Salary Standardization Law of 2019

Case Overview and Summary

Summary of Republic Act No. 11466 (Salary Standardization Law of 2019):

Statement of Policy (Section 2):
- Provide just and equitable compensation based on equal pay for work of equal value.
- Standardize and rationalize compensation across government agencies.
- Make compensation competitive with private sector.
- Establish performance-based incentive scheme.
- Consider government's financial capability.

Coverage and Exclusions (Sections 3-4):
- Covers all civilian government personnel in executive, legislative, judicial branches, constitutional bodies, GOCCs not covered by RA 10149, and LGUs.
- Excludes military/uniformed personnel, GOCCs under RA 10149, and individuals engaged through job orders or contracts without employer-employee relationship.

Position Classification System (Section 5):
- Maintains sub-professional, professional, and executive categories of positions.
- DBM to continually review and update the Index of Occupational Services.

Compensation System (Section 6):
- Adopts the Total Compensation Framework consisting of basic salaries, standard allowances/benefits, specific-purpose allowances/benefits, and incentives.

Salary Schedule and Step Increments (Section 7):
- Provides a modified Salary Schedule for Civilian Personnel to be implemented in four tranches from 2020 to 2023, with specific salary rates for each salary grade and step increment.

Mid-Year Bonus and Year-End Bonus (Section 8):
- Grants a Mid-Year Bonus equivalent to one month's basic salary as of May 15, given not earlier than May 15 every year.
- Maintains the existing Year-End Bonus of one month's basic salary and Cash Gift of ₱5,000, given in November every year.

Program on Awards and Incentives for Service Excellence (PRAISE) (Section 9):
- Categorizes the PRAISE under the Incentive component of the Total Compensation Framework.
- CSC to issue guidelines on monetary and non-monetary rewards for personnel under PRAISE.

Compensation Adjustment for LGU Personnel (Section 10):
- LGUs may grant the modified Salary Schedule and additional Incentives, subject to compliance with PS limitation and Sanggunian authorization.
- Salaries shall correspond to LGU's income classification and shall not exceed specified percentages of the Salary Schedule.
- Barangay personnel shall receive honoraria based on LGU's income classification, with minimum Year-End Bonus and Cash Gift.

Implementation Schedule (Section 11):
- For NGAs, the Salary Schedule shall be implemented in four tranches from 2020 to 2023.
- For GOCCs and LGUs, the implementation period shall not be less than four years, depending on financial capabilities, but not earlier than January 1, 2020.

Exempt Entities (Section 12):
- Exempt entities refer to agencies not covered by CPCS under RA 6758, GOCCs governed by CPCS under RA 10149, and those authorized by law with their own compensation and position classification system.
- Exempt entities shall be governed by their respective systems, upon recommendation of DBM or GCG and approval by the President.

Applicability to Certain Officials (Section 13):
- Salaries for the President, Vice-President, and Members of Congress shall take effect after the expiration of the present incumbents' terms.

Funding Sources (Section 14):
- For NGAs, funds shall be charged against available appropriations in FY 2020 and included in the annual General Appropriations Act thereafter.
- For GOCCs, funds shall come from their respective corporate funds, with partial implementation allowed if funds are insufficient.
- For LGUs, funds shall be charged against their respective local government funds.

Implementing Guidelines (Section 15):
- DBM shall issue guidelines necessary to implement specific provisions of this Act.

Separability Clause, Applicability of Other Laws, Repealing Clause, and Effectivity (Sections 16-19):
- Includes standard provisions on separability, applicability of other related laws, repealing of inconsistent laws, and the Act's effectivity date of January 1, 2020.