THE Department of Budget and Management (DBM) has allocated P36 billion for Personnel Services expenditures under the 2024 General Appropriations Act (GAA) as it prepares for the approved salary increase of government employees.
A total of P70 billion has been allotted in the 2025 National Expenditure Program to ensure the implementation of the first and second tranches of the salary increase.
The President, during his State of the Nation Address last Monday, announced the approval of the DBM’s recommendation to hike state workers’ salaries.
The salary increase is on top of the expected medical allowance that government employees will receive as an additional benefit starting next year.
All four tranches include corresponding salary rates for each salary grade and step increment.
The Office of the President is set to issue an Executive Order detailing the salary increase.
“Our civil servants are the backbone of our nation, and it’s our priority to provide them with a fair and motivating compensation system,” Budget Secretary Amenah Pangandaman said.
The salary increase for government workers is expected to benefit 165,007 sub-professionals; 1,170,647 professionals such as teachers and lawyers; and 22,640 personnel in executive functions.
Before this, the DBM and the Governance Commission for GOCCs conducted a study to serve as a basis for improving the salaries and benefits of government employees toward achieving a competitive, financially sustainable, and equitable compensation system.
The study aimed to determine the government’s ability to compete with the private sector in providing appropriate compensation and benefits to workers. It also seeks to identify compensation strategies to bring government employees’ salaries closer to current market rates.
