1. Proposed Modification of the Compensation and Position Classification System in the Government

2. + RA No. 6758 Compensation and Position Classification Act of 1989 Senate and House of Representatives Joint Resolution No. 01, s. 1994 Benefits: Standardized Compensation and Position Classification System for civilian employees in the Government Introduction

3. 3 Overlaps in salaries between positions, leading to problems in superior-subordinate relationships No substantial salary difference between positions Weaknesses of the Current Compensation and Position Classification System :

4. 4 Application of the Salary Schedule Effective July 1, 2008 Compensation System

5. 5 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 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

6. 6 Compensation Adjustments for Civilian Personnel Since FY 2006 January 1, 2006P1,000/month increase in Additional Compensation (ADCOM) July 1, 200710% salary increase July 1, 200810% salary increase Introduction

7. 7 Governing Principles 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 Comparability of compensation for government personnel with those in the private sector doing comparable work Payment of just and equitable wages in accordance with the principle of equal pay for work of equal value 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

8. 8 Position Classification Professional Category – positions involved in the exercise of profession or application of knowledge acquired through formal training. Sub-Professional Category – positions involved in manual or clerical work in support of office operations or those engaged in arts, crafts, and trades. Executive Category – managerial positions involved in the executive, legislative and judicial functions. Categories of Positions

9. 9 Salary Schedule Effective July 1, 2008 Pursuant to EO No. 719 Compensation System

10. 10 Sub-ProfessionalProfessional Executive Comparison of Existing Compensation in Public Sector Versus Private Sector

11. 11 Sub-ProfessionalProfessionalExecutive Comparison of Proposed Compensation in Public Sector Versus Existing Compensation in Private Sector

12. 12 Compensation System Proposed Salary Schedule Salary Grades 1-9

13. 13 Compensation System Proposed Salary Schedule Salary Grades 10-24

14. 14 Compensation System Proposed Salary Schedule Salary Grades 25-33

15. 15 Compensation System Proposed Upgrading of Positions

16. 16 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 to employees under specific conditions, related to 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 employee productivity e.g., Loyalty Incentive and Productivity Enhancement Incentive.

17. 17 Compensation System Special Allowances Special Allowances provided under special laws for Judges and Justices, Prosecutors, Solicitors and Public Attorneys are considered as advance implementation of salary increases. Special Allowances received prior to effectivity of SSL III shall be converted as part of basic salaries. Special Allowances shall be reduced correspondingly whenever there are authorized salary adjustments.

18. 18 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

19. 19 Compensation System Exempt Entities SSl-exempt agencies to be governed by their own compensation and position classification system Not entitled to salary adjustments under the joint resolution Should observe policies and guidelines set by the President Any increase in salaries, allowances, benefits and incentives shall be subject to approval by the President

20. 20 Additional Expenditure for Compensation Adjustment Under the Joint Resolution Civilian Personnel P 85.0 B Under separate issuance Active Military and Uniformed Personnel (MUP) 24.0 Pension, Retired MUP (PGF) 11.6 35.6 Total Add’l Exp P120.6 B Period of Implementation : 4 years 2009 to 2012