President Gloria Macapagal-Arroyo yesterday issued Executive Order 811 allocating P18.4 billion for the salary increase of some 1.2 million state workers starting July 1, a Malacañang press release said.

The allocation will be taken from the Miscellaneous Personnel Benefits Fund or the General Appropriations Act of 2009.

The President signed the EO before she left for a nine-day trip that will take her to Tokyo in Japan, and Brasilia, Suape and Rio de Janeiro in Brazil.

The P18.4 billion appropriation will cover the compensation adjustments of the first tranche of the Modified Salary Schedule for civilian personnel, and base pay for military and uniformed personnel in the national government, the press release said.

The EO “adopts the first tranche of the modified salary schedule of civilian personnel and base pay schedule of military and uniformed personnel in the government, as well as the modified position classification system pursuant to Joint Resolution No.4 (s.2009),” the press release said.

Executive Secretary Eduardo Ermita said the President expressed her gratitude to both Houses of Congress for giving her the authority, through a joint resolution to implement a new compensation program for government employees, the press release said.

The new law will increase salaries by an average of 50 percent spread over four years, while setting the minimum wage of civil servants higher than those of their private sector counterparts starting July 1 this year, the press release also said.

All government personnel of the executive, legislative, judicial branches, constitutional commissions, state colleges and universities, government-owned and controlled corporations, government financial institutions and local government units will be covered by the program.

However, local government workers will have to wait for Jan. 1, 2010 to enjoy the initial benefits under EO 811, the Malacañang press release added.*

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