a | WoUSEF REPRESENTATIVES RECEIVED 30 JUN 20% Republic of the Philippines Date HOUSE OF REPRESENTATIVES, swe ty Quezon City BY!_/ | EGISTRATION UNIT SEVENTEENTH CONGRESS f = ees First Regular Session BILLS AND INDEX SERVICE ae rouse BILL No.» LE Introduced by REP. ‘ELICIANO BELMONTE, JR. EXPLANATORY NOTE In 2009, Congress enacted Joint Resolution No 4 revising the Compensation and Classification system for civilian personnel and base pay of military and uniformed personnel. Joint Resolution No. 4 mandated the review of the compensation and position classification system after three years from the last year of the adjustment, to determine the competitiveness of government pay in relation to the private sector and the compensation strategy lo bring government pay closer to market rates, ‘The proposed Salary Standardization Law (SSL) of 2016 will result in a weighted average increase of forty five percent (45%) in the compensation of all salary grades, and raise compensation of government personnel to at least seventy percent (70%) of the private sector rate, This will be effected through a combination of a salary increase, a 14® month pay and an enhanced performance-based bonus to be implemented over a four-year period, from January 1, 2016 to January 1, 2019. The bill secks to raise the pay of the zovernment personnel to be competitive with the market rates, strengthen the link between pay and performance through an enhanced performance-based bonus system, temper the cost of benefit while maximizing, the benefits of employees, and allow higher take-home pay particularly for government personnel belonging to the lower salary grades. fies that significantly impact the nation, Legislative action is urgently needed to allow the Government personnel are given substantial duties and responsibilGovernment of the Republic of the Philippines to attract and retain the services of capable personnel in order to best serve the needs of the Filipino people. In view of the foregoing, the immediate 2assage of this bill is earnestly sought. Gb Gt. FELICIANO BELMONTE, JR.Republic of the Thilippines HOUSE OF REPRESENTATIVES ‘Quezon City SEVENTEENTH CONGRESS First Regular session uouse ino: * 44 Introduced by Representative Feliciano Relmonte, Jr AN ACT MODIFYING THE COMPENSATION AND POSITION CLASSIFICATION SYSTEM OF CIVILIAN GOVERNMENT PERSONNEL AND THE BASE PAY SCHEDULE OF MILITARY AND. UNIFORMED PERSONNEL IN THE GOVERNMENT, AND FOR OTHER PURPOSES Be it enacted by the Senate and Howse of Representatives of the Philippines in Congress assembled: SECTION 1. Title. -‘This Act shall be known as the “Salary Standardization Law of 2016” or the “SSL, 206" SEC. 2. Statement of Policy. ~ It is hereby declared the policy of the Slate to provide all government personnel a just and equitable compensation in accordance with the principle of equal pay for work of equal value. In pursuing this policy, the State shall ensure that: a) Differences in pay shall be based upon sulstantive differences accountabilities ancl qualification requirements of the positions duties, responsibilities, 1B) Compensation for all civilian government personnel shall be standardized and rationalized across all government agencies to create an onabling environment that will promote social justice, integrity, efficiency, produetivity, accountability and excellence in the civil service, SEC. 3. Coverning Principles. ~ ‘The following principles shall govern the implementation of the ‘Compersation and Position Classification System (CPCS) for civilian government personnel andl Base Pay Schedule for the military and uniformed personnel: a) The performance-based incentive system shall be strengthened through the integratjon of personnel and organizational performance te reward deserving government personnel and well: performing institutions; b)_ The compensation for government personnel shall be kept fair and reasonable in recognition of fiscal realities and an efficient allocation of Personnel Services (PS) cost which shall be maintained at a manageable level in proporticn to the overall expenditure af the government; ©) The CPCS shall be periodically reviewed every three @) years, king inte account the competitiveness of government pay relative to the private sector, changes in skills and competency requirement in the bureaucracy, demand for certain expertise, possible erosion in the purchasing power due to inflation, and otter factors; 4) The compensation for all civilian government personnel shall be competitive with those in the private sector doing comparable work in order to attract, retain and motivate a corps of effective, efficient, professional, committed and competent civil servants; ) The compensation scheme shall ensure higher net take-home pay for government personnel; and1) The compensation system for the military auc uniformed personnel shall likewise promote pay equity for an