In a study in 1987, the government pay structure was found to have become so complex, confusing and highly distorted. Thus, a utility worker in one government agency performing the same work and requiring similar qualifications and skills showed better benefits than his equivalent in another agency. Agencies considered to be highly influential in the highest policy making units of government were known to have been granted much higher pay scales and benefits than those with less influence for no justifiable reason but sheer use of power.
This practice resulted in the fragmentation of the public sector into those that are enjoying relatively better compensation and those paid at the prescribed rates, creating demoralization within the bureaucracy. II. In 1987, Congress passed R. A. 6748, the Compensation and position classification Rationalization Act, also known as the Salary Standardization Law (SSL) to implement the provisions of the Constitution mandating the standardization of public sector pay structures in accordance with the principle of “equal pay for equal work. R. A. 6748, popularly known as SSL-1 was a landmark legislation of the Aquino Administration as it resolved the most glaring distortions in the government compensation system. Among the best features of the law were a simplified position classification structure, rationalized longevity and merit pay, simplified salary scale, upgrading of salary and the grant of power to the executive power to increase pay. Without a doubt, R. A. 6748 rationalized the government compensation system and improved the incentive structure within the bureaucracy.
The Essay on National Government States Federal Power
Power Shifts in Intergovernmental Relations: A Result of Fiscal Federalism Fiscal federalism is the result of the states' dependence on the national government for funds. Until 1913, the national government had minimal monetary resources, thus possessing little control over the affairs of the states. Once effected, the Sixteenth Amendment resulted in the amassing of government funds on the ...
The actual implementation of the new law, however, met many challenges, particularly those related to the reduction in the number of Salary Grades. The issues were eventually resolved with greater information dissemination of the new policy, and the creation of a formal appeals mechanism through an Appeals Board that was given final authority to resolve implementation issues. Simplification of the position classification structure The position classification structure was simplified to consist of only 33 Salary Grades (SGs) and 8 steps.
Salary Grades represent increasing degree of responsibility and complexity of work, with SG-1 as the lowest position level, and SG-33 as the highest position. In the new structure, SG-1 is a Utility Worker position or its equivalent, while SG-33 is the position of the President of the Philippines. Previously, there were over 70 Salary Grades for positions with basically equivalent work responsibilities. A salary step, on the other hand, reflects changes in the pay rates within the same salary grade on account of length of service, also known as longevity, and merit Similarly, the steps were reduced to 8 from 10 prior to SSL.
