PAGCOR Seeks GCG Nod For Salary Step Increments To Track Compensation System Distortions

The Philippine Amusement and Gaming Corporation (PAGCOR) has formally requested approval from the Governance Commission for GOCCs (GCG) for salary step increments based on employees’ length of service.

Chairman Alejandro Tengco stressed that this step increment is just the beginning of several appeals that PAGCOR plans to submit to GCG. I Photo: PAGCOR

This move aims to rectify distortions caused by PAGCOR's new Compensation and Position Classification System (CPCS).

In a letter dated February 22, 2024, addressed to GCG Chairperson Atty. Marius Corpus, PAGCOR Chairman and CEO Alejandro H. Tengco highlighted the Board of Directors' approval of implementing step increments. However, Tengco emphasized that GCG's approval is necessary to proceed.

Tengco stressed that this step increment is just the beginning of several appeals that PAGCOR plans to submit to GCG.

These appeals aim to ensure that PAGCOR employees receive competitive salaries and benefits comparable to other revenue-generating government-owned and controlled corporations (GOCCs).

Despite receiving authority to implement the CPCS on January 31, 2024, many PAGCOR employees were dismayed to find a decrease in their take-home pay on the first payday under the new system on February 15, 2024.

The CPCS caused pay scale distortions, with all employees being reverted to Pay Step 1 regardless of their years of service.

Tengco reiterated that the Step Increment appeal is just the beginning, as the agency plans to address the overall decrease in employees’ take-home pay, especially for those in lower-ranking positions.

“We hope that the GCG will positively respond to our appeal so that all tenured PAGCOR employees will not feel shortchanged, and instead receive the compensation that they deserve under the bounds of the law,” Tengco added.

According to the implementing guidelines of the CPCS, one step increment shall be granted to qualified personnel for every three years of continuous satisfactory service in their present position.

Records indicate that as of December 31, 2023, 7,057 PAGCOR personnel, comprising 72.60% of the agency’s workforce, have been in service for more than three years in their respective positions.

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