Scribd
Upload
114 views1 page

Central Bank Employees Ass'n v. BSP

The Central Bank Employees Association filed a petition against the implementation of a proviso in the New Central Bank Act that established a separate human resources and compensation system for Bangko Sentral ng Pilipinas employees. The proviso exempted employees at Salary Grade 19 or below from the salary rates in the Salary Standardization Act, prejudicing over 2,900 rank-and-file employees. While the Solicitor General argued the classification was based on real differences, the Court found the proviso unconstitutional as it distinguished between economic classes in violation of equal protection, giving higher-paid officers greater benefits than rank-and-file employees covered by the Salary Standardization Act.

Uploaded by

Ralph Ronald Catipay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
114 views1 page

Central Bank Employees Ass'n v. BSP

The Central Bank Employees Association filed a petition against the implementation of a proviso in the New Central Bank Act that established a separate human resources and compensation system for Bangko Sentral ng Pilipinas employees. The proviso exempted employees at Salary Grade 19 or below from the salary rates in the Salary Standardization Act, prejudicing over 2,900 rank-and-file employees. While the Solicitor General argued the classification was based on real differences, the Court found the proviso unconstitutional as it distinguished between economic classes in violation of equal protection, giving higher-paid officers greater benefits than rank-and-file employees covered by the Salary Standardization Act.

Uploaded by

Ralph Ronald Catipay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

CENTRAL BANK EMPLOYEES ASSN v.

BSP
GR No 148208
Puno, J.

FACTS:
RA 7653 otherwise known as the New Central Bank Act took effect July 3 1993, effectively
replacing the earlier Central Bank of the Philippines (established 1949) by the Bangko Sentral ng
Pilipinas.
On June 8 2001, petitioner Central Bank (now BSP) Employees Association Inc. filed a petition
against the Executive Secretary of the Office of the President to restrain BSP from implementing the last
proviso in Section 15 (i), Article II of RA 7653 which pertains to establishment of a Human resource
management system and a compensation structure as part of the authority of the Monetary Board.
Employees whose positions fall under SG 19 and below shall be in accordance with the rates in the salary
standardization act. Petitioner contends that the classifications is not reasonable, arbitrary and violates the
equal protection clause.
The said proviso has been prejudicial to some 2994 rank- and file BSP employees. Respondent
on the other hand contends that the provision does not violate the equal protection clause, provided that it
is construed together with other provisions of the same law such as the fiscal and administrative
autonomy of the Bangko Sentral and the mandate of its monetary board.
The Solicitor General, as counsel of the Executive Secretary defends the provision, that the
classification of employees is based on real and actual differentiation and it adheres to the policy of RA
7653 to establish professionalism and excellence within the BSP subject to prevailing laws and policies
of the government.
ISSUE:
Whether or not the contended proviso if RA 7653 violates the equal protection of laws, hence
unconstitutional.
HELD:
Yes the proviso is unconstitutional as it operate on the salary grade or the officer employee status, it
distinguishes between economic class and status with the higher salary grade recipients are of greater
benefit above the law than those of mandated by the Salary Standardization Act. Officers of the BSP
receive higher wages that those of rank-and-file employees because the former are not covered by the
salary standardization act as provided by the proviso.

You might also like