MANILA -- The proposed 2024 national budget includes a substantial allocation of ₱16.95 billion earmarked for salary increments of government employees, under the provisions of the Miscellaneous Personnel Benefits Fund (MPBF).

Department of Budget and Management (DBM) Secretary Amenah F. Pangandaman has highlighted that the adjustments to compensation packages in the public sector may be considered starting next year.

"We have allotted P16.95 Billion in the FY 2024 MPBF to support the compensation adjustment that may be pursued starting next year," Secretary Pangandaman said. 

Comprehensive review of the compensation system

In January, the last tranche of salary hikes for government employees was implemented — as mandated by Republic Act (RA) 11466, or the Salary Standardization Law of 2019, series of 2020. The modified Salary Schedule for civil personnel was implemented in four tranches, from FY 2020 to FY 2023.

"Ito po ay para ma-encourage ang ating mga kababayan na pumasok sa gobyerno  at para rin po ma-motivate ang ating existing employees na manatili sa gobyerno at mag-perform nang maayos," the Budget Secretary said. 

The Budget Secretary earlier said a sum of P48 million has been allocated from the approved Governance Commission for GOCCs (GCG) budget this year, 2023, for specialist services group to conduct a comprehensive review of the Compensation and Position Classification System for the government sector.

"When it comes to implementing another round of increases, binigyan po kami ng direktiba ni President Bongbong Marcos na magsagawa ng study para masiguro na ang compensation ng lahat ating mga civilian government personnel ay maging generally competitive kumpara sa mga nagtatrabaho sa private sector," said Sec. Pangandaman.

"The final cost requiement [of the increase] shall be determined once the results of the study have been presented and finalized," she emphasized.

In a proactive approach to employee welfare, the DBM has also allocated P1.368 Billion in the proposed FY 2024 National Expenditure Program to fund the additional P1,000 in the uniform or clothing allowance of over 1.3 million government employees.

The DBM has likewise been conducting a parallel review of the various benefits received across different ranks of the civil service to determine the need to adjust them. (DBM)