DBM: Study on possible gov’t workers pay hike done within H1 2024

By Darryl John Esguerra

May 7, 2024, 3:40 pm

MANILA - The Department of Budget and Management (DBM) said Tuesday that a “comprehensive study” on the potential salary adjustment for government workers will be completed by the first half of 2024.

According to Budget Secretary Mina Pangandamanan, the initiative aims to ensure a competitive and equitable compensation package for state workers.

Spearheaded by the DBM and the Governance Commission for Government-Owned or -Controlled Corporations (GCG), the Compensation and Benefits Study will explore various aspects of the current compensation system, including salaries, benefits, and allowances, to identify areas for improvement.

“We recognize that the rising cost of the basic commodities and services in the country highlights the need to review the current state of compensation of government employees,” Pangandaman explained.

“It is for this reason that the DBM and the GCG engaged the services of a consultancy firm this year to conduct a Compensation and Benefits Study in the Public Sector with the end in view of setting a competitive, financially sustainable, and equitable compensation package for government personnel,” Pangandaman said.

The proposed compensation adjustment must be within the government’s financial capacity and should consider not only the inflation rates and cost of living adjustments, but also standard market practices to ensure that working in government remains desirable and comparable to working in the private sector, the DBM said.

The DBM Secretary, likewise, said that the results of the study will serve as basis for making the necessary changes in the Total Compensation Framework of civilian government personnel to ensure fair and timely salary adjustment for government workers.

“Our civil servants are the backbones of our nation, and it’s our priority to provide them with a fair and motivating compensation system. This study marks a crucial step towards a civil service that is not only efficient and productive but also just and rewarding,” Pangandaman said.

“As we anticipate the completion of this pivotal compensation and benefit study, our resolve remains firm: To uphold the dignity of public service by ensuring our civil servants are rewarded in a manner that truly reflects their worth to the nation,” she added.

The results of the study will also be used to refine and enhance the compensation of civilian government personnel.

Such improvements and enhancements may be in the form of salary increases, adjustment in the rate of benefits and allowances, rationalization of benefits, or fine tuning of the current Total Compensation Framework of government, the DBM said.

The cost for the implementation of the compensation adjustment, meanwhile, will be sourced from the available appropriations under the Fiscal Year 2024 General Appropriations and the succeeding annual appropriations. (PNA)