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First tranche of pay hike for govt employees to roll out this year: DBM

A customer counts Philippines peso notes after trading his US dollars for Philippine pesos in Manila on September 8, 2015. The Philippine peso weakened to its lowest level in five years on September 8, with investors jittery over a looming interest rate increase in the United States, dealers said.   AFP PHOTO / Jay DIRECTO / AFP PHOTO / JAY DIRECTO

Article (news)

Pia Gutierrez

ABS-CBN News

<p>MANILA (UPDATE) - The first phase of the pay hikes under the Salary Standardization Law VI (SSL VI) for government workers will be implemented this year, according to the Department of Budget and Management. </p><p>Budget Secretary Amenah Pangandaman issued the statement during a Development Budget Coordination Committee (DBCC) briefing to the House Committee on Appropriations as the House began deliberations on the proposed P6.352 trillion National Budget for 2025.</p><p>“Napirmahan na po kaninang umaga ang National Budget Circular at Local Budget Circular so we expect ang publication nito ay tomorrow, but in the meantime, napadala na rin natin ang guidelines sa national government agencies para masimulan na nila ang computation ng mga adjustment. So it’s up to the departments now and agencies and lahat ng mag-iimplement ng adjustment para mapabilis ang pag-iimplement ng mga adjustments nito,” Pangandaman said in a media interview in Malacanang.</p><p>Pangandaman said that guidelines for the salary increase are being finalized, with the Miscellaneous Personnel Benefits Fund (MPBF) and Unprogrammed Appropriations identified as funding sources. The DBM estimates the cost of the first tranche at approximately P36 billion.</p><p>The salary adjustments will be retroactive from January 2024, with annual increases continuing through 2027.</p><p>“Retroactive from January kasama nito ang mid-year bonus. Ito na baka itong month na ito mabigay na ang retroactive nila depende sa agency so kinakailangan mabilis ang pagcompute ng mga ahensya,” she said.</p><p>The announcement comes after President Marcos Jr signed Executive Order 64, increasing the salaries of government workers and authorizing the grant of an additional allowance to state employees.</p><p>The measure prioritizes higher salary increases for sub-professional and professional government employees, with increases ranging from 4 percent to 5.6 percent for Salary Grades 1 to 24. In contrast, managerial and executive positions will see lower increases.</p><p>&quot;Compared to SSL V, the proposed rate of increase under SSL VI will be slightly higher, as leverage to increase the marketability of working for the government and engage high-performing personnel,&quot; the DBM said.</p><div><br/></div><div><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/2ilkp5Q6GUw?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><br/></div>

<p>The pay hikes aim to make government salaries more competitive with the private sector.</p>

The pay hikes aim to make government salaries more competitive with the private sector.