and of course as well as the staff in the Commission on Higher Education," the Malacanang press report disclosed. (PIA6) [top]

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