President Benigno Aquino III yesterday moved the implementation of the fourth tranche of the Salary Standardization Law III to June 1, or a month ahead of schedule, the Department of Budget and Management said in its press release.

The fourth tranche will cover all salary and base pay increases for national government employees until December 31, 2012. The early release will be supported by an additional P2.7 billion that will be sourced from the 2012 General Appropriations Act, bringing the total budget for the fourth tranche to P21.7 billion, the DBM added.

The amount set for government-owned or controlled corporations and government financial institutions will be charged against their respective corporate funds; while the pay increase for local government units will be sourced from local government funds, the press release also said.

DBM has clarified that the release of the fourth tranche for employees in GOCCs and GIFs may be implemented on June 1, provided that they have the financial capability to do so.

However, salary increases for LGU employees are still scheduled for January 1, 2013, following the implementation of the third tranche in January 2012. The increase will also be subject to the determination of the respective sanggunian, and will depend on the availability and sustainability of local government funds, the press release said.

The salary hike for the President, Vice President, and Cabinet secretaries will not be implemented until July 1, 2012, Secretary Florencio Abad of DBM said in the press release.

The fourth tranche of SSL III excludes individuals and groups engaged through job orders, contracts of service, and other similar agreements; and civilian personnel in government institutions exempted from Republic Act 6758 or the Compensation and Position Classification Act of 1989.

The salaries of senators and members of the House of Representatives shall be determined by law. No increase in compensation shall take effect until after the end of term of all members of Congress who approved the increase, the press release added.*

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