Metro Manila (CNN Philippines, July 31) — President Rodrigo Duterte has suspended the implementation of compensation packages for government-owned-and-controlled corporations (GOCCs) to give way for a review of how much officials and employees are actually getting.
In Executive Order No. 36 signed last Friday, Duterte’s directive said there was a need to study the compensation and position classification system (CPCS) and the index of occupational services (IOS) of government-owned and-controlled corporations (GOCCs) “to eliminate any excessive, unauthorized, illegal and/or unconscionable allowances, incentives and benefits.”
READ: Perks, paychecks of GOCC execs
In the meantime, GOCCs — including their subsidiaries — will be covered by new rules under EO 36, subject to the approval of the Governance Commission for GOCCs (GCG). The GCG is the the central policy-making and regulatory body that monitors and oversees GOCCs’ operations.
For GOCCs under the Salary Standardization Law (SSL), the GOCC will adopt the Modified Salary Schedule.
Meanwhile, GOCCs exempted from the SSL may maintain their current compensation scheme or adopt the Modified Salary Schedule.
Meanwhile, collective bargaining or negotiation agreements in the GOCC sector will not be affected.
The GCG will come up with the implementing rules and regulations within 30 days since the effectivity of the new directive.
