Compensation package for state workers under review

MANILA  -The Marcos administration is reviewing the compensation system for state workers to make it competitive against private sector compensation package and attract Filipinos to work for the government, according to Budget Secretary Amenah Pangandaman.

Pangandaman said in a statement the Department of Budget and Management was also doing a parallel review of the various benefits received across different ranks of the civil service to determine the need to adjust them.

Meanwhile, the administration is proposing an allocation of P16.95 billion in the 2024 national budget for the initial cost of a new salary hike for government workers.

READ: Almost P17 billion allotted for gov’t workers’ pay hike in proposed budget

“We have allotted (such an amount under the provisions of the Miscellaneous Personnel Benefits Fund or MPBF) to support the compensation adjustment that may be pursued starting next year,” Pangandaman said.

The budget chief said such increases may be considered starting 2024 considering that the modified salary schedule for civil personnel was implemented in four tranches in as many years, during fiscal years 2020 to 2023.

Last January, the last tranche of salary hikes for government employees was implemented as mandated by Republic Act No.11466 or the Salary Standardization Law of 2019, series of 2020.

“This (additional salary hikes) is intended to encourage Filipinos to enter government service, and also to motivate those who are already government employees to stay and perform well,” Pangandaman said.

Earlier, she said that ₱48 million has been allocated from the approved 2023 budget of the Governance Commission for Government-Owned and Controlled Corporations (GCG).

The amount is for the hiring of a specialist services group to conduct a comprehensive review of the Compensation and Position Classification System for the government sector.

“When it comes to implementing another round of increases, President Marcos has directed us to conduct a study to ensure that the compensation of all civilian government personnel will be generally competitive compared to what those working for the private sector have,” Pangandaman said.

“The final cost requirement (of the increase) shall be determined once the results of the study have been presented and finalized,” she added.

Further, the DBM is also proposing an allocation of P1.368 billion to fund an additional P1,000 in the uniform or clothing allowance of over 1.3 million government employees.

READ: Senate deliberation on proposed 2024 nat’l budget begins