(Update) Arroyo orders pay hike for gov’t employees

MANILA, Philippines - President Gloria Macapagal-Arroyo has ordered the Department of Budget and Management (DBM) to increase the basic pay of national government employees by 10% effective July 1. In a statement, Budget Sec. Rolando G. Andaya, Jr. said his agency will submit before May 1 a recommendation to the President on the coverage of the pay hike. He added his office is now drafting an executive order (EO) that will implement the pay increase. "The EO will be ready for signing before Labor Day. Our instruction is to rush it," Mr. Andaya said. The Budget Chief noted that the 2008 Budget includes a P41 billion allocation for "Miscellaneous Personnel Benefits Fund." The fund can be used for "any salary adjustment and associated benefits as may be authorized by law or by the President of the Philippines." Mr. Andaya said a 10% hike in the basic pay of 898,849 national government employees will cost P9.216 billion over six months. He added that a similar increase in the basic pay of 277,905 soldiers, policemen firemen, jail guards, and Coast Guard personnel will cost an additional P2.84 billion for the same period. Last year, Mrs. Arroyo granted a 10% increase in the basic salary of civilian employees in the national government, and a P1,200 hike in the monthly subsistence and other allowances of policemen, soldiers and other uniformed personnel. But unlike last year when the increase was tucked in their subsistence allowance, this year’s pay hike for uniformed personnel will be pegged on their basic pay. Alexis Douglas B. Romero, BusinessWorld