Christmas in May mostly for government big shots

By Luis Leoncio

It will be Christmas in May for government employees, but mostly those in the top echelons, as President Aquino signed an executive order (EO) last Friday granting salary increases to 1.3 million state workers, including the Chief Executive, which would cost a total of P226 billion. The pay raises are retroactive to Jan. 1, 2016. 

The presidential elections will also be held in May, and political observers said the timing of the salary hike was “clearly election-related to boost the campaign of the administration’s presidential candidate who has been the cellar dweller” in surveys.

“Clearly, however, the EO would not be able to calm the anger of the millions of Social Security System (SSS) pensioners who were deprived of their P2,000 pension increase, which was approved by Congress, but vetoed by Mr. Aquino. And these angry millions appear determined to manifest their extreme displeasure in the coming presidential elections,” said one political observer.

He was alluding to earlier reports that many administration lawmakers seeking reelection appeared to have been able to convince the President to issue an EO authorizing a “compromise” P1,000 increase for the SSS pensioners “to soften the terrible impact of the presidential veto” on their political future. “But apparently,” noted the observer, “the President stuck to his guns; end of the story.”

A state workers’ group said 1.3 million ordinary government employees will get a mere 10-percent to 27-percent pay raise; ranking officials, including the President, would get as much as a 100-percent to 228-percent increase.

The increases would be provided under the Salary Standardization Law (SSL) IV that was stalled in the bicameral conference committee of Congress.

Budget Secretary Florencio Abad said that, under the EO, an average 27-percent increase in salaries of state workers would be released in May.

Abad said that, aside from the salary increase, state workers are also looking forward to a 14th-month pay, also to be released in May.

Abad said the EO does not cover Mr. Aquino, Vice President Jejomar Binay, incumbent senators, representatives and Cabinet members; it will only benefit personnel of the incoming governments.

The EO does not cover military personnel, although they will be given a raise in hazard pay, provisional allowances and officers’ allowances, aside from their 14th-month pay.

The EO also excludes those whose services are engaged through job orders, service and consultancy contracts and such other contracts that have no employer-employee relationship.

Mr. Aquino signed the EO upon arrival last Friday from the United States, where he participated in a special Asean-US Summit in Sunnylands, Rancho Mirage, California, and had a working visit in Los Angeles.

The 2016 General Appropriations Act authorizes the implementation of the first tranche under SSL 4, with a budget of P57.9 billion.

Section 13 of Presidential Decree 985 and item 17 (iv) of Congress Joint Resolution 4 issued in 2009 authorizes the President to periodically revise or update, upon the recommendation of the budget department, the government’s Compensation and Position Classification System.

The SSL provides up to 40-percent increases in the compensation of state workers the maximum for which of course benefits those in the top rung.

Under the EO, the salary of the President now shoots up to P400,000 a month from P120,000. This means an increase of almost P3,000 per day, or P90,000 a month, for the President’s salary.

The salary of the lowest-paid government worker, on the other hand, would be raised only by P2,000, or Salary Grade 1, from P9,000 to P11,068.

The increase would also be in four batches at P500 each year until 2019.

For Salary Grades 18 to 30, the pay will be raised to a 70-percent parity with market rates, according to Abad.

Aside from the acrossthe-board salary increase, the proposal included a mid-year bonus equivalent to onemonth basic salary and the new Performance-based Bonus (PBB) set for June.

The midyear bonus, in addition to the present yearend bonus, or 13th-month pay, is equivalent to an 8-percent increase in annual salary,  while the PBB is equivalent to one to two months basic salary, or an 8-percent to 16-percent increase, depending on the position.

“The adjustments will give employees an average increase of 35 percent to 45 percent, plus mid-year bonus; and the new PBB, if they qualify,” said Abad.

On top of the windfalls, the full midyear bonus and the full PBB will be tax-exempt for salary grades 1 to 11. And the midyear bonus will be tax-exempt for Salary Grades 12 to 16.

Not everyone is happy with the development, however. Robert Mendoza, national president of Alliance of Health Workers (AHW), described the Salary Standardization Law 4 (and the Palace EO that replaced it) as “deceptive and treacherous” and “falsely advertises an increase in our wages and yet it will actually rob us of our benefits.”

Ferdinand Gaite, national president of the Confederation for Unity, Recognition and Advancement of Government Employees (Courage), said the signing of the EO “is like a basketball game in which Aquino grants an increase in the last two minutes of the game.”

“The President even blamed lawmakers for stalling the passing of this law. But in his five-and-a-half years as President, he never talked about passing a law to increase our salary,” he said.

Eleanor Nolasco, co-convenor of the newly formed Filipino Nurses United, said nurses will receive an average increase of P2, 000 that would be spread in four tranches in four years.

For one, a Nurse 1 receiving a Salary Grade 11 will get a P2,205 increase or P520 per year for four years.

She added the increase would be equivalent to at least P20 daily.

“For public health nurses who perform a critical role…how does the increase of P20-per-day figure?” Nolasco said. She said in caring for the people’s health, nurses are “exposed to extreme daily health hazards and chronically burdened with low wages.”

Nurses are also overworked, as the average nurse-patient ratio in hospitals is 1:60 to 1:100, with extended working shifts of 16 up to 24 hours.

She said the P20 per-day increase is not even enough to buy a round trip ticket at the Metro Rail Transit Line 3, let alone defray the estimated P1,000 daily expense of a family of five.

Under the Philippine Nursing Act of 2002, nurses should receive Salary Grade 15, which is equivalent to P25,000. But as in other laws, Nolasco said, this is yet but another “unfulfilled commitment that highlights state neglect of and dishonor for nurses as critical development partners.”