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PIA Press Release
2009/06/10

Congress allows PGMA to hike state workers' salaries

Manila (10 June) -- President Gloria Macapagal-Arroyo on Monday expressed her gratitude to both houses of Congress for giving her the authority, through a Joint Resolution, to grant salary increases for all government employees nationwide.

Executive Secretary Eduardo Ermita said the joint resolution allowed President Arroyo to implement a new compensation program for government employees that would increase salaries by an average of 50 percent spread over four years, while setting the minimum wage of civil servants higher than those of their private sector counterparts starting next month.

Aimed at attracting skilled and competent personnel to work in government and retaining them on the long-term, as well as assuaging the economic conditions of the government's workforce, the new program will raise salaries of teachers and nurses, and doctors on entry by 54 percent and 84 percent, respectively.

Secretary Ermita said the program would raise the minimum wage of government workers, consisting of basic salary and the Personnel Economic Relief Allowance (PERA) to P402 by July 1, 2009, higher than the P382 received by their private sector counterparts.

All government personnel of the Executive, Legislative and Judicial branches; Constitutional Commissions; State colleges and universities, government-owned and controlled corporations (GOCC), government's financial institutions (GFI), and local government units (LGU) will be covered by the program.

The initial implementation covering national government, GOCC, and GFI employees will begin on July 1, 2009. Local government workers, on the other hand, will have to wait for six (6) months, on January 1, 2010, to enjoy the initial benefits.

Funds to be used for national government workers will be charged against specific allocations under the 2009 Appropriations Act, while those for local government workers will be sourced from their respective local funds, based on their income class and subject to limitations on personnel services as provided under the Local Government Code.

The GOCCs and GFIs will tap their corporate funds under their approved corporate operating budgets to implement the program. If funds are insufficient, GOCCs and GFIs will have to partially implement the established rates of increase for the year.

Allowances under the new compensation program are to be rationalized and categorized as follows: Standard Allowances and Benefits (i.e., PERA, and year-end bonus and cash gift); Specific Purpose Allowances and Benefits (i.e., representation and transportation allowance; subsistence allowance, hazard pay); and Incentives (i.e., loyalty incentive, anniversary bonus, and productivity enhance incentive). (PIA) [top]

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