Once the Pay Standardization Legislation begins, government employees will be on cloud nine.

The Budget and Management Department said that pay increases for workers employed by national government agencies are imposed on their respective Personnel Service budgets under the 2021 General Appropriations Act. In the case of a deficit, the Company can request the release to the DBM of additional funds paid to the Miscellaneous Personnel Benefits Fund. As determined by their respective boards of directors, charged against their agreed corporate operating budget, the DBM proposed that the pay increase for government-owned and operated corporate employees should be implemented.

Without sufficient resources to implement the salary schedule mandated by the DBM, state-run businesses introduce their own at lower rates, but at the same rate as the increase in the salary schedule. The DBM also released Local Budget Circular №132, which prescribes salary adjustment guidelines for local government workers. This includes the fee rates of the barangay’s officers and employees, which may depend on the pay plan imposed by their respective municipalities or cities. Like GOCCs, local government units may formulate a modified salary schedule if their funds are insufficient to implement the suggested ones in the circular, or for the purpose of meeting the PS limit in LGU budgets.

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