State gaming regulator Philippine Amusement and Gaming Corp., or PAGCOR, has asked the Governance Commission for GOCCs for approval of salary step increments based on employees’ length of service to correct distortions caused by its new Compensation and Position Classification System.

In a letter to GCG chairperson Marius Corpus dated 22 February 2024, PAGCOR chairperson and CEO Alejandro Tengco said the company’s board has approved the implementation of step increments but it needs GCG approval.

“Parallel to the thrust of the PAGCOR board of directors to prioritize the welfare of the employees, the PAGCOR board approved the Implementation of Step Increment based on Length of Service, subject to GCG’s review and approval,” he said in the letter.

First of many pleas

The PAGCOR chief said the step increment is only the first of many appeals that the agency plans to lodge with the GCG so that PAGCOR employees may enjoy competitive salaries and benefits comparable to other revenue-generating GOCCs.

PAGCOR received its Authority to Implement the CPCS on 31 January this year.

However, majority of the employees were dismayed to see that their take-home pay decreased when they received their salaries on the first payday under CPCS on 15 February 2024.

The CPCS also caused distortions in pay scale since all employees were reverted to Pay Step 1 regardless of their years of service. This means that a new employee in a certain position gets the same salary as someone who has been in the same position for 15 years or more.

Tengco said the Step Increment appeal is only the first of many which the agency plans to lodge with the GCG to remedy the overall decrease in employees’ take-home pay, especially for those who occupy the lowest rungs in the organization.

“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,” he added.