effective, efficient, committed, competent and motivated corps of officers and enlisted personnel. The base pay inereasefor military and uniformed personnel shall take into consideration the prevailing fiscal realt:ies, particularly the effect on pension and. the capacity of the government to sustain the payment theroof. SHC. 4, Covernge. - The CPCS herein provicted shall apply to all civilian govemment personnel in the Executive, Legislative and Judicial Branches, Consti utional Commissions and other Constitutional Offices, government-owned or -controlled corporations (COCs) not covered by Republic Act No. 10149, and focal government units (LGUs). ‘his shall cover government personnel whether regular, contractual or cesual, appointive or elective; and on fUFtine or part-time basis, SEC. 6, Exclusions. - ‘The following shall be excladed fom the coverage of the CPCS: 4) Military and uniformed personnel which shall be covered by the provisions of Section 11 horeof, ») GOCCs under Republic Act No. 10149 whict shall be covered by a CPCS establis ‘Governance Commission for GOCCs (GCG); and nd by the ©) Individuals whose services are engaged throxgh Job orders, contracts of service, consultancy contracts, and service contracts with no empleyer-employce relationship. SEC. 6. Adnuiuistration of the CPCS, ~ As the Administrator of the CPCS, the Department of Budget and ‘Management (DBM) shall undertake the following: (@) Modify and update the Index of Occupational Services, Occupational Groups, Classes and Salary Grades (IO5) as deemed necessary; (b) Classify and reclassify positions as to the appropriate position titles and salary grades puided by the Benchmark Pesition Schedule prescribed herein and the following factors: (@) The education, experience, and competencies required to perform the duties and responsibilities of the positions; (@) ‘The nature and complexity of the work tebe performed: (@) ‘The kind of sapervision received and or exercised; (8) Decision-making responsibilty; () Accountability for Funds, properties, equipment ancl records: (6) Hasdship, hazard and personal risk involved in the job;and (P) The demand for certain expertise. {c) Condact compensation surveys on private industry lo determine prevailing practices and rates of pay for comparable work in the govenmient; (@) Formulate and issue the implementing guidelines on approved changes in the salary schedule, and the criteria and guidelines for approved changes in the rates of allowances, benefits and incentives; and (c) Resolve issues on the implementation of the CPCS.SEC. 7, Position Classification System. — A Position Chssification System shall be implemented and ‘aciministered to organize and group positions by occupational groups, series, and classes, according, to similarities or differences in duties and responsibilties, and qualification requirements pursuant to the policies, rules and regulations issued by the DBM. The Position Classification System shall be the basis for determining the appropriate position title level, and salary grade. (a) Categories of Positions - The categories of positions shall be as follows: (1) Subprofessional Category; (2) Professional Category; and (3) Executive Category. (1) Sabprofessional Category - This category includes positions involved in routine, manual, or clerical work in support of office operations or those engaged in arts, crafts, and trades. These positions require completion of up to elementary education, secondary oF vocational education or completion of at least Ovo (2) years of college education, and skills acquired through training and moderate to considerable experience and knowledge of a limited subject matter or skills in arts, crafts, trades, manual and clerical work. (2) Professional Category ~ This category includes positions performing analy ical, technical and administrative work requiring the exercise of profession, application of knowledge acquired through formal training in a farticular field, or use of natural, creative and artistic ability or talent in arts and letters. These positions generally require thorough knowledge in the field of arts and sciences oF learning acquired through the complotion of a bachelor's, master’s or doctorate degrees. (3) Executive Category- This category indudes managerial positions involved in the execution of laws, rules and regulations, both in the national and local governments, in the legislation of laws and ordinances, and in (he acininistration of justice. Appointive executive positions require thorough knowledge acquired through completion of at least fa bachelor’s degree. Elective executive positions only require knowledge acquired through the minimum education prescribed by the Constitution and existing laws, 0) Index of Occupational Services, Occupational Groups, Classes and Salary Grades{IOS) ~The 10S shall contain all occupational groups, position litles, and salary grades for all