City needs P40M to implement 20% salary hike
City Mayor Jerry Treñas said the city government needs at least P40 million to comply with the 20 percent increase in salary of regular employees which is set July this year. He said the city has to prepare for the increase as it requires huge funding.
Treñas said it is no joke looking for additional source to meet the salary increase of 1,800 regular employees. It is easier if it only entails 10 percent increase which is roughly P20 million. Yet, the wage hike is very high.
Initially, Treñas is counting on the city’s share on the Internal Revenue Allotment (IRA) as source of funds to meet its financial requirement after the Supreme Court (SC) in its second motion denied with finality the laws converting the 16 towns into cities as unconstitutional.
Treñas said the High Tribunal’s decision means additional funds for the existing cities. IRA has been the lifeblood of the local government units to fund its projects. They are only waiting for the entry of judgment on the SC’s ruling.
Meanwhile, the city hall will start releasing the mid-year bonuses of regular employees before May 15. The fund for the midyear bonuses and cash gifts of 1,800 regular employees amounted to P15 million.
The release of bonuses is in accordance with a memorandum circular issued by the Department of Budget and Management (DBM).
Of the P15 million, some P10.6million has been allotted for the mid-year bonuses which is half of the employee’s 13th month pay. The other half of the employee’s 13th month bonus will be released in December.
The remaining P4.4 million has been allocated for the cash gift of employees. The employees will only receive half of their P5,000 cash gift. Half of the amount will be released in December.