When the government pays more than the private sector


Salaries of government employees in the Philippines were recently increased through the  issuance of Presidential Executive Order No. 201 (“EO 201”) on 19 February 2016.  Questions may arise on  EO 201’s constitutionality and on the President’s power to appropriate funds to fund the salary increase. For now,  I wish to give this long-overdue reaction regarding the amount of the increase. 

EO 201 was issued with the goal of “attracting and retaining competent and committed civil servants.” These are laudable goals that EO 201 will definitely achieve.  The 40% salary increase is more than competitive in comparison to what the private sector currently pays its talent, at least in my field.  Moreover,  the amount of the increase should make government salaries inflation-proof for a while.

Salaries in law firms have seen flat growth for some time. Lawyers are on-call and work long hours. While law firm salaries are okay,  they fare poorly when computed on an hourly basis. Thus, I see a lot of lawyers moving to work in the public sector. The pay and hours are great. At the same time,  you will find personal satisfaction in using your talent to serve your country. 

If the private sector wishes to retain its talent, it better keep up.


20 something lawyer 


4 thoughts on “When the government pays more than the private sector

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