EDITORIAL

10% pay hike for government workers takes effect on July 1

Pay slips for government workers will reflect a 10 percent hike in their basic pay next month. This raise was ordered by President Arroyo in March through Executive Order 611, and includes the government’s share in health insurance and pension contribution.

The Department of Budget and Management is expected to release before the end of June P10.3 billion to fund the 10 percent across-the-board salary increase for nearly 840,000 civilian government employees as well as the government‘s share in the adjustment of health insurance and pension contributions and the increase in the subsistence allowance for some 282,000 uniformed personnel.

The 10 percent salary increase covers civilian officials and employees of national government agencies (NGAs) including state universities and colleges, government owned and/ or controlled corporations (GOCCs), government financial institutions (GFIs) and local government units, which are covered by the Compensation and Position Classification System under Republic Act 6758, as amended.

Also granted a P30 per day increase in their subsistence allowance and P120 per month increase in their hazard pay effective July 1, 2007 are military personnel of the Armed Forces of the Philippines and all uniformed personnel under the Department of Interior and Local Government, Philippine Coast Guard and the National Mapping and Resource Information Authority.

Under the EO for NGAs, the amount shall be charged against the appropriate fund source under the FY 27 General Appropriations Act. Thereafter, such amounts as are needed shall be included in the annual General Appropriations Act.

For GOCCs and CFIs, the amount shall be taken from their respective corporate funds. For LGUs, the amount shall come from their respective local funds.

It also provides that GOCCs, GFIs and LGUs which do not have adequate or sufficient funds to pay the authorized increase, shall partially implement the adjusted rates provided it shall be a uniform increase for all positions. The compensation adjustment s to government personnel aims to improve the morale of civil service and support their economic well being in the face of the rising prices of basic commodities.

The basic salary of government employees has not been increased since July 2001, and the subsistence allowance of military personnel since 1998 while the hazard pay remained at P120/month since it was initially granted in 1987.

The salary increase is said to be a social payback of the fiscal discipline and reforms the national government has implemented that generated enough money in the budget to expand investments in infrastructure and social welfare. No beef with that. But for the private sector, they can just grit their teeth.