Salary Standardization Law of 2019

Case Overview and Summary

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

Title and Policy Statement (Sections 1-2):
- This law shall be known as the "Salary Standardization Law of 2019".
- It aims to provide just and equitable compensation for government personnel based on the principle of equal pay for work of equal value.
- It seeks to standardize and rationalize compensation across government agencies, make it competitive with the private sector, establish performance-based incentives, and consider the government's financial capability.

Coverage and Exclusions (Sections 3-4):
- Covers all civilian government personnel in the Executive, Legislative, and Judicial branches, Constitutional Commissions, other Constitutional Offices, GOCCs not covered by RA 10149, and LGUs.
- Excludes military and uniformed personnel, GOCCs under RA 10149, and individuals engaged through job orders or contracts without employer-employee relationship.

Position Classification and Compensation System (Sections 5-7):
- Maintains the sub-professional, professional, and executive categories of positions.
- Adopts the Total Compensation Framework consisting of basic salaries, standard allowances and benefits, specific-purpose allowances and benefits, and incentives.
- 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.

Additional Benefits (Sections 8-9):
- Grants a Mid-Year Bonus equivalent to one month's basic salary as of May 15, given not earlier than May 15 of every year, to those who have rendered at least four months of satisfactory service.
- Maintains the existing Year-End Bonus equivalent to one month's basic salary and a Cash Gift of ₱5,000, to be given in November of every year.
- Categorizes the Program on Awards and Incentives for Service Excellence (PRAISE) under the Incentive component of the Total Compensation Framework, with guidelines on monetary and non-monetary rewards to be issued by the Civil Service Commission.

Compensation Adjustment for LGUs (Section 10):
- LGUs may grant the modified Salary Schedule and additional Incentives, subject to compliance with the Personnel Services limitation in the LGU budget and authorization from the Sanggunian.
- The salaries of LGU personnel shall correspond to the LGU's income classification and shall not exceed a specified percentage of the Salary Schedule.
- The basic pay of barangay personnel shall be in the form of honoraria, not exceeding the percentage of the Salary Schedule corresponding to the LGU's income classification.
- In case of partial implementation, it shall be at a uniform percentage across all positions for every LGU.

Implementation Schedule and Exempt Entities (Sections 11-12):
- 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 their financial capabilities, but not earlier than January 1, 2020.
- Exempt entities refer to agencies not covered by the CPCS under RA 6758, GOCCs governed by the CPCS established by GCG under RA 10149, and those authorized by law to adopt their own compensation and position classification system.

Applicability, Funding Sources, and Implementing Guidelines (Sections 13-15):
- The salaries authorized for the President, Vice-President, and Members of Congress shall take effect after the expiration of the respective terms of the present incumbents.
- Funding sources for NGAs shall be charged against available appropriations in the General Appropriations Act and other valid appropriations.
- Funding sources for GOCCs shall come from their respective corporate funds, with partial implementation allowed if funds are insufficient.
- Funding sources for LGUs shall be charged against their respective local government funds.
- The Department of Budget and Management shall issue guidelines necessary to implement specific provisions of this Act.

Separability Clause, Repealing Clause, and Effectivity (Sections 16-19):
- If any section or provision of this Act is declared unconstitutional or invalid, the other sections or provisions shall remain in full force and effect.
- All provisions of Presidential Decree No. 985, as amended by Presidential Decree No. 1597, RA 6758, Joint Resolution No. 1 (1994), Joint Resolution No. 4 (2009), and Executive Order No. 201 (2016), which are not inconsistent with this Act, shall continue to be in full force and effect.
- All laws, decrees, orders, rules or regulations inconsistent with this Act are hereby repealed, amended, or modified accordingly.
- This Act shall take effect on January 1, 2020.