President Aquino’s Twin Directives Grant Pay Hike and Early Bonus for Government Workers

President Benigno Aquino III has issued two presidential directives for the implementation of the third tranche of wage increase under the Salary Standardization Law and the early disbursement of bonus and cash gifts to state workers.

Executive Secretary Paquito N. Ochoa Jr. announced on Friday that President Aquino approved the release of the salary adjustment one month ahead of schedule instead of July under Executive Order No. 40, and the payment in advance of one-half of the year-end bonus and cash gift to civil servants under Memorandum Order No. 14.

The Chief Executive signed both orders on April 29, 2011.

“The President acknowledges the fact that the compensation of government employees is not at par with their counterparts in the private sector, so he recognizes the need to fast-track the improvement to the pay scale of those in the bureaucracy,” Ochoa said.

According to the Executive Secretary, employees entitled to the third installment of the salary standardization will receive their pay adjustment beginning June 1, 2011.

The Executive Secretary said funding for the bonus equivalent to one-half of the one month basic salary and one-half of the P5,000 cash gift had been made available by the Department of Budget to government agencies for distribution since May 1.

“The early release of the mid-year bonus should benefit government personnel who need to take care of expenses usually incurred at this time of the year, like tuition for the enrolment of children of civil servants,” Ochoa noted.

EO 40 specifically states that all employees in the Executive, Legislative and Judicial branches of government, constitutional commissions or offices, state universities and colleges, government-owned and -controlled corporations and financial institutions, and local government units (LGUs) whether regular, casual, contractual, appointive or elective on a full-time or part-time basis are covered by the salary increase.

Compensation adjustments also include military personnel of the Department of National Defense and uniformed personnel under the Department of the Interior and Local Government, Philippine Coast Guard, and National Mapping and Resources Information Authority.

The second installment was last implemented on June 24, 2010 for personnel in national government agencies and January 1, 2011 for LGUs. ###