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Republic Act No. 11466 (Salary Standardization Law of 2019)

Republic Act No. 11466 (Salary Standardization Law of 2019)

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Republic Act No. 11466, also known as the “Salary Standardization Law of 2019,” aims to adjust the salary schedules for civilian government employees and introduce additional benefits.

Learn more about this law in this article!

About the Republic Act No. 11466

Republic Act No. 11466, also known as the “Salary Standardization Law of 2019,” was enacted to adjust the salary schedule for civilian government employees and provide additional benefits. The goal is to ensure fair and equitable compensation based on job duties, responsibilities, and qualifications. 

This law aims to make government pay competitive with the private sector, attract and retain talented civil servants, and promote efficiency and excellence in public service. It covers all civilian personnel in various branches of government and government-owned corporations but excludes military personnel and specific other categories. 

The new salary schedule will be implemented in four stages, including provisions for mid-year and year-end bonuses and a performance-based incentive system.

What Does This Law Contains?

Key Points:

  1. Fair Pay: The law ensures fair and equal pay for government workers based on their job roles, responsibilities, and qualifications.
  2. Standardized Salaries: It standardizes salaries across all government agencies to promote fairness and efficiency.
  3. Competitive Compensation: To attract and keep talented workers, the compensation for government jobs will be competitive with similar roles in the private sector.
  4. Performance-Based Incentives: A system of rewards for outstanding performance will be established to encourage excellence among civil servants.
  5. Financial Responsibility: The compensation scheme will consider the government’s financial capability to ensure funds are used efficiently.

Who is Covered?

  • All civilian government employees in the Executive, Legislative, and Judicial branches, including constitutional offices, government-owned or controlled corporations (GOCCs), and local government units (LGUs).
  • This includes regular, contractual, casual, appointive, or elective personnel, whether full-time or part-time.

Who is Not Covered?

  • Military and uniformed personnel.
  • GOCCs are covered by Republic Act No. 10149.
  • Individuals working under job orders or service contracts without an employer-employee relationship.

Salary Schedule:

  • The law introduces a new salary schedule to be implemented in four stages, gradually increasing the pay for government workers over time.

Additional Benefits:

  • Mid-Year Bonus: Equivalent to one month’s basic salary, given to employees who have served at least four months and are still in service by May 15 each year.
  • Year-End Bonus and Cash Gift: This bonus is equivalent to one month’s basic salary plus a P5,000 cash gift, and it is given in November each year.

Overall, Republic Act No. 11466 seeks to improve the pay and benefits for government employees, ensuring fairness, competitiveness, and recognition of their performance.

REPUBLIC ACT NO. 11466

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Short Title.– This Act shall be known as the “Salary Standardization Law of 2019”.

Section 2. Statement of Policy.- It is hereby declared the policy of the State to provide all government personnel a just and equitable compensation in accordance with the principle of equal pay for work of equal value. In pursuing this policy, the State shall ensure that:

(a) Differences in pay shall be based upon substantive differences in duties, responsibilities, accountabilities and qualification requirements of the positions.

(b) The compensation for all civilian government personnel shall be standardized and rationalized across all government agencies to create an enabling environment that will promote social justice, integrity, efficiency, productivity, accountability and excellence in the civil service.

(c) The compensation of all civilian personnel shall generally be competitive with those in the private sector doing comparable work in order to attract, retain and motivate a corps of competent and dedicated civil servants.

(d) A performance-based incentive scheme which integrates personnel and organizational performance shall be established to reward exemplary civil servants and well-performing organizations.

(e) The compensation scheme shall take into consideration the financial capability of the government and shall give due regard to the efficient all location of funds for personnel services, which shall be maintained at a realistic level in proportion to the overall expenditure of government.

