Pag-IBIG execs stress salary hikes went through due process, ‘long overdue’

The Home Mutual Development Fund or Pag-IBIG on Wednesday stressed that the increases in the salaries of its employees in 2018 went through due process which did not require the approval of President Rodrigo Duterte.

CEO Acmad Rizaldy Moti said the step increments were pursuant to Pag-IBIG's Compensation Plan and should be considered as "increase in salary rates" but merely an adjustment made to address the effect of inflation over the years.

“The intention behind the grant of step increments under the Compensation Plan of Pag-IBIG Fund was not to raise the salaries of officers and employees—but rather to maintain the purchasing power and value that they had in 2009 or 10 years ago when the Fund’s Compensation Plan was first adopted,” Moti said.

The statement came after the Commission on Audit flagged Pag-IBIG Fund for the supposed "illegal disbursement" of P248.3 million for the salary increase of its officers and employees in 2018 despite the lack of approval from the Office of the President.

Pag-IBIG's comment was already included in the COA audit report, which quoted the management on the salary rates in all positions being unchanged based on Pag-IBIG's compensation plan.

“The requirement of Presidential approval does not apply to salary step increments, such as the case of HDMF but only to increases in the rates of salaries or benefits and to the grant of new benefits,” the COA said, quoting Pag-IBIG's reply.

The salaries of Pag-IBIG Fund employees did not change since 2009, except for a one-step increment in 2013, according to the agency.

Moti said that the adjustment in pay was "long overdue" and was needed to attract personnel that would cater to the growing membership of Pag-IBIG. 

Pag-IBIG said that the step increment was only granted to employees in permanent positions.

"The members of the Board who approved the grant, which include myself, were not covered by the step increments because we are presidential appointees," Moti said.

Housing czar Secretary Eduardo Del Rosario who also chairs the Pag-IBIG’s Board of Trustees also assured the public that the pay raise was "not excessive."

"We have only adjusted the salaries of Pag-IBIG Fund officers and employees to be, more or less, on the same level of SSL4, which is currently being received by employees of other government institutions," Del Rosario said.

"We would like to assure all, our members in particular, that we continue to adhere to the directive of President Rodrigo Roa Duterte in safeguarding the workers’ fund," he added.

SSL4 refers to the fourth tranche of the implementation of the Salary Standardization Law which provides for the salary increase of government workers in the country. —Dona Magsino/NB, GMA News