Pay, benefit hikes await gov’t workers
The unprogrammed appropriations will cover salary increases and personnel benefits, with a significant portion going toward the Salary Standardization Law VI.
Daily TribuneThe unprogrammed appropriations will cover salary increases and personnel benefits, with a significant portion going toward the Salary Standardization Law VI.
Close to two million government employees are set to benefit from a P67.6 billion windfall, as the Department of Budget and Management (DBM) announces plans to utilize idle funds from government-owned and controlled corporations (GOCCs).
The unprogrammed appropriations will cover salary increases and personnel benefits, with a significant portion going toward the Salary Standardization Law (SSL) VI.
The DBM confirmed on Thursday that P40 billion will be allocated for salary increases, benefiting 1.82 million government workers as part of the four-year salary adjustment plan under SSL VI, which started in January.
Subsequent annual increases will follow, beginning January 2025 through January 2027.
Under this first tranche, civil servants across all salary grades, from Salary Grade (SG) 1 to SG 31, can expect an average pay raise of 4.41 percent, slightly higher than what was provided under the previous SSL V.
In addition to the salary hikes, P27.6 billion will be earmarked for other personnel benefits, including compensation adjustments, staffing modifications, and the distribution of Performance-Based Bonuses for employees of National Government Agencies.
To fund these initiatives, excess funds from GOCCs will be tapped, including P117 billion from the Philippine Deposit Insurance Corp. (PDIC) and P89.9 billion from the Philippine Health Insurance Corp. (PhilHealth).
PhilHealth has already remitted P30 billion to the national government this year, including a P20 billion release in May directed towards emergency benefits and allowances for COVID-19 front liners.
The move aims to ensure that government workers, many of whom serve in frontline capacities, are compensated for their efforts while addressing the backlog in benefits and incentives.
According to DBM, utilizing untapped GOCC funds reflects the government's push to improve public sector conditions without stretching the national budget.
Likewise, the reallocation of funds highlights the importance of public financial management, particularly amid fiscal restraint, while guaranteeing civil servants receive due recognition for their contributions.
