The document outlines the salary policies and schedules for government employees in the Philippines according to relevant laws and guidelines. It discusses the classification system and pay scales, including fixed and variable compensation components as well as benefits. The salary schedule assigns government positions to salary grades and steps to determine pay rates in a manner that aims to attract and retain qualified public servants.

1.  PROVISIONS RELATING TO SALARIES
 SALARY POLICIES AND SCHEDULES
 ECONOMIC BENEFITS
REPORTED BY:
CHUA,CHRISTOPHER L.
MAED - EM

2. I. Introduction
Government provide and formulate guidelines on
classification of position and specific salary based on the
principle and equal pay for substantially equal work and
recognize differences in pay arising from substantive
differences in duties and responsibility and qualification
requirements and giving additional benefits and
compensations to enable individuals to attain development
and make them more effective in their line of duty.

3. II. Statement of the Problem
What is a salary?
What are the state provisions
relating to salaries?
What are the Salary Policies
and Schedules?

4. III.Presentation and Discussion
A Salary is a form of periodic payment from
employer to an employee, which may be
specified in an employment contract. It is
contrasted with piece wages, where each job,
hour or other unit is paid separately, rather
than on a periodic basis.

5. Salary/ Compensation Plan
The Salary/Compensation Plan (CP) under RA No. 6758
is an orderly scheme for determining rates of
compensation of government personnel. It was crafted
to attract, motivate and retain good and qualified people
to accomplish the Philippine Government’s mission and
mandates, to encourage personal and career growth,
and to reward good performance and length of service.

6. To achieve these goals, the CP has a mix of
compensation components, namely; basic
pay or salaries, fringe benefits, incentives
and non-financial rewards which provide
reasonable levels of compensation packages
within existing government resources, and
are administered equitably and fairly.

7.  Policy of the State Section 2 of RA No. 6758
provides the compensation policy of the
State, to wit:
 "It is hereby declared the policy of the State
to provide equal pay for substantially equal
work and to base differences in pay upon
substantive differences in duties and
responsibilities, and qualification
requirements of the positions. In
determining rate s of pay, due regard shall
be given to, among others, prevailing rates in
the private sector for comparable work. "

8. Governing Principles of the
Compensation Plan
Pursuant to RA No. 6758, the CP is based on
the following principles:
 1. All government personnel shall be paid
just and equitable salaries
 2. The basic pay for all personnel in the
government shall generally be
comparable with those in the private
sector.

9.  3. The total compensation program of
government personnel shall be maintained
at a reasonable level in proportion to the
national budget.
 4. Government compensation rates shall be
reviewed periodically taking into account
possible erosion in purchasing power due to
inflation and other economic factors.

10. General Guidelines on Government
Compensation
 Government compensation shall be
governed by the following general guidelines:
1. Each class of positions in the Position
Classification Plan shall be assigned a salary
grade.
Examples:
Salary grade11- step1 (php.18, 549)
step 2(php.18, 735) step 8(19,887)
Salary grade 22- step1 (php.42,652)
step7(php.45,546)

11. 2. Compensation for part-time services
rendered shall be computed proportionately.
3. Across-the-board salary or wage
adjustment shall be granted to all employees.
4. Salary and other compensation
adjustments including the grant of new
benefits shall be covered by appropriate legal
basis or authority.

12.  5. As a general rule, no official or
employee shall receive a salary equal to or
higher than the salary of his/her
immediate supervisor, except when
otherwise authorized by law, rules and
regulations.

13.  6.Unless otherwise specifically approved
by the President, no person shall be
appointed in the government under the
guise of voluntary service, with
compensation below the hiring rate for the
position, provided that, the application of
this provision may be waived to authorize
voluntary service in the Armed Forces of
the Philippines or in connection with relief
operations.

14. Concept of Compensation
 Direct Compensation - These are cash
compensation items which are either fixed
or variable and are paid to an employee
for the performance of work. These
include basic pay, cash allowances and
fringe benefits.

15.  a. Fixed Compensation – These are cash
compensation items which are regularly
granted to all employees.
Examples: basic salaries, Personnel Economic
Relief Allowance (PERA), and Additional
Compensation (ADCOM).

