�Joint Resolution Urging the President of the Philippines to

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�Joint Resolution Urging the President of the Philippines to Powered By Docstoc
					Proposed Joint Resolution

   Modification of the
Compensation and Position
  Classification System
   in the Government


    Department of Budget and Management
Introduction

     RA No. 6758                     Senate and House
  Compensation and          +        of Representatives
 Position Classification              Joint Resolution
      Act of 1989                     No. 01, s. 1994



  Benefits:
  Standardized Compensation and Position Classification System
  for Civilian Employees in the Government
Introduction

Weaknesses of the Current Compensation and Position
Classification System:


  • Non-competitiveness of pay
   Private sector pays more to professionals and executives
   Examples: Teacher, Nurse, Accountant, Medical Officer, Attorney,
   Pilot, Chief Executive Officer, Manager
  Comparison of Existing Compensation in Public Sector Versus Private Sector
     Salaries                                                                                                 631.9%

      250,000
      240,000
      230,000
      220,000                                                                                       765.2%
      210,000
      200,000
      190,000
      180,000
      170,000
      160,000
      150,000
      140,000                                                                                     300.6%
      130,000
      120,000                                                                            272.3%
      110,000
      100,000
                                                                                                                       Government
       90,000
       80,000                                                                     144%                                 Private
       70,000
                                                                          95.8%
       60,000
       50,000                                                     83.2%
       40,000
                                                          40.3%
       30,000                     26.2%   29.3%
                                                  -0.9%
                   3.1%   25.2%
       20,000
       10,000
          -
Salary Grades     1    3     5   8                10 12 18 22                     24     26    28 30         31
                Sub-Professional                    Professional                              Executive
                                      Monthly Salaries of National Government Executives
                                            and Heads of SSL-Exempt GOCCs/GFIs

    National Government                              Monthly                                                                      Monthly
          Executives                                 Salary          Heads of the Following GOCCs/GFIs                            Salary
President of the Philippines                          69,878       Government Service Insurance System                              356,979
Vice-President of the Philippines                     55,902       Philippine Deposit Insurance Corporation                         200,000
Department Secretary                                  48,915       Bases Conversion Development Authority                           189,750
Department Undersecretary                             34,939       Land Bank of the Philippines                                     185,750
                                                                   Trade and Industry Development Corporation                       156,417
                                                                   Philippine Economic Zone Authority                               140,073
                                                                   Subic Bay Metropolitan Authority                                 132,333
                                                                   National Power Corporation                                       107,427
                                                                   Philippine Health Insurance Corporation                          104,450
                                                                   Social Security System                                           100,000
                                                                   * CY 2003 Data


    360,000
    340,000
    320,000
    300,000
                                                                                                                                              NGAs
    280,000
    260,000
    240,000                                                                                                                                   GOCCs/GFIs
    220,000
    200,000
    180,000
    160,000
    140,000
                                                                                 `
    120,000
    100,000
     80,000
     60,000
     40,000
     20,000
          0
                                       Dept.    Dept.
                   Pres.    V-Pres.                       GSIS    PDIC   BCDA     LBP   TIDCORP   PEZA   SBMA     NPC     PHIC    SSS
                                       Sec.     Usec.                                                                                                5
  Monthly Salary   69,878   55,902     48,915   34,939   356,979 200,000 189,750 185,750 156,417 140,073 132,333 107,427 104,450 100,000
                      Comparison of Monthly Salaries (in U.S. Dollars)
                      For the Position of Head of Government, Per Country

             45,000


             40,000


             35,000
                                                                                                                                                         Australia
                                                                                                                                                         China
             30,000
                                                                                                                                                         Hongkong
                                                                                                                                                         India
             25,000                                                                                                                                      Indonesia
                                                                                                                                                         Japan
             20,000                                                                                                                                      Malaysia
                                                                                                                                                         Philippines

             15,000
                                                                                                                                                         Singapore
                                                                                                                                                         South Korea
                                                                                                                                                         Taiwan
             10,000
                                                                                                                                                         Thailand
                                                                                                                                                         United States
              5,000


                  0
                                                                                                                   South                        United
                      Australia   China   Hongkong   India   Indonesia   Japan    Malaysia Philippines Singapore           Taiw an   Thailand
                                                                                                                   Korea                        States

