President Aquino: Advance implementation of SSL III 3rd Tranche on the release of midyear bonus; Sec. Abad: EO, MO now ready for President’s signature

A May 1, 2011 press release prepared by the Department of Budget and Management

Following the Labor Day announcement of President Benigno S. Aquino III, the Department of Budget and Management has already drafted the Executive Order (E.O.) advancing the implementation of salary increases for government workers under the Salary Standardization Law III (SSL III) 3rd Tranche on June 2011.

Budget and Management Secretary Florencio B. Abad said this E.O. is now ready for the President’s signature and may be issued within the week, together with a Memorandum Order, which is needed for the early release of mid-year bonuses of government agencies.

He said the funding requirement for the advanced implementation of SSL III 3rd Tranche, amounting to P2.8 billion, will come from personal services savings, especially those generated by determining the actual filled positions of certain agencies. This is on top of the P19.46-billion already appropriated for the increase of government workers’ pay from July 1 to December 31.

Meanwhile, he said P14.9-billion is needed for the mid-year bonuses—or half of the year-end bonus and half of the P5,000 cash gift—of government employees.

“We hope that the early implementation of SSL III third tranche and the early release of mid-year bonuses will help government employees cope with rising costs of commodities. They will also get their scheduled salary increases in time for school opening on June 2011,” he said.

Implementation of the third tranche salary adjustment would provide a 9.5-percent monthly salary increase to those holding Teacher I Salary Grade 11 positions: those who comprise the bulk of civilian personnel in national government.  Meanwhile, a Private in the Armed Forces of the Philippines and a Police Officer I in the Philippine National Police would get an 11-percent monthly base pay increase.

The first and second tranches of the modified salary schedule base pay schedule had been implemented by the national government agencies, government owned and controlled corporations and government financial institutions took effect on July 1, 2009 and June 24, 2010 respectively. Meanwhile, local government units (LGUs) received their first and second tranches on January 1 of 2010 and 2011.

“However, since LGUs have just implemented the second tranche of the modified Salary Schedule effective January 1, 2011, and their respective sanggunian have yet to determine the availability and sustainability of local government funds for the purpose, the implementation of their tranche for LGU personnel may be made effective January 1, 2012,” Abad added.

Meanwhile, the mid-year bonus will be given to employees who have rendered at least four months of service.

Those covered with this benefit includes civilian government personnel occupying regular, contractual, or casual positions; appointive or elective; rendering services on full time or part time basis; military personnel of the Armed Forces of the Philippines; and uniformed personnel of the Philippine National Police, Bureau of Fire Protection, and Bureau of Jail Management and Penology; Philippine Coast Guard; and the National Mapping and Resource Information Authority; and barangay officials and employees.

Those that are excluded are those hired without employee-employer relationships and paid from non-Personal Services appropriations, consultants and experts hired for a limited period to perform specific activities or services with expected outputs, laborers hired through job contracts, student laborers and apprentices; and those engaged through job orders and contracts of service.