Palace proposes study on compensation system for government corporations


President Benigno S. Aquino III signed EO No. 203 on March 22 directing the Governance Commission for Government Owned and Controlled Corporation (GOCC) to conduct compensation studies, develop and recommend to the President of the Philippines (POTP) a competitive compensation and remuneration system. which shall attract and retain talent at the same time allowing the state-run corporations to be financially sound and sustainable.

It envisions a system that is not only limited to hiring rates, promotions, overtime pay, night shift differential, merit increases and early retirement incentive programs considering prevailing practices in the private sector.

The governance commission is tasked to recommend for the President of the Philippines’ (POTP) approval of incentives outside of the system considering the good performance of the state owned companies.

But the implementation of the compensation adjustments will also depend on the financial capability of the state corporation and their operating budget as approved by the commission, and those approved by the Department of Budget and Management (DBM) for entities receiving allocations or subsidies from the national government.

The order serves as the counterpart measure for state run corporations to EO 201 which modified the salary schedule for state employees (civilian government personnel) and authorized the grant of additional benefits for both civilian military and uniformed personnel.

This new Malacanang brain child comes midway while the nation is preparing to boot out the presidency of Aquino with the upcoming elections. It is also undermining the plans of the upcoming new palace occupant come June 2016 but also seen by detractors as dangling bait to electorates to support the POTP’s annointed candidates who lag in popularity and mass appeal as reflected on surveys.

The POTP have six years to implement an overhaul of compensation of state run corporations, but why only now when he is on the way out? (with PNA report)


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