The Governance Commission for Government-Owned or Controlled Corporations (GCG) has issued the implementing guidelines for the new compensation system of GOCCs.
The implementing guidelines on the Compensation and Position Classification System (CPCS) were issued last January 14. CPCS details the coverage, exclusions, implementation, compensation system, allowance, benefits and incentives, additional entitlements and procedural rules of the GOCCs’ new compensation system.
Under the guidelines, all GOCCs and their subsidiaries, unless excluded from the coverage of Republic Act No. 10149 or with approved abolition or deactivation orders, shall implement the new system upon receipt of their respective authorization to adopt the CPCS from the GCG.
The GCG said in a statement that the CPCS authorization shall contain the classification, job evaluation results and tiering of the GOCCs.
The classification determines the appropriate compensation system to be implemented by the GOCC. It considers the nature of operations, the financial viability to sustain their operations/activities and the size of the GOCCs.
The job evaluation results will determine the CPCS job grades of the GOCC positions.
Finally, the tiering determines the applicable pay levels that GOCCs may implement based on their financials.
Upon receipt of its authorization, the GOCC Governing Board will approve the appropriate salary schedule under the CPCS with due consideration of the GOCC’s capability to afford and sustain its implementation.
GOCCs with substantial compliance to CPCS requirements shall retroactively apply the salary structures, allowances, benefits and incentives effective October 5, 2021.
Along with the implementing guidelines, the GCG also issued several circulars concerning allowances, bonuses and incentives, among others.
“The CPCS follows the principles of the GOCC Governance Act of 2011 to standardize GOCC compensation and provide equal pay for work of equal value,” the GCG said.
Meanwhile, according to the members of the GCG board in a message sent by Finance Secretary Carlos Dominguez to reporters, the funding requirements for salary adjustments/upgrades are to be given based on the financial health and capacity of each GOCC.
“This will definitely be sourced from their corporate operating budget and in no way should be a reason for additional national government subsidy,” the GCG board said. – Angela Celis
