EXPLAINER: Why BSP officials earn more than other government personnel

The Bangko Sentral ng Pilipinas (BSP) continues to top the government’s pay rankings, with its officials dominating the latest report on Salaries and Allowances (ROSA) by the Commission on Audit (COA).

Unlike most state agencies that follow the Salary Standardization Law, the BSP is allowed under its charter to set its own salary structure, which means the central bank can offer higher pay, especially to its senior officials.

Under Republic Act 7653 or the New Central Bank Act, the Monetary Board or the policy-setting body of the BSP can establish a structure “based on job evaluation studies and wage surveys.”

The law states that the BSP’s system should “conform as closely as possible” with the Compensation and Position Classification Act, but employees with Salary Grade 19 or earning P59,153 per month or higher as of 2026 are exempt from the standard salary rates.

The law was crafted to help the BSP compete with the private sector for top talent and “was purposely adopted to attract highly competent personnel,” “to ensure professionalism and excellence,” and to “ensure its independence” through fiscal and administrative autonomy as stated in a Supreme Court ruling in 2004.

The BSP Charter also provides for professionalism and excellence within the agency, and allows the Monetary Board to reorganize personnel and set remuneration levels.

Overall, the BSP’s salaries and benefits, while among the most competitive in the government, helps the agency in keeping technical experts versus having them move to private banks of international finance institutions which generally offer competitive benefits.

The higher pay also reflects the responsibility of the central bank in keeping inflation manageable, safeguarding the Philippine banking system, and maintaining the country’s financial stability. –NB, GMA News