STRATHRM-Module-6 PDF

Module 6: Compensation and - The objectives of the study are: Benefits for Public and Private Sector - To Compare the competitiveness of Salary Standardization Law & government pay in relation to the Compensation and Benefits in priv...

Module 6: Compensation and - The objectives of the study are: Benefits for Public and Private Sector - To Compare the competitiveness of Salary Standardization Law & government pay in relation to the Compensation and Benefits in private sector Public Sector - To craft a compensation strategy to bring government pay closer to ➔ Salary Standardization Law of market rates. 2015 - It is a legislative measure to modify ➔ Highlights of Market Study the compensation and position classification system of civilian government personnel and the base pay schedule of military and uniformed personnel. - It was approved by President Benigno Aquino III - Senate President Franklin M. Drilon and Senate Finance Committee Chairperson Loren Legarda ➔ Highlights of the Competitive co-author the proposed measure Review (Senate Bill 3009). - The basis for the proposed compensation adjustment of the SSL 2015 is the Compensation and Benefits Study for the Public Sector. ➔ What is Compensation and Benefits Study for the Public Sector? - It is a survey carried out by the DBM pursuant to its mandate to ➔ Guiding Principle of SSL 2015 administer the compensation and - Payment of just and equitable position classification system of the compensation to government government under Presidential personnel in accordance with the Decree No. 985 and Republic Act principle of equal pay for work of No. 6758 or Salary Standardization equal value; Law I. - Comparability of civilian government - The DBM engaged the services of pay with those in private sector Towers Watson who offers - Rationalized and standardized consulting, technology and solutions compensation across all government in the areas of benefits, talent agencies; and management, rewards and risk - Adoption of a performance-based capital management. incentive scheme  - Uniformed personnel of the DILG, ➔ Parameter of SSL of 2015 PCG, and NAMRIA Parameters: - Minimum basic salary (SG1) shall be Exclusion: raised from 9,000 to 11,068 a month. - Those engaged thru job orders, - Compensation shall be adjusted to contracts of service, consultancy at least 70% of the market for all contracts, service contracts with no salary grades employee-employer relationship - To recognize differences in duties and responsibilities, there shall be ➔ Monthly Salary Schedule Four (4) no salary overlaps Tranches - The link between pay and performance shall be strengthened ➔ Main Objective of the SSL 2015 - To be competitive with the market thereby attract and retain talent - Strengthen the link between pay and performance - Reduce costs of benefits (i.e. GSIS premiums and PhilHealth Contributions) while maximizing the benefits to employees - Allow higher take home pay, especially for government personnel belonging to lower salary grades ➔ Executive Order NO. 201, s. 2016 Modifying the Salary Schedule for civilian Personnel and Authorizing the Grant of Additional Benefits for ➔ Step Increment (Executive Order Both Civilian and Military and NO. 164) Uniformed Personnel - Officials and employees of national government agencies (NGAs) Coverage: including state universities and - All civilian personnel in the colleges (SUCs), government-owned Executive, Legislative and Judicial or controlled corporations (GOCCs) Branches, Constitutional government financial institutions Commissions and Constitutional (GFIs) and local government units Offices, GOCCs not covered by RA (LGUs) 10149, and LGUs Under permanent status - Military personnel of the DND Regular plantillas of agencies - A one (1) step increment shall be ➔ SSL 3 VS Market for Teachers granted to officials and employees for every 3 years of continuous satisfactory service in their present positions. - An employee may progress from Step 1 to Step 8 of the salary grade allocation of his/her position in recognition of meritorious performance based on a Performance Management System. ➔ How much will SSL cost from 2016 to 2019 P 225.82 B ➔ Personnel Economic Relief Allowance (PERA) Budget Circular No. 2011-2: ➔ SSL 3 VS. Market for Nurses Coverage: - All civilian government employees occupying regular, contractual and casual status, whether elective or appointive, rendering FULL TIME or part time basis. Payment: - Paid only when basic pay is also paid - P 2,000.00 per month provided they render full-time services for eight (8) hours per working day, twenty two (22) working days per month,  inclusive of leave of absence with - Computation of Hazard Pay pay. ➔ Subsistence, Laundry, and Quarters Allowances (SLQA) - Under the Magna Carta Benefits of Public Health Workers pursuant to R.A. No. 7305. ➔ Hazard Pay - It is to protect and promote the welfare of public servants by ➔ Longevity Pay providing them with additional - A monthly longevity pay equivalent compensation taking into account to five percent (5%) of the present the nature of their responsibilities monthly basic pay shall