Over 1 million Filipino government workers to receive pay increase

The raise covers all government employees ‘regardless of appointment status,’ President Marcos said.

MANILA – More than a million government workers in the Philippines are set to receive an increase in their monthly salary after President Ferdinand Marcos Jr. approved a new executive order granting them a raise and a higher yearly medical allowance.

Under E.O. 64, the salary increase in the public sector will be rolled out annually in four tranches beginning this year, with adjustments to workers’ pay retroactive to 1 January 2024.

The raise covers all employees working in the executive, legislative and judicial branches of government, as well as those in constitutional commissions and government-owned or -controlled corporations (GOCCs) “regardless of appointment status, whether regular, contractual or casual, appointive or elective, and on full-time or part-time basis,” Marcos said.

The E.O., however, excludes workers hired through job orders and on a project or consultancy basis from receiving an increase.

Maintaining a competent and healthy government workforce

The president stressed the urgency of the salary adjustment in light of current economic challenges, “including the erosion of purchasing power due to inflation,” and “in order to maintain a competent, committed, agile and healthy workforce”.

Under the nationwide increase, the lowest-paid government employee, who is currently earning 13,530 Philippine pesos or the equivalent of US$235 monthly at Salary Grade 1, will receive 15,208 Philippine pesos at the end of four years.

Meanwhile, the country’s highest-paid official – the president himself – will see his current monthly salary increase from 428,994 Philippine pesos to 459,469 Philippine pesos by 2027.

Offering competitive pay in the government sector

The pay raise is reportedly aligned with the country’s Salary Standardization Law of 2019, which aims to restructure the compensation and benefits of government employees. The SSL sets the salaries of public sector workers on par with prevailing rates in the private sector.

“The compensation of all civilian personnel shall generally be competitive with the private sector in order to attract, retain and engage high-performing civil servants,” said Marcos, who maintains the adjustment must be kept “within the financial capacity of the government”.

The E.O. also mandates an additional yearly medical allowance of 7,000 Philippine pesos to eligible government workers.

Marcos has directed officials at the Department of Budget and Management (DBM) and the Governance Commission for GOCCs to develop guidelines around the pay increase and the disbursement of the annual medical allowance.

DBM Secretary Amenah Pangandaman promised to expedite the formulation of said guidelines “so that government employees will see their first round of salary increases this 2024”.

A total of 70 billion Philippine pesos has been allocated to the first and second tranches of the salary increase.

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