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Proposed Joint Resolution Modification of the Compensation and Position Classification System in the Government Depart

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Proposed Joint Resolution Modification of the Compensation and Position Classification System in the Government Department of Budget and Management. Introduction. RA No. 6758 Compensation and Position Classification Act of 1989. Senate and House of Representatives Joint Resolution

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Presentation Transcript
slide1

Proposed Joint ResolutionModification of the Compensation and Position Classification System in the GovernmentDepartment of Budget and Management

slide2

Introduction

RA No. 6758

Compensation and

Position Classification

Act of 1989

Senate and House

of Representatives

Joint Resolution

No. 01, s. 1994

+

Benefits:

Standardized Compensation and Position Classification System for Civilian Employees in the Government

slide3

Introduction

Weaknesses of the Current Compensation and Position Classification System:

  • Non-competitiveness of pay
  • Private sector pays more to professionals and executives
  • Examples: Teacher, Nurse, Accountant, Medical Officer, Attorney, Pilot, Chief Executive Officer, Manager
slide4

Comparison of Existing Compensation in Public Sector Versus Private Sector

Comparison of Existing Compensation in Public Sector Versus Private Sector

631.9%

765.2%

300.6%

272.3%

144%

95.8%

83.2%

40.3%

-0.9%

26.2%

29.3%

3.1%

25.2%

Sub-Professional

Professional

Executive

slide9

Weaknesses of the Current Compensation and Position Classification System:

Substantial overlaps in salaries between positions:

  • leads to problems in relationships between superiors and subordinates
  • complexity in duties and responsibilities not well compensated
slide12

Weaknesses of the Current Compensation and Position Classification System:

  • Magna Carta advantage of certain positions
  • Public School Teachers, Public Health Workers, Public Social Workers and Science and Technology Personnel enjoy more benefits.
  • Proliferation of allowances and benefits
  • Particularly in GOCCs, e.g.: Rice Allowance, Grocery Allowance, Staple Food Allowance, Meal Subsidy
governing principles
Governing Principles
  • Payment of just and equitable wages in accordance with the principle of equal pay for work of equal value
  • Comparability of compensation for government personnel with those in the private sector doing comparable work
  • Standardization and rationalization of compensation to promote social justice, integrity, efficiency, productivity, accountability and excellence in the civil service
  • Adoption of a performance-based incentive scheme that will reward exemplary performance
  • Periodic review of the Compensation and Position Classification System to consider changes in skills and competency requirements, demand for certain expertise, and inflation
  • Compensation for government personnel to be kept modest and to be maintained at reasonable level in proportion to the national budget
slide14

Categories of Positions

  • Sub-Professional Category – positions involved in manual or clerical work in support of office operations or those engaged in arts, crafts, and trades.
  • Professional Category – positions involved in the exercise of profession or application of knowledge acquired through formal training.
  • Executive Category – managerial positions involved in the executive, legislative and judicial functions.
slide15

Comparison of Proposed Compensation in Public Sector Versus Existing Compensation in Private Sector

300.7%

288.5%

77.3%

71.1%

25.4%

8.5%

14%

0.7%

-25.5%

0.3%

2.1%

1.5%

-16%

Sub-Professional

Professional

Executive

slide16

Compensation System

Proposed Salary Schedule

Salary Grades 1-9

slide17

Compensation System

Proposed Salary Schedule

Salary Grades 10-24

slide18

Compensation System

Proposed Salary Schedule

Salary Grades 25-33

compensation system
Compensation System

Total Compensation Framework

  • Basic Salaries, including Step Increments
  • Standard Allowances and Benefits – given to all employees acrossagencies,e.g., PERA, Additional Compensation, Year-End Bonus
  • Specific-Purpose Allowances and Benefits – given under specific conditions, based on actual performance of work
  • e.g., RATA, Honoraria, Subsistence Allowance, Hazard Pay
  • Incentives –rewards to recognize employee loyalty, for exceeding performance targets and to motivate productivity
  • e.g., Loyalty Incentive, Productivity Enhancement Incentive
compensation system1
Compensation System

Magna Carta Benefits

  • To be categorized by DBM per Total Compensation Framework
  • Henceforth, DBM will issue guidelines on conditions, qualifications for grant, and rates of benefits
compensation system2
Compensation System

Local Government Units

  • Position titles, salary grades, salary rates, allowances, benefits and incentives of LGU employees shall be in accordance with the provisions of the Joint Resolution.
  • Salaries of LGU employees shall be based on income class and financial capability of LGU, not to exceed the following percentages :
compensation system3
Compensation System
  • Non-Diminution in Basic Salaries of Incumbent Employees
  • There shall be no diminution in basic salaries of incumbent employees upon implementation of this Joint Resolution.
  • For this purpose, they shall receive the new salary rates prescribed herein, to be implemented in tranches, which shall in no case be less than their existing salary rates.
implementation period
Implementation Period
  • SSL III to be implemented in 4 tranches
  • From July 2009 to 2012
slide25
Thank You

Department of Budget and Management

2008