Duterte suspends compensation system for GOCCs

Duterte suspends compensation system for GOCCs

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MANILA, July 31, 2017 — President Rodrigo Duterte has issued an executive order (EO) suspending the Compensation and Position Classification System (CPCS) and the Index of Occupational Services (IOS) Framework for government-owned and controlled corporations (GOCC).

In EO No. 36, which was signed by Duterte last Friday, the President said there is “a need to further study and review the compensation of GOCCs and eliminate excessive, unauthorized, illegal, and/or unconscionable allowances, incentives, and benefits.”

“The GCG (Governance Commission for GOCCs) finds that there are compelling reasons to revisit and/or reevaluate the CPCS under EO No. 203 and institute an interim measure for affected GOCCs at the meantime,” Duterte said in his directive.

EO No. 203, which was signed in March 2016 by then President Benigno Aquino III, approved the current CPCS that served as the basis for the computation of GOCC employees’ compensation, bonuses and incentives.

In the interim, Duterte ordered that GOCCs covered by the Salary Standardization Law (SSL) shall adopt, as their compensation framework, the Modified Salary Schedule under EO No. 201 (s. 2016), as well as the allowances and bonuses provided therein.

As for SSL-exempt GOCCs, they shall have the option to either maintain their current compensation framework or adopt the Modified Salary Schedule.

EO NO. 36 orders that the interim measures shall be implemented effective January 1, 2017 upon the approval of the GCG. (Cielito M. Reganit/PNA)


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