Gov’t employees to get add’l P500 allowance if EVAT TRO is lifted — DBM
The National Government (NG) will give an additional allowance of not less than P500 to government employees next year if the temporary restraining order (TRO) on expanded value-added tax (EVAT) will be lifted.
In a paper, the Department of Budget and Management (DBM) said the proposed pay adjustment will be in the form of increases in allowances based on salary but not less than P500. Allowances are it not subject to tax.
At present, NG is using Republic Act 6758 "Compensation and Position Classification Act of 1989" otherwise known as the Salary Standardization Law (SSL) as the legal basis of the current compensation system.
It was noted that the SSL needs to be revised to be able to implement a fiscally-sound position and classification and compensation system that can attract, motivate and retain the best civil servants.
The DBM said reforms will try to address existing issues including the uncompetitive public sector pay; weakened policy framework on the government remuneration system; design of salary schedule causes salary overlaps particularly between supervisory and non-supervisory positions; existing compensation system poses difficulty to reward employees based on performance or achievements; and some position titles are task-limiting.
To address these issues, DBM said it has recently implemented policy reforms including the issues of Memorandum Circular 20 which limits the compensation in SSL-exempt agencies to two times total compensation equivalent positions in national government and use of generic position titles for administrative group to encourage multi-tasking.
A joint DBM-Civil Service Commission (CSC) study has also been conducted which aims to rationalize the government position and classification and compensation system and address the identified weaknesses of the current PCCS.
DBM said an administration bill on salary increase will also be drafted based on the results of the ongoing wage bill study.
The proposed reforms, the DBM said, should adhere to certain internal and external equity principles.
On the internal equity considerations, DBM said the classification plan should be standardized across government using a single job evaluation system; base pay shall be standardized using single salary structure; and there should be uniform pay and benefits administration policy.
The components and principles of the external equity, on the other hand, should ensure that the compensation system shall be designed in consideration of competitiveness with medium-sized private firms but at the same time will remain affordable and sustainable given the fiscal condition of the government.
DBM also pointed out the reforms should carry out performance-based policies and incentive programs and pay systems that are easy to understand, administer and maintain (broad-banding of position, lesser position levels, fewer salary grades).
In the interim, the government will continue to give Productivity Enhancement Pay (PEP) authorized under Administrative Order No.115 given in Feb. 2005 at P3,000 each; and Educational Assistance enforced under AO 120 given in June 2005 at P1,000 each
In a paper, the Department of Budget and Management (DBM) said the proposed pay adjustment will be in the form of increases in allowances based on salary but not less than P500. Allowances are it not subject to tax.
At present, NG is using Republic Act 6758 "Compensation and Position Classification Act of 1989" otherwise known as the Salary Standardization Law (SSL) as the legal basis of the current compensation system.
It was noted that the SSL needs to be revised to be able to implement a fiscally-sound position and classification and compensation system that can attract, motivate and retain the best civil servants.
The DBM said reforms will try to address existing issues including the uncompetitive public sector pay; weakened policy framework on the government remuneration system; design of salary schedule causes salary overlaps particularly between supervisory and non-supervisory positions; existing compensation system poses difficulty to reward employees based on performance or achievements; and some position titles are task-limiting.
To address these issues, DBM said it has recently implemented policy reforms including the issues of Memorandum Circular 20 which limits the compensation in SSL-exempt agencies to two times total compensation equivalent positions in national government and use of generic position titles for administrative group to encourage multi-tasking.
A joint DBM-Civil Service Commission (CSC) study has also been conducted which aims to rationalize the government position and classification and compensation system and address the identified weaknesses of the current PCCS.
DBM said an administration bill on salary increase will also be drafted based on the results of the ongoing wage bill study.
The proposed reforms, the DBM said, should adhere to certain internal and external equity principles.
On the internal equity considerations, DBM said the classification plan should be standardized across government using a single job evaluation system; base pay shall be standardized using single salary structure; and there should be uniform pay and benefits administration policy.
The components and principles of the external equity, on the other hand, should ensure that the compensation system shall be designed in consideration of competitiveness with medium-sized private firms but at the same time will remain affordable and sustainable given the fiscal condition of the government.
DBM also pointed out the reforms should carry out performance-based policies and incentive programs and pay systems that are easy to understand, administer and maintain (broad-banding of position, lesser position levels, fewer salary grades).
In the interim, the government will continue to give Productivity Enhancement Pay (PEP) authorized under Administrative Order No.115 given in Feb. 2005 at P3,000 each; and Educational Assistance enforced under AO 120 given in June 2005 at P1,000 each
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