Press Release
April 2, 2009

Palace urged to modify the compensation and position classification system

Senate President Juan Ponce Enrile yesterday introduced a joint resolution for approval by both the Senate and the House of Representatives, urging President Arroyo to modify the existing compensation and position classification system of government employees.

In the proposed Joint Resolution No. 23, Enrile said said that reforms in the present system needed to be instituted in order to make it more effective in motivating government personnel and in invigorating public service.

If approved, the initial implementation will take effect on July 1 this year, according to Enrile.

"The present Compensation and Position Classification System has to be revised further to update the same, and to further encourage excellent performance and productivity, and to clearly distinguish differences in levels of responsibility and accountability among government officials, officers and employees," explained Enrile.

Enrile noted that the current structure of the salary schedules cause the overlapping of salaries between salary grades, thereby resulting in salary inequities between positions.

"The grant of benefits to selected professions under special laws undermines the compensation standardization and equal protection of the laws clauses in the Constitution, distorts the standardized compensation scheme and breeds demoralization among government employees," the Senate chief said.

The modified Compensation and Position Classification System shall apply to all positions for civilian government personnel in the Executive, legislative and Judicial branches, the Constitutional Commission, State Universities and Colleges (SUCS), and government-owned or controlled corporations (GOCCs), the resolution stated.

The resolution also provides that the reform will cover employees of government financial institutions (GFIs), and local government units (LGUs), whether regular, casual or contractual in nature, appointive or elective, on full-time or part-time basis.

Fund sources for the amounts necessary to implement the modified compensation and position classification system shall be the following:

  • For national government entities, the amount shall be charged against appropriations set aside by the 2009 General Appropriations Act;

  • For GOCCs and GFIs, from their respective corporate funds in the approved corporate operating budgets;

  • For LGUs, from their respective local government funds

The Department of Budget and Management (DBM) will prepare and issue the guidelines, rules and regulations to implement the modified Compensation and Position Classification system, the proposed resolution declared.

Aside from administering the modified system, the DBM will also review on a continuing basis and recommend for the consideration and approval of the President the existing modified compensation and position classification system, as well as the policies on and levels of allowances, benefits and incentive applicable to all government personnel.

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