Salary per month (In $) 11,365    266      34,807    585      2,033      33,886    5,132      1,224     43,365     7,658   26,951     1,694     16,667
                             Comparison of Monthly Salaries (in U.S. Dollars)
                             For the Position of Government Clerk/Entry Level (Government), Per Country

               2,500
               2,400
               2,300
               2,200
               2,100
               2,000
               1,900
               1,800                                                                                                                                          Australia
               1,700                                                                                                                                          China
               1,600                                                                                                                                          Hongkong
               1,500
                                                                                                                                                              India
               1,400
               1,300
                                                                                                                                                              Indonesia
               1,200                                                                                                                                          Japan
               1,100                                                                                                                                          Malaysia
               1,000                                                                                                                                          Philippines
                 900
                                                                                                                                                              Singapore
                 800
                 700                                                                                                                                          South Korea
                 600                                                                                                                                          Taiwan
                 500                                                                                                                                          Thailand
                 400
                                                                                                                                                              United States
                 300
                 200
                 100
                    0
                                                                                                                         South                       United
                          Australia   China   Hongkong   India   Indonesia   Japan   M alaysia   Philippines Singapore           Taiwan   Thailand
                                                                                                                         Korea                       States

Salary per month (In $)     1,547      72       1,258     117       20       2,292     199          220         503      878      1,299     93       1,736
               Comparison of Monthly Salaries, Selected Positions (in Philippine Pesos)
               Government vs. Private Corporations, Philippines
240,000
220,000
200,000
                                                                                                                   Government
180,000
160,000                                                                                                            Private
140,000                                                                                                            Corporations

120,000
100,000
 80,000
 60,000
 40,000
 20,000
       0
                                                  Government        Chief                    Human
              Head of     Finance    Member of
                                                  Clerk (Entry-   Executive   Controller   Resources   Secretary
             Government   Minister   Parliament
                                                      level)       Officer                  Director

Salaries       50,000     35,008      27,982         8,987        241,669     106,864       84,110      12,623
(in pesos)
Weaknesses of the Current Compensation and
Position Classification System:


