Podcast
Questions and Answers
What are the objectives of the Salary Standardization Law of 2015?
What are the objectives of the Salary Standardization Law of 2015?
To compare the competitiveness of government pay in relation to the private sector and to craft a compensation strategy to bring government pay closer to market rates.
The Salary Standardization Law of 2015 was approved by President Gloria Macapagal Arroyo.
The Salary Standardization Law of 2015 was approved by President Gloria Macapagal Arroyo.
False (B)
What is the Compensation and Benefits Study for the Public Sector?
What is the Compensation and Benefits Study for the Public Sector?
A survey carried out by the DBM to administer the compensation and position classification system of the government.
The DBM services were engaged to carry out the Compensation and Benefits Study for the Public Sector by:
The DBM services were engaged to carry out the Compensation and Benefits Study for the Public Sector by:
What is the minimum basic salary (SG1) after the implementation of the Salary Standardization Law of 2015?
What is the minimum basic salary (SG1) after the implementation of the Salary Standardization Law of 2015?
The Salary Standardization Law of 2015 does not allow for salary overlaps.
The Salary Standardization Law of 2015 does not allow for salary overlaps.
What is the guiding principle for the Salary Standardization Law of 2015
What is the guiding principle for the Salary Standardization Law of 2015
The Salary Standardization Law of 2015 requires that government compensation be adjusted to at least 70% of the market.
The Salary Standardization Law of 2015 requires that government compensation be adjusted to at least 70% of the market.
The Salary Standardization Law of 2015 applies to all government employees, including those engaged through job orders.
The Salary Standardization Law of 2015 applies to all government employees, including those engaged through job orders.
What types of benefits are included in the Productivity Enhancement Incentive?
What types of benefits are included in the Productivity Enhancement Incentive?
The Salary Standardization Law of 2015 includes a provision for the Step Increment system.
The Salary Standardization Law of 2015 includes a provision for the Step Increment system.
What is the purpose of the Step Increment system?
What is the purpose of the Step Increment system?
How often does the Step Increment occur?
How often does the Step Increment occur?
Employees can progress from Step 1 to Step 8 of the salary grade allocation based solely on years of service.
Employees can progress from Step 1 to Step 8 of the salary grade allocation based solely on years of service.
What is the purpose of the Performance Management System?
What is the purpose of the Performance Management System?
The Step Increment system is only applicable to civilian government personnel.
The Step Increment system is only applicable to civilian government personnel.
What is the 13th Month Pay?
What is the 13th Month Pay?
The 14th Month Pay is only available to government employees who are in regular plantilla positions.
The 14th Month Pay is only available to government employees who are in regular plantilla positions.
To be eligible for the 14th Month Pay, government employees must have rendered at least four months of service from January 1 to October 31 of the current year.
To be eligible for the 14th Month Pay, government employees must have rendered at least four months of service from January 1 to October 31 of the current year.
The 14th Month Pay includes a mandatory cash gift of $5,000.
The 14th Month Pay includes a mandatory cash gift of $5,000.
The Clothing Allowance is a fixed amount of $5,000 per annum.
The Clothing Allowance is a fixed amount of $5,000 per annum.
What is the purpose of the Collective Negotiating Agreement (CNA)?
What is the purpose of the Collective Negotiating Agreement (CNA)?
Why is the CNA Incentive implemented?
Why is the CNA Incentive implemented?
What is the main focus of the Performance Based Bonus (PBB) system?
What is the main focus of the Performance Based Bonus (PBB) system?
Employees who are considered Consultants and experts hired for a limited period to perform specific activities or services with expected outputs are eligible for the Performance Based Bonus (PBB).
Employees who are considered Consultants and experts hired for a limited period to perform specific activities or services with expected outputs are eligible for the Performance Based Bonus (PBB).
What are the criteria for receiving the Loyalty Award?
What are the criteria for receiving the Loyalty Award?
The Honoraria system is applicable to any government employee who performs work outside their regular duties, regardless of their position or qualifications.
The Honoraria system is applicable to any government employee who performs work outside their regular duties, regardless of their position or qualifications.
What is a main limitation for the Honoraria system?
What is a main limitation for the Honoraria system?
The Magna Carta Benefits include honoraria for lecturers and resource persons, per diem, hazard pay, subsistence allowance, laundry allowance, free quarters, longevity pay, and salary increase for retirement and terminal leave benefit purposes.
The Magna Carta Benefits include honoraria for lecturers and resource persons, per diem, hazard pay, subsistence allowance, laundry allowance, free quarters, longevity pay, and salary increase for retirement and terminal leave benefit purposes.
Upon retirement, a government employee automatically receives a one-step increase in their basic salary.
Upon retirement, a government employee automatically receives a one-step increase in their basic salary.
What are the different types of leaves that government employees are entitled to?
What are the different types of leaves that government employees are entitled to?
Government employees can monetize a minimum of 10 days of vacation leave credits, but no more than 30 days per year.
