Bill seeks retroactive pay hike for LGU workers

A BILL seeking to allow retroactive application of salary increases for employees of local government units (LGUs) has been filed by Rep. Brian Yamsuan (PL, Bicol Saro).

Restrictions set under the law do not allow the retroactive application.

Yamsuan, a former assistant secretary of the Department of Interior and Local Government, said House Bill No. 10865 seeks to ensure that LGU employees are treated the same as their counterparts working in the executive, legislative, and judicial branches of government.

Republic Act No. 7160 or the Local Government Code (LGC) prohibits the retroactivity of pay hikes provided to LGU employees, which place them at a disadvantage, like what happened when President Marcos Jr. recently ordered the implementation of a four-step increase in the base pay of government workers through Executive Order (EO) 64.

Yamsuan said Budget Secretary Amenah Pangandaman has confirmed to him that funds are available to ensure that the salary increases will be retroactively implemented starting January 2024 once the LGC is amended.

At least one LGU — the provincial government of Iloilo — has asked the DBM to allow the retroactive application of the EO-mandated salary increases.

HB 10865 aims to amend Section 325 (g) of the LGC, which states that “the creation of new positions and salary increases and adjustments shall in no case be made retroactive.” The bill removed the phrase “and salary increases and adjustments” from this paragraph.

“This is not fair and just under our Constitution. The equal protection clause enshrined in our Constitution also applies within the sphere of public service. Employees in the LGU sector deserve to enjoy the same benefit of receiving retroactive pay increases mandated by the government,” Yamsuan said.

Yamsuan expressed hope his fellow lawmakers will swiftly act on his measure to ensure that the salary hikes mandated under EO 64 would also be retroactively applied to local government employees.

“Their positions and titles may vary, they may either be working in the local governments or in national government agencies, yet they are all held to the same standards of professionalism, integrity, transparency and