Government employees hit GMA’s salary increase commitment

10% Hike Biased Against Rank-and-file Employees, Top Officials to Benefit Most

“The 10% salary hike will not be much help to rank-and-file government employees because the increase would not even be enough to buy a sack of rice. The increase will not give any relief to small government employees especially during these difficult times, only high ranking government officials will significantly benefit from it.”

This is the response of the Confederation of Independent Unions in the Public Sector (CIU) to the order of President Gloria Macapagal-Arroyo to the Department of Budget and Management (DBM) to increase the basic pay of national government employees by 10% effective July 1.

“If the intention of the president is to help low-income government employees to survive during this crisis, then a percentage increase will not really improve their condition. In fact for poor government employees, the 10% increase is more a propaganda than a blessing. This is another publicity stint especially because the President is set to sign the Executive Order on May 1 as some sort of a gift to government workers even if the implementation is still in July,” declared CIU Chairperson Emako Naldoza.

The CIU explained that a percentage increase works against employees in low salary grades because the additional income they would receive will be very minimal. “An employee with Salary Grade 1 would only receive an additional P546.80 monthly. Minus deductions, the increase in his or her take home pay would actually be P361.12 only and that meager amount cannot save his or her family from hunger and poverty,” Naldoza explained.

According to the group, the majority of government employees belong to Salary Grade 10 and below. The salary grade of most public school teachers is SG 10. “Under the scheme, teachers’ salaries would increase by only P1,049.50 minus deductions the actual increase in their take home pay will only be P618.52 which is barely enough to buy half a cavan of rice,” Naldoza said.

The group also stressed that a percentage increase in basic salary favors government officials in managerial positions and those in top posts like cabinet secretaries and the president who enjoy allowances and other perks. “With the percentage hike, President Arroyo’s salary will rise by P6,352.50 and, in a way, this is scandalous if compared to the meager P546.80 increase for a poor Salary Grade 1 employee. There is no equity in this scheme, it only widens further the already glaring gap between the income of rank-and-file workers and those holding top posts,” Naldoza said.

The CIU is instead pushing for an across the board increase in the basic salary of government workers. Naldoza explained that “if this administration is serious about really alleviating the condition of government employees, then it should implement instead an across the board P3,500.00 increase. It is only through this measure that the government can provide relief to low income personnel.”

AKBAYAN Party-list Rep. Risa Hontiveros supports the position of the CIU and also insists that low-income earners should also be given tax relief. “The meager salary of low-income workers is further reduced by tax deductions. They should be unburdened so that their take home pay can increase. A single public school teacher with Salary Grade 10, is deducted around P500.00 in withholding tax, this amount is almost equivalent to the net increase in their salaries under the new scheme of the Arroyo administration,” Rep. Hontiveros said.