Title
Salary Standardization Law of 2019
Law
Republic Act No. 11466
Decision Date
Jan 8, 2020
Republic Act No. 11466 establishes a standardized salary schedule for civilian government personnel, ensuring equitable compensation, performance-based incentives, and additional benefits across all government branches while promoting social justice and efficiency in the civil service.
government personnel
compensation law
additional benefits

Policy and core objectives

  • The State adopts the policy of providing all government personnel just and equitable compensation in line with the principle of equal pay for work of equal value (Section 2).
  • Differences in pay must be based on substantive differences in duties, responsibilities, accountabilities, and qualification requirements of positions (Section 2).
  • Civilian government compensation must be standardized and rationalized across all government agencies to promote social justice, integrity, efficiency, productivity, accountability and excellence (Section 2).
  • Compensation for civilian personnel must generally be competitive with the private sector for comparable work to attract, retain and motivate competent and dedicated civil servants (Section 2).
  • A performance-based incentive scheme must be established to reward exemplary civil servants and well-performing organizations (Section 2).
  • The compensation scheme must consider the financial capability of the government and maintain efficient allocation of funds for personnel services at a realistic level proportional to overall government expenditure (Section 2).

Coverage and exclusions

  • The Act applies to all civilian government personnel in the Executive, Legislative and Judicial Branches, Constitutional Commissions and other Constitutional Offices, local government units (LGUs), and government-owned or -controlled corporations (GOCCs) not covered by Republic Act No. 10149 (Section 3).
  • Coverage extends to personnel whether regular, contractual or casual, and whether appointive or elective, and whether full-time or part-time (Section 3).
  • The Act excludes military and uniformed personnel (Section 4).
  • The Act excludes GOCCs under Republic Act No. 10149, which must be covered by a Compensation and Position Classification System (CPCS) established by the Governance Commission for GOCCs (GCG) and approved by the President (Section 4).
  • The Act excludes individuals whose services are engaged through job orders, contracts of service consultancy, or service contracts with no employer-employee relationship (Section 4).

Position classification and total framework

  • The Act requires maintenance of the re-categorized groups of classes of positions: (a) Sub-professional Category; (b) Professional Category; and (c) Executive Category under Item (3) of Joint Resolution No. 4, series of 2009 (Section 5).
  • The Index of Occupational Services, Occupational Groups, Classes and Salary Grades (IOS) must be continually reviewed and updated by the Department of Budget and Management (DBM) considering substantial changes in complexity, duties and responsibilities, work methods, skills, competencies, and other relevant factors (Section 5).
  • The Act continues adoption of the Total Compensation Framework under Item (4) of Joint Resolution No. 4, series of 2009, consisting of:
    • Basic Salaries including Step Increments
    • Standard Allowances and Benefits
    • Specific-Purpose Allowances and Benefits
    • Incentives (Section 6).

Modified salary schedule mechanics

  • The modified salary schedule for civilian personnel is implemented in four (4) tranches (Section 7).
  • The salary schedule rates are expressed in monthly remuneration for regular or contractual personnel, whether appointive or elective, and on full time employment; part-time remuneration must be proportionate to actual services rendered (Section 7).
  • Casual personnel must be paid a daily wage rate computed by dividing the corresponding monthly salary rate by twenty-two (22) working days (Section 7).

Salary schedule by tranche (monthly)