Section 3. Coverage. – This Act shall apply to all civilian government personnel in the Executive, Legislative and Judicial Branches, Constitutional Commissions and other Constitutional Offices, government-owned or -controlled corporations (GOCCs) not covered by Republic Act No. 10149, and local government units (LGUs). This shall cover government personnel whether regular, contractual or casual, appointive or elective; and on full-time or part-time basis.

Section 4. Exclusions. – The following shall be excluded from the coverage of this Act:

(a) Military and uniformed personnel;

(b) GOCCs under Republic Act No. 10149 which shall be covered by a Compensation and Position Classification System (CPCS) established by the Governance Commission for GOCCs (GCG) and approved by the President of the Philippines; and

(c) Individuals whose services are engaged through job orders, contracts of service consultancy or service contracts with no employer-employee relationship.

Section 5. Position Classification System. – The following re-categorized groups of classes of positions prescribed and defined under Item (3) of Joint Resolution No. 4, series of 2009 shall be maintained, i.e.: (a) Sub-professional Category; (b) Professional Category; and (c) Executive Category. The Index of Occupational Services, Occupational Groups, Classes and Salary Grades (IOS, for brevity) shall continually be reviewed and updated by the Department of Budget and Management (DBM) in consideration of substantial changes in and complexity of duties and responsibilities of positions, work methods, skills, competencies, and other relevant factors.

Section 6. Compensation System. – The Total Compensation Framework established under Item (4) of Joint Resolution No. 4, series of 2009, consisting of the following components, shall continue to be adopted:

(a) Basic Salaries including Step Increments;

(b) Standard Allowances and Benefits;

(c) Specific-Purpose Allowances and Benefits; and

(d) Incentives.

Section 7. Salary Schedule, Including Step Increments. – The modified Salary Schedule fo Civilian Personnel, to be implemented in four (4) tranches, shall be as follows:

First Tranche

Salary GradeStep 1Step 2Step 3Step 4Step 5Step 6Step 7Step 8
111,55111,64711,74511,84311,94212,04212,14312,244
212,27612,36912,46412,56012,65712,75412,85212,950
313,01913,11913,22013,32213,42413,52713,63113,736
413,80713,91414,02014,12814,23614,34514,45614,567
514,64114,75414,86714,98115,09615,21215,32915,446
615,52415,64315,76315,88416,00716,12916,25316,378
716,45816,58516,71316,84116,97017,10117,23117,364
817,50517,66317,82317,98418,14618,31018,47618,643
918,78418,94119,10019,25919,42019,58219,74619,911
1020,21920,38820,55820,73120,90321,07921,25421,432
1122,31622,60022,88923,18123,47723,77824,08224,391
1224,49524,77925,06725,35825,65325,95226,25426,560
1326,75427,06727,38327,70328,02828,35628,68829,025
1429,27729,26129,96930,32230,67831,03931,40531,775
1532,05332,43132,81433,20233,59433,99134,39334,801
1635,10635,52235,94336,36936,80137,23837,68138,128
1738,46438,92239,38539,85440,32940,81041,29641,789
1842,15942,66243,17243,68744,21044,73945,27445,816
1946,79147,53048,28149,04449,82050,60851,41052,224
2052,70353,53754,38655,24856,12557,01657,92158,841
2159,35360,29661,25562,22963,22064,22665,24966,289
2266,86767,93369,01770,11871,23772,37573,53174,705
2375,35976,56377,78879,03480,32481,63582,96784,321
2485,07486,46287,87489,30890,76692,24893,75395,283
2596,98598,568100,176101,811103,473105,162106,879108,623
26109,593111,381113,200115,047116,925118,833120,772122,744
27123,839125,861127,915130,003132,125134,281136,473138,701
28139,939142,223144,544146,903149,300151,738154,215156,731
29158,131160,712163,335166,001168,710171,464174,262177,107
30178,688181,604184,568187,581190,642193,754196,916200,130
31262,965268,101273,338278,676284,120289,669295,327301,095
32313,512319,835326,285332,865339,577346,426353,413360,539
33395,858407,734