Government employees can monetize a minimum of 10 days of vacation leave credits, but no more than 30 days per year.
Government employees can monetize 50% of their accumulated vacation and sick leave credits, subject to the agency head's approval and if funds are available.
Government employees can monetize 50% of their accumulated vacation and sick leave credits, subject to the agency head's approval and if funds are available.
What is the purpose of the Terminal Leave Benefit (TLB) system?
What is the purpose of the Terminal Leave Benefit (TLB) system?
How is the Terminal Leave Benefit (TLB) calculated?
How is the Terminal Leave Benefit (TLB) calculated?
The GSIS contribution rate for government employees is nine percent.
The GSIS contribution rate for government employees is nine percent.
The PhilHealth contribution rate for direct contributors is currently 2.75% of their monthly basic salary.
The PhilHealth contribution rate for direct contributors is currently 2.75% of their monthly basic salary.
The PAG-IBIG contribution rate for members is 2% of their monthly compensation, with a maximum of $5,000 as the base salary.
The PAG-IBIG contribution rate for members is 2% of their monthly compensation, with a maximum of $5,000 as the base salary.
What is the purpose of the Employees' Compensation Program (ECP)?
What is the purpose of the Employees' Compensation Program (ECP)?
The ECP covers all workers in the formal sector, starting from the first day of their employment.
The ECP covers all workers in the formal sector, starting from the first day of their employment.
The Maternity Leave benefit provided by the SSS includes a maximum of 78 days of leave for a normal delivery.
The Maternity Leave benefit provided by the SSS includes a maximum of 78 days of leave for a normal delivery.
The Maternity Leave benefit is not convertible or cumulative, meaning employees cannot roll over unused days to future pregnancies.
The Maternity Leave benefit is not convertible or cumulative, meaning employees cannot roll over unused days to future pregnancies.
The Paternity Leave benefit, as defined by RA 8187, is applicable to the first four deliveries of the employee's lawful wife with whom he is cohabiting.
The Paternity Leave benefit, as defined by RA 8187, is applicable to the first four deliveries of the employee's lawful wife with whom he is cohabiting.
The Paternity Leave benefit is convertible and cumulative, allowing employees to accrue unused days to future pregnancies.
The Paternity Leave benefit is convertible and cumulative, allowing employees to accrue unused days to future pregnancies.
The Service Incentive Leave benefit is applicable to all employees, including government employees and those employed in personal service.
The Service Incentive Leave benefit is applicable to all employees, including government employees and those employed in personal service.
The Service Incentive Leave benefit is commutable, meaning employees can choose to receive the leave days or a cash equivalent.
The Service Incentive Leave benefit is commutable, meaning employees can choose to receive the leave days or a cash equivalent.
The Parental Leave benefit, as defined by RA 8972, is only available to single parents who are struggling financially due to difficult circumstances.
The Parental Leave benefit, as defined by RA 8972, is only available to single parents who are struggling financially due to difficult circumstances.
The Special Leave for Women benefit is applicable only to women who have undergone surgery due to gynecological disorders, regardless of employment status and length of service.
The Special Leave for Women benefit is applicable only to women who have undergone surgery due to gynecological disorders, regardless of employment status and length of service.
The Service Charges sharing policy requires that 85% of collected service charges be equally distributed among all rank-and-file employees, while the remaining 15% is retained by management to cover losses, breakages, and distribution to managerial employees.
The Service Charges sharing policy requires that 85% of collected service charges be equally distributed among all rank-and-file employees, while the remaining 15% is retained by management to cover losses, breakages, and distribution to managerial employees.
The Minimum Wage system in the Philippines is based on a single national minimum wage rate that applies to all industries and sectors.
The Minimum Wage system in the Philippines is based on a single national minimum wage rate that applies to all industries and sectors.
Flashcards
Salary Standardization Law of 2015 (SSL 2015)
Salary Standardization Law of 2015 (SSL 2015)
A law that modifies the compensation and position classification system for civilian government personnel and sets the base pay schedule for military and uniformed personnel.
Compensation and Benefits Study for the Public Sector
Compensation and Benefits Study for the Public Sector
A survey conducted by the DBM to determine and standardize government compensation.
Market Competitiveness
Market Competitiveness
The extent to which government salaries are comparable to private sector salaries.