  • First Tranche: the Act provides the monthly salary amounts by Salary Grade and Step 1 to Step 8 (Section 7).
    • Salary Grade 1: Step 1 11,551; Step 2 11,647; Step 3 11,745; Step 4 11,843; Step 5 11,942; Step 6 12,042; Step 7 12,143; Step 8 12,244.
    • Salary Grade 2: Step 1 12,276; Step 2 12,369; Step 3 12,464; Step 4 12,560; Step 5 12,657; Step 6 12,754; Step 7 12,852; Step 8 12,950.
    • Salary Grade 3: Step 1 13,019; Step 2 13,119; Step 3 13,220; Step 4 13,322; Step 5 13,424; Step 6 13,527; Step 7 13,631; Step 8 13,736.
    • Salary Grade 10: Step 1 20,219; Step 2 20,388; Step 3 20,558; Step 4 20,731; Step 5 20,903; Step 6 21,079; Step 7 21,254; Step 8 21,432.
    • Salary Grade 20: Step 1 52,703; Step 2 53,537; Step 3 54,386; Step 4 55,248; Step 5 56,125; Step 6 57,016; Step 7 57,921; Step 8 58,841.
    • Salary Grade 24: Step 1 85,074; Step 2 86,462; Step 3 87,874; Step 4 89,308; Step 5 90,766; Step 6 92,248; Step 7 93,753; Step 8 95283.
    • Salary Grade 33: Step 1 395,858; Step 2 407,734.
  • Second Tranche: the Act provides the monthly salary amounts by Salary Grade and Step 1 to Step 8 (Section 7).
    • Salary Grade 1: Step 1 12,034; Step 2 12,134; Step 3 12,236; Step 4 12,339; Step 5 12,442; Step 6 12,545; Step 7 12,651; Step 8 12,756.
    • Salary Grade 10: Step 1 21,205; Step 2 21,382; Step 3 21,561; Step 4 21,741; Step 5 21,923; Step 6 22,106; Step 7 22,291; Step 8 22,477.
    • Salary Grade 20: Step 1 54,251; Step 2 55,085; Step 3 55,934; Step 4 56,796; Step 5 57,673; Step 6 58,564; Step 7 59,469; Step 8 60,389.
    • Salary Grade 24: Step 1 86,742; Step 2 88,158; Step 3 89,597; Step 4 91,059; Step 5 92,545; Step 6 94,057; Step 7 95,592; Step 8 97,152.
    • Salary Grade 30: Step 1 182,191; Step 2 185,165; Step 3 188,187; Step 4 191,259; Step 5 194,380; Step 6 197,553; Step 7 200,777; Step 8 204,051.
    • Salary Grade 33: Step 1 403,620; Step 2 415,728.
  • Third Tranche: the Act provides the monthly salary amounts by Salary Grade and Step 1 to Step 8 (Section 7).
    • Salary Grade 1: Step 1 12,517; Step 2 12,621; Step 3 12,728; Step 4 12,834; Step 5 12,941; Step 6 13,049; Step 7 13,159; Step 8 13,268.
    • Salary Grade 10: Step 1 22,190; Step 2 22,376; Step 3 22,563; Step 4 22,752; Step 5 22,942; Step 6 23,134; Step 7 23,327; Step 8 23,522.
    • Salary Grade 20: Step 1 55,799; Step 2 56,633; Step 3 57,432; Step 4 58,344; Step 5 59,221; Step 6 60,112; Step 7 61,017; Step 8 61,937.
    • Salary Grade 30: Step 1 185,695; Step 2 133,726; Step 3 191,806; Step 4 194,937; Step 5 198,118; Step 6 201,352; Step 7 204,638; Step 8 207,978.
    • Salary Grade 33: Step 1 411,382; Step 2 423,723.
  • Fourth Tranche: the Act provides the monthly salary amounts by Salary Grade and Step 1 to Step 8 (Section 7).
    • Salary Grade 1: Step 1 13,000; Step 2 13,109; Step 3 13,219; Step 4 13,329; Step 5 13,441; Step 6 13,553; Step 7 13,666; Step 8 13,780.
    • Salary Grade 10: Step 1 23,176; Step 2 23,370; Step 3 23,565; Step 4 23,762; Step 5 23,961; Step 6 24,161; Step 7 24,369; Step 8 24,567.
    • Salary Grade 20: Step 1 57,347; Step 2 58,181; Step 3 59,030; Step 4 59,892; Step 5 60,769; Step 6 61,660; Step 7 62,565; Step 8 63,485.
    • Salary Grade 24: Step 1 90,078; Step 2 91,548; Step 3 93,043; Step 4 94,562; Step 5 96,105; Step 6 97,674; Step 7 99,268; Step 8 100,888.
    • Salary Grade 30: Step 1 189,199; Step 2 192,286; Step 3 195,425; Step 4 198,615; Step 5 201,856; Step 6 205,151; Step 7 208,499; Step 8 211,902.
    • Salary Grade 33: Step 1 419,144; Step 2 431,718.

Bonuses, incentives, PRAISE

  • The Act authorizes a Mid-Year Bonus equivalent to one (1) month basic salary as of May 15 of a given year (Section 8).
  • The Mid-Year Bonus is granted to personnel 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 of every year (Section 8).
  • The Act retains the existing Year-End Bonus equivalent to one (1) month basic salary and Cash Gift of Five thousand pesos (P5,000.00), categorized under the Standard Allowances and Benefits component, and requires payment in November of every year (Section 8).
  • The Act categorizes the Program on Awards and Incentives for Service Excellence (PRAISE) as an Incentive under the Total Compensation Framework (Section 9).
  • The Act provides that PRAISE monetary and/or non-monetary rewards guidelines are issued by the Civil Service Commission (CSC) in consultation with the DBM (Section 9).