Second Tranche

Salary GradeStep 1Step 2Step 3Step 4Step 5Step 6Step 7Step 8
112,03412,13412,23612,33912,44212,54512,65112,756
212,79012,88812,98713,08713,18713,28813,39013,493
313,57213,67713,78113,88813,99514,10114,21014,319
414,40014,51114,62214,73514,84814,96115,07715,192
515,27515,39315,51115,63015,75015,87115,99316,115
616,20016,32516,45016,57716,70416,83216,96217,092
717,17917,31117,44417,57817,71317,84917,98518,124
818,25118,41718,58318,75118,92019,09119,26419,438
919,59319,75719,92220,08920,25720,42620,59720,769
1021,20521,38221,56121,74121,92322,10622,29122,477
1123,87724,16124,45024,74225,03825,33925,64325,952
1226,05226,33626,62426,91527,21027,50927,81128,117
1328,27628,58928,90529,22529,55029,87820,21030,547
1430,79931,14331,49131,84432,20032,56132,92733,297
1533,57533,95334,33634,72435,11635,51335,91536,323
1636,62837,04437,46537,89138,32338,76039,20339,650
1739,98640,44440,90741,37641,85142,33242,81843,311
1843,68144,18444,69445,20945,73246,26146,79647,338
1948,31349,05249,80350,56651,34252,13052,93253,746
2054,25155,08555,93456,79657,67358,56459,46960,389
2160,90161,84462,80863,77764,76865,77466,79767,837
2268,41569,48170,56571,66672,78573,92375,07976,253
2376,90778,11179,33680,58381,89983,23584,59485,975
2486,74288,15889,59791,05992,54594,05795,59297,152
2598,886100,500102,140103,808105,502107,224108,974110,753
26111,742113,565115,419117,303119,217121,163123,140125,150
27126,267128,329130,423132,552134,715136,914139,149141,420
28142,683145,011147,378149,784152,228154,714157,239159,804
29161,231163,863166,537169,256172,018174,826177,679180,579
30182,191185,165188,187191,259194,380197,553200,777204,051
31268,121273,358278,697284,140289,691295,349301,117306,999
32319,660326,107332,682339,392346,236353,218360,342367,609
33403,620415,728

Third Tranche

Salary GradeStep 1Step 2Step 3Step 4Step 5Step 6Step 7Step 8
112,51712,62112,72812,83412,94113,04913,15913,268
213,30513,40613,50913,61313,71813,82313,92914,035
314,12514,23414,34314,45414,56514,67614,79014,903
414,99315,10915,22415,34115,45915,57715,69815,818
515,90916,03216,15516,27916,40416,53016,65716,784
616,87717,00717,13717,26917,40217,53517,67017,806
717,89918,03718,17618,31518,45518,59818,74018,884
818,99819,17019,34319,51819,69419,87220,05220,233
920,40220,57220,74520,91821,09321,26921,44721,626
1022,19022,37622,56322,75222,94223,13423,32723,522
1125,43925,72326,01226,30426,60026,90127,20527,514
1227,60827,89228,18028,47128,76629,06529,36729,673
1329,79830,11130,42730,74731,07231,40031,73232,069
1432,32132,66533,01333,36633,72234,08834,44934,819
1535,09735,47535,85836,24636,63837,03537,43737,845
1638,15038,56638,98739,41339,84540,28240,72541,172
1741,50841,96642,42942,89843,37343,85444,34044,833
1845,20345,70646,21646,73147,25447,78348,31848,860
1949,83550,57451,32552,08852,86453,65254,45455,268
2055,79956,63357,43258,34459,22160,11261,01761,937
2162,44963,89264,35165,32566,31667,32268,34569,385
2269,96371,02972,11373,21474,33375,47176,62777,801
2378,45579,65980,88482,13383,47484,83686,22087,628
2488,41089,85391,32092,91094,32595,86597,43099,020
25100,788102,433104,105105,804107,531109,286110,70112,883
26113,891115,749117,639119,558121,510123,493125,508127,557
27128,696130,797132,931135,101137,306139,547141,825144,140
28145,427147,800150,213152,664155,155157,689160,262162,877
29164,332167,015169,740172,511175,326178,188181,096184,052
30185,695133,726191,806194,937198,118201,352204,638207,978
31273,278278,615284,057289,605295,262301,028306,908312,902
32325,807332,378339,080345,918352,894360,011367,272374,678
33411,382423,723

