GOVERNMENT employees will receive a 10 percent increase in their monthly salaries starting July 1.

Soldiers, policemen, firemen, jail guards and coast guards will not be covered by the increase but they will get an additional daily subsistence allowance of P30 and an additional hazard pay of P120.

The President announced the benefits during the 28th graduation rites of the Philippine National Police Academy in Silang, Cavite.

The P10.3 billion funding for the wage hike will come from the P1.126-trillion 2007 national budget which was signed into law yesterday.

Salary increases for employees in government corporations and financial institutions will be sourced from their corporate funds. For local government units, the amount will come from their respective funds.

If the government corporations and financial institutions and the local governments cannot fund the increases, implementation will be partial.

Budget Secretary Rolando Andaya Jr. said once the pay hike takes effect, a public school teacher holding a Teacher I position will get about P1,000 more a month while a Teacher II will get P1,054.

The salary increase will not cover the incumbent President, Vice President, senators and congressmen. – Regina Bengco