 Substantial overlaps in salaries between
   positions:
 • leads to problems in relationships between superiors
   and subordinates
 • complexity in duties and responsibilities not well
   compensated
              Salary Schedule Effective July 1, 2008 Pursuant to EO No. 719
                                                                                      Salary Diff.   % Salary
 Salary
             Step 1   Step 2   Step 3   Step 4   Step 5   Step 6   Step 7   Step 8   Between SGs,    Diff. Bet.
 Grade                                                                                  Step 1          SGs
   1          6,149    6,303    6,460    6,622    6,788    6,958    7,131    7,310
   2          6,703    6,871    7,042    7,219    7,398    7,583    7,773    7,968          554         9%
   3          7,307    7,489    7,675    7,868    8,063    8,266    8,471    8,684          604         8%
   4          7,891    8,087    8,290    8,496    8,710    8,928    9,150    9,379          584         8%
   5          8,522    8,735    8,953    9,176    9,406    9,642    9,882   10,130          630         8%
   6          9,204    9,434    9,670    9,911   10,160   10,414   10,673   10,941          682         7%
   7          9,848   10,092   10,346   10,604   10,870   11,141   11,420   11,707          645         7%
   8         10,538   10,801   11,070   11,348   11,630   11,921   12,220   12,525          690         7%
   9         11,275   11,557   11,846   12,143   12,446   12,756   13,077   13,401          737         7%
   10        12,026   12,328   12,635   12,951   13,275   13,608   13,948   14,297          751         6%
   11        12,748   13,066   13,392   13,726   14,071   14,423   14,784   15,151          722         6%
   12        13,512   13,850   14,197   14,552   14,915   15,289   15,670   16,061          765         6%
   13        14,323   14,682   15,048   15,424   15,809   16,205   16,611   17,025          811         6%
   14        15,181   15,562   15,950   16,349   16,758   17,178   17,607   18,046          858         6%
   15        16,093   16,494   16,907   17,329   17,763   18,208   18,662   19,130          912         6%
   16        17,059   17,484   17,921   18,371   18,829   19,301   19,784   20,277          966         6%
   17        18,082   18,534   18,997   19,471   19,961   20,459   20,970   21,494        1,023         6%
   18        19,168   19,647   20,138   20,642   21,158   21,685   22,229   22,784        1,086         6%
   19        20,318   20,825   21,346   21,880   22,428   22,988   23,562   24,150        1,151         6%
   20        21,537   22,075   22,626   23,194   23,773   24,367   24,976   25,601        1,219         6%
   21        22,397   22,958   23,532   24,120   24,722   25,340   25,975   26,623          860         4%
   22        23,294   23,876   24,473   25,084   25,712   26,355   27,014   27,688          897         4%
   23        24,224   24,830   25,453   26,089   26,739   27,409   28,094   28,797          931         4%
   24        25,196   25,825   26,472   27,132   27,812   28,506   29,219   29,950          971         4%
   25        26,203   26,859   27,529   28,218   28,922   29,646   30,386   31,148        1,008         4%
   26        27,250   27,931   28,631   29,346   30,080   30,831   31,603   32,393        1,047         4%
   27        28,340   29,050   29,777   30,520   31,282   32,065   32,866   33,689        1,090         4%
   28        29,474   30,212   30,967   31,740   32,534   33,347   34,181   35,036        1,134         4%
   29        30,653   31,420   32,205   33,010   33,836   34,682   35,549   36,436        1,179         4%
   30        34,939   35,813   36,709   37,626   38,566   39,531   40,518   41,530        4,287        14%
   31        48,915   50,138   51,390   52,675   53,991   55,342   56,725   58,143       13,976        40%
   32        55,902   57,300   58,732   60,201   61,706   63,248   64,830   66,450        6,987        14%
   33        69,878                                                                      13,976        25%
% Salary
Diff. Bet.            2.5%     2.5%     2.5%     2.5%     2.5%     2.5%     2.5%
 Steps
                       Salaries of Selected Positions Effective July 1, 2008
Attorney I, SG-16              17,059   17,484    17,921   18,371   18,829   19,301   19,784   20,277
Attorney II, SG-18             19,168   19,647    20,138   20,642   21,158   21,685   22,229   22,784   12%
Attorney III, SG-21            20,318   20,825    21,346   21,880   22,428   22,988   23,562   24,150    6%
Attorney IV, SG-23             24,224   24,830    25,453   26,089   26,739   27,409   28,094   28,797   19%
Attorney V, SG-25              26,203   26,859    27,529   28,218   28,922   29,646   30,386   31,148    8%
Attorney VI, SG-26             27,250   27,931    28,631   29,346   30,080   30,831   31,603   32,393    4%

Budget Officer   I, SG-11      12,748   13,066    13,392   13,726   14,071   14,423   14,784   15,151
Budget Officer   II, SG-15     16,093   16,494    16,907   17,329   17,763   18,208   18,662   19,130   26%
Budget Officer   III, SG-18    19,168   19,647    20,318   20,642   21,158   21,685   22,229   22,784   19%
Budget Officer   IV, SG-22     23,294   23,876    24,473   25,084   25,712   26,355   27,014   27,688   22%
Budget Officer   V, SG-24      25,196   25,825    26,472   27,132   27,812   28,506   29,219   29,950    8%

Director I, SG-25              26,203   26,859    27,529   28,218   28,922   29,646   30,386   31,148
Director II, SG-26             27,250   27,931    28,631   29,346   30,080   30,831   31,603   32,393   4%
Director III, SG-27            28,340   29,050    29,777   30,520   31,282   32,065   32,866   33,689   4%

Director III, SG-27            28,340   29,050    29,777   30,520   31,282   32,065   32,866   33,689
Director IV, SG-28             29,474   30,212    30,967   31,740   32,534   33,347   34,181   35,036   4%

Director IV, SG-28             29,474   30,212    30,967   31,740   32,534   33,347   34,181   35,036
Dept. Asst. Secretary, SG-29   30,653   31,420    32,205   33,010   33,836   34,682   35,549   36,436   4%

Dept. Asst. Secretary, SG-29    30,653 31,420      32,205 33,010 33,836 34,682 35,549 36,436
Dept. Undersecretary, SG-30     34,939 35,813      36,709 37,626 38,566 39,531 40,518 41,530            14%
Department Secretary, SG-31 48,915 50,138          51,390 52,675 53,991 55,342 56,725 58,143            40%
Note: Extent of overlapping of salaries between   levels of positions is denoted by same color.