16.  b. Variable Compensation- These are
cash compensation items which are
granted to employees based on certain
qualifications or rendition of special
services..
Examples: hazard pay, honoraria, night-
shift differential pay, and overtime pay.

17. Other Compensations:
 1. Personal Economic Relief allowance
(PERA)- Budget Circular No. 2009-3 as of
Dec. 31 2012
 2.Representation Allowance (RA) and
Transportation Allowance (TA)-
 3. Uniform/Clothing Allowance (U/CA)- The
provision shall be computed based on the
number of filled itemized positions as of
December 31, 2012, multiplied by P5,000 per
annum.

18.  4.Productivity Incentive Benefits (PIB)-The
PIB shall be computed at an average
amount of P 2,000 multiplied by the
number of filled positions as of December
31, 2012 in accordance with Section 4 of AO
No. 161 dated December 12, 1994.
 5.Honoraria -shall be paid to the following
personnel subject to the guidelines issued
by the DBM:

19.  A. Teaching personnel of the DepEd,
TESDA, SUCs, and other educational
institutions engaged in actual classroom
teaching whose teaching load is outside the
regular office hours and/or in excess of the
regular teaching load;
 b. Those who act as lecturers, resource
persons, coordinators, and facilitators in
seminars, training programs, workshops,
and other similar activities conducted by
other agencies;

20.  c. Chairs and members of
Commissions/Boards/Councils and other
similar entities who are neither paid salaries
nor per diems but compensated in the form
of honoraria as provided by law, rules, and
regulations; ***The rates of honoraria
shall depend on the level of responsibilities
,nature of work rendered, and extent of
individual contribution to produce the
desired outputs. The total honoraria
received from all special projects shall not
exceed 25% of the annual basic salary

21.  6.Hazard Duty Pay or Hazard Pay
 7 .Longevity Pay -Longevity Pay for specific
positions, equivalent to a percentage of basic
salary or base pay depending on length of
service, shall be computed based on existing
policies and guidelines. Those who are
enjoying longevity pay shall no longer be
entitled to step increment.

22.  8. Cash Gift -Cash Gift equivalent to
P5,000 shall be computed based on the
number of filled positions as of
December 31, 2012.
 9. Year-End Bonus -equivalent to one
(1) month basic salary or base pay shall
be computed based on the number of
filled positions as of December 31,
2012.

23. SUMMARY OF BENEFITS
 HOLIDAYS
1. REGULAR
2.SPECIAL
 VACATION
 HEALTHCARE
1. DENTAL
2.OUTPATIENT MEDICINE
REIMBURSEMENT
3. MATERNITY GRANT

24. •LEAVES:
1.SICK LEAVE
2. PATERNITY LEAVE
3.BEREAVEMENT
4.SOLO PARENT LEAVE
5. CALAMITY LEAVE
6. MAGNA CARTA FOR WOMEN

25. Other Benefits:
 1. Pension Benefits -These shall be further
classified into:
a. Pension - Civilian Personnel,
b. Pension - Military and Uniformed
Personnel.
 2. Retirement Gratuity benefit
 3. Terminal leave benefits
 4. Mid Year Bunos

26.  5. Rice Allowance
 6. Meal Subsidy
 7. Kapwa Tulong Program
 8. Attendance Bunos
 9. Loyalty Token

27. Fixed personnel
Expenditures:
 1. GSIS- 12% of total salaries except Member of
Judiciary, Chair and member for constitutional
commission, PRC, ERC, which is 3%
 2 . PAG-I.B.I.G Contributions – P1,200 each per
annum.
 3. PHILHEALTH Contributions – in accordance
with Phil Health Circular No. 01, s. 2005.
 4.ECIP – 1% of the annual basic salary or
P1,200/annum, whichever is lower.

28. The Salary Schedule
 The salary schedule under the CP is a table of
salary grades with each salary grade consisting
of several salary steps with corresponding money
values.
 1.A salary grade represents a level of difficulty
and responsibility of work. The present Salary
Schedule consists of 33 salary grades.

