DBM: P16.5B allotted for pay hike of gov’t workers in 2024

DBM Secretary Amenah Pangandaman said the adjustments to compensation packages in the public sector may be considered starting next year. (File Photo: Department of Budget and Management/Facebook)

MANILA – Government workers may enjoy another pay hike in 2024 following the allocation of PHP16.5 billion for the purpose in the proposed 2024 national budget, the Department of Budget and Management (DBM) said Wednesday.

In a statement, the DBM said the proposed budget for salary increase is under the provisions of the Miscellaneous Personnel Benefits Fund (MPBF) included in the 2024 National Expenditure Program (NEP).

DBM Secretary Amenah Pangandaman said the adjustments to compensation packages in the public sector may be considered starting next year.

“The amount [of PHP16.5B] was determined to approximate the cost in the possible increase, between two to eight percent, in the monthly basic salary of the different positions in the national government,” Pangandaman said.

Pangandaman earlier noted that the Governance Commission for GOCCs (GCG) received about PHP48 million this year for payment to specialist services group that will conduct a comprehensive review of the Compensation and Position Classification System for the government sector.

Pangandaman said the planned implementation of another round of salary increases is in line with President Ferdinand R. Marcos Jr.’s directive to ensure that the compensation packages in government is “generally competitive” with the salaries of workers in the private sector.

“The final cost requirement [of the increase] shall be determined once the results of the study have been presented and finalized,” she said.

“Ito po ay para ma-encourage ang ating mga kababayan na pumasok sa gobyerno, at para na rin po ma-motivate ang ating existing employees na manatili sa gobyerno at mag-perform nang maayos (This is to encourage our countrymen to enter the government, and also to motivate our existing employees to stay in the government and perform well),” Pangandaman added.

By virtue of Republic Act 11466 or the Salary Standardization Law of 2019, the last tranche of salary hikes for government employees was implemented in January this year.

The modified Salary Schedule for civil personnel was implemented in four tranches, from 2020 to 2023.

In a proactive approach to employees’ welfare, the DBM has also included the allocation of PHP1.37 billion in the proposed 2024 NEP to fund the additional PHP1,000 in the uniform or clothing allowance of over 1.3 million government employees.

The DBM has also been conducting a parallel review of the various benefits received across different ranks of the civil service to determine the need to adjust them.