civilian government personnel. The existing levels of positions shall be reviewed to convert them to the more appropriate number of levels that recognizes reasonable gradations in the levels of difficulty, substantial changes and complexity of the duties and responsibilities of positions, work methods, skills, competencies and olier relevant factors and to convert them into generic, brief but descriptive, and pendeer-neutral class or position titles. (6) Modification of Position Classification System -Any modification of the Fesition (Classification System shall be subject to the fellowing guidelines: (1) That positions are to be classified on the basis of their duties and responsibilities, and qualification requirements; (2) That new position titles are to be created only when there are now sets of duties and responsibilities; and () That position titles may be created, abolished, consolidated or divided as a result of organization, reorganization, and/or supstantial changes in duties and responsibilities, and work methods. SEC. 8. Compensation Systent, - A Compensation System shall be administered to determine the rates of pay for employees based on the position classification. ‘The Compensation System shall consist of {a) the salary schedule; (b) sat of allowances, hencfits and incentives; and (©) policies, rules and regulations on the administration of the salary schedule and grant of allowances, benefits and incentives.fa) &) ©) (@ Total Compensation Framework - The tal compersation to be given to all civilian government personnel for services rendered shall be limited to the following: (1) Basie salaries, including step increments; Q) Standard allowances and benefits; ©) Specific-purpose allowances and benelits;and (2) Incentives and performance-based pay. Provided, That the Total Compensation Framework shall exclude all indirect compensation under existing laws stich as, but not fined to: life and retirement insurance. benetits; employee compensation insurance; health insurance; Pay-Ibig Fund benefits; and Pro Fand benefits. Compensation Adjustment Strategy - The strategy for this new compensation scheme is to being the pay of government personnel closer to the prevailing rates in the private sector lo attract and retain competent and committed >ersonnel in the public sector, For this purpose, his Act shall (1) Raise the minimum salary for Salary Grade 1 from the current rate of nine thousand y y pesos (P9,000) to eleven thousand sixty-eight pesos (P1L,068) to make it even more compotitive with the market rates; (2) Bring the compensation of government personnel cleser to their private counterparts to at Teast seventy percent (70%) of the market rate for all salary grades; (@) Ensure that authorized salaries for cact of the salary grade allocation of government personnel shell not overlap to recognize differences in duties and responsibilities for the position; () Provide for a compensation adjustment partly os basie salary and partly as mid-year 14% month pay fo maximize the employees’ not take-home pay; and (8) Strengthen the link between government pay and performance by enhancing the performance-based bonus to recognize the government personnel who play a greater role and carry a heavier responsibility in improving performance. Implementation Schedule —The SSI. 2015 shal_ be implemented in four (4) tranches. (2) On January 4, 2016, the compensation acjustment will be in the form of the first tranche salary increase and a mid-year bonus. (2) By January 1, 2017, the compensation adjastment will consist of the second anche salary increase, the mid-year bonus and a fifty percent (50%) implementation of the enhanced performance-based bonus, (8) By January 1, 2018, the compensation adjustment will include the third tranche salary increase, mid-year bonus and the enhanced performance-based bonus. G) Finally on January 1, 2019, the full implementation of the SSL. 2015 will be composed of the final tranche salary increase, the mid-year bonus and the enhanced performance. based bonus. New Salary Rates, including Step Increments - The modified Salary Schedule for Civilian Personnel, to be implemeated in four (4) tranches, shall be as follows:First Tranche Salary Grade | Step siepS [Step6 | Step7 [Steps [a leas] eats oo [i036 | 101% | 2 [10350 wow [ro | 3 102889 aiae_ [21405 [a [ates x09 | 12,217 3 12888 13,087 6 [13378 r3s89_[ 14,020 [? | 1a331 [aes [raen [iara | vas | p08 8 | 15368 1588 | 15978 @ west | ear | isso | 169%. | 17:55 [es 55,781 mn 00,925 [z 00,098 P2885 79577 | 80557 gear | 87,993 | seat 198 30954 se. [99002 | 101038 nwo78 | 14908 fs aos | rs rai38 | 123356 ragote [128278 3 | 1.6 [awa oa [ware rao [1a 78 160,928Second Tranche Step Step7_| steps 1 9381 [10072 | 10.165 | 10.258 1588 _| 10640 2 10.667 [10761 | 10.855 | 10959 T1365 3 nias7_| 11488 [ne 12.110 a [ras [12368 | 13827 5 12975 | 19,07 1399 6 [aan | 19.979 1471 7 14785 | 14916 15725 8 19969) 16,50 Waa [onan [sare [san 20.08 ae sg acu Lees oe 19 [39st sees fanaa” [sate ay | 8250 [ee [aaa [08 21 A177 8432 | 49,054 | 49,76 cae Bia [i078 | seai0 sors | soe mate weir [arom 3 7ia7e | 72452 | 734s | 74,484 28 ea0 73900 | 80,009 | #1152 7 |e | 9300) 100,346 29 | 100,454 1108°5 113925 17.60 122.486 152,925 | 154.649 | 157,008 | 159.404 177,909 | 180,700 | 183,513 | 186372 215,801 | 223.78 1253855 164305 192221‘Third Tranche Say Grade [Sept See? [Sent as boss Pune PL 2 fra00 ¢ 5 sete | 13902 8 vase [ae [10 % 1550 15,765 [1 5 i 1083 3 firas 160 0 18,718 79384 | i [ao aa Ta | te ma Bama 57 1 26,494 2766 15 29,010 fis | 31765 93923 rae 36407 18 38/085. 