Fourth Tranche

Salary GradeStep 1Step 2Step 3Step 4Step 5Step 6Step 7Step 8
113,00013,10913,21913,32913,44113,55313,66613,780
213,81913,92514,03214,14014,24814,35714,46814,578
314,67814,79214,90515,02015,13615,25115,36915,486
415,58615,70615,82715,94816,07116,19316,31816,443
516,54316,67116,79916,92817,05717,18917,32117,453
617,55317,68517,82417,96218,10018,23818,37918,520
718,62018,76318,90719,05319,19819,34619,49419,644
819,74419,92320,10420,28520,46820,65320,84021,029
921,21121,38821,56721,74721,92922,11222,29722,483
1023,17623,37023,56523,76223,96124,16124,36924,567
1127,00027,28427,57327,86528,16128,46228,76629,075
1229,16529,44929,73730,02830,32330,62230,92431,230
1331,32031,63331,94932,26932,59432,92233,25433,591
1433,84334,18734,53534,88835,24435,60535,97136,341
1536,61936,99737,38037,76838,16038,55738,95939,367
1639,67240,08840,50940,93541,36741,80442,24742,694
1743,03043,48843,95144,42044,89545,37645,86246,355
1846,72547,22847,73848,25348,77649,30549,84050,382
1951,35752,09652,84753,61054,38655,17455,97656,790
2057,34758,18159,03059,89260,76961,66062,56563,485
2163,99764,94065,89966,87367,86468,87069,89370,933
2271,51172,57773,66174,76275,88177,01978,17579,349
2380,00381,20782,43283,68385,04986,43787,84789,281
2490,07891,54893,04394,56296,10597,67499,268100,888
25102,690104,366106,069107,800109,560111,348113,166115,012
26116,040117,933119,858121,814123,803125,823127,876129,964
27131,124133,264135,440137,650139,897142,180144,501146,859
28148,171150,589153,047155,545158,083160,664163,286165,951
29167,432170,166172,943175,766178,634181,550184,513187,525
30189,199192,286195,425198,615201,856205,151208,499211,902
31278,434283,872289,416295,069300,833306,708312,699318,806
32331,954338,649345,478352,445359,553366,804374,202381,748
33419,144431,718

The rates in the above Salary Schedule represent monthly remuneration for regular or contractual personnel, whether appointive or elective, and on full time employment. The remuneration for those on part-time basis shall be proportionate to the actual services rendered.

Casual personnel shall be paid daily wage rate computed by dividing the corresponding monthly salary rate in the above schedule by twenty-two (22) working days.

Section 8. Mid-Year Bonus. – As part of the Incentives under the Total Compensation Framework, the Mid-Year bonus equivalent to one (1) month basic salary as of May 15 of a given year, shall be granted to those who have rendered at least four (4) months of satisfactory service and are still in the service as of same date, to be given not earlier than May 15 of every year.

The existing Year-End Bonus equivalent to one (1) month basic salary and Cash Gift of Five thousand pesos (P5,000.00), which are categorized under the Standard Allowances and Benefits component of the Total Compensation Framework, shall be given in November of every year.

Section 9. Program on Awards and Incentives for Service Excellence (PRAISE). – The PRAISE instituted by the Civil Service Commission (CSC) pursuant to the provisions of Executive Order No. 292 (Administrative Code of 1987) stipulating the establishment of an employee suggestions and incentive awards system, shall be categorized under the Incentive component of the Total Compensation Framework. The guidelines on the monetary and/or non-monetary rewards for recognition of personnel under the PRAISE shall be issued by the CSC in consultation with the DBM.

