MANILA — President Benigno S. Aquino III has issued an executive order (EO) providing higher salaries and performance-based incentives for employees in state-run corporations.
The President signed EO No. 203 on March 22 adopting a compensation and position classification system (CPCS) and a general index of occupational services (IOS) for the government-owned or -controlled corporations (GOCC) sector.
The EO directed the Governance Commission for GOCC (GCG) to conduct compensation studies, develop and recommend to the President a competitive compensation and remuneration system which shall “attract and retain talent at the same time allowing the GOCC to be financially sound and sustainable.”
The CPCS is not limited to hiring rates, promotions, overtime pay, night shift differential, merit increases and Early Retirement Incentive Programs (ERIPS) considering prevailing practices in the private sector.
The GCG may also recommend for the President’s approval incentives outside of the CPCS considering the good performance of the GOCC.
The implementation of the compensation adjustments shall depend on the financial capability of the GOCC and their operating budget as approved by the GCG, and those approved by the Department of Budget and Management (DBM) for entities receiving allocations or subsidies from the national government.
EO 203 serves as the counterpart measure for GOCCs to EO 201 which modified the salary schedule for civilian government personnel and authorized the grant of additional benefits for both civilian military and uniformed personnel. Leslie Venzon/PNA/northboundasia.com