President Ferdinand R. Marcos Jr. has approved significant salary and health benefit increases for employees of government-owned or -controlled corporations (GOCCs), as part of his administration’s efforts to recognize and support public servants who contribute to essential services across the country.

The announcement was made during the 2025 GOCCs’ Day celebration held at Malacañan Palace on Tuesday, where Marcos personally addressed hundreds of GOCC personnel and executives.

“In support of the hardworking men and women who make this possible, I have approved the Compensation and Position Classification System II that would increase the salaries of GOCC employees,” the President said in his speech.

“I have also approved the provision of a tiered medical allowance for GOCC employees depending on the capacity of the GOCCs.”

The new Compensation and Position Classification System (CPCS II) builds upon the initial CPCS framework implemented in previous years. For GOCCs that have already rolled out CPCS I, the salary adjustments will apply retroactively from January 1, 2025, once they receive formal authorization from the Governance Commission for GOCCs (GCG).

Marcos said the move ensures fair recognition for workers who continue to uphold efficiency, transparency, and accountability in public service.

In addition to the salary hike, the introduction of a tiered medical allowance aims to provide enhanced healthcare benefits tailored to the financial capacity of each GOCC, ensuring that employee welfare remains a top priority regardless of institutional size or budget.

“Dahil sa inyong determinasyon at malasakit, mas maraming Pilipino ang ating natutulungan at naaabot ng ating mga serbisyo,” the President said, commending GOCC workers for their commitment to public service.

President Marcos emphasized that the reforms align with the broader goals of the “Bagong Pilipinas” vision, which seeks to cultivate a more professional, motivated, and effective government workforce capable of delivering high-quality services to the Filipino people.

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

GOCCs play a critical role in the Philippine economy, operating in key sectors such as utilities, finance, infrastructure, and social services. The GCG is mandated to oversee the compensation framework for GOCCs to ensure consistency, fairness, and sustainability.