(Eagle News) — President Rodrigo Duterte has signed an executive order that suspended the implementation of “unconscionable allowances, incentives and benefits” of those working under government owned and controlled corporations (GOCCs), making good his promise earlier in his State of the Nation Address (SONA) not to allow increases in GOCC allowances.
The President signed Executive Order No. 36 on July 28 suspending the implementation of the compensation and position classification system (CPCS) and the index of occupational services (IOS) of GOCCs.
This is “to eliminate any excessive, unauthorized, illegal and/or unconscionable allowances, incentives and benefits,” EO 36 said.
“In the interim, the compensation framework of GOCCs, including their subsidiaries, will be covered by the new measures under EO 36, subject to the approval of the Governance Commission for GOCCs (GCG)— the central policy-making and regulatory body that monitors and oversees GOCCs’ operations,” a statement from Malacanang said.
“For GOCCs under the Salary Standardization Law (SSL), the GOCC will adopt the Modified Salary Schedule,” it said.
“But for those SSL-covered GOCCs who have insufficient funds, partial implementation of the Modified Salary Schedule and authorized benefits will be allowed provided that it will be at uniformed percentage across all positions for every GOCC,” it said.
The order put on hold EO 203 which was earlier approved by former President Benigno Aquino III on March 22, 2016.
Aquino’s previous order outlined the compensation and position classification system and index of occupational services of state-run firms.
Meanwhile, GOCCs exempted in the SSL may maintain their current compensation framework or adopt the Modified Salary Schedule.
SSL-exempt GOCCs who adopted the Modified Salary Schedule have limited benefits and allowances, their compensation framework subject to conversion or revision (i.e., from job grade to salary grade), and their mid-year and year-end bonuses subject to GCG guidelines, the Palace said.
However, authorized salaries of incumbent officers and employees and collective bargaining or negotiation agreements in the GOCC sector will not be affected.
Within 30 days from the effectivity of EO 36, the GCG will come up with the implementing rules and regulations.
During his second SONA on July 24, the President warned employees of GOCCs that he is “not inclined to increase your allowances, bonuses, and salaries at this time.”
He said these allowances were “excessive, extravagant, and unconscionable.”
“Wala na. You cannot do it on your own. You have to direct it to the executive secretary and I will just tell you, I am not inclined to give increases right now,” he said during the SONA.
