Duterte suspends excessive bonuses, benefits of GOCC executives, employees
President Rodrigo Duterte has ordered excessive bonuses and other benefits of the officials and employees of the government-owned and controlled corporations suspended.
Executive Order No. 36 issued on July 28, 2017 provides for suspending compensation and position and classification system under EO 203, providing for interim compensation adjustments, and for other purposes.
"There is a need to further study and review the compensation of GOCCs and eliminate any excessive, unauthorized, illegal, and/or unconscionable allowances, incentives and benefits," the EO read.
It said the Governance Commission for GOCCs (GCG) finds there are compelling reasons to revisit or reevaluate the Compensation and Position Classification System (CPC) under EO 203 and institute an interim measure for affected GOCCs in the meantime.
EO 203, which President Benigno Aquino III approved in March 2016, provides for the CPCs for government owned and controlled corporations..
Aside from the need to review the excessive bonuses and other allowances, Senior Deputy Executive Secretary Menardo Guevarra, in a press briefing in Malacanang on Monday, said the EO was issued because some agencies could not comply with the requirements under EO 203, such as for rationalization or budgetary needs.
"That's why the president thought it is proper to suspend in the meantime the implementation of EO 203," he said.
Guevarra said in the interim, those GOCCs covered by the Salary Standardization Law shall adopt a modified salary schedule under EO No. 201, as well as allowances and benefits.
For those which are exempt from SSL, they have the option of maintaining their current or similarly adopt the modified salary schedule under EO 201, he said.
In both cases, Guevarra said, "the approval of the GCG will have to be secured."
He said the interim measure under the EO shall be retroactive from January 1, 2017.
During his second State of the Nation Address on July 24, Duterte has announced his plan to stop "excessive, extravagant, and unconscionable salaries and allowances, incentives, benefits and bonuses across the Government Owned or Controlled Corporations at this time, in crisis."
He has said he was not inclined to give increases to GOCCs under his presidency. Celerina Monte/DMS