                                                                                                         11
Weaknesses of the Current Compensation and
Position Classification System:


• Magna Carta advantage of certain positions
  Public School Teachers, Public Health Workers, Public Social Workers and
  Science and Technology Personnel enjoy more benefits.


• Proliferation of allowances and benefits
  Particularly in GOCCs, e.g.: Rice Allowance, Grocery Allowance, Staple Food
  Allowance, Meal Subsidy




                                                                                12
Governing Principles
• Payment of just and equitable wages in accordance with the principle
  of equal pay for work of equal value
• Comparability of compensation for government personnel with those
  in the private sector doing comparable work
• Standardization and rationalization of compensation to promote social
  justice, integrity, efficiency, productivity, accountability and
  excellence in the civil service
• Adoption of a performance-based incentive scheme that will reward
  exemplary performance

• Periodic review of the Compensation and Position Classification
  System to consider changes in skills and competency requirements,
  demand for certain expertise, and inflation

• Compensation for government personnel to be kept modest and to be
  maintained at reasonable level in proportion to the national budget
                          Categories of Positions


• Sub-Professional Category – positions involved in manual or
 clerical work in support of office operations or those engaged in arts,
 crafts, and trades.

• Professional Category – positions involved in the exercise of
  profession or application of knowledge acquired through formal
  training.


• Executive Category – managerial positions involved in the
  executive, legislative and judicial functions.
                Comparison of Proposed Compensation in Public Sector
                   Versus Existing Compensation in Private Sector
   Salaries                                                                                300.7%
   250,000
   240,000
   230,000
   220,000
                                                                               288.5%
   210,000
   200,000
   190,000
   180,000
   170,000
   160,000
   150,000
   140,000                                                                     77.3%
   130,000
   120,000                                                            71.1%
   110,000
   100,000
    90,000
                                                                                                    Government
    80,000                                                    25.4%
    70,000                                                                                          Private
                                                       8.5%
    60,000
    50,000                                      14%
    40,000
                                           0.7%
    30,000                         -25.5%
                              0.3%
    20,000          2.1% 1.5%
              -16%
    10,000
        -
Salary Grades 1    3     5    8    10     12    18     22     24      26      28   30   31

               Sub-Professional         Professional                           Executive
Compensation System
                                  Proposed Salary Schedule
                                     Salary Grades 1-9


                                                               Average
Salary
       Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 % Diff.                     Sample Positions
Grade
                                                               Bet. SGs
 1      8,000    8,088    8,177     8,267    8,358    8,450    8,543    8,637   8.5%   Utility Worker I
 2      8,680    8,775    8,872     8,970    9,068    9,168    9,269    9,371   8.5%   Messenger
 3      9,418    9,521    9,626     9,732    9,839    9,947   10,057   10,167   8.5%   Carpenter I
 4     10,218   10,331   10,444    10,559   10,675   10,793   10,912   11,032   8.5%   Clerk II
 5     11,087   11,209   11,332    11,457   11,583   11,710   11,839   11,969   8.5%   Carpenter II
 6     12,029   12,162   12,295    12,431   12,567   12,706   12,845   12,987   8.5%   Clerk III
 7     13,052   13,195   13,340    13,487   13,636   13,786   13,937   14,091   8.5%   Bookbinder III
 8     14,161   14,317   14,474    14,634   14,795   14,957   15,122   15,288   8.5%   Administrative Assistant
 9     15,365   15,534   15,705    15,877   16,052   16,229   16,407   16,588   8.5%   Well Drilling Supervisor I
Compensation System
                                         Proposed Salary Schedule
                                                Salary Grades 10-24

                                                                 Average
Salary
         Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 % Diff.                              Sample Positions
Grade
                                                                 Bet. SGs

