Wednesday, February 08, 2006

P1,000 allowance for gov't employees amounts to only P45/day increase

From the Office of Anakpawis Representative Crispin B. Beltran **

* Reference*: Rep. Crispin Beltran (+63)927.871.1080

Lisa C. Ito, Public Information Officer (+63)927.796.7006

*Tel*. *# (+632) *931-6615 *Email*:



February 7, 2006

* *

*P1,000 allowance for gov't employees amounts to only P45/day increase*

As the Lower House prepares to pass into law House Bill 5013, which seeks to
legislate a P13.1-Billion budget for an additional P1,000 monthly allowance
to all national government employees retroactive to January 1, 2006,
Anakpawis Rep. Crispin Beltran noted that "the increase, although welcome,
was ultimately negligible and inconsequential to uplifting the welfare of
the nation's 1.45 million government workers".

"HB 5013 will allow our government workers to get a monthly additional
allowance of P1,000 each. If divided by 22 working days, this will translate
to a little less than $1 or an additional P45.50 per day for each government
worker," Beltran said.

"It's a drop in the bucket. While this allowance will indeed add needed
loose change to the empty pockets of our government employees, it will still
fall short of their basic demands for a substantial salary increase," he

"The minimum gross pay of a Salary Grade 1 employee is only P5,082 pesos a
month, while the average government employee (such as public school teachers
and Salary Grade 10 personnel) earns only around P9,932 a month. An extra
P45.50 is insignificant, especially if you consider the actual cost of
living for a Filipino family of six, which is now around P16,000 per month
(or a national average of P534.80 a day) to P19,505 per month (or
P650.17per day) in the National Capital Region, according to a 2006
study by the
Institute of Political Economy," he explained.

"While this allowance is better than nothing at all, an additional
P45.50daily is still inconsequential to the growing expenses of our
tax and
inflation-burdened state workers. It is too little, and a bit too late, to
drastically stave off the economic crunch and is not a substantial increase
in personal income," he added.

Beltran noted that the increase of P1,000 per month would be barely enough
to cover RVAT-related increases. Citing calculations from the labor group
Kilusang Mayo Uno (KMU), Beltran estimated that the additional EVAT would
cost an additional P81.4 billion burden for the people, or more than P5,000
per household for 2006 alone.

"All in all, the P1,000 monthly increase will add to P12,000 a year. But
half of that will just go to keeping up with price hikes related to RVAT,
inflation, and high oil prices. Lalamunin lamang ng mga gastusin na kaugnay
sa pagtaas ng RVAT ang anumang ginhawang maibibigay ng dagdag na P45.50 na
ito," he said.

"This increase is still not a substitute for the long-standing demand of our
government employees for a legislated P3,000 across-the-board salary hike
via the passage of House Bill 1064," Beltran said. ###


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