Private Sector and Government Worker Salaries and Conditions of Employment in the Philippines
Submitted by: Mark Leo L. Francisco
Submitted to: Prof. Castillo J. O.
Subject Code: WSALADM
Section Code: BHR0401
Date Submitted: February 12, 2015
There has been much debate over whether public sector employees are overpaid or underpaid, relative to their private sector counterparts, and how to make an "apples-to-apples" comparison of the compensation received by each since job functions are oftentimes quite different. My study seeks to address this issue in light of a new report that suggests that state and local government workers receive less total compensation than comparable private-sector workers, and to examine how issues not addressed in the study might affect those conclusions. TOPICS:
I. Are Public Sector Workers in the Philippines Undercompensated? II. Are Public Sector Workers in the Philippines Overcompensated? III. Compensation Comparisons
IV. Productivity Differences
V. Job Security Differences
VI. Rising Numbers of Government Workers
I. Are Public Sector Workers in the Philippines Undercompensated? The benefits that government employees receive are supposed to support their families’ everyday needs, precisely because their compensation is not enough. Most of them are buried in debt, borrowing in advance their monthly salaries or relying on credit cards to make it until their next payday. Most government workers are not high officials with top salaries and perks, who get paid in thousands just for attending the board meetings of their government corporations, or are driven around in gas-free vehicles. Most government workers’ salaries are eaten up by their household bills, their pay hardly enough to cover the skyrocketing prices of basic commodities, oil, gasoline, electricity and water bills. According to The Manila times, there will be no pay hike for government employees this year and the next, not until 2016 if ever the Department of Budget and Management completes its assessment of the compensation classification system (CCS) of government employees, which it doesn’t seem in a hurry to do so. And yet the Bureau of Internal Revenue (BIR) is imposing new taxes on government employees’ financial benefits and allowances. II. Are Public Sector Workers in the Philippines Overcompensated? Senators salaries start at P90,000 per month. That a lovely income & its money most can only ever dream about. But its miniscule to what they can actually earn per month. According to Mirriam Santiago, with being on committees and I think with allowances & benefits it can go up to P1,400,000 per month. Now if that isn’t obscene then tell me what is. A UK politician can never earn that amount of money with benefits & allowances & you compare salaries & benefits in the UK to the Philippines & it shows you how these senators look after themselves.
During the trial of Cj Corona we were told his salary and his allowances and his benefits. Here are a couple I remember. Rice allowance P20, 000. That’s P384 per week. A days of pay for many construction workers. And remember his food at work was paid for by the government. He had a hardship allowance, he had about 5 different Christmas bonus’s & or allowances. I know in total just his allowances & bonuses came to millions of pesos per year. I find it disgusting. We the people should know everything these people are getting & then.
Also, a remarkable entry in Manolo Quezon's blog entitled "On Official Allowances" discussing the salaries of our government officials before the Second World War (1939-1940) was truly insightful and informative. According to Manolo, the annual salary of the President of the Philippines then amounted to P30,000 which, translated into present day terms amounts to roughly P10 million. The Speaker of the National Assembly got P16, 000 a year (about P5 million today) while Assemblymen received P5, 000 (about P1.5...
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