Angara proposes revamp of government employees' compensation scheme

Senator Edgardo J. Angara today said that only through a major revamp of the current government compensation scheme, we can address the disproportions between the compensation of government personnel and that of employees of Government-Owned and Controlled Corporations (GOCCs) and Government Financial Institutions (GFI).

"Several government-owned and controlled corporations and financial institutions have been granted exemption from the coverage of the current salary system. These exemptions have widened the disproportions between the compensation of government personnel and that of employees of GOCCs and GFIs," said Angara who chairs the Senate Committee on Banks, Financial Institutions and Currencies.

He added, "Piecemeal legislations done in the past, however, have done little to solve the greater flaws inherent in the current system."

Thus, Angara seeks major reforms in the current compensation scheme.

The areas needing key reforms relating to civil service size and quality include: (a) developing and implementing a strategy for adjusting civil service employment to the appropriate role, functions and structure of the state and in concert with the budget process reforms, (b) increasing the transparency and competitiveness of civil service compensation while at the same time decompressing salary levels for key civil service grades; and (c) improving professionalism and meritocracy.

Angara proposed an Omnibus System which provides for 22 job grades, as opposed to the current 33 salary grades. This changes, he said, is necessary to promote internal and external equity on compensation, performance-base evaluations and to institute a system which is easily manageable.

"These reforms are needed to ensure a more responsive government compensation policy especially in the context of this economic turbulence," said Angara.