Section 10. Compensation Adjustment for Personnel of Local Government Units. – The modified Salary schedule and additional Incentives authorized herein may be granted to personnel of LGUs subject to compliance with the Personnel Services (PS) limitation in the LGU budget under Section 325 and 331 of Republic Act No. 7160 and authorization from the Sanggunian as provided under Sections 447(a), 458(a) and 468(a) of Republic Act No. 7160.

In the implementation of the salary increases, LGUs shall likewise ensure compliance with the following:

(a) The salaries of LGU personnel that may be authorized shall correspond to the LGU’s income classification and shall not exceed the percentage of the Salary Schedule in Section 7 hereof, as follows:

Percentage of the Salary Schedule
For Provinces/CitiesFor Municipalities
Special Cities100%
1st Class100%90%
2nd Class95%85%
3rd Class90%80%
4th Class85%75%
5th Class80%70%
6th Class75%65%

(b) The basic pay of barangay personnel shall be in the form of honoraria consistent with Republic Act No. 7160, which shall not exceed the percentage of the Salary Schedule corresponding to the income classification of the LGU. They may be given Year-End Bonus based on the monthly honoraria as of October 31 of the year and Cash Gift of Five thousand pesos (P5,000.00)

However, the minimum Year-End Bonus of One thousand pesos (P1,000.00) for the Punong Barangay and Six hundred pesos (P600.00) for other mandatory barangay officials shall not be subject to the PS limitation.

(c) In case of partial implementation of the authorized compensation rates, the same shall be at uniform percentage across all positions for every LGU.

Section 11. Implementation Schedule. – For personnel of national government agencies (NGAs), the Salary Schedule in Section 7 hereof shall be implemented in four (4) tranches, with the first tranche beginning on January 1, 2020, the second tranche beginning on January 1, 2021, the third tranche beginning on January 1, 2022, and the fourth tranche beginning on January 1, 2023.

For personnel of GOCCs and LGUs, the implementation period shall not be less than four (4) years depending on their financial capabilities: Provided, That the initial implementation shall not be earlier than January 1, 2020.

Section 12. Exempt Entities. – Exempt entities refer to: (a) government agencies that are not covered by the CPCS authorized under Republic Act No. 6758, as amended; (b) GOCCs governed by the (CPCS) established by GCG under Republic Act No. 10149; and (c) those authorized by law and have actually adopted their own compensation and position classification system.

Exempt entities shall be governed by their respective compensation and position classification systems which shall be made effective upon the recommendation of the DBM or GCG, as the case may be, and approval by the President of the Philippines.

Section 13. Applicability to Certain Officials. – Pursuant to Section 6 of article VII and Section 10 of Article VI of the Constitution, the salaries authorized herein for the President of the Philippines, Vice-President of the Philippines and Members of Congress shall take effect only after the expiration of the respective terms of the present incumbents.

Section 14. Funding Sources. – The funding sources for the amounts necessary to implement this Act shall be as follows:

(a) For NGAs, the amount needed for the salary adjustment in FY 2020 shall be charged against any available appropriations in FY 2020 General Appropriations Act and any other available and valid appropriations. Thererafter, such amounts as are needed shall be included in the annual General Appropriations Act.

(b) For GOCCs, the amounts shall come from their respective corporate funds in the corporate operating budgets approved by the DBM. GOCCs which do not have sufficient funds shall only partially implement the rates of compensation authorized herein: Provided, That any partial implementation shall be at uniform proportion of such rates for all positions in each GOCC.

(c) For LGUs, the amounts shall be charged against their respective local government funds in accordance with the pertinent provisions of this Act and Republic Act No. 7160.

Section 15. Implementing Guidelines. – The DBM shall issue the guidelines necessary to implement specific provisions of this Act.

