Marcos: Gov’t workers’ pay hike in the works

By Darryl John Esguerra, Philippine News Agency

During his third State of the Nation Address (SONA), Marcos said the government has already allotted a budget for state workers’ pay hikes, adding that a medical allowance would also be added to their benefits. (PNA photo by Joan Bondoc)

MANILA – President Ferdinand R. Marcos Jr. on Monday announced that a four-tranche salary increase for government workers is already in the works.

During his third State of the Nation Address (SONA), Marcos said the government has already allotted a budget for state workers’ pay hikes, adding that a medical allowance would also be added to their benefits.

“Para naman sa ating mga kawani ng gobyerno, mayroon silang maaasahang medical allowance bilang karagdagang benepisyo sa susunod na taon (As for our government employees, they have a reliable medical allowance as an additional benefit next year),” Marcos said.

“At hindi lamang iyon. Mayroon ding napipintong umento sa suweldo na makukuha nila sa apat na tranches. Naglaan na tayo ng pondo para rito simula sa taong ito at sa mga susunod na taon (And not only that. There is also an imminent increase in salary that they will get in four tranches. We have allocated funds for this starting this year and in the years to come),” he added.

“Furthermore, we have extended the services of our job order and contract of service personnel working in government,” he went on.

The last time salaries of government workers were increased was in 2023, the fourth and last tranche of the Salary Standardization Law of 2019, which started in 2020.

Earlier, the Department of Budget and Management (DBM) said a study on the possible increase in the wages of government workers is targeted to be completed by the end of June this year.

Spearheaded by the DBM and the Governance Commission for Government-Owned or -Controlled Corporations, the Compensation and Benefits Study will explore various aspects of the current compensation system, including salaries, benefits, and allowances, to identify areas for improvement.

The DBM is also asking lawmakers to approve the PHP70-billion allocation for the salary increase of state workers in the proposed 2025 national budget.

In a statement shortly after Marcos’ SONA, the DBM said the Office of the President will issue an Executive Order detailing the new salary increase.

In preparation, the DBM has allocated PHP36 billion for Personnel Services expenditures under the 2024 General Appropriations Act (GAA).

Additionally, a total of PHP70 billion has been allotted in the 2025 National Expenditure Program to ensure the implementation of the 1st and 2nd tranches of 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 1,170,647 professionals, including teachers and lawyers; 165,007 sub-professionals; and 22,640 personnel in executive functions.