Apart from the 27 percent increase in pay of some 1.5 million government workers, the Executive Order (EO) for salary hike recently approved by the President also comes with other benefits, the budget secretary said.
President Benigno "Noynoy" Aquino III signed Friday an EO granting increase in salary of government workers and providing additional benefits to uniformed and civilian personnel.
This covers the first year of four tranches under the proposed Salary Standardization Law (SSL) 4, which the bicameral conference failed to approve before the Congress went on recess.
Though it was approved mid-February, the Department of Budget and Management Secretary Butch Abad cleared the EO will be retroactive to January 1 of this year since the General Appropriations Act of 2016 have already provided a P57.9 billion budget for the SSL's first year implementation.
Abad also said a 14th month pay will be given in May.
He added, a performance-based bonus will be included next year.
However, not all government employees will benefit from the salary hike, including the outgoing President and the Vice President.
"Not all employees or officials of the government will be entitled to the increase, so Congress, as well as the President and the Vice President, by the mandate of Constitution, are not going to get the increases, and since we prepared the executive order, members of the cabinet will not also get it," he said.
The budget secretary said the salary hike aims to make government workers' salary as close as possible to their private sector counterparts.
He added even those falling in the salary grades 1 to 11 will benefit big from the salary increase.
"Those that fall within grades 1 to 11 are already competitive to the private sector pay, just to give you an example, salary grade 1, which is utility worker—that’s the lowest salary grade, right now, presently, without SSL 2015, the salary grade is already 126 percent compared to their private counterparts. After the fourth ranches that will go up to 154 percent, so they are in fact more than competitive already,” Abad said.