Last Tranche of Government Employee's Salary Increase in 2012

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The pay increase implemented last June 1, 2012 marks the fourth and last tranche of the four-tranche salary increase among government employees in the Philippines. The salary increase aimed to improve the living conditions of government employees who for

The last tranche of government employee's salary increase was finally released on June 1, 2012. This release is part of the four-tranche salary increase in pay of government personnel in the Philippines which started last July 1, 2009. The increase once again provided greater purchasing power to more than a million government employees.

National Budget Circular 540

The announcement of National Budget Circular 540 or NBC 540 in May 10, 2012 provided that the implementation of the fourth tranche of the salary increase is on June 1, 2012. It is titled “Implementation of the Fourth Tranche Monthly Salary Schedule for Civilian Personnel and Base Pay Schedule for Military and Uniformed Personnel in the National Government.”

Just like last year, the salary increase was granted one month ahead of the July 1 scheduled release. This gave government employees timely funds for tuition and other school-related expenses during the opening of the first semester of school year 2012-2013.

Budget Secretary Florencio Abad said that PhP24.7 billion was set aside to fund the fourth and last instalment of the pay increases of government employees as provided for in the Salary Standardization Law III. Of this amount, PhP21.7 billion will be sourced from the General Appropriations Act of 2012. The rest will be charged from national budget savings.

For local governments, the last tranche of salary increase will be released in January 2013. Implementation lags behind because local governments have to generate enough local funds to fund their salary increases. Local governments also commenced the salary increase in January 2010, late by 6 months than the national government implementation.

Feedback on the Four-Tranche Salary Increase

While the four-tranche salary increase is a relief for many government employees whose incomes for many years have lagged behind their counterparts in the private sector, there are mixed reactions about its implementation. Many government employees are grateful of the salary increase, while some think, especially those in the lower ranks, that the increase is unfair. The latter group says that they should have higher salary increases as they do most of the office work and are the ones who are really needy.

The salary increase is meant to curb corruption and boost morale in the government sector because many government employees are prone to illegal activities due to low pay. Previous salary rates are not enough to cover their needs. Some moonlight and use their positions for gain which destroys the credibility of government as an institution that caters to the welfare of the general public.

There is a need to find out the impact of the series of salary increases for the past three years. The improved economic performance of the Philippines, noted by President Benigno “Noynoy” Aquino in his state of the nation address or SONA in July 23, 2012, may be one of the results of this initiative.

Details on the budget circular and salary increases for the different ranks of national government employees in 2012 can be downloaded here.

For government employees working in State Universities and Colleges (SUCs), information on salary grades are found in Facts About NBC 461.

©2012 July 29 Patrick Regoniel

1 comment

Chris Stonecipher
Posted on Jul 29, 2012