PRRD moves to end excessive salaries, bonuses in GOCCs
President Duterte is moving to put an end to the alleged excessive salaries and bonuses in government-owned and controlled corporations (GOCCs).
Executive Order No. 36, signed by the President last July 28, suspends the Compensation and Position Classification System (CPCS) for the GOCC sector sanctioned by his predecessor last year.
The new presidential directive also authorized “interim compensation adjustments” for the affected GOCCs pending a thorough review of the salary system.
“There is a need to further study and review the compensation of GOCCs and eliminate any excessive, unauthorized, illegal and/or unconscionable allowances, incentives and benefits,” the order read.
“The GCG (Governance Commission for GOCCs) finds that there are compelling reasons to revisit and/or reevaluate the CPCS under EO No. 203 and institute an interim measure for affected GOCCs in the meantime,” it added.
The CPCS, contained in EO 203 issued by then President Aquino in March 2016, was meant to rationalize GOCC compensation and make it competitive with the private sector to attract and retain workers.
In the interim, President Duterte has allowed GOCCs, covered by the Salary Standardization Law (SSL), to adopt the “modified salary schedule” and authorized benefits under EO 201 issued last year. EO 201 raised the salaries of civilian government personnel and granted additional benefits for both civilian and uniformed workers.
If the state firms do not have adequate funds, the President said these GOCCs must partially implement the modified salary schedule. “In case of partial implementation, the same shall be at uniform percentage across all positions for every GOCC,” EO 36 read.
All SSL-exempt GOCCs, on the other hand, have the option to either keep their compensation framework, or subject to approval of the GOCC, adopt the modified salary schedule.
For the GOCCs adopting the modified salary schedule, they shall be limited to the benefits, allowances and incentives provided under Joint Resolution No. 4 issued by Congress. The GCG will also have the authority to convert or revise the compensation framework of such GOCCs.
A mid-year bonus equivalent to one month basic salary shall be granted to those with at least four months of service to be given every May 15. The existing year-end bonus equivalent to one month basic salary and cash gift at prescribed rates shall be given every November. The grant of these bonuses shall be subject to the guidelines issued by the GCG.
“The mid-year and year-end bonuses provided herein, shall be in lieu of the bonuses, allowances or incentives of similar nature that the GOCCs receive under the current compensation framework,” the order read.
In the implementation of the new order, there shall be no diminution in the authorized salaries of incumbent officers and employees.
EO 36 also stated that the provision of EO 203 on the Collective Bargaining Agreements and Collective Negotiation Agreements in the GOCC sector is not suspended and shall continue to be in effect.
The interim measure will be retroactive to January 1, 2017 upon approval of the GCG.
In his recent State-of-the-Nation Address, the President said he would not raise the salaries of GOCC officials pending the review of the compensation system.