To correct the distortions and faults of the present pay scale of the government
ANGARA SET TO SPONSOR RESOLUTION MODIFYING GOVERNMENT COMPENSATION AND POSITION CLASSIFICATION

Senator Edgardo J. Angara today will sponsor a Senate Joint Resolution which will provide for the modification of the Compensation and Position Classification System of Civilian Personnel, as well as the Base Pay Schedule of the Military and Uniformed Personnel in the Government.

"The bureaucracy is the backbone of any government and if we are to keep the government machinery well-oiled and running smoothly, we need to invest in this human development. The world as we know it is in the midst of a global financial crisis resulting in widespread unemployment, financial chaos and uncertainty. At this time, the best capital is human capital," said Angara who chairs the Senate Finance Committee.

He added, "That is why we need 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 have a lot of work to do."

According Asiaweek's Salary Survey 2000, a cross-country comparison indicated that the Philippines is at the lowest end of the scale in terms of the monthly salaries of their government employees and officials.

For example, government clerks (Entry Level) in the Philippines earn a monthly salary of $220. While this is slightly above Malaysia's $199, it is only half of what Singapore pays: $503.

The current Compensation and Position Classification system is said to be riddled with many inconsistencies. For instance, there is an overlapping of salaries between salary grades in the present schedule. Also, there are certain classes who enjoy much higher pay scale. This results in salary inequities between positions, fostering demoralization.

Under the present salary structure, it is not uncommon to see a subordinate receiving a higher salary than his immediate superior. In addition, special laws grant benefits only to selected professions. This distorts the standardized compensation scheme and contravenes the Constitutional provision providing for the standardization of compensation of government officials and employees.

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.

In the resolution, 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.

However, the TCF excludes all indirect compensation under existing laws, such as: retirement benefits, insurance, employee compensation insurance, PAG-IBIG Fund benefits and Provident Fund benefits.

"I recommend strongly that we correct the distortions and faults of the present pay scale of the government. This ensures our country of a competent and well-motivated corps of public servants capable of rising to the challenges of modern society. To do this, there must be adequate incentives for exemplary performance, and an emphasis on the basic principle of equal pay for work of equal value," added Angara.