President Aquino is taking
advantage of a strengthening budget to overhaul the salaries of about 1.3
million government workers in his final months in office, a move that could
boost both civil service morale and the economy as the nation prepares for an
election next year.
The government will propose a
bill that would raise the president’s monthly pay to almost P400,000 from
P120,000 now. The change would put the wage at about 70 percent of the average
salary of top executives in private companies, up from 23 percent, Budget
Secretary Florencio B. Abad said. Compensation for state workers will rise to
about 84 percent of the average market rate from the current 55 percent, he
added.
“This is going to be one of the more
aggressive enhancements in the pay of our government work force,” Abad said.
Congressional leaders have committed to pass the bill before they go on a break
in December, he added.
From efforts to speed up state outlays to
higher wages, Aquino is accelerating bids to boost an economy that the World
Bank forecasts will expand less than 6 percent this year for the first time
since 2011. Higher tax revenue provides room for President Aquino, who steps
down in June 2016, to raise the pay of state workers and help lure
better-educated graduates to join the government.
“This is a welcome boost to
consumption spending and, coupled with election-related spending, the
government has a strong chance of boosting growth to more than 6 percent next
year,” said Jonathan Ravelas, chief market strategist at BDO Unibank Inc. in
Manila. “With an improved balance sheet, it’s ensuring that its workers are
more motivated and having a competitive salary will help that.”
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