PNoy approved advance implementation of fourth tranche salary increase

Philippine President Benigno "PNoy" S. Aquino III (20...
Bearing good news to all government employees on Labor Day, President Benigno S. Aquino III moved the implementation of the fourth tranche of the Salary Standardization Law III (SSL III) to June 1, 2012, a month ahead of schedule.
The fourth tranche of SSL III, which was originally scheduled for July 1, 2012, will cover all salary and base pay increases for national government employees until December 31, 2012. The early release of the salary hike will be supported by an additional P2.7 billion—which will be sourced by government savings from the 2012 General Appropriations Act—bringing the total budget for the fourth tranche to P21.7 billion.
“The advanced implementation of the pay increase is a gesture of appreciation by the Aquino administration to all government workers. They are after all our partners in reform, laboring tirelessly with us to institute good governance and promote accountability, transparency, and efficient leadership in government,” Budget and Management Secretary Florencio B. Abad said.
The pay increase for government agency employees will be charged against the Miscellaneous Personnel Benefits Fund in the 2012 GAA as well as from available savings.Meanwhile, the amount set for government-owned or controlled corporations (GOCCs) and government financial institutions (GFIs) will be charged against their respective corporate funds in the approved corporate operating budgets.
The pay increase for local government units (LGUs), on the other hand, will be charged against their respective local government funds.
“President Aquino pushed for the pay hike to help government employees keep up with the rising cost of living and the effects of inflation on the local economy. The increase will also enable them to cope with the recent spike in oil and commodity prices. The fund boost is also very well-timed, especially since tuition fees will need to be paid around June, when schools will be reopening” Abad said.
He noted, however, that the pay increase for the President, Vice President, and Cabinet Secretaries will not be implemented until July 1, 2012. He added that the fourth tranche of SSL III will not cover individuals and groups engaged through job orders, contracts of service, and other similar agreements.
Excluded as well from the salary hike are civilian personnel in government institutions which are exempted from Republic Act (R.A.) No. 6758, “Compensation and Position Classification Act of 1989,” as amended, and which are authorized by law to adopt and are implement their own compensation and position classification systems approved by the Office of the President.
Abad added that Section 10, Article VI of the Constitution will also apply in the implementation of the fourth tranche of SSL III. According to the provision, “The salaries of Senators and Members of the House of Representatives shall be determined by law. No increase in said compensation shall take effect until after the expiration of the full term of all the Members of the Senate and the House of Representatives approving such increase.”
The release of the fourth tranche of the salary increase for employees in GOCCs and GIFs may also be implemented on June 1, provided that they have the financial capability to do so.
However, salary increases for employees in local government units are still scheduled for January 1, 2013, in light of the LGUs’ implementation of the third tranche in January 1, 2012. The increase will also be subject to the determination of the LGUs’ respective sanggunian, and will also depend on the availability and sustainability of local government funds.