President Noynoy Aquino’s salary is pegged at P95,000 per month, almost 65 percent more than the P57,750 monthly salary of his predecessor, current Pampanga Second District Rep. Gloria Macapagal-Arroyo, reports GMANews.tv. Aquino’s salary is subject to mandatory deductions such as withholding tax, and PhilHealth, Pag-ibig and GSIS fees, according to the Finance Office of the Office of the President.
GMANews.tv reports that Aquino has Arroyo "to thank for his bigger pay... in a way." A few days before Arroyo’s term ended this year, she signed Executive Order No. 900 which implements an increase in the basic pay of government employees. EO 900 was the last salary adjustment signed by Arroyo. There were five executive orders on compensation adjustment during her term but only one applied to her: the EO 22 providing for P57,750 presidential monthly pay. This is because the Philippine constitution says, "no increase in said compensation shall take effect until after the expiration of the term of the incumbent [president] during which such increase was approved."
GMANews.tv created a table listing the executive orders on compensation adjustment that Arroyo signed during her term as president.
In 2009, Congress passed the Salary Standardization Law III that allows the president to sign salary adjustments for government employees. Two of the four yearly tranches had already taken effect in July 2009 (P82,400 presidential monthly salary) and June 2010 (P95,000 presidential monthly salary).
Despite the raise, Aquino’s current P95,000 monthly salary pales in comparison to that of private firm executives. For instance, GMANews.tv cited the average P1.3 million monthly pay, excluding allowances, of the highest-ranked officers of Ayala Corporation.