Section 16. Separability Clause.– If, for any reason, any section or provision of this Act is declared to be unconstitutional or invalid, the other sections or provisions hereof which are not affected thereby shall continue to be in full force and effect.

Section 17. Applicability of Presidential Decree No. 985 as Amended by Presidential Decree No. 1597 and Other Related Laws. – All provisions of Presidential Decree No. 985, as amended by Presidential Decree No. 1997; Republic Act No. 6758; Joint Resolution No. 1, series of 1994; Joint Resolution No. 4, series of 2009; and Executive Order No. 201, series of 2016, which are not inconsistent with, expressly modified, revoked or repealed in this Act shall continue to be in full force and effect.

Section 18. Repealing Clause.– All laws, decrees, orders, rules or regulations or parts thereof inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.

Section 19. Effectivity.– This Act shall take effect on January 1, 2020.

Approved,

(SGD.) ALAN PETER S. CAYETANO
Speaker of the House of Representatives
(SGD.) VICENTE C. SOTTO III
President of the Senate

This Act was passed by the Senate of the Philippines and the House of Representatives on December 16, 2019, and December 18, 2019, respectively.

(SGD.) JOSE LUIS G. MONTALES
Secretary General House of Representatives
(SGD.) MYRA MARIE D. VILLARICA
Secretary of the Senate

Approved: JANUARY 08, 2020

(SGD.) RODRIGO ROA DUTERTE
President of the Philippines 

Here is a PDF version of the original text of the law for your review:

Disclaimer

Conclusion

Republic Act No. 11466, known as the “Salary Standardization Law of 2019,” aims to improve the salaries and benefits of government workers in the Philippines. Enacted on January 8, 2020, it seeks to make government jobs more competitive with the private sector, ensure fair pay, and reward good performance. 

This law covers most civilian employees but excludes military personnel and those in certain government corporations. It will increase salaries in four stages and provide additional bonuses, aiming for a more efficient and motivated public service.

Glossary of Terms

TermDefinition
CompensationPayment or benefits given to employees for their work, including salary, allowances, and bonuses.
SubstantiveHaving a firm basis in reality and therefore important or meaningful.
AccountabilitiesResponsibilities or duties that one is required to handle.
RationalizedMade reasonable and consistent; standardized.
Enabling EnvironmentA set of conditions that make it possible for something to happen or be achieved.
Civil ServiceEmployment in government agencies.
Performance-Based Incentive SchemeA reward system based on how well employees or organizations perform.
ExpenditureMoney spent by the government on various activities.
Constitutional CommissionsIndependent bodies established by the constitution, such as the Commission on Elections.
Government-Owned or -Controlled Corporations (GOCCs)Companies that are owned or controlled by the government.
Local Government Units (LGUs)Administrative divisions in the Philippines, including provinces, cities, municipalities, and barangays.
ContractualEmployment based on a contract with specific terms and conditions.
CasualEmployees hired on a short-term basis, often without the benefits of regular workers.
Step IncrementsRegular, periodic increases in salary based on length of service.
Mid-Year BonusAn additional payment given in the middle of the year, equivalent to one month’s salary.
Year-End BonusAn additional payment given at the end of the year, equivalent to one month’s salary.
Cash GiftA fixed amount of money given to employees, usually during the holiday season.
Program on Awards and Incentives for Service Excellence (PRAISE)A program designed to recognize and reward outstanding performance by government employees.
Joint Resolution No. 4A previous legislative measure that established guidelines for government compensation and position classification.
Governance Commission for GOCCs (GCG)The body responsible for overseeing and implementing policies for government-owned or -controlled corporations.
Index of Occupational Services (IOS)A classification system for various government job positions, including their corresponding salary grades.

Reference

  1. (2021). Officialgazette.gov.ph. https://www.officialgazette.gov.ph/2020/01/08/republic-act-no-11466/