The implementation of the second tranche of the Salary Standardization Law VI (SSL VI) under the four-year salary adjustment program of civilian government employees commenced by the Philippine government in January 2025. This said initiative was made by Executive Order No. 64 signed by President Ferdinand R. Marcos Jr. in August 2024.
SSL VI aims to align government salary more competitively, equitably, and closer to employees’ obligations and responsibilities. The adjustment will be staggered in four annual tranches from January 1, 2024, and each January thereafter until 2027.
Salary Adjustment under the Second Tranche (2025)
With a salary increase effective January 1, 2025, varying salary grades again received increases. For instance, SG 1 went from PHP 13,530 in 2024 to PHP 14,061 in 2025. Higher salary grades similarly had increases deemed proportional to their rank, role, and responsibility. This is in pursuance of other salary increases as a gradual increase in compensation to keep the salaries of government employees attuned to present-day realities.
Who Are Covered by Increase?
Civilian personnel under the Executive, Legislative, and Judicial branches, including those from Constitutional Commissions, State Universities and Colleges (SUCs), and Government-Owned and Controlled Corporations (GOCCs), are covered by the second phase unless specifically exempted. This covers employees unconditionally, no matter what their appointment status is; i.e., regular, casual, contractual, elective, appointive, full-time, or part-time. The specific guidelines for the implementation were issued by the Department of Budget and Management (DBM) through National Budget Circular No. 597.
Who Is Not Covered?
Military and uniformed personnel, with their separate wage scheme, shall not benefit from the salary increase. This further excludes agencies that have distinct compensation systems by virtue of existing laws, GOCCs covered by the GOCC Governance Act of 2011, and related executive orders, and those not considered employees inclusive of consultants, job order workers, and student interns.
Funding and Source of Budget
The adjustment in salaries for 2025 shall be sourced from the Miscellaneous Personnel Benefits Fund (MPBF) and from funds appropriated under the 2025 General Appropriations Act (GAA). For GOCCs the increases will come from their corporate operating budgets approved by the DBM. Such a measure ensures the financial cover of the adjustments without hindering the operations of the agency.
Effect on Government Employees
The second tranche will provide financial relief and boost morale among government employees, giving them the opportunity to provide for their families and, more importantly, to regain the level of their quality of life, plan for the future, or invest for their future. According to DBM Secretary Amenah Pangandaman, the government expects that this action will empower civil servants to perform better services to the public.
What follows: The Future Tranches
After the salary adjustment that will occur in 2025, the third or subsequent tranches will be effective on January 1, 2026, and January 1, 2027. Each of the tranches will have increases which complete the four-year compensation reform plan of the government.