- As a government employee, you need to understand that the budget of the government depends on the country’s economy.
- A lot of studies have to be done to ensure that any salary increase is sustainable.
- If you are short in cash, be aware that you can depend on some government departments to get a loan. However, there are so many requirements that you may not even get approved.
- In this case, do not despair. All you need is an online facility like Digido. It is quick and easy, plus the interest rates are low.
Salary Grade 2020 for Government Employees
Every government, including the Philippines, has to revise its salary standards from time to time. This is imperative, as the value of money fluctuates year after year.
If you are thinking of working for the Philippine government, or if you are already a part of it, it is not unusual if you have heard about the Salary Standardization Law 2020.
Yes, there is a new salary grade for government employees, and you should know what the updates are. Today, we will discuss the critical information that you need to know about the new Salary Standardization Law.
What Is the Salary Grade in the Philippines?
When we say grade, we are referring to a level. In the Philippines, there are 33 grade levels. The term “salary grade” is often referred to as “SG”. Level 1 has the lowest pay, and level 33 has the highest pay.
Every government employee is assigned a salary grade. The grade is based on the responsibility and the difficulty of the job. The higher SG, the bigger responsibility and the more difficult the job.
Main Groups by Salary Level
There are several groups in the salary grade of the Philippines, which was updated in the Salary Standardization Law 5. Read on to find out more.
1. Highest grades
These are the top-ranking officers of the Philippine government. This group comprises salary grades 30 to 33. The salary grade 33 is for the president of the country, and the rest are for senators, people who were elected to congress, executive secretaries, commissioners, and others.
2. Professional supervisory
These are government positions in a supervisory role. Many government employees with a salary grade 9 to 33 are in the supervisory role. Because they are supervisors, they are expected to demonstrate a high level of skill in their respective professions.Some of the most common examples of these positions are school principals, police chiefs, directors, engineers at a leading capacity, and so much more.
3. Professional non-supervisory
These are jobs in the government that require professional licenses, but the position is not supervisory in its nature. Although we’ve mentioned earlier that many employees with a salary grade 9 to 33 are at the supervisory level, that principle doesn’t always apply.
For this bracket, the salary grade is from 8 to 30. Many of these employees understand the art and sciences. They have to be a graduate of a 4-year course to be able to fit this position. The most common examples are chemists, statistician treasurers, etc. The reason why you can be in a high salary grade and yet belong to this bracket is simple: tenure.
As you stay longer in the government service, your salary will be upgraded, but it does not mean that you will be promoted to a supervisory position. While this is an old principle, it still applies to Salary Grade 2020 for government employees.
4. Sub-professional supervisory
This is the fourth group that covers the salary grades between 8 and 18. Most of these are clerical jobs that are done manually. Positions in these grades require only high school education or vocational education. Some may require at least 2 years in college.
Some of the most common examples are the jobs of an electrician, plumber, bookbinder, foreman, and more. However, take note that these are also supervisory positions.
5. Sub-professional non-supervisory
The last level is the lowest of all grades. They do not hold any supervisory function, and they also do not require a professional college level of education. Most of these are positions from salary grade level 1 to 10. The most common examples of these are staff aide, dental aide, facilities service personnel, and many more.
What Is the Salary Step?
A salary step is a division of each salary grade. For each grade, there are 8 steps. What this means is that you can remain in the same salary grade, but you will receive an increase in your salary over the years.
According to the Salary Standardization Law V, a salary step is like a merit increase. It is not awarded to you annually, but it is awarded according to your performance.
Salary Grade 2020 Table
Below is a table that shows you the updated Salary Standardization Law 2020 Table:
As you can see the Salary grade table 2020, the person with the highest pay is the president of the Philippines. The next highest grades are those of senators and people in the congress. Most of these are positions where you do not get appointed but get elected instead.
What Is the Salary Standardization Law?
The Salary Standardization Law 5 2020 was actually enacted in 2019. In this law, there is going to be a pay hike for the workers of the Philippine government. The average increase is 5%. It is called Salary Grade 5 because it is the fifth law concerning the salary standards.
Overall, the budget is ₱34 billion out of the ₱4.1 trillion budget that will be spent in 2020. The salary increase will take 4 years to be implemented, with those at the first level receiving only ₱500 for the full year.
Four Tranches of Salary Standardization Law
This new law will not be implemented right away. It has to be done in tranches, so the government budget does not get overwhelmed. The Salary Grade 2020 Table is already standardized. Overall, the fourth tranche, which means the effective increase for the fourth time until the new grade is fully met, will commence in January 2023.
What this means is that there will be different salary grade tables for the Philippine government employees every year starting from the date that the law was signed.
Personal Loans for Government Employees
We all know that the government pay is low. It is not unusual to come across a situation in your life where your salary is less than what you need.
The solution to this is to file a loan. If you are a government employee, there are several kinds of government loans that you can take advantage of.
Here are a few examples:
GSIS – this is the social security system in the Philippines for government employees. If you need a loan, you can file for an emergency loan, a salary loan, or a multi-purpose loan. You have to be a paying member for at least 1 year, have a GSIS ID card, and you must not have any existing loan.
SSS – you can also borrow money from SSS provided that you are a paying member. However, it is rare to be a member of SSS and GSIS at the same time. If you are a member of the government, you are automatically paying your social security system to the GSIS.
PAG-IBIG – in this loan, you have to be an active member with 24 months of contribution. You must have a valid ID proving that you are a government employee. Here, you can borrow up to 80% of what your average monthly salary is.
Government loans offer small interests, the highest of which is 12% per year. However, this is still huge. Plus, there are so many prerequisites and requirements that if you are at salary grade 1, you may not even qualify.
Is there any alternative to it?
Can I get loans for government employees in Digido?
The alternative to a government loan and a bank loan is Digido. It is an online facility where you can apply for a loan.
The great news is that Digido is 100% online. You do not have to queue up to apply for a loan. All you need is a phone, tablet or computer and an internet connection.
There is no specific loan for government employees here. However, anyone who can prove that he or she is employed can apply for a loan. The loan application can be approved in as short as 24 hours. Also, all your documents will be submitted online. No more photocopying and getting signatures or going to a physical office and all that.
You will also get your loan amount via your bank account. By the time you want to pay your loan, you do not have to queue up. You can also pay your debt online.
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