Salary Increase for Government Employees for 2010 (Philippines)

Finally, the much-awaited law and guidelines that implement the salary increase for government employees for 2010 in the Philippines have been released. The executive order, national budget circular and local budget circular for the salary increase for government employees for 2010 were already signed by former president Arroyo and disseminated by the Department of Budget and Management.

Executive Order No. 900

Executive Order No. 900, signed into law on June 23, 2010, implements the second tranche of the 20 billion peso budget for salary increase on June 24, 2010 for both the civilian and the military and uniformed personnel. For the salary increase among local government personnel, the law states that the implementation of the second tranche of the modified salary schedule shall be determined by the sanggunian on the basis of the local government unit income class and financial capability. 

National Budget Circular No. 524

National Budget Circular No. 524 prescribes the guidelines, rules, and regulations to govern the implementation in the national government of the second tranche of the modified salary schedule for civilian personnel and military and uniformed personnel. National Budget Circular No. 524 specifies the second tranche monthly salary schedule for civilian personnel in Annex A and while those for military and uniformed personnel in Annex B of the circular.

Local Budget Circular No. 95

Local Budget Circular No. 95 prescribes the guidelines, rules, and regulations to govern the implementation in the local government of the second tranche of the modified salary schedule for local government personnel. The following are the specific annexes specifying the second tranche monthly salary schedule for local governments classified into different types:

• Annex A1 - second tranche monthly salary schedule for local government personnel in special cities and first class provinces and cities.
• Annex A2 - second tranche monthly salary schedule for local government personnel in second class provinces and cities
• Annex A3 - second tranche monthly salary schedule for local government personnel in third class provinces and cities and first class municipalities
• Annex A4 - second tranche monthly salary schedule for local government personnel in fourth class provinces and cities and second class municipalities
• Annex A5 - second tranche monthly schedule for local government personnel in fifth class provinces and cities and third class municipalities
• Annex A6 - second tranche salary schedule for local government personnel in sixth class provinces and cities and fourth class municipalities
• Annex A7 - second tranche monthly salary schedule for local government personnel in fifth class municipalities
• Annex A8 - second tranche monthly salary schedule for local government personnel in sixth class municipalities

As previously mentioned above, the implementation of the salary increase for government employees for 2010 shall be determined by the sanggunian on the basis of the LGU income class and financial capability. Local Budget Circular No. 95 clearly states that the implementation of the salary schedule for local government employees shall take effect not earlier than January 1, 2011. 

The salary increase for government employees for 2010 added a substantial amount to the previous salary increase implemented last July of 2009. With this development, the government employees will have better economic status. This encourages government employees to be more productive and reduce corruption in the ranks due to meager salaries. The salary increase for government employees for 2010 will no doubt redound to the overall benefit of the country.

Details on the government rates for 2010 are available HERE.

Update on Salary Increase for 2011

Source: Department of Budget and Management