Government workers are set to receive the first tranche of salary increase this year, Budget Secretary Amenah Pangandaman said on Thursday.
The announcement comes in response to President Ferdinand Marcos Jr.'s third State of the Nation Address (SONA) last July, where he emphasized the need for improved compensation and benefits for government employees.
In a Palace press briefing Thursday, Pangandaman said the government has already set aside P70 billion for salary adjustments and will be rolled out in four tranches.
"The 70 billion pesos is for the adjustment of the first and second tranches for next year because we want to start the first tranche of our salary increase this year,” Pangandaman said.
She mentioned that the four tranches of salary increase will roll out from 2025 through 2027 and that the Department of Budget and Management would soon release an executive order detailing the salary increase.
When asked about the retroactive application of the salary increase, Pangandaman confirmed that the first tranche would be effective from January this year.
Approximately P36 billion has been allocated for Personnel Services expenditures in the 2024 General Appropriations Act (GAA) to support this salary increase, which the DBM had earlier proposed to the President.
The DBM previously stated that the salary hike for government workers would benefit 165,007 sub-professionals; 1,170,647 professionals (including teachers and lawyers); and 22,640 personnel in executive roles.
The most recent salary increase for government workers occurred in 2023, marking the fourth and final tranche of the Salary Standardization Law of 2019, which began in 2020.
In addition to the salary adjustments, government workers will also benefit from a new medical allowance.
The medical allowance, which will be provided annually, is designed to simplify the process for departments to acquire health maintenance organization (HMO) services.
"We will implement it next year. We have allocated P9.6 billion for next year so that our government employees can receive their medical allowance, which is P7,000 per employee," Pangandaman said.
“It’s a cash benefit because we designed the medical allowance to be like a uniform allowance to make it easier for departments to acquire their HMO," Pangandaman added.