SALARY STANDARDIZATION LAW - The Raise to Rise Teacher’s Standard of

Living: A Literature Review

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A Literature Review
Presented to
The Faculty of Doctor of Education Major in Leadership and Management
Davao Oriental State University
City of Mati

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In Partial Fulfillment
of the Requirements for EDUC 604

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Saadiya M. Estrella, LPT,MAEd

EdD- ELM Student
 SALARY STANDARDIZATION LAW - The Raise to Rise Teacher’s Standard of

Living: A Literature Review

Introduction

Teachers are indeed invaluable to our society. The quality of education

system cannot exceed the quality of its teachers (McKinsey and Co, 2007). The

responsibility bestowed upon the teachers in molding the values and character of the

young generation of the country cannot be overestimated. Aside from educating our

children, teachers are likewise the most reliable and dedicated public servant.

Teachers are trusted individuals in the community. Hence, teachers are consistently

called upon to assist in various extra-curricular and civic activities which contribute to

the welfare of the community and the country. With all the numerous tasks of

teachers, there are certain issues about this concern such as: Are today’s teacher

salaries enough to attract and retain a high-quality workforce?

As quoted on the study entitled Salary: a critical equity issue of Miles &

Katz(2018), Some data suggest not. Several recent studies, accounting for factors

such as hours worked, gender, and race, conclude that teacher salaries today are 14

to 25 percent lower than those for other professions available to college graduates.

According to the Annual Survey of Philippine Business and Industry for the

Education sector for all establishment in 2015, there were already 43,900 primary

and elementary private school teachers, 94,300 general secondary private school

teachers and 28,700 private pre-primary or pre-school teachers. Teachers in 1998

earned about 8 percent less than professionals with similar education and

experience. By 2015, teachers underearned their peers by 17%. One study by the

Economic Policy Institute found that this gap has grown over time.
 The main purpose of the literature review is focus on how the law develops

throughout the different administration. Further, this will review the perception of its

development on teacher’s standard of living.

Review of Related Literature

Teachers were paid according to their position tantamount to their salary

grade level. As identified by the Association of Southeast Asian Nations (ASEAN),

the salary of the public-school teachers in the country is way below the average.

Inadequate take home pay for a majority of public-school teachers has been a

common complaint which is said to have led to their increased indebtedness as

quoted by Sen Win Gatchalian, 2019. Thus, to attract and retain competent and

committed civil servants. Workers, even those working in the government, deserve

standardized, equitable and just compensation (Clayton, 2015). Salary

Standardization Law has been created, which primarily aims to upgrade the standard

of living of government employees and that includes the public-school teachers,

hoping that this will yield positive results in their work performance (Bajarin &

Gonzales, 2019)

The first Salary Standardization law or SSL 1 was promulgated through

Republic Act No. 6758 on August 1989 under President Corazon C. Aquino’s

administration. It was known as “ the Compensation and Position Classification Act

of 1989”. This act aimed to provide equal pay for substantially differences in duties

and responsibilities, and qualification requirements of the position. The rates of pay

were determined with due regard, given to, among others, prevailing rates in the

private sectors for comparable work.

 After President Aquino’s term, it has been adopted through Executive Order

No. 1664, series of 1994 of President Fidel V. Ramos administration. One of its

objectives is to gear up bureaucracy to be more inspired and effective in achieving

the country’s developmental goals, it is imperative to upgrade further and rationalize

the present compensation system. In addition, it aims to stream line the policy of the

government has burdened the remaining personnel with additional duties and

responsibilities for which they must be properly compensated. Further, the

immediate need to update the compensation structure to keep in step with the

existing economic conditions and ameliorate the plight of government personnel.

Salary increase of uniformed personnel and civilian government personnel

further continued in term of President Gloria M. Arroyo through the signing of

Executive Order No. 811 series of 2009 which is popularly known as Salary

Standardization Law III. As stressed by DBM Secretary Butch Abad said in a press

conference that the previous SSL needs to be amended as it needs another round of

increase for teachers. The Resolution No. 4, which mandates the review of compensation

every three years, was fully implemented in 2012. From then until 2015, the purchasing

power of the pay of government workers has been eroded due to inflation.

In the term of President Benigno S. Aquino III also signed Executive Order

201 or the Salary Standardization Law IV that comes in four tranches. The existing

Compensation and Classification System ( CPCS) was revised or updated to

conform with the raise of minimum salary for Salary Grade 1 from the current rate of

Nine Thousand Pesos (P9,000) to Eleven Thousand Sixty-Eight Pesos ( P11,068) to

make it even more competitive with the market rates. Moreover, it will bring the

compensation of government personnel closer to their private counterparts to at least

70% of the median market for all salary grades and eventually, it will eliminate

overlaps between salary grade allocations of government personnel to recognize

differences in duties and responsibilities of the positions. It will as well maximize the

net take home pay of government personnel through the inclusion of additional

benefits and strengthen the performance-based incentive system in recognition of

government personnel who play a greater role and carry a heavier responsibility in

attaining performance targets and delivering results. SSL (E.O No.201,s.2016) which

was started last 2016 ended last 2019. From the entry position of Teacher I with a

Salary Grade 11 Step 1 receiving a salary of P18,549 had increased to P20, 754.

