Press Release
January 31, 2007

Drilon hails ratification of bicam report granting
pay increase to government employees

Sen. Franklin M. Drilon today hailed the Senate ratification of the Bicameral Conference Committee Report on the bill granting a 10% increase in the salaries of all government employees, including an increase in the subsistence allowance and hazard pay of military and police personnel, effective July 1 this year.

The Upper Chamber approved the committee report and will now be submitted for the President's signature for its enactment into law.

"When our economy is in doldrums, we have asked our government employees to understand and cooperate in austerity measures implemented to save on government resources. Now that times are good, it is our job to understand and act for their welfare," Drilon, Chairman of the Senate Committee on Finance, said.

Drilon said the proposed P1.126 trillion national budget for 2007 contained a provision authorizing Malacañang to utilize the unprogrammed funds in the budget to pay for the immediate salary increases of government employees, military and police personnel.

"To ease the financial burdens of our civil servants, we have thus proposed that the basic salary of civilian national personnel whose positions are covered by the Salary Standardization Law shall be increased by ten percent," Drilon in his sponsorship speech of the bicameral conference committee report, said.

Drilon said the amount of P10.3 billion has already been provided in the 2007 national budget under the Unprogrammed Fund to allow for the immediate release of the funds for the salary increase as soon as the law is approved by the President.

Aside from the 10 percent salary increase for government workers, Drilon said the bill also provides for a P30 per day increase in the subsistence allowance and a P120 per month increase in the hazard pay of members of the Armed Forces of the Philippines, the Philippine National Police, the Bureau of Fire Protection, the Bureau of Jail Management and Penology and other agencies.

"The subsistence allowance of the military and uniformed personnel at P60 per day was last adjusted in 1998. There is urgent need to adjust the rate of the military and uniformed personnel by at least P30 per day to enable them to afford proper food sustenance necessary for the demands of their profession," Drilon said.

The hazard pay for military and uniformed personnel has remained at P120 / month since its initial grant in 1987. Considering the risk to their lives in providing our country with a stable security environment, it is but just to increase the rate of their hazard pay from P120 / month to P240/ month, Drilon noted.

Drilon, who is also Liberal Party president, said the 10 percent increase in the pay of government workers would cost the national government P8.2 billion while the increase in the allowance and hazard pay of military and police personnel would cost P2.1 billion.

The funds for the salary increases of employees in government-owned and controlled corporations as well as other government financial institutions covered by the Salary Standardization Law shall be charged against their respective corporate funds, Drilon proposed.

Under the measure, local government employees are likewise entitled to the 10 percent salary increase. For this purpose, the limitation under the Local Government Code on the amount that can be used for personal services is waived to allow the local government units to implement this new law.

Subject to availability of funds, Drilon added, the barangay officials and employees who are receiving honoraria as a form of compensation will be given a 10 percent increase, sourced out of the Internal Revenue Allotment.

News Latest News Feed