LGU compensation adjustment limits

  • The modified salary schedule and additional incentives may be granted to LGU personnel only upon compliance with the Personnel Services (PS) limitation under Section 325 and 331 of Republic Act No. 7160 and upon authorization from the Sanggunian under Sections 447(a), 458(a) and 468(a) of Republic Act No. 7160 (Section 10).
  • LGUs must ensure LGU personnel salaries correspond to the LGU’s income classification and do not exceed the percentage of the Salary Schedule in Section 7 as follows (Section 10):
    • Provinces/Cities: 1st Class 100%, 2nd Class 95%, 3rd Class 90%, 4th Class 85%, 5th Class 80%, 6th Class 75%.
    • Municipalities Special Cities: 1st Class 100%, 2nd Class 90%, 3rd Class 80%, 4th Class 75%, 5th Class 70%, 6th Class 65%.
  • LGU barangay personnel basic pay must be in the form of honoraria consistent with Republic Act No. 7160, must not exceed the corresponding percentage of the Salary Schedule by the LGU income classification, and may be given a Year-End Bonus based on monthly honoraria as of October 31 of the year and a Cash Gift of Five thousand pesos (P5,000.00) (Section 10).
  • The Act sets minimum Year-End Bonus amounts for barangay officials: One thousand pesos (P1,000.00) for the Punong Barangay and Six hundred pesos (P600.00) for other mandatory barangay officials, and these minimums are not subject to the PS limitation (Section 10).
  • If a LGU partially implements authorized compensation rates, the partial rates must be implemented as a uniform percentage across all positions for every LGU (Section 10).

Implementation schedule and national/local timing

  • The Act requires that for national government agencies (NGAs), the Salary Schedule in Section 7 be implemented in four (4) tranches beginning: January 1, 2020, January 1, 2021, January 1, 2022, and January 1, 2023 (Section 11).
  • For GOCCs and LGUs, the implementation period must be not less than four (4) years, depending on financial capabilities, with the proviso that initial implementation must not be earlier than January 1, 2020 (Section 11).

Exempt entities and effects

  • The Act exempts the following entities:
    • Government agencies not covered by the CPCS authorized under Republic Act No. 6758, as amended
    • GOCCs governed by the CPCS established by GCG under Republic Act No. 10149
    • Entities authorized by law that have actually adopted their own compensation and position classification system (Section 12).
  • Exempt entities are governed by their respective compensation and position classification systems, which become effective upon recommendation of the DBM or GCG (as the case may be) and approval by the President (Section 12).

Presidential and Members of Congress timing

  • The Act provides that salary amounts authorized for the President of the Philippines, Vice-President of the Philippines, and Members of Congress take effect only after the expiration of the respective terms of the present incumbents, pursuant to Section 6 of Article VII and Section 10 of Article VI of the Constitution (Section 13).

Funding sources and financial charge rules

  • For NGAs, salary adjustment amounts for FY 2020 must be charged against any available appropriations in the FY 2020 General Appropriations Act and other available and valid appropriations, and thereafter amounts needed must be included in the annual General Appropriations Act (Section 14).
  • For GOCCs, amounts must come from their respective corporate funds in corporate operating budgets approved by the DBM (Section 14).
  • GOCCs without sufficient funds must partially implement authorized compensation rates, and any partial implementation must be at a uniform proportion for all positions in each GOCC (Section 14).
  • For LGUs, amounts must be charged against local government funds in accordance with the pertinent provisions of the Act and Republic Act No. 7160 (Section 14).

Implementing guidelines and administrative issuance

  • The DBM must issue the guidelines necessary to implement specific provisions of the Act (Section 15).

Separability, continuing laws, and repeal

  • If any section or provision of the Act is declared unconstitutional or invalid, the remaining provisions continue in full force and effect (Section 16).
  • The Act provides that provisions of Presidential Decree No. 985 as amended by Presidential Decree No. 1597, Presidential Decree No. 1997, Republic Act No. 6758, Joint Resolution No. 1, series of 1994, Joint Resolution No. 4, series of 2009, and Executive Order No. 201, series of 2016 that are not inconsistent with, expressly modified, revoked, or repealed in this Act continue in full force and effect (Section 17).
  • All laws, decrees, orders, rules or regulations, or parts thereof, inconsistent with the Act are repealed, amended, or modified accordingly (Section 18).

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