PRESIDENT Rodrigo Duterte has suspended the increase in the compensation of employees in government-owned and controlled corporations (GOCCs) pending a review of their salary system.
Executive Order (EO) 36, signed by the President on Friday, suspends the Compensation and Position Classification System and the Index of Occupational Services under EO No. 203, which set the framework of GOCC employees’ compensation to make it competitive with the private sector to attract and retain workers.
EO 203 was signed in March 2016 by former president Benigno Aquino 3rd.
Under EO 36, there will be no diminution of the salaries of incumbent officers and employees.
“There is a need to further study and review the compensation of GOCCs and eliminate any excessive, unauthorized, illegal, and/or unconscionable allowances, incentives and benefits,” Duterte said in his order.
“The GCG [Governance Commission for GOCCs] finds that there are compelling reasons to revisit and/or reevaluate the CPCS under EO No. 203 and institute an interim measure for affected GOCCs at the meantime,” he added.
In the interim, the President has allowed GOCCs covered by the Salary Standardization Law (SSL) to adopt the “modified salary schedule” and authorized benefits under EO 201 issued last year.
EO 201 raised the salaries of civilian government personnel and granted additional benefits to civilian and uniformed workers.
“GOCCs which do not have adequate or sufficient funds shall partially implement the modified salary schedule and authorized benefits,” the EO read.
“In case of partial implementation, the same shall be at uniform percentage across all positions for every GOCC,” it added.
All SSL-exempt GOCCs, on the other hand, have the option to either keep their compensation framework, or subject to approval of the GOCC, adopt the modified salary schedule.
For the GOCCs adopting the modified salary schedule, they shall be limited to the benefits, allowances and incentives provided under Joint Resolution No. 4 issued by Congress.
The GCG will also have the authority to convert or revise the compensation framework of these GOCCs.
A mid-year bonus equivalent to one month basic salary shall be granted to those with at least four months of service to be given every May 15.
The existing year-end bonus equivalent to one month basic salary and cash gift at prescribed rates shall be given every November.
The grant of these bonuses shall be subject to the guidelines issued by the GCG.