President Ferdinand Marcos Jr. announced on Monday that his administration is already working on a four-tranche salary increase for government workers.

Marcos made this statement during his third State of the Nation Address (SoNA), revealing that the government has already allocated a budget for state workers’ pay hikes.

He added that a medical allowance will be added as part of the workers' benefits. 

“For our government employees, they will have a reliable medical allowance as an additional benefit next year. This is part of our commitment to ensuring that our workers are well-supported and can focus on their vital roles in serving the public,” Marcos said.

"There is also an upcoming increase in their salaries that will be distributed in four tranches. We have allocated funds for this starting this year and in the coming years," he added.

Furthermore, Marcos stated that his administration had extended the services of job order and contract-of-service personnel working in government.

The extension will provide these workers with ample opportunities to work on their civil service eligibilities while gaining additional relevant experience and training to enhance their employment qualifications.

The Salary Standardization Law of 2019, which began in 2020, saw its fourth and final tranche of salary increases for government employees in 2023. This was the last time these increases occurred.

A study on a potential pay raise for government employees is expected to be completed by the end of June this year, according to a statement made earlier by the Department of Budget and Management (DBM).

The Compensation and Benefits Study, conducted by the DBM and the Governance Commission for Government-Owned or -Controlled Corporations, aims to identify areas for reform by examining various aspects of the current compensation system, including salary, benefits, and allowances.

In the proposed national budget for 2025, the DBM is also requesting that lawmakers approve a PHP70 billion allotment for the compensation increase of state employees.