MANILA, Philippines – The salaries of state corporation employees would be competitive with those of their private sector counterparts according to an order issued by President Rodrigo Duterte last year.
In a statement on Friday (January 14), the Governance Commission for Government-Owned or Controlled Corporations (GCG) said that it presented the implementation guidelines of Executive Order (EO) No. 130 of January 12, paving the path to the new job classification and compensation system (CPCS) for employees of state-owned and / or government-controlled (GOCC) companies.
The GCG had said that the long-overdue CPCS aimed to implement a competitive compensation and compensation scheme to attract and retain talent while keeping the GOCCs financially sound and sustainable.
Although it had been pushed before the pandemic, the CPCS took a back seat to the huge funding required for the response to COVID-19.
The guidelines were approved by GCG President Samuel Dagpin Jr., Commissioners Michael Cloribel and Marites Cruz-Doral, as well as Finance Secretary Carlos Domínguez III and Acting Budget Secretary Tina Rose Marie Canda. Domínguez and Canda are ex officio members of the GCG.
The Inquirer asked officials in the finance and budget departments if potential salary improvements for GOCC workers could be funded through the 2022 national budget of P5.02 trillion, but they did not respond until Friday afternoon.
OE No. 150 GOCC categorized into three:
- Category 1 or “not self-sustaining” or with losses and dependent on subsidies from the national government
- Category 2 included self-sufficient GOCCs that generate funds from non-commercial activities
- Category 3 covered GOCCs that generated income from commercial activities and competed directly with the private sector.
GOCCs can begin to adopt CPCS upon receipt of authorization from the GCG, which will contain classification, job evaluation results, and tiering.
“The classification determines the appropriate compensation system that the GOCC will implement. It considers the nature of the operations, the financial viability to sustain its operations / activities and the size of the GOCCs, ”said the GCG.
“The results of the job evaluation will determine the CPCS job qualifications of the GOCC positions that were determined using the job evaluation methodology per EO 150. The tiering determines the applicable pay levels that GOCCs can implement based on their finance, “said the GCG.
“Upon receiving your authorization, the GOCC governing board will approve the appropriate salary schedule under CPCS with due consideration of GOCC’s ability to fund and sustain its implementation,” he said.
“GOCCs that substantially comply with the CPCS requirements after the approval of EO 150 will retroactively apply salary structures, allowances, benefits and incentives as of October 1, 5, 2021” or the day following the publication of the order Duterte, the GCG added.
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