By Charissa Luci-Atienza
Davao City Representative Isidro Ungab confirmed on Thursday (Jan. 9) that President Rodrigo Duterte has signed into law the Salary Standardization Act of 2020, which grants salary increases to state employees within a period of four years starting this month.
Davao City 3rd district Rep. Isidro Ungab
(HOR / FILE PHOTO / MANILA BULLETIN)
The chairman of the House committee on appropriations lauded the Jan. 8 signing of the SSL5, saying it will help ease the financial plight of government workers and improve the country's economic footing.
SSL5 benefits some 1.4 civilian government personnel, including public school teachers and nurses.
"The signing of both the 2020 GAA (General Appropriations Act) and the Salary Standardization Law of 2020 augurs well for the country's economy. Having an operating budget for the national government in the first week of the year ensures continuity of government services as well as funding for the infrastructure and development projects of the government," Ungab told the Manila Bulletin in a text message.
"The SSL5 also increases the purchasing power of government employees and its potential to save more for the family," he said, while noting that the salary increase for government workers is "already funded in the 2020 GAA."
Ungab said the first year-implementation of the salary increase has been allocated P34.2 billion under the proposed 2020 P4.1 trillion national budget.
The SSL5 covers all civilian government personnel in the executive, legislative, and judicial branches, constitutional commissions and other constitutional offices, government-owned and -controlled corporations (GOCCs) not covered by Republic Act No. 10149, and local government units (LGUs). It shall cover government personnel whether regular, contractual, casual, appointive or elective, and on full-time or part-time basis.
Excluded from SSL-V 7 are military and uniformed personnel, GOCCs under RA 10149 which shall be covered by a Compensation and Position Classification System (CPCS), and individuals whose services are engaged through job orders, contracts of service, and consultancy or service contracts with no employer-employee relationship.
Ungab said the salary increase shall be implemented in four tranches, with the first tranche beginning on Jan. 1, 2020, the second tranche on Jan. 1, 2021, the third tranche on Jan. 1, 2022, and the fourth tranche on Jan. 1, 2023.
He said the overall average increase upon full implementation by 2023 is 23.24 percent.
"The salary grade 1, the smallest category, will now be P13,000 per month. That is an increase of about P2,000 from P11,000 to P13,000," he said.
He said Teacher 1 items will receive a 30.1 percent- salary increase; Teacher 1, 27.1 percent; and Teacher 3, 24.1 percent.
Ungab said under the SSL 5, a midyear bonus equivalent to one month’s salary as of May 15 of the given year shall be granted to those who have rendered at least four months of satisfactory service and are still in the service as of the same date. The midyear bonus is to be distributed not earlier than May 15 of every year.
The law also provides that the existing yearend bonus equivalent to one month’s salary and a cash gift of P5,000, which are categorized under the Standard Allowances and Benefits component of the Total Compensation Framework, shall be given in November of every year.
According to the SSL of 2020, the salaries of LGU personnel that may be authorized shall correspond to the LGU's income classification and shall not exceed the percentage of the salary schedule as follows: special cities and first class provinces/cities, 100 percent; second class provinces/cities, 95 percent; third class provinces/cities, 90 percent; fourth class provinces/cities, 85 percent; fifth class provinces/cities, 80 percent; and sixth class, 75 percent.
For municipalities: first class, 90 percent; second class, 85 percent; third class, 80 percent; fourth class, 75 percent; fifth class, 70 percent; and sixth class, 65 percent.
The law states that barangay personnel may be given a yearend bonus based on the monthly honoraria as of Oct. 31 of the year and a cash gift of P5,000. However, the minimum yearend bonus of P1,000 for the punong barangay and P600 for other mandatory barangay officials shall not be subject to Personnel Services (PS) limitations.
The SSL5 tasks the Department of Budget and Management (DBM) to issue the guidelines necessary to implement the Act.
READ MORE: Duterte signs Salary Standardization Law