Proposed budget includes wage hike for state workers

MANILA, Philippines - The salaries of government employees could possibly increase before President Aquino’s term ends next year.

A total of P50.6 billion was included in the proposed P3.002-trillion national budget for 2016 for the possible increase in the salaries of government employees. This would translate to an average P3,000 a month increase in the salary of each of the 1.3 million government employees.

During the Development Budget Coordination Committee’s presentation of the 2016 National Expenditure Program before the Senate committee on finance yesterday, Budget Secretary Florencio Abad said the P50.6 billion was set aside in the budget for the possible implementation of the fourth phase of the Salary Standardization Law (SSL-4), details of which have yet to be presented to the President and the Cabinet.

“We have not put together our proposal based on the recently completed compensation and benefits survey that we will have to take up with the President and the Cabinet. We are looking at a new round of SSL-4. This will be implemented next year,” Abad said.

This would be on top of the P17 billion in performance-based incentives that the national government would grant to government workers.

Abad said the details of the SSL-4 proposal would be presented to Congress in less than two months’ time.

In his presentation of the proposed 2016 national budget to the House of Representatives late last month, Abad hinted of the possibility of a salary hike for government employees before the end of President Aquino’s term next year.

“What we are trying to do is to approximate private sector salaries,” Abad said during yesterday’s hearing at the Senate.

Asked by Senate President Pro Tempore Ralph Recto what would happen if the President does not approve the salary adjustment, Abad said the P50.6 billion would be treated as savings, which could then be realigned by the President.

“That would be savings because obviously the program cannot be implemented,” Abad said.

Recto urged the Department of Budget and Management (DBM) to submit the bill as soon as possible so it can be tackled “in unison” with the national budget.

“You can’t divorce the two. Twenty-seven centavos for every budget peso in 2016 is for PS (Personal Services),” Recto said, referring to the budgeting term for the pay, perks and premium contributions of government workers and the pension of retired uniformed personnel.

“There is also the need to subject the proposal to feedback and consultation from stakeholders, like government employees,” he added.

Recto also reiterated his call that any pay hike should prioritize teachers, policemen, firemen and soldiers, as they constitute about four-fifths of the government workforce.