President Ferdinand R. Marcos Jr. has approved significant pay raises and new health benefits for employees of state-owned corporations, his office announced Tuesday.

The increases are part of Marcos’ push to support public servants who provide essential services across the country. The President made the announcement during the 2025 Government-Owned or -Controlled Corporations (GOCCs) Day celebration at Malacañang Palace.

“I have approved the Compensation and Position Classification System II that would increase the salaries of GOCC employees,” Marcos said in a speech to hundreds of GOCC personnel and executives. “I have also approved the provision of a tiered medical allowance for GOCC employees depending on the capacity of the GOCCs.”

The new system builds on a previous framework. For GOCCs that have already implemented the initial plan, salary adjustments will be retroactive to 1 January 2025, pending formal authorization from the Governance Commission for GOCCs (GCG).

Marcos said the changes would ensure fair compensation for workers who uphold efficiency, transparency and accountability in public service.

The tiered medical allowance will provide enhanced health benefits tailored to each GOCC’s financial capacity.

The move was welcomed by employees and labor groups, who called the announcement a “long-overdue but very timely” boost amid rising living costs and healthcare needs.

GOCCs operate in key sectors of the Philippine economy, including utilities, finance, infrastructure and social services. The GCG oversees their compensation to ensure consistency and fairness.