be paid to and exposure to hazards or possible public health workers for every five dangers pertaining to their positions. (5) years of continuous, efficient and meritorious services rendered as Coverage: certified by the Head of - All employees and officials of the Agency/Local Chief Executives Government shall be paid hazard commencing after the approval of pay when stationed or assigned to the Act. (April 17, 1992) work in or under the following circumstances/conditions: ➔ Representation & Transportation - Hazardous or less hazardous areas Allowance - Difficult areas or hardship posts - RATA is a collective term for two characterized by distance, distinct but complementary inconvenience of travel due to bad allowances. Both allowances are roads and conditions of the terrain, provided to select government isolation, inaccessibility and extreme officials to cover related expenses weather conditions incident to and in connection with - Stations which offer risks to health the actual performance of their and safety due to exposure to respective functions. radiation, contagious diseases and volcanic activity; - Institutions that tend or care for mentally deranged patients - Those in prison reservations and penal colonics without adequate police protection: - Plants and installations of arsenal: - Aboard aircraft and watercraft in crossing bodies of water; and ➔ Medicare Sharing (PhilHealth contractual in nature, elective or Sharing) appointive - The new sharing scheme, which was implemented starting last month, is Guidelines: divided to the medical department - Equivalent to ONE (1) month basic (50 percent) that would include pay as of May 15 doctors, hospital administrator, - Rendered at least a total or an medical director, chief nurse, head of aggregate of FOUR (4) months of billing section, medical social service from July 1 of the services and the personnel officer immediately preceding year to May who handles the accounts of 15 of the current year PhilHealth. - Remains to be in the government - The other 50 percent is divided service as of May 15 of the current among the rank and file employees year (75 percent), senior nurses, - With at least a SATISFACTORY supervisors and quality teams (15 performance rating in the percent) and all the hospital immediately preceding rating period department heads who are members of the management circle (10 percent) ➔ 14th Month Pay (Year-End Allowance) and Cash Gift ➔ Night Differential Pay Coverage: - Night Differential Pay - - All government employees whether compensation premium granted to regular, casual or contractual in government personnel whose nature, elective or appointive regular working hours fall wholly or partly within 6:00 PM to 6:00 AM of Guidelines: the following day. - Year-End Bonus Equivalent to ONE - Hourly Basic Rate - the basic (1) month salary as of October 31 salary rate per hour derived by (a) and Cash Gift of 5,000 – given not dividing the monthly rate by 22 earlier than November 15 of the working days, and – dividing the current year quotient derived in (a) by-S hours. - 20% of the hourly basic rate of the Conditions: employee - Must have rendered at least a TOTAL or AGGREGATE of FOUR (4) months of service from January 1 ➔ 13th Month Pay (Mid year to October 31 of the current year Allowance) - Must remain in the service as of Coverage: October 31 of the same year - All positions in the government whether regular, casual or ➔ Clothing Allowance ➔ Collective Negotiating Agreement - Section 40 of the General Provisions - Administrative Order (AO) NO. 1351 of Republic Act (R.A.) No. 10155, s. 2005 the Fiscal Year (FY) 2012 General - Collective Negotiation Agreement Appropriations Act (GAA)M provides (CNA) Incentive - this may be that appropriations for each granted to both management and department, bureau, office, or rank-and-file employees of agencies agency may be used for uniform or with approved and successfully clothing allowance of employees at implemented CNAs in recognition of not more than P 5,000 per annum, their efforts in accomplishing subject to the rules and regulations performance targets at lesser cost, issued by the DBM in attaining more efficient and viable operations through costcutting measures and systems improvement ➔ Productivity Enhancement Incentives Pursuant to Executive Order (EO) ➔ Performance Based Bonus No. 201, s. 2016 - Subject to the achievement by - Beginning FY 2016, the Productivity departments/agencies of Enhancement Incentive shall be performance targets and compliance given not earlier than December 15 with good governance and other of every year to all qualified conditions government employees at Five - Based on a progressive rate system Thousand Pesos (P 5,000) each for as the position and responsibility the purpose of improving the goes higher, so does the amount of government employees’ productivity the PBB Exclusions: - Consultants and experts hired for a limited period to perform specific activities or services with expected outputs; - Laborers hired through job contracts (pakyaw) and those paid on piecework basis; ➔ Loyalty Award - Student workers and apprentices; - The