Government workers will have another pay hike this 2023 as part of the Salary Standardization Law V.
This will be the fourth and last tranche of the modification of the salary schedule that applies to civilian personnel in all branches of the national government, whether regular, contractual, casual, appointive, elective, full-time, or part-time.
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This law was signed by former President Rodrigo Duterte in January 2020, following his predecessor President Noynoy Aquino’s efforts to prevent corruption by making compensations more competitive.
How much is the raise?
The increase in pay depends on the compensation plan which considers two things: salary grade and salary step.
Salary grade refers to the difficulty and responsibility of work, meanwhile, salary step refers to the length of service in the position.
Salary grades 1 to 32 consist of eight salary steps, while salary step 33 has two steps.
This means that there is an eight-step increment per salary grade.
Under the Salary Standardization Law V, employees under salary grade 1 may earn P13,000 to P13,780.
Meanwhile, members of the Senate and the House of Representatives who hold a salary grade of 31 will have a monthly pay of P278,434 to P318,806.
Last year, their salary ranged from P273,278 to P312,902 per year.
On top of the lawmakers’ salaries, members of congress also receive allowances, incentives and other benefits.
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Meanwhile, the president, whose salary grade is 33 will soon have a monthly salary that ranges from P419,144 to P431,718 compared to last year’s P411,382 to P423,723.
Upon full implementation, the law allows basic salaries to increase by a weighted average of 23.24% by 2023.
In August last year or just two years after Duterte signed the law that seeks to increase government worker’s pay, the Department of Finance and the Department of Budget and Management said the government has proposed to allocate funds to study the possibility of another round of the Salary Standardization Law.
