The public service faces the same challenges of attracting and retaining good employees as the private sector. In order to be able to compete for good employees, the Philippines has passed a Salary standardization law to adjust the compensation of government personnel to be competitive with the market rates.
Among the changes, one of it is to increase the compensation of government personnel to at least 70% of the median of the market for all salary grades. The increment of the Monthly Salary shall be carried out in 4 tranches:
- 1st Tranche – Starting January 1, 2016
- 2nd Tranche – Starting January 1, 2017
- 3rd Tranche – Starting January 1, 2018
- 4th Tranche – Starting January 1, 2019
The current compensation structure for government personnel has a total of 33 salary grades with a maximum of 8 steps within each grade. Step increment shall be granted based on the employee’s performance and length of service as prescribed in Presidential Decree No. 985.
The monthly salary used in this article are of step 1. To view the increment of all salary grades and steps, please refer to Executive Order No. 201, s. 2016.
Philippine Salary Grade
|Benchmark Position Schedule||Monthly Salary (Step 1)|
|Position Title||Salary Grade||1st Tranche (2016)||2nd Tranche (2017)||3rd Tranche (2018)||4th Tranche (2019)|
|Education Research Assistant I||9||16,512||16,986||17,473||17,975|
|Agrarian Reform Program Technologist||10||17,730||18,217||18,718||19,233|
|Budget Officer I||11||19,077||19,620||20,179||20,754|
|Social Welfare Officer I||11||19,077||19,620||20,179||20,754|
|Legal Officer I||14||24,141||25,290||26,494||27,755|
|Administrative Officer II||15||26,192||27,565||29,010||30,531|
|Associate Professor I||19||36,409||39,151||42,099||45,269|
|Rural Health Physician||20||39,768||43,250||47,037||51,155|
With the increase of salary, the monthly salary of government personnel under grade 1 will increase from the original P9,000 to P11,068 in 2019. As the increment will be implemented in 4 tranches, effective January 1, 2017, their monthly salary were increased to P9,981 then to P10,510 in 2018, and eventually to P11,068 in 2019.
The monthly salary of Teacher I, salary grade 10, was also increased to P18,217 this year. Their monthly salary will be eventually increased to P19,233 in 2019.
Periodic revision of the compensation structure can ensure that the organization, whether public or private, to keep up with the market competition. As technology advances, the jobs evolve. The competencies required for the job also changes. Therefore, regular review of the compensation structure allows the organization to update and reflect these changes.
SEE ALSO: How To Create A Compensation Structure
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