provision for the cash gift and component of the Loyalty Award for - Individuals and groups of people qualified officials and employees, in whose services are engaged addition to the loyalty through job orders, contracts of memorabilia/souvenir, on the service, or others similarly situated occasion of the incumbent’s milestone year. - 10th year anniversary and every 5 years thereafter - Shall be computed at P 500.00 but - Lectures, resource persons, not more than P 1,000.00 for every coordinators and facilitators in year of service, in accordance with seminars CSC MC Ni. 06, s.2002 - Chairs and members of Commissions/Board/Councils - Those involved in science and ➔ Anniversary Bonus technological activities who render - The provision for Anniversary Bonus services beyond their regular (AB) at P 3,000.00 per qualified workload personnel shall be made only on the - Officials and employees assigned to occasion of the agency’s milestone special projects year. - 15th anniversary and every 5 years - The rates of honoraria shall depend thereafter on the level of responsibilities, nature of work rendered, and extent of individual contribution to produce ➔ Overtime Pay the desired outputs. The total - A duty authorized work rendered honoraria received from all special beyond the regularly scheduled projects shall not exceed 25% of the normal hours of work such as during annual basic salary. the day beyond and the 8 hours of work required from daily paid ➔ Magna Carta Benefits workers or work during the week - Honoraria for assignment in special beyond the 40 hours of work project required from monthly paid workers. - Honoraria for lecturers and Resource persons - Per Diem - Hazard Pay - Subsistence Allowance - Laundry Allowance - Free Quarters - Longevity Pay - Salary Increase for Retirement and ➔ Honoraria Terminal Leave Benefit Purposes - Honoraria shall be paid to the following personnel subject to ➔ Salary Grade Increase Prior to guidelines issued by the DBM Retirement - Upon Retirement, Personnel shall Coverage: automatically be granted one (1) - Teaching personnel of the DepEd, salary grade higher than his/her TESDA, SUCs, and other basic salary and retirement benefits educational institutions with excess shall be computed on the basis of outside their teaching load. the highest salary received, pursuant to section 14 or R.A. No. 8439  casual or coterminous, who have ➔ Salary Step Increment for accumulated fifteen (15) days of Completion of a Post Graduate vacation leave credits shall be Degree allowed to monetize a minimum of - In line with Section 34h of R.A. No. ten (10) days: Provided, that at least 7305, a PHW who holds a position in five (5) days is retained after the agency plantilla of regular monetization and provided further positions and who completes a that a maximum of thirty (30) days master’s or doctoral degree related may be monetized in a given year. to the performance of the duties and (CSC MC 41, s. 1998) responsibilities of his/her position - Sec. 23. Monetization of 50% of after at least two (2) years of service Vacation Sick/Leave Credits. as PHW, may be entitled to one (1) This may be allowed for valid and step increase to be integrated into justifiable reasons subject to the the basic salary, in recognition of discretion of the agency head and his/her efforts towards professional the availability of funds. (MC 41, s. advancement. 1998) ➔ Types of leaves ➔ Terminal Leave - Vacation leave - Agencies shall also use BP Form (13) vacation leave 205 to reflect the terminal leave - Sick leave benefits of FY 2019 retirees. TLB of Twelve (12) days of sick leave compulsory retirees whether - Privilege leave permanent or casual, shall be 3 days, (birthday, and other special computed separately from those of events) optional retirees. - Maternity leave Sixty (60) calendar days leave Computation: - Paternity leave - TLB = S x D x CF All married male employees are TLB - Terminal Leave Benefit eligible for 7 working days S - Highway monthly salary received - Bereavement D - No. of accumulated vacation and Three (3) days sick leave credits - Solo parent leave CF - Constant Factor is 0.048 1927 Seven (7) working days - Leave for Victims of Violence ➔ GSIS, PHILHEALTH AND Against Women and Their Children PAG-IBIG Ten (10) days leave GSIS - Section 11 of the Revised ➔ Monetization of Leave Credits Implementing Rules and Regulations - Officials and employees in the of RA 8291 approved on June 23, career and non-career service 2010 under Board Resolution No. 88 whether permanent, temporary, provides that the rate of contribution  payable by the member and the UNDER THE LAW government agency shall be nine (9) percent and 12 percent, respectively, based on the actual monthly salary of the member PhilHealth Pag-ibig - Every employee, employer, members, OFWs must take note the latest Pag-ibig Contribution Table 2018 below to aid and be aware of how much you are paying to Pag-ibig fund every month. The usual payment is P 100 following the maximum compensation set to P 5, 000. Compensation and Benefits in the Private Sector ➔ Parental Leave for Solo Parents (RA 8972) - Solo Parents ID