Guiding Principle of SSL 2015
Guiding Principle of SSL 2015
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Minimum Basic Salary (SG1)
Minimum Basic Salary (SG1)
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70% of Market Rate
70% of Market Rate
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Executive Order No. 201, 2016
Executive Order No. 201, 2016
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Step Increment
Step Increment
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Performance Management System
Performance Management System
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Personnel Economic Relief Allowance (PERA)
Personnel Economic Relief Allowance (PERA)
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Hazard Pay
Hazard Pay
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Longevity Pay
Longevity Pay
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13th Month Pay (Mid-year Allowance)
13th Month Pay (Mid-year Allowance)
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Clothing Allowance
Clothing Allowance
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Productivity Enhancement Incentive
Productivity Enhancement Incentive
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Anniversary Bonus
Anniversary Bonus
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Overtime Pay
Overtime Pay
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Honoraria
Honoraria
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14th Month Pay (Year-end Allowance)
14th Month Pay (Year-end Allowance)
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Medicare Sharing (PhilHealth Sharing)
Medicare Sharing (PhilHealth Sharing)
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Terminal Leave
Terminal Leave
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Monetization of Leave Credits
Monetization of Leave Credits
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Collective Negotiating Agreement
Collective Negotiating Agreement
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Parental Leave
Parental Leave
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Study Notes
Module 6: Compensation and Benefits for Public and Private Sector
- Salary Standardization Law of 2015: A legislative act to modify the compensation and classification system for civilian government personnel and military personnel. It was approved by President Benigno Aquino III. Key members of the Senate involved included Franklin Drilon, and Loren Legarda.
- Compensation Adjustment Basis: The proposed adjustments were based on a "Compensation and Benefits Study for the Public Sector". This study compared government pay to the private sector.
- Study Objectives: Comparison of government pay to the private sector, and development of a compensation strategy to align government pay with market rates.
Highlights of Market Study
- Market Benchmark Comparison: The study compared government pay to market benchmarks and median total guaranteed pay in the private sector. The study showed the government salaries for lower salary grades were closer to market rate than for higher salary grades.
- Competitive Review Highlights: The review detailed the competitiveness of government salary structure in various job categories. For example, utility workers show a market position to 79%-126% of the market median, whereas executives showed a market position below 32%-22%.
Guiding Principle of SSL 2015
- Payment: Just and equitable compensation for government personnel aligning with equal work value.
- Comparability: Government pay comparable to private sector pay.
- Standardization: Rationalization and standardization in compensation across all government agencies.
- Incentives: Performance-based incentive scheme adopted.
Parameter of SSL 2015
- Minimum Salary Increase: Minimum basic salary for SG1 increased from PHP 9,000 to PHP 11,068 per month.
- Market Adjustment: Government compensation adjusted to at least 70% of the market rate.
- Differentiation: Compensation acknowledges differences in responsibilities with no salary overlaps.
Main Objective of SSL 2015
- Competitiveness: A primary goal to be competitive with the private sector market, so as to attract and retain talent
- Pay-Performance Link: Strengthen the link between pay and performance.
Monthly Salary Schedule Four (4)
- Provisions A sample schedule of monthly salaries for various positions, ranging from Utility Workers to Presidents.
Other Topics (Page 3-9)
- Increment and Progression: Details a one-step increment for official and employee based on 3yr satisfactory service.
- Market Comparison: Detailed comparisons between SSL and market rates for teachers, nurses, and other positions.
- Budget Allocation: Discussion of the Personnel Economic Relief Allowance (PERA) Budget Circular (2011-2).
- Additional Compensation: Includes subsistence, quarters, laundry, hazard, and longevity pay.
- Representation, Transportation & Monthly Bonus: Details allowance to support government officials expenses.
- PhilHealth and Pag-Ibig Contributions: Explains contributions and their calculations for various salary levels and types of employment (private/public).
- Compensation Methods: Describes how compensation is approached in the private sector (e.g. different approaches for varying purposes, methods to evaluate and reward employee performance, and strategies for aligning compensation to the company's goals)
Compensation and Benefits in Public Employee Policies (Page 10-12)
- Holiday Pay: Applies to all employees except government, retail, and service establishments employing fewer than 10 workers, casuals in positions, and others.
- Night Shift Differential: Pays an additional 10% of compensation for hours worked between 10 PM and 6 AM.
- Thirteenth-Month Pay: Required for all employees working at least one month during a calendar year (by December 24 of the year).
- Separation Pay: Details the basis and conditions for separation pay for employees, based on cause.
- Retirement Pay: Details, qualifications, amounts for eligible employees completing at least 5 years.
Additional Employee Policies (Pages 10-12)
- Maternity Leave: Expanded to apply for all types of delivery (caesarean/normal), allowing 105 days in all cases.
- Paternity Leave: Details benefits, conditions and coverage for all married male employees.
- Solo Parents Leave: Coverage, application, and qualifications for solo parents.
- Leave for Violence Victims: Leaves benefits extended for victims of abuse.
- Special Leave for Women: Includes cases for gynecological surgery, 2 month leave.
- Service Incentive Leave: Details for employees with one year of service (including government employee exclusions), and is payable at the end of the year.
- Service Charges: The distribution of service charges between front of house and back of house staff.
- Minimum Wage Rates: Different minimum wage rates for workers in different sectors.
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Description
Explore the key elements of the Compensation and Benefits module focusing on public and private sector comparisons. This quiz covers the Salary Standardization Law of 2015, objectives of the compensation study, and insights from market benchmark comparisons. Test your knowledge on how government pay aligns with private sector trends.
