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No wage hike for govt workers in proposed 2014 budget

8 August 2013 One Comment

MANILA, Philippines — The proposed P2.268-trillion 2014 national budget has no provision to increase the salaries of government employees because this would “entail huge money.”

Nevertheless, Budget Secretary Florencio Abad said the government would still study the impact of a pay raise to the country’s coffers.

“Provisions for increases in salary of government workers are not provided. We need to assess, study what has been the impact (of wage hikes) and determine if another round is needed because it would entail huge money,” Abad told lawmakers Wednesday at the start of the budget hearing at the House of Representatives.

Responding to questions from ACT Teachers party-list Representative Antonio Tinio, Abad said personnel services, which include state employees’ salary, already constitute a huge chunk of the budget.

Pressing his point, Tinio pointed to a study by the National Economic Development Authority on the impact of the Salary Standardization Law, which found it good for the economy because it lowered unemployment, generated new jobs and increased the consumption power of people, among others.

Earlier, Camarines Sur Representative Rolando Andaya Jr. proposed the enactment of the “Salary Standardization Law IV” to allow the government to project and determine future wage increases.

Andaya said the study can be done by the House appropriations committee, which can look into the “forward estimate of government finances in the next three to five years, so we will be able to know if there is a budget space for future salary adjustments.”

The first version of the SSL was enacted in 1989, the second in 1994, and SSL III in 2009.

The fourth and the last installment of SSL III was given to government employees in 2012.

This year will be the first year since 2006 that state employees will not get any pay hike.

In 2006, state workers were granted a P1,000 across-the-board wage increase, followed by a 10-percent increase in 2007 and 2008, before the four-installment SSL III took effect on July 2009.

The Department of Budget and Management estimated in 2008 that the full implementation of SSL III would cost P128 billion a year, Andaya said


Source: http://www.interaksyon.com/article/68127/no-wage-hike-for-govt-workers-in-proposed-2014-budget

  • poly

    sa kanila nalang lahatb ang budget na yan….magsarili nalang tayo….hindi na tayo aasa sa gobyerno…mabubuhay naman cguro tayo kahit walang gobyerno….