Pangandaman orders swift completion of guidelines for gov’t workers pay hike

MANILA, Philippines – Budget Secretary Amenah Pangandaman on Saturday ordered Department of Budget and Management (DBM)  officials to finalize guidelines for the release of the salary increase following the signing by President Ferdinand “Bongbong” R. Marcos Jr. of Executive Order No. 64, which increases salaries and authorizes an additional allowance for government workers.

“I already instructed our concerned DBM officials to swiftly complete the guidelines for the approved salary increase. ” Panagndaman  said.

Pangandaman thanked Marcos for signing the said EO, which the DBM needs to implement the SSL VI. 

“With this EO, we can now roll out the first tranche of SSL VI. We will rush the implementing guidelines so that government employees will see their first round of salary increases this 2024,” Pangandaman said.

Retroactive 

Pangandaman also emphasized that salary increase is not just upon implementation but retroactive. 

“Ang computation po para sa initial tranche natin ay retroactive to January 1, 2024, so merong salary differential or back pay,” she said.

Signed by Executive Secretary Lucas P. Bersamin on August 2, 2024, by the authority of the President, EO 64 takes effect immediately upon publication in the Official Gazette or a newspaper of general circulation.

Salary Increase in Four Tranches

While government employees will receive the first tranche this 2024, there will also be a second tranche next year. 

“I am happy to announce na ang salary increase ay napondohan natin hindi lang for 2024 but also for 2025. Secured po ang increase this year at may increase din next year,” Pangandaman said. 

“We can look forward to another round of salary increases with the implementation of the second tranche of SSL VI next year. The DBM has earmarked P70 billion under the FY 2025 MPBF (Miscellaneous Personnel Benefits Fund) to cover the additional cost requirements for both the first and second tranches of SSL VI, with the latter taking effect on January 1, 2025,” she added.

The additional cost of implementing the first tranche of SSL VI for national government employees in 2024 is estimated at approximately P36 billion.

The funds will be sourced from the available allocations under the FY 2024 General Appropriations Act (GAA), specifically from the MPBF.

The approved salary increase applies to all civilian government personnel in the executive, legislative, and judicial branches, as well as constitutional commissions and offices, government-owned or controlled corporations not covered by the GOCC Governance Act of 2011 and Executive Order No. 150 (s.2021), and local government units.

It shall be implemented in four tranches, retroactively effective from January 1st of each year starting this year.

The approval of the salary increase aligns with the objectives of the Philippine Development Plan and “Bagong Pilipinas”, which seeks to rejuvenate the nation through comprehensive societal and governmental reforms.

Govt workers to receive P7,000 medical allowance

Starting 2025, government employees will receive an annual medical allowance not exceeding P 7,000 as a subsidy for the availment of health maintenance organization (HMO)- type benefits.

The grant of the Medical Allowance shall be subject to the conditions and guidelines to be issued by the DBM or the GCG, as applicable.

“Matagal ko na po itong pangarap na matanggap ng ating mga government workers. I have been pushing for this advocacy since 2017, and I am happy that only in the administration of President BBM that this advocacy finally became a reality. Ayaw po natin na lugi ang ating mga government employees pagdating sa benepisyo,” Pangandaman said.

“Masaya po tayo na kasama sa EO ang medical allowance. Pagdating ko sa executive, napansin ko na wala po tayong HMO. Pinaglaban po talaga natin ito. For 2025 National Expenditure Program, P9.5 billion ang nakalaan dito,” she added.

A full copy of the Executive Order is available on the Official Gazette, detailing salary adjustments for LGU personnel and funding provisions.