Almost P17 billion allotted for gov’t workers’ pay hike in proposed budget

The proposed budget includes an allocation of nearly P17 billion to cater for a salary increment for government employees. The measure aims to enhance their compensation and provide better financial stability.

DBM Secretary Amenah Pangandaman at the Kapihan sa Manila Bay, June 21, 2023. | (File photo by INQUIRER.net / Ryan Leagogo)

MANILA, Philippines — Department of Budget and Management (DBM) has allotted a total of P16.9 billion for government workers’ salary hike in the proposed 2024 National Expenditure Program (NEP).

DBM said the proposed salary increase would be in increments (one step at a time) under the Miscellaneous Personnel Benefits Fund (MPBF) provisions.

“We have allotted P16.95 Billion in the FY (Fiscal Year) 2024 MPBF to support the compensation adjustment that may be pursued starting next year,” DBM Secretary Amenah Pangandaman said in a statement.

According to Pangandaman, the amount was estimated based on possible increases from 2 to 8 percent in the monthly salaries of different positions in the national government.

She also said the last tranche of salary hikes mandated by the Salary Standardization Law of 2019 was implemented last January.

READ: WHAT WENT BEFORE: The Salary Standardization Law

President Ferdinand “Bongbong” Marcos Jr. told DBM that it should be studied well in putting through salary hikes.

“When it comes to implementing another round of increases, binigyan po kami ng direktiba ni President Bongbong Marcos na magsagawa ng study para masiguro na ang compensation ng lahat ng ating mga civilian government personnel ay maging generally competitive kumpara sa mga nagtatrabaho sa private sector,” said Pangandaman.

(Regarding implementing another round of increases, President Bongbong Marcos gave us a directive to conduct a study to verify that the compensation of all civilian government personnel will become generally competitive compared to the private sector.)

DBM chief also said the proposed wage hike budget aims to encourage people to enter government.

It is also meant as an incentive to current employees so that they will stay in government and perform well.

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