Another reform in terms of salary for teachers under the administration of

President Rodrigo R. Duterte is the passing of RA 11466 or known as the Salary

Standardization Law of 2019. The increase is scheduled in four tranches—from the

year 2020 until the year 2023. The national average public school teacher’s salary in

2021–2023 will be higher than their private-sector counterparts. It will be given in 4 th

tranches. Starting January 1, 2022, Teacher 1 will be paid P25,439 and in 2023, they

will get P27,000.

Gaps for Further Studies and Analysis

A group for government workers including teachers further believe that SSL 3

is however deceptive in nature. It is further claimed that the gap between the lowest

salary grade for teachers in an entry level compared to the highest ranking is far

apart. It just adds up as it nails the ordinary employee in penury, divides it ranks and

it only favors the already “favored class” as quoted by House Speaker Prospero

Nograles Jr. This manifested the pay inequity among the teachers considering the
salary grade they belong. Furthermore, considering SSL 3 approved before the

pandemic, the distance within the years could contribute to its research gaps. Since

the out surge of the pandemic, many government employees including teachers

have change the standard of living in order to cope up with it. The gap of years has

not been clarified to explore the results here into.

Conclusion

Based on the literature review on salary Standardization Law, over the years

the increase has practically attributed to the standard of living of teachers. The

different administration from 1989 until the year 2023 have shown implications on

improving the standard of living. Nevertheless, SSL will eliminate overlaps between

salary grade allocations of government personnel to recognize differences in duties

and responsibilities of the positions. It will as well maximize the net take home pay of

government personnel through the inclusion of additional benefits and strengthen the

performance-based incentive system in recognition of government personnel who

play a greater role and carry a heavier responsibility in attaining performance targets

and delivering results.

Recommendation:

Based on the findings of the literature review and the conclusions

generated, the Department of education may consider more item positions such as

teacher IV, V, VI and VII, so as teachers will not be stuck on the Teacher III

positions. This may lead to the increase of low monthly income of teachers.

Teachers may have one other sources of income to augment their higher expenses

compared to their net income. Moreover, Department of Education may consider

conducting workshops and seminars related to teacher’s financial management.

Literature Cited:

Bajarin, O. A., & Gonzales, R. D. (2019). Effects of Salary Standardization Law on

the Socio-Economic Status, Work Performance, Motivation and Job Satisfaction of
Teachers. ASEAN Multidisciplinary Research Journal, 2(1). Retrieved from
https://paressu.org/online/index.php/aseanmrj/article/view/243

Clayton, R. 2015. Salary Standardization Law of 2015 on the Affirmative: Give what
is theirs In the Holy Scriptures, Jesus preached to his. Retrieved from
https://pdfcoffee.com/journal-article-salary-standardization-law-pdf-free.html

Lawphil.net (1989). An Act Prescribing a Revised Compensation and Position

Classification System in the Government and for other Purposes. Retrieved on May
2022 https://lawphil.net/statutes/repacts/ra1989/ra_6758_1989.html
Malacanang Records Office, (2009). Adopting the First Tranche of the Modified
Salary Schedule of Civilian Personnel and the base Pay Schedule of Military and
Uniformed Personnel in the Government, As well as the Modified Position
Classification System Pursuant to Senate and House Representatives Joint
Resolution No.4, s. 2009. Retrieved on May 2022
https://www.officialgazette.gov.ph/2009/06/17/executive-order-no-811/
Malacanang Records Office (2016). Modifying the Salary Schedule for Civilian
Government Personnel and Authorizing the Grant of Additional Benefits for both
Civilian and Military and Uniformed Personnel. Retrieved on May 2022
https://www.officialgazette.gov.ph/2016/02/19/executive-order-no-201-s-2016/
Mckinsey & Co, 2007. Educator Quality for the 21st Century: A Collaborative Effort of the
Century: A Collaborative Effort of the American Association of School Administrators and the
American Federation of Teachers. Retrieved from
https://www.aasa.org/uploadedFiles/Newsroom/AFT-AASA-Framework-Prologue-
042311.pdf
Miles, H. & Katz, N.Teachers’ Salary: A Critical Equity Issue. National Association of
State Board Teachers. 2018.
Philstar (2019). Teacher’s salary way below ASEAN average. Retrieved on May
2022 from https://www.philstar.com/headlines/2019/07/06/1932448/teachers-salary-
way-below-asean-average
Presidential Management Staff (1994). Adopting a Revised Compensation and
Position Classification System in the Government. Retrieved on May 2022
https://www.officialgazette.gov.ph/1994/03/07/executive-order-no-164-s-1994/

Salary Standardization Law 3 is Divisive, Deceptive, Gov’t Workers Group says.

Retrieved from https://www.bulatlat.com/2008/11/10/salary-standardization-law-3-is-
divisive-deceptive-gov%e2%80%99t-workers%e2%80%99-group-says/