(UPDATE) PRESIDENT Ferdinand Marcos Jr. on Tuesday approved a salary increase and medical allowance for employees of government-owned or -controlled corporations (GOCCs).
“In support of the hardworking men and women who make this possible, I have approved the Compensation and Position Classification System II that will increase the salaries of GOCC employees. Well-deserved,” Marcos said in his speech on Tuesday during the GOCCs’ Day in Malacañang.
“I have also approved the provision of a tiered medical allowance for GOCC employees depending on the capacity, of course, of the GOCC,” he added.
Marcos said that for GOCCs that implemented CPCS 1, the increases would retroact to Jan. 1, 2025, upon receipt of their Authority to Implement from the Governance Commission for GOCCs (GCG).
“So, as we celebrate these milestones, let us also recognize that there is much work still left to be done. My challenge to our GOCCs is to invest in modern technology, simplify our processes, and cut down on red tape so that every Filipino enjoys easy, fair and dignified access to the services that they deserve,” he said.
“For the rest of the bureaucracy, our job is to ensure that the dividends of our GOCCs will redound to better services,” he added.
Marcos Jr. on Tuesday received dividends from GOCCs totaling P116.84 billion.
The President, assisted by Finance Secretary Ralph Recto and Executive Secretary Lucas Bersamin, led the turnover of the remittances.
Spearheaded by the Department of Finance, the annual event highlights the crucial role of government corporations in nation-building, especially through their dividend remittances that generate significant non-tax revenue for the national government.
This year, P116.84 billion was collected from 53 government corporations, with 15 GOCCs remitting at least P1 billion each.
Under Republic Act 7656, all GOCCs are mandated to declare and remit at least 50 percent of their annual net earnings as cash, stock, or property dividends to the national government.