3995 rT e511 4680 m0 ar087 487 ‘921 a1 [Ss sani ‘8.76 Bae sain 58 | eet 755 oon | rm0 73512 ams as [wean [en.es | esses [esa [87408 | asacs | outs 26 [32108 | 99408 | oa ons | naa | 107 | la 105009 two2n | 1088 | rs | naat0 26 frase [ares [ma erm 29 [rasa | ta [ase 138 20 5 | a7 [anos | 152.585 | Lens | 150500 | 9.8 | BI [am [a5 | 2061 sis [aroan [219768 | 3.90 32 | 253,867 | 236,036 | 247788 ae, | 255,509 | 200074 | 264,728 fe | aot [2660 C 7Fourth Tranche Sy Geade [Sap [Step2 [Sap [Spa 1 11,068 0 | 1254 | 388 2 a | 12,004 3 12756 a 21 5 Mae 668 é 182 1888 7 Tele aT? § Tai? “| ress 9 18.230 188% ho 02ie a F220 2 607 B 736 a 29,156 29,883 5 92,072 32871 16 35279 36159 | 38,332 __| 38,807 BOT78 16 | 008 7 asm [128 [9.88 3700 5457 56373 60,681 | 61.672 63701 aCe Ce [ris 2 [rent [75015 [76 78709 Faso | was za__[ soos [oi7er | sein | e7scr 98986 foiais | 95415 [25 95083 | 96,635 | 98,212 | 99815 101,444 | 103,100 | 104,783 | 106,493 26 Provaaa | o9,97 | nosto | 11371 114,602. a7__[ranant [123396 | 125407 [127454129298 og frv7ss [19.0 [tar [aguas 140373 | 19703 | 1s19e | 5008 hao | 155.000 | 159,861 | Ta0,192 | 162,746 166,402 | 168,102 | 170815 30 [rsa [1750065 | eno | aon | rasso8 rea a1 [2.00 | asnen [azo | ara | a0 21986 sa aera [arasot [9987 [506208] sno [a.cs | aa Tet sso%6 [5709 ff ~(1) Basic Salaries ~ The rates in the above salary schedule Q 3) resents monthly remuneration for regular or contractual personnel, whether appointive or elective, and on full-time employment, ‘The remuneration for those on a part-time basis shall be proportionate to the actual services rendered. Casual personnel shall be paid a daily wage rate computed by dividing the corresponding, monthly salary rate in the above schedule by twenty-two (22) working days, Step Increments - An employee may progress from Step 1 to Step 8 of the salary grade allocation of his/her position in recognition of meritorious performance based on @ performance management system approved by the Civil Service Commission (CSC) and/or through length of service, in accordance with the rules and regulations to be promulgated jointly by the DBM and the CSC, Employees authorized to receive longevity pay under existing laws shall no longer be entitled to step increments due to length of service. ‘Ihe grant of step increment based on merit and performance shall be in lieu of the productivity incentive benefit. Standard Allowances and Benefits ~These are allowances and benefits given to all employees across agencies at prescribed rates, guidelines, rules and regulations, which shall be Limited to the following: (1) Personnel Keonomic Relief Allowance- Allowance to supplement the basic salary due to the rising cost of living to be given at two thousand pesos (P2,000) per month; (2) Uniform or Clothing Alowance- To provide for the payment of the required work attire of government employees at prescribed retes; (8) Mid-Year thonus~ Equivatent to one (1) month basic salary be given not easly than May of every years and (4) Year-End Bonus and Cash Gift-The yearend bonus is equivalent to one (1) month basic salary and cash gift at prescribed rales, These shall be given not earlier than November of every year Speeific-Purpose Allowances and Benefits These are allowances and benefits given to employees under certain situations at prescribed rates, guidelines, rules and regulations, which shall be limited to the following: (1) Representation and ‘Transportation Allowances(RATA) - These are given to civilian government personnel occupying division chief to Department Secretary positions or equivalent level as may be determined by the DBM. at monthly standard rates in order to defray {ransportation and representation expenses while in the actual performance of the dlutios of the pasitions; (2) Per Diem- This is a compensation for atendance in meetings in view of membership in collogial bodies authorized by law; 3) HonorariaThese are token payments in recognition of services rendered beyond the regular duties and responsibilities of positions; (4) Night Shift Differential- ‘This premium given to an employee whose regular working hours fall wholly or partially within sx o'clock in the evening, to six o’clock jn the morning of the following day: 9