Gov't to implement first salary hike tranche in August

The Department of Budget and Management (DBM) has given the "go signal" for government agencies to begin distributing the first phase of the salary increase for government employees this August.

See: First Tranche Salary Schedule 

Government employees are set to receive higher wages starting this August, according to Budget Secretary Amenah Pangandaman. The national and local budget circulars, which will be published soon, have been signed and will assist agencies in calculating the new salaries.

"Napirmahan na po kaninang umaga 'yung national budget circular at saka local budget circular so we expect that ang publication nito ay tomorrow," said  Pangandaman.

Pangandaman stated that guidelines have been sent to government agencies to enable them to quickly implement the salary adjustments for employees.

"It's up to departments now, agencies and 'yung mga lahat ng magi- implement ng adjustments para mapabilis 'yung pag-release ng mga adjustments nito.  from January, kasama din po ang midyear bonus," added Pangandaman.

Pangandaman indicated that agencies can immediately adjust their payrolls. However, the exact implementation date will depend on how quickly agencies can finalize and distribute the new wages.

President Ferdinand Marcos Jr. issued Executive Order 64 in August, which increases salaries for civilian government personnel across the executive, legislative, and judicial branches, constitutional commissions, and government-owned or controlled corporations. This EO does not apply to military and uniformed personnel or those on service contracts or job orders.

Pangandaman noted that the military's different salary structures are why they were excluded from the EO.

For the national government, the salary increase will occur in four phases. The first phase, retroactive to January 1, 2024, will be followed by the second phase starting January 1, 2025, the third on January 1, 2026, and the final phase on January 1, 2027. The wage increase for 2025 is already included in the National Expenditure Program.

The EO aims to make government salaries more competitive with the private sector and address inflation's impact on employees. Starting in 2025, a medical allowance of PHP 7,000 per year will also be provided.