Press Release
May 28, 2009

Angara, Senate okays bill correcting distortions
of the present pay scale of the government

Senator Edgardo J. Angara today led the senate in approving Senate Joint Resolution 26 which addresses the distortions and faults in the present pay scale system of the government, this he said is the best investment the country can make during this time of global economic crisis.

"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. Since 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." said Angara who chairs the Senate Finance Committee.

He added, "This approved resolution was enacted precisely to correct the distortions and anomalies in our compensation system by making the pay scale and structure more responsive to the pressing economic needs of our public servants."

The senator said that 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.

"The modified pay scale of the government ensures our country of a competent and well-motivated corps of public servants capable of rising to the challenges of modern society. Armed with adequate incentives for exemplary performance, and an emphasis on the basic principle of equal pay for work of equal value, the new pay scale will boost our government's effort to heighten our civil servants commitment to public service." added Angara.

The senate has recently approved the modified pay scheme, which is a priority measure of the current administration.

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