The Philippine government has initiated a comprehensive salary enhancement program for its civilian personnel through Executive Order No. 64, signed on August 2, 2024.
This directive outlines a structured four-year plan to incrementally adjust salaries, aiming to attract and retain competent civil servants while promoting social justice and efficiency within the public sector.
Implementation Schedule
The salary adjustments are scheduled across four tranches, each taking effect at the beginning of the year:
| Tranche | Implementation Date |
|---|---|
| First | January 1, 2024 |
| Second | January 1, 2025 |
| Third | January 1, 2026 |
| Fourth | January 1, 2027 |
Key Features of the Salary Tranche System
- Uniform Increments: All civilian government employees will receive standardized salary increases corresponding to their respective salary grades and steps.
- Four-Stage Plan: The phased approach facilitates a gradual adjustment, allowing both employees and the government to manage financial planning effectively.
- Additional Allowances: Qualified government employees are entitled to an annual medical allowance of ₱7,000 to support health maintenance needs.
Sectoral Impact
The salary adjustments encompass various sectors within the government, including:
- Service Sector: Enhancements in compensation for healthcare, education, and public administration professionals are crucial for sustaining quality public services.
- Technical Sector: Increased salaries for roles in engineering, information technology, and telecommunications aim to retain skilled talent and foster innovation.
- Agricultural Sector: Improved wages for agricultural workers, such as farmers and technicians, support rural development and productivity.
- Manufacturing Industries: Select manufacturing sectors will experience wage increases, potentially leading to better working conditions and higher efficiency.
Detailed Salary Increments
The updated salary schedule specifies the monthly basic salaries for each salary grade and step, implemented over the four tranches. Below is an example of the salary progression for Salary Grade 1:
| Salary Grade 1 | Step 1 | Step 2 | Step 3 | Step 4 | Step 5 | Step 6 | Step 7 | Step 8 |
|---|---|---|---|---|---|---|---|---|
| First Tranche (2024) | 13,530 | 13,633 | 13,748 | 13,862 | 13,979 | 14,095 | 14,213 | 14,331 |
| Second Tranche (2025) | 14,061 | 14,164 | 14,278 | 14,383 | 14,509 | 14,626 | 14,743 | 14,862 |
| Third Tranche (2026) | 14,634 | 14,730 | 14,849 | 14,968 | 15,089 | 15,211 | 15,333 | 15,456 |
| Fourth Tranche (2027) | 15,252 | 15,359 | 15,478 | 15,598 | 15,720 | 15,843 | 15,967 | 16,092 |
Note: The figures above are in Philippine Pesos (₱) and represent the monthly basic salary for each step within Salary Grade 1.
Recent Legislative Updates
- Senate Bill No. 2504: Proposed by Senator Christopher Lawrence T. Go, this bill advocates for a four-step pay hike for civilian government employees, emphasizing the importance of regular salary monitoring to mitigate corruption and recognize skilled professionals.
- Department of Budget and Management (DBM) Pay Raise Study: The DBM conducted a survey analyzing the current pay system’s benefits and allowances, providing insights to inform future salary decisions and budget adjustments.
Overall Impact
The structured salary increases are anticipated to:
- Reduce Corruption: By offering competitive compensation, the initiative aims to diminish corruption incentives among government employees.
- Enhance Employee Morale: Improved salaries are expected to boost morale, leading to increased productivity and higher-quality public services.
- Alleviate Poverty: Higher wages provide financial stability, contributing to poverty reduction and economic sustainability.
Economic Sustainability
Increased incomes can help offset inflation’s impact, supporting economic sustainability. Higher wages lead to greater consumer spending, boosting demand for goods and services, thereby fueling economic growth.
Who is eligible for the salary increases under Executive Order No. 64?
All civilian government personnel in the Executive, Legislative, and Judicial branches, including Constitutional Commissions, Government-Owned or Controlled Corporations not covered by specific laws, and Local Government Units, regardless of appointment status, are eligible.
How are the salary increases structured over the four tranches?
The increases are implemented annually from 2024 to 2027, with each tranche providing a specific percentage increase based on the employee’s salary grade and step.
What additional benefits are provided alongside the salary increases?
Qualified government employees receive an annual medical allowance of ₱7,000 to support health maintenance needs.
