Salary Standardilization Law Vi of 2025

Senate Office of the ecretary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session 25 AUG 27 P2:21 SENATE S. No. 1287 RECEIVED BY. Introduced by Senator Christopher Lawrence "Bong" T. Go AN ACT INCREASING THE SALARY SCHEDULE OF CIVILIAN PERSONNEL IN THE GOVERNMENT, AND FOR OTHER PURPOSES EXPLANATORY NOTE In recognition of their invaluable contributions, our civil servants, the people who dedicate their everyday lives to the service of the Filipino people, must be given an opportunity to pursue a career in the service that would allow them to enjoy competitive wages, enough to address their personal needs and that of their families. As of October 2023, according to the Philippine Statistics Authority, year-to- date inflation rate stood at 6.4%; this is still above the government's ceiling of 2% to 4%. Considering the rise in prices of goods and services, a substantial wage increase will help improve the welfare of government workers and ease the effects of the rising cost of living. While Executive Order No. 64 was issued in 2024 to update the salary schedule of government personnel in four tranches, the government must always review the salaries it provides to civilian employees so that it can maintain the attractiveness of government service and reduce the possibility of corruption. Having a competitive compensation in government service not only improves the lives of government employees, but it also attracts employees with expertise and skill. It dignifies work in the government.

This bill mandates the Department of Budget and Management to formulate a modified Salary Schedule for Civilian Personnel, reflecting an increase to be implemented in four tranches. It is our aim that through this measure, the government will be able to further recognize the commitment and dedication of government workers in the delivery of programs and services to the Filipino people. In view of the foregoing, the passage of this bill is earnestly sought. SENATOR CHRISTOPHER LAWRENCE "BONG" T. GO

Senate Office of the stretary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session 25 AUG 27 P2:21 SENATE S. No. 1287 RECEIVED BY: Introduced by Senator Christopher Lawrence "Bong" T. Go AN ACT INCREASING THE SALARY SCHEDULE OF CIVILIAN PERSONNEL IN THE GOVERNMENT, AND FOR OTHER PURPOSES Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

SECTION 1. Short Title. - This Act shall be known as the "Salary Standardization

2 Law VI of 2025."

SEC. 2. Declaration of Policy. - Pursuant to Section 5, Section IX-B of the

4 Constitution, it is hereby declared the policy of the State to provide for the 5 standardization of the compensation of all government officials and employees taking 6 into account the nature of the responsibilities pertaining to, and the qualifications 7 required for, their positions, thereby strengthening the government's merit and reward system.

SEC. 3. Coverage. - This Act shall apply to all civilian government personnel in the

10 Executive, Legislative and Judicial Branches, Constitutional Commissions, and other Constitutional Offices, government-owned or -controlled corporations (GOCCs) not covered by Republic Act (R.A.) No. 10149, and local government units (LGUs). This shall cover government personnel whether regular, contractual or casual, appointive or elective, and on full-time or part-time basis.

SEC. 4. Exclusions. - The following shall be excluded from the coverage of this Act:

(a) Military and uniformed personnel; and (b) GOCCs under R.A. No. 10149 which shall be covered by a Compensation and

Position Classification System (CPCS) established by the Governance Commission for GOCCS (GCG) and approved by the President of the Philippines.

SEC. 5. Salary Increase. - The Department of Budget and Management shall

4 formulate a modified Salary Schedule for Civilian Personnel, reflecting an increase to 5 be implemented in four tranches which shall take into consideration the following: (a) Differences in pay shall be based upon substantive differences in duties, responsibilities, accountabilities and qualification requirements of the positions; (b) The compensation for all civilian government personnel shall be standardized and rationalized across all government agencies to create an enabling environment that will promote social justice, integrity, efficiency, productivity, accountability and excellence in the civil service; and (c) The compensation of all civilian personnel shall generally be competitive with those in the private sector doing comparable work to attract, retain and motivate a corps of competent and dedicated civil servants.

SEC. 6. Compensation System. - The Total Compensation Framework established

under Republic Act No. 11466, consisting of the following components, shall continue to be adopted: (a) Basic Salaries including Step Increments; (b) Position classification System; (c) Standard Allowances and Benefits; (d) Specific-Purpose Allowances and Benefits; and (e) Incentives.

SEC. 7. Compensation Adjustment for Personnel of Local Government Units. - The

Compensation Framework for Personnel of Local Government Units established under Republic Act No. 11466 shall continue to be adopted.

SEC. 8. Exempt Entities. - Exempt entities refer to: (i) government agencies that

are not covered by the Compensation and Position Classification System (CPCS) authorized under R.A. No. 6758, as amended; (ii) GOCCs governed by the CPCS established by GCG under R.A. No. 10149; and (iii) those authorized by law and have adopted their own compensation and position classification system. Exempt entities shall be governed by their respective compensation and position

1 classification systems which shall be made effective upon the recommendation of the DBM or GCG, as the case may be, and approval by the President of the Philippines.

SEC. 9. Applicability to Certain Officials. - Pursuant to Section 6 of Article VII and

4 Section 10 of Article VI of the Constitution, the salaries authorized herein for the President of the Philippines, Vice-President of the Philippines and Members of 6 Congress shall take effect only after the expiration of the respective terms of the present incumbents.

SEC. 10. Funding Sources. - The funding sources for the amounts necessary to

implement this Act shall be as follows: (a) For NGAs, the amount needed for the salary adjustment in shall be charged against any available appropriations in the General Appropriations Act and any other available and valid appropriations. Thereafter, such amounts as needed shall be included in the annual General Appropriations Act; (b) For GOCCs, the amounts shall come from their respective corporate funds in the corporate operating budgets approved by DBM. GOCCs which do not have sufficient funds shall only partially implement the rates of compensation to be formulated by the DBM: Provided, That any partial implementation shall be at uniform proportion of such rates for all positions in each GOCC; (c) For LGUs, the amounts shall be charged against their respective local government funds in accordance with the pertinent provisions of R.A. No. 11466 and R.A. No. 7160.

SEC. 11. Implementing Rules and Regulations. - The DBM shall issue the guidelines

necessary to implement specific provisions of this Act.

SEC. 12. Separability Clause. - If any provision of this Act is held invalid or

unconstitutional, the same shall not affect the validity and effectivity of the other provisions hereof.

SEC. 13. Applicability of Presidential Decree No. 985 as Amended by Presidential

Decree No. 1597 and Other Related Laws. - All provisions of P. D. No. 985, as amended by P.D. No. 1597, R.A. No. 6758, Congress Joint Resolution No. 1, s. 1994, Congress Joint Resolution No. 4, s. 2009, and Executive Order No. 201, s. 2016, R.A. No. 11466 which are not inconsistent with, expressly modified, revoked or repealed in this Act

≥ Shall continue to be in full forte and effect.

SEC. 14. Effectivity, - This Act shall take effect fifteen (15) days after its publication

3 in the Official Gazette or in a newspaper of general circulation. Approved,