When applying for a job, you may have come across terms such as SG 11, SG 20, and so on. The letters “SG” stand for Salary Grade. In this article, we will talk about what a Salary Grade is, the different Salary Steps, and the Salary Standardization Law in the Philippines.
What is a Salary Grade?
Basically, a Salary Grade (SG) is a number that represents the amount of monthly income received by a government employee. These numbers range from 1 to 33, with 33 being the highest Salary Grade. Naturally, the higher a person’s position, the higher his/her Salary Grade would be. Of course, a higher position also means greater duties and responsibilities.
What are Salary Steps?
Each Salary Grade is comprised of 8 steps, with the exception of SG 33, which only has 2 steps. The “Salary Step” corresponds to a person’s basic salary, depending on his/her length of service in a particular position.
If you’re a newly-hired employee, you will start at the minimum rate — Step 1 — regardless of Salary Grade. After 3 years of consecutive service, you will move up to Step 2, which corresponds to a salary increase. After another 3 years, you will move up to Step 3… and so on until you reach Step 8, which is the highest step and corresponds to the maximum rate.
In other words, you can expect a salary increase every 3 years… as long as you perform your tasks well, of course! You will receive a Notice of Step Increment for every salary increase.
Salary Grade 2021 Table Effective January 1, 2021
|Salary Grade||Step 1||Step 2||Step 3||Step 4|
Salary Grade 2021 Table Effective January 1, 2021
|Salary Grade||Step 5||Step 6||Step 7||Step 8|
What is the Salary Grade for Each Government Position?
To have a better idea about the Salary Grade for each position, let us start from SG 1 upwards:
- Sub-Professional, Non-Supervisory Positions
Employees under this category are assigned Salary Grades 1 to 10. They are workers performing manual or routine jobs, such as Administrative Aide I, Staff Aide, Draftsman II, and other similar positions. These employees are usually elementary/high school graduates, vocational graduates, or college undergraduates.
- Sub-Professional, Supervisory Positions
Workers in this category typically supervise those performing manual, technical, or clerical jobs. Examples of these are Chief Bookbinder or Electrician Foreman, and they are usually high school graduates, vocational graduates, or those who have completed up to 2 years in college. These positions are assigned Salary Grades 4 to 18.
- Professional, Non-Supervisory Positions
Examples of workers in this category include Teacher I, Statistician I, and University Professor. They are graduates of 4 or 5-year college courses, and are assigned Salary Grades 8 to 30. As you may have guessed, these positions involve knowledge and practice of specific professions.
- Professional, Supervisory Positions
Positions in this category typically require a bachelor’s degree or higher. Assigned with Salary Grades 9 to 33, these employees hold management or supervisory roles in their organizations. Examples of positions in this category are High School Principal I, Director II, Engineer IV, and other similar positions.
- Executive Category or Constitutional Officials
These positions are assigned Salary Grades 30 to 33, and they include officials who hold the highest positions in the government. Among these are Senators, Chief Justice of the Supreme Court, and Vice President. Notably, the President of the Philippines, being the highest-ranking government official in the land, has the highest Salary Grade of 33.
What is the Salary Standardization Law of 2019?
The Salary Standardization Law of 2019 is a law that standardizes the salaries of all government employees, across all agencies of the government. Through this law, the Philippine government aims to promote employee excellence, accountability, and efficiency — while eliminating the need for workers to negotiate with their employers regarding salaries.
To whom does the Salary Standardization Law apply to? Well, it covers all government workers in these offices:
- Executive, judicial, and legislative branches of the government;
- Local Government Units (LGUs);
- Constitutional Commissions and Offices; and
- Government-Owned and Controlled Corporations (GOCCs) that are not covered by R.A. 10149 (or the GOCC Act of 2011).
At this point, it must be emphasized that the law applies not only to regular employees, but also to contractual or “casual” status workers — full time as well as part-time ones.
How Much is the Salary Increase for Employees?
Of course, the main focus of the Salary Standardization Law is the yearly salary increase for government workers, from 2020 until 2023. Since January 1, 2020, the government has been implementing new Salary Grade Tables, which present the increase in monthly salaries of employees. These shall be carried out in annual “tranches” over a 4-year period. Aside from the basic pay, the law covers benefits, allowances, and performance-based incentives, as well.
As an example, let us consider the monthly salary of an SG 1 employee, a Utility Worker I. Under the new law, his/her monthly salary is PHP 11,068 in 2019 and PHP 11,551 in 2020 (with an increase of PHP 483 per year). Eventually, he/she would receive PHP 12,034 per month in 2021, PHP 12,517 in 2022, and PHP 13,000 in 2023.
In other words, employees with Salary Grades of 1 to 10 can expect an increase of 17.5% in 2020, up to 20.5% in 2023, in accordance with the Salary Standardization Law.
For our next example, let us take a look at the monthly salary of a Nurse I, who has a Salary Grade of 11. His/Her monthly salary is PHP 20,754 in 2019 and PHP 22,316 in 2020 (with an increase of PHP 1,562 per year). Over the following years, he/she would receive PHP 23,877 per month in 2021, PHP 25,439 in 2022, and PHP 27,000 in 2023.
Hence, employees with Salary Grades of 11 to 13 can expect an increase of 24.1% in 2020, up to 30.7% in 2023, based on the Salary Standardization Law.
What About Salaries for Local Government Units?
As per the new law, the Salary Grade Tables for Local Government Unit (LGU) employees are not the same as those in the national government level. Their salaries would be based on whether the LGU is a 1st Class, 2nd Class, 3rd Class (and so on)… City or Municipality.
For cities, employees in a 1st Class City receive the same rates (100%) as those in national government offices. However, workers in a 2nd Class City receive 95% of the national rate, whereas those in a 3rd Class City receive 90%.
For municipalities, employees in a 1st Class Municipality receive 90% of the national rate, those in a 2nd Class Municipality receive 85%, and those in a 3rd Class Municipality receive 80%. So as you can see, the income class of an LGU affects the salary rates of its workers.
Some Final Thoughts
We hope that the above guide has been helpful, especially for those who are planning to work or are already working in a government position. By being familiar with Salary Grades, Salary Steps, and the Salary Standardization Law, you can make sure that you are receiving the right salary and benefits, in accordance with the laws of the Philippines.