QuestionsQuestions (Republic Act No. 11466)
RA No. 11466 is the “Salary Standardization Law of 2019.” It modifies the salary schedule for civilian government personnel and authorizes additional benefits.
The State seeks just and equitable compensation based on “equal pay for work of equal value,” with standardized and rationalized compensation across government agencies, generally competitive pay, performance-based incentives, and due regard to the government’s financial capability.
It applies to all civilian government personnel in the Executive, Legislative, and Judicial branches; constitutional commissions and offices; GOCCs not covered by RA 10149; and LGUs. It covers regular, contractual, or casual; appointive or elective; and full-time or part-time personnel.
Excluded are (a) military and uniformed personnel; (b) GOCCs under RA 10149 covered by a Compensation and Position Classification System (CPCS) approved by the President; and (c) individuals whose services are engaged through job orders, contracts of service, consultancy, or service contracts with no employer-employee relationship.
The law requires maintaining the re-categorized groups of classes of positions: (a) Sub-professional Category, (b) Professional Category, and (c) Executive Category.
It is the continuing adopted framework under Joint Resolution No. 4, series of 2009, consisting of: (a) Basic Salaries including Step Increments; (b) Standard Allowances and Benefits; (c) Specific-Purpose Allowances and Benefits; and (d) Incentives.
It is implemented in four (4) tranches: first tranche begins January 1, 2020; second on January 1, 2021; third on January 1, 2022; and fourth on January 1, 2023.
Part-time personnel receive remuneration proportionate to actual services rendered. Casual personnel are paid a daily wage rate computed by dividing the corresponding monthly salary rate by 22 working days.
Mid-Year Bonus is equivalent to one (1) month basic salary as of May 15, granted to those who rendered at least four (4) months of satisfactory service and are still in the service as of May 15; it is given not earlier than May 15 each year.
The existing Year-End Bonus (one month basic salary) and Cash Gift of P5,000 are categorized under Standard Allowances and Benefits and are given in November every year.
PRAISE is the Program on Awards and Incentives for Service Excellence instituted by the CSC. RA 11466 categorizes it under the Incentive component of the Total Compensation Framework.
LGUs must comply with the Personnel Services (PS) limitation in the LGU budget under Sections 325 and 331 of RA 7160 and must secure authorization from the Sanggunian under Sections 447(a), 458(a), and 468(a) of RA 7160.
LGU salaries authorized must correspond to the LGU income classification and should not exceed specified percentages of the Salary Schedule: For provinces/cities (100% for 1st class; 95% for 2nd; 90% for 3rd; 85% for 4th; 80% for 5th; 75% for 6th). For municipalities (100% for special cities/1st class; 90% for 1st class; 85% for 2nd; 80% for 3rd; 75% for 4th; 70% for 5th; 65% for 6th).
Barangay personnel basic pay must be in the form of honoraria consistent with RA 7160, not exceeding the percentage of the Salary Schedule corresponding to LGU income classification. They may be given Year-End Bonus based on monthly honoraria as of Oct 31 and the Cash Gift of P5,000. The minimum Year-End Bonus (P1,000 for Punong Barangay and P600 for other mandatory officials) is not subject to the PS limitation.
Partial implementation must be at a uniform percentage across all positions for every LGU.
Their implementation period must not be less than four (4) years depending on financial capabilities, with the proviso that initial implementation shall not be earlier than January 1, 2020.
Exempt entities include (a) government agencies not covered by the CPCS authorized under RA 6758 as amended; (b) GOCCs governed by the CPCS established by the GCG under RA 10149; and (c) entities authorized by law that actually adopted their own compensation and position classification system. They are governed by their respective systems made effective upon recommendation of DBM or GCG and approval by the President.
Under the Constitution-related proviso in RA 11466, their salaries take effect only after the expiration of the respective terms of the present incumbents.