QuestionsQuestions (Republic Act No. 11466)
RA 11466 is the “Salary Standardization Law of 2019.” It modifies the salary schedule for civilian government personnel and authorizes additional benefits, aiming to standardize and rationalize compensation based on principles like equal pay for work of equal value.
They include: pay differences must be based on substantive differences in duties and qualifications; civilian compensation must be standardized across agencies; compensation should generally be competitive with the private sector; a performance-based incentive scheme must be established; and the scheme must consider government financial capability and maintain personnel services at a realistic level relative to overall government expenditure.
Civilian government personnel in the Executive, Legislative, and Judicial branches; Constitutional Commissions and other Constitutional Offices; GOCCs not covered by RA 10149; and LGUs. Coverage applies to regular/contractual/casual, appointive/elective, and full-time/part-time personnel.
Excluded are: (a) military and uniformed personnel; (b) GOCCs under RA 10149 covered by a CPCS by the GCG and approved by the President; and (c) individuals engaged through job orders, contracts of service/consultancy, or service contracts with no employer-employee relationship.
It continues to adopt: (a) basic salaries including step increments; (b) standard allowances and benefits; (c) specific-purpose allowances and benefits; and (d) incentives.
In four (4) tranches: first tranche begins January 1, 2020; second begins January 1, 2021; third begins January 1, 2022; and fourth begins January 1, 2023.
The implementation period for GOCCs and LGUs must not be less than four (4) years depending on financial capability, with the proviso that initial implementation shall not be earlier than January 1, 2020.
Part-time remuneration shall be proportionate to actual services rendered. Casual personnel are paid daily wage rate computed by dividing the corresponding monthly salary rate in the schedule by 22 working days.
It is equivalent to one (1) month basic salary as of May 15, given to those who have rendered at least four (4) months of satisfactory service and are still in the service as of May 15, and it must be given not earlier than May 15 every year.
The existing year-end bonus equivalent to one (1) month basic salary and a cash gift of P5,000.00 are categorized under standard allowances and benefits and are to be given in November of every year.
PRAISE is the employee suggestions and incentive awards system instituted by the CSC under EO 292. Under RA 11466, PRAISE is categorized under the “Incentives” component of the Total Compensation Framework.
NGAs: charged against available appropriations in the FY 2020 General Appropriations Act and other valid appropriations, and thereafter included in the annual GAA. GOCCs: from corporate funds in their approved corporate operating budgets; if insufficient, they may partially implement rates subject to uniform proportion. LGUs: charged against their local government funds according to RA 11466 and RA 7160.
The salary authorized for the President, Vice-President, and Members of Congress takes effect only after the expiration of the respective terms of the present incumbents, pursuant to the Constitution.
Exempt entities include: (a) agencies not covered by the CPCS authorized under RA 6758 as amended; (b) GOCCs under the CPCS by GCG under RA 10149; and (c) those authorized by law that adopted their own compensation and position classification system. Exempt entities follow their own systems effective upon recommendation of DBM or GCG and approval by the President.
LGU salaries authorized must not exceed the percentage of the Salary Schedule for their income classification (e.g., Provinces/Cities: 100% for 1st class and below rules by the schedule; Municipalities and Special Cities have different percentages; the law provides a table of percentages per income class).
Barangay personnel’s basic pay must be in the form of honoraria consistent with RA 7160, not exceeding the percentage of the salary schedule corresponding to the LGU’s income classification. They may receive year-end bonus based on monthly honoraria as of Oct. 31 and the P5,000 cash gift; however, the minimum year-end bonus for the Punong Barangay and other mandatory barangay officials are not subject to the PS limitation.
If partial implementation is done, the rates must be at a uniform percentage across all positions for every LGU.