Press Release
June 11, 2009

As bicam panel approves new gov't pay scheme

As Bicam approves the new government pay scheme Sen. Angara expects the President to sign before the State of the Nation Address.

"The passage of this bill in the Bicam could not more delighting than ever. This will definitely provide attractive compensation that will improve quality of services government delivers," said Angara who chairs the Senate Committee on Finance.

A 2006 study conducted by the Civil Service Commission revealed a huge gap in the salaries of public sector employees and their counterparts in the private sector. Government professional and technical personnel earn 40% less than those employed in the private sector; this disparity is even greater at the senior manager level, where the difference is as high as 74%.

He emphasized the importance to correct the distortions and anomalies in our compensation system. "We need to make the salary structure more responsive to the pressing economic needs of our public servants. We still have a lot of work to do."

Senate Joint Resolution No. 26 adopts a Total Compensation Framework or the TCF. The TCF, seeks to rationalize and standardize the basic salaries, allowances, benefits and incentives for government officials and employees. The TCF's primary component therefore is the Basic Salary, including step increments.

This includes all existing and authorized allowances, benefits and incentives shall be categorized into either:

a. Standard Allowances and Benefits;

b. Specific-Purpose Allowances and Benefits; or

c. Incentives.

Any allowances, benefits and incentives that shall be granted to any and all government employees shall be limited to those three categories.

He added, "This new government pay scheme will condense the gap and correct the distortions and anomalies in our compensation system, making the pay scale and structure more responsive to the pressing economic needs of our public servants."

The senator, in the end, expressed his optimism that the President will sign the new pay scheme once it reaches her office.

"This is in our priority and I am happy to present this to the public and the President and I have no doubt that it will be passed," said Angara.

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