MANILA – Government workers in the Philippines can expect to receive the second tranche of their salary increases this month, the Philippine Department of Budget and Management (DBM) announced today.

The agency has circulated a memo on implementing rules and regulations for the release of the funds.

“We hope that this second tranche will provide much-needed financial relief and allow our government workers to better support their families, invest in their futures and enhance their overall quality of life,” Budget Secretary Amenah Pangandaman said after signing National Budget Circular 597.

The salary hike is in line with Executive Order 64, signed by President Ferdinand Marcos Jr. in August 2024, which gives a raise to qualified government employees, including himself.

The payout began last year, with the entirety of the increase disbursed in four tranches, effective from the first day of the year for 2024, 2025, 2026 and 2027, the government said.

The first tranche, estimated to be worth 36 billion pesos, was paid out retroactively in August last year.

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Government workers eligible for salary increase

Civil servants in the executive, legislative and judicial branches, as well as those working in constitutional commissions, government-owned and controlled corporations, and state universities & colleges are entitled to the raise.

The additional pay will be given to workers regardless if they are regular, casual, contractual, appointive or elective, or serving on a full-time or part-time basis.

The salary hike, however, excludes military and uniformed personnel; government agencies exempt from RA 6758; GOCCs under RA 10149 and EO 150; and individuals engaged without an employer-employee relationship and those funded from non-personnel services appropriations or budgets.

Also Read: Malaysia raises civil servants' pay by 13% amid economic woes

Filipinos divided over salary increase

On social media, news of the upcoming payout received mixed reactions from both public and private sector employees.

Some government workers were thrilled about the salary hike. But others pointed out how the increase in payments for statutory benefits – such as pension contributions, housing contributions, state health insurance premiums, and income taxes – merely offset what would have been extra cash for the workers.

“It’s very nice to have an increase and we are thankful [but], on the other hand, some teachers are not [relieved] since there’s a big increase in payments for PhilHealth, GSIS, taxes, and Pagibig,” a public school teacher shared in a comment on the Facebook post of the Presidential Communications Office.

Another concerned citizen questioned the actual impact of the increase: “Out of the 1,500-peso increase, almost 1,000 goes towards paying our taxes, GSIS, and PhilHealth. You consider the 500 left over to us as financial relief? You indeed gave us an increase but you just took it back through our taxes.”

Some from the private sector shared their sentiments about the lack of salary increases in their companies. They called for financial relief amid the rising cost of living in the Philippines.

Others also used the opportunity to take a jab at the government sector for the supposed quality of service that public servants render.

“Poor service. Takes too long. Not up to standards. But here you are with another salary hike,” wrote a man who expressed concern about government workers slacking off on the job.