Starting January 2025, many government workers in the Philippines will get a salary increase under the Second Tranche of the Salary Standardization Law of 2019 (RA 11466). This law aims to raise the pay of public employees in a fair and organized way over four years, from 2024 to 2027. This year’s increase is the second in a series of four yearly adjustments.
The government created this plan to ensure that salaries stay competitive, especially for those working in education, healthcare, local offices, and administration. Employees in lower salary grades will get higher percentage increases, which helps close the gap between entry-level and senior positions. The salary hikes aim to improve the lives of public servants and keep them motivated in their jobs.
Aside from better wages, government employees will also continue to enjoy yearly benefits and allowances. These extra payments add to their total compensation, supporting them in their daily expenses. This move also encourages more skilled professionals to work in government offices rather than leaving for better-paying jobs elsewhere.
What’s New in the Second Round of Salary Increases
The Philippine government is following a step-by-step plan to raise salaries gradually. This strategy helps balance better pay for workers and budget control for the country. Here’s the timeline:
- First Adjustment (January 2024): Salary raise started
- Second Adjustment (January 2025): This year’s increase
- Third Adjustment (January 2026): Next year’s increase
- Fourth Adjustment (January 2027): Final increase in the plan
By spreading the salary hikes over four years, the government avoids budget shocks while still rewarding public workers fairly.
Who Will Receive the Salary Hike?
These employees are eligible for the 2025 increase:
- Civilian workers in the Executive, Legislative, and Judicial branches
- Staff in Constitutional offices (e.g., COA, CSC, Ombudsman)
- Employees in local government units (LGUs)
- Workers in government-owned and controlled corporations