 10      16,671   16,854   17,040   17,227   17,417   17,608   17,802   17,998   8.5%   Records Officer I
 11      18,088   18,287   18,488   18,691   18,897   19,105   19,315   19,527   8.5%   Budget Officer I
 12      19,625   19,841   20,059   20,280   20,503   20,729   20,957   21,187   8.5%   Engineer I
 13      21,293   21,528   21,765   22,004   22,246   22,491   22,738   22,988   8.5%   Budget Officer II
 14      23,103   23,358   23,615   23,874   24,137   24,402   24,671   24,942   8.5%   Nurse II
 15      25,067   25,343   25,622   25,904   26,189   26,477   26,768   27,062   8.5%   Administrative Officer II
 16      27,198   27,497   27,800   28,105   28,415   28,727   29,043   29,363   8.5%   Engineer II
 17      29,510   29,834   30,163   30,494   30,830   31,169   31,512   31,858   8.5%   Airport Project Supervisor
 18      32,018   32,370   32,726   33,086   33,450   33,818   34,190   34,566   8.5%   Administrative Officer III
 19      34,644   35,025   35,410   35,799   36,193   36,591   36,994   37,401   8.2%   Dentist III
 20      37,415   37,827   38,243   38,663   39,089   39,519   39,953   40,393   8.0%   Judicial Staff Officer V
 21      40,408   40,853   41,302   41,756   42,216   42,680   43,150   43,624   8.0%   Attorney III
 22      43,641   44,121   44,606   45,097   45,593   46,095   46,602   47,114   8.0%   Medical Officer V
 23      47,132   47,651   48,175   48,705   49,240   49,782   50,330   50,883   8.0%   Associate Professor V
 24      50,903   51,463   52,029   52,601   53,180   53,765   54,356   54,954   8.0%   Division Chief
Compensation System
                                         Proposed Salary Schedule
                                            Salary Grades 25-33

                                                                 Average
Salary
         Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 % Diff.                                Sample Positions
Grade
                                                                 Bet. SGs
  25      54,975   55,580   56,191   56,809   57,434   58,066   58,705   59,350   8.0%    Director I
  26      59,373   60,026   60,686   61,354   62,029   62,711   63,401   64,098   8.0%    Director II
  27      64,123   64,828   65,541   66,262   66,991   67,728   68,473   69,226   8.0%    Director III
  28      69,125   69,885   70,653   71,430   72,216   73,011   73,814   74,626   7.8%    Director IV
  29      74,309   75,126   75,952   76,787   77,632   78,487   79,350   80,223   7.5%    Department Assistant Secretary
  30      80,254   81,136   82,028   82,930   83,843   84,766   85,698   86,641   8.0%    Department Undersecretary
  31      91,000   92,001   93,013   94,036   95,071   96,116   97,174   98,243   13.4%   Department Secretary
  32     102,000                                                                  12.1%   Vice-President of the Philippines
  33     120,000                                                                  17.6%   President of the Philippines
Compensation System
 Total Compensation Framework

  • Basic Salaries, including Step Increments

  • Standard Allowances and Benefits – given to all employees
   across agencies, e.g., PERA, Additional Compensation, Year-End Bonus

  • Specific-Purpose Allowances and Benefits – given under
   specific conditions, based on actual performance of work
   e.g., RATA, Honoraria, Subsistence Allowance, Hazard Pay


  • Incentives – rewards to recognize employee loyalty, for exceeding
   performance targets and to motivate productivity
   e.g., Loyalty Incentive, Productivity Enhancement Incentive
Compensation System


  Magna Carta Benefits

  • To be categorized by DBM per Total Compensation
    Framework

  • Henceforth, DBM will issue guidelines on conditions,
    qualifications for grant, and rates of benefits
Compensation System
   Local Government Units
   •  Position titles, salary grades, salary rates, allowances, benefits and
     incentives of LGU employees shall be in accordance with the provisions
     of the Joint Resolution.
   • Salaries of LGU employees shall be based on income class and financial
     capability of LGU, not to exceed the following percentages :
                         For Provinces/Cities      For Municipalities
       Special Cities           100%
         1st Class              100%                     90%
         2nd Class               95%                     85%
         3rd Class               90%                     80%
         4th Class               85%                     75%
         5th Class               80%                     70%
         6th Class               75%                     65%
Compensation System


 Non-Diminution in Basic Salaries of Incumbent Employees


 •   There shall be no diminution in basic salaries of incumbent
     employees upon implementation of this Joint Resolution.
 •   For this purpose, they shall receive the new salary rates
     prescribed herein, to be implemented in tranches, which shall in
     no case be less than their existing salary rates.
Implementation Period



  • SSL III to be implemented in 4
    tranches

  • From July 2009 to 2012




                                     23
Support the Joint Resolution
        on SSL III




                               24
     Thank You

Department of Budget and Management
                2008



                                      25

				
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