29.  2.Each of Salary Grades 1 to 32 consists of 8
salary steps which are used to provide
incentives for length of service in the position.
Salary Grade 33 has only 1 salary step.(step 1-
php120,000)
 3.The 1st salary step is the minimum or hiring
rate. The 2nd to 7 salary steps are the
intermediate salary rates. The 8th step is the
maximum salary rate.

30.  4All rates in the Salary Schedule represent
full compensation for full-time employment
in a 40-hour work week regardless of where
the work is performed.
 5.The daily wage represents full
compensation for full-time employment in
an 8-hour w.ork day regardless of where the
work is performed. The daily rate shall be
computed based on the authorized/actual
monthly rate for the position divided by 22
days.

31. Salary Rules
 The rules governing the implementation of
the salary schedule are as follows:
 A. Hiring Rate
 The first step in the salary grade for a given
class of positions shall be the hiring rate for
new employees.
 No employee shall receive a salary less than
the hiring rate for the position.

32.  B. Promotion – This is a movement from a
lower level position to a higher level position
within the same or in another organizational
unit in the same department or agency.
 If the actual salary of the employee at the time
of his/he promotion is below the hiring rate of
the new position, he/she shall be allowed the
hiring rate or 1st step of the salary grade of
the new position.

33.  2. If the present salary falls between steps,
he shall be allowed the next higher step, i.e.,
the immediately succeeding step to an off-
step salary rate. Hence, if the salary rate
falls between steps 3 and 4, the next higher
step is step4.
 3. if the present salary is equal to any of the
steps of the new position, he/she shall be
allowed the next higher step. However, if it is
equal to the maximum or 8th step, he/she
shall only continue to receive the same
salary rate.

34.  4. If the present salary is over the maximum
or 8th step of the new position, he/she shall
continue to receive his/her present salary.
Any excess over the 8th step shall be treated
as transition allowance which shall be
considered as advanced implementation of
future salary increase/s.

35.  C. Demotion – This is a movement from a
higher level position toa lower level position
within the same or in another organizational
unit in the same department or agency.
 1 .If the demotion is due to the exigency of
the service, the employee shall be allowed to
continue to receive his/her present salary in
the higher level position.

36.  2 . If the demotion is voluntary or at
the instance of the employee or a result
of disciplinary action, he/she shall be
allowed only the hiring rate of the
lower level position.

37.  D. Transfer – This is a movement from one
position to another from one department or
agency to another, or from one organizational
unit to another within the same department or
agency.
1. If the transfer is to a higher level position, the
salary rules on promotion shall apply.

38.  2 If the transfer is to a position of equivalent
rank or of the same salary grade as the
previous position, the employee shall
continue to receive his/her present salary.
 3 If the transfer is to a lower level position,
the salary rules on demotion shall apply.

39.  E. Reclassification of Position – This is a
form of position classification action which
may result in a change in position title or
position level, and may or may not involve a
change in salary
 F.Reorganization – This involves the
restructuring of the organization and
staffing of government agencies for the
efficient conduct of their functions, services
and activities.

40.  G.Re-employment - An employee who was separated
from the service because of reduction in force,
reorganization, voluntary resignation or any non-
disciplinary action such as dropping from the rolls
and is reemployed, shall be paid the hiring rate or
the 1st step of the salary grade of the
 H.Reinstatement - An employee who was charged
and terminated from government service but was
subsequently exonerated and reinstated shall
continue to receive his/her previous salary.

41. IV. IMPLICATIONS:
 Salaries of permanent and non permanent
positions of government or private sector
employee must be equal to the sum of the
actual salaries of itemized positions, giving
additional benefits and other compensations
which provide the needs and level of his
resources and look upon equitably and
fairly living.

42. V. REFERENCES:
 -RA No. 6758, th e “Compensation and
Position Classification Act of
1989”popularly known as the “Salary
Standardization Law,
 -Specific Guideline in the Preparation of
FY 2014 Agency Budget Proposals and
other Budgetary item- ANEX A
 -Department of Budget and Management