Updates on SSL4 LegislationBy:Atty. Ma. Rica A. Gatchalian-PinedaPGEA Legal Consultant

Historical Background of Salary Standardization Laws

Name of Law Date Passed

Principle

RA 6758 (SSL1) 01 July 1, 1989

Equal pay for substantially equal work

 Joint Resolution

1 (SSL 2)

 07

March1994

To make it more responsive to the economic needs of government

employees, etc.

 Joint Resolution

4 (SSL 3)

 17 June 2009

To encourage excellent performance and productivity

and to clearly distinguish differences in levels of

responsibility and accountability among government officials and

employees

Status of SSL4 Legislation

• PGEA Actions•Constitution of TWG to recommend increases for government employees•Appeals to OP, DBM, Senate and House of Representatives to facilitate legislation of SSL4 that will provide reasonable Total Compensation and correct previous flaws

Status of SSL4 Legislations in the House of Representatives• HB02920 filed by Cong. Gary C. Alejano

AN ACT ADOPTING AN OMNIBUS COMPENSATION AND POSITION CLASSIFICATION OF CIVILIAN PERSONNEL AND THE BASE PAY SCHEDULE OF MILITARY AND UNIFORMED PERSONNEL IN THE GOVERNMENT, AND FOR OTHER PURPOSES

• Status: Under deliberation by the Mother Committee on 2014-08-05

Status of SSL4 Legislations in the Senate• Committee Report No. 105 on SALARY

STANDARDIZATION LAW was filed on February 26, 2015 • Reporting committee(s)• Civil Service and Government Reorganization

National Defense and SecurityFinance

• Remarks: Recommending its Approval of SBN 2671 on Salary Standardization Law IV in Substitution of SBNos. 1689 and 2372, Taking Into Consideration SRN-3 with Senators Trillanes, Recto and Escudero as authors

•  

Salient Features of SBN 2671 on Salary Standardization Law IV

Coverage for National Government•All positions for civilian government personnel in the:Executive, Legislative, Judicial, Constitutional Commissions, and Military and uniformed personnel•Whether Regular, Casual, Contractual, Appointive, Elective, Full time or Part time•Excluded: Job orders, Contract of services, Non-organic personnel, GOCCs, GFIS, GICP and GCE

For LGUs

• Salaries, wages, allowances and other emolument and benefits of officials and employees determined by their respective Sanggunians in accordance with RA 7160

• May adjust salaries and wages if finances warrant

LGU may apply for total or partial exemption with CSC and DBM

Governing Principles of the Omnibus System for Compensation and Position Classification

• Internal equity among government employees • Increases and promotions based on

performance• Adheres to principle of external

competitiveness• Easy to administer and responsive to

current challenges

Salary Grades of Officials

For all other jobs, Salary Grades shall be classified and re-classified by the CSC using the following compensable factors for each job:

• Competencies• Nature of Work• Accountability

Total Cash Compensation

•Base Pay•Allowances and Other Pay•Cash Incentives

Base Pay

Administration of Base Pay Schedule:

• Base Pay determined as follows:•Step 1 is for entry level and the hiring rate•Step 8 maximum amount of Base Pay in a Salary Grade• Increase in Base Pay based on performance based system approved by CSC•Progression only granted based on merit and fitness determined by performance and quality standards set by CSC

• To be used for jobs paid on monthly rate basis• Daily wage rate :

Base Pay---------------------------------------

  22 working days per month

Allowances and Other Pay

• Amount given for work performed or which attach to all or specific jobs across all agencies

• Specific Purpose Allowances given only to jobs under specific conditions or for special situations

Standard Allowances and Other Pay

• PERA of Php2,000 per month• Uniform/Clothing Allowance• Year-end Bonus and Cash Gift • Overtime pay• Night Differentials

Specific Purpose Allowances

• Subsistence allowance• Hazard Pay• Overseas and Other allowances • Represenatation and Transportation Allowances• Per diem• Special Counsel Allowance• Other allowances and benefits granted under

specified situation, related to actual performance of work as determined by the DBM

Incentives:• Limited to:• Productivity Incentive, CNA Incentive and other incentives

accomplishment of agency performance targets and the generation of savings• Productivity incentive-• CNA Benefit-• Given pursuant to PLSMC Resolution No. 4. Series of

2002, PLSMC Resolution No. 2. Series of 2003, as may be amended by PSLMC

• For GOCCs and GFIs, granted only upon showing of agency’s financial viability in addition to above

• DBM shall issue rules for implementation• Health Maintenance Benefit – given in addition to

PhilHealth Benefits• Longevity/loyalty incentive Anniversary bonus• Service incentive

Non-Dimunition in gross Total Compensation. Not applicable to allowances, remunerations and benefits received prior to effectivity of the Act

Penal Provisions and Civil Liabilities• Prohibition against additional compensation• COA employees prohibited from receiving salaries,

allowances and other emoluments from any agency, except amount paid directly by COA

• GOCCs, GFIs, LGUs, OSG, OGCC are prohibited from assessing or billing other agencies for services rendered by employees as part of their regular functions, for purposes of paying additional compensation to employees

• Violations: RA3019, other penal laws, 6 years and 1 day but not more than 15 years

Where are we now?No wage hike for 2015 for lack of funds.

Government employees will have to wait until 2016 before any prospect of a salary increase materializes – DBM Sec. Butch Abad

Requests to OP as Stop Gap Measure• Increase in the monthly Personnel Economic Relief

Allowance (PERA) from the present Php2,000 to Php5,000 to give government workers the capacity to somehow cope with the rising cost of living.

• Increasing existing bonuses and incentives of government employees will be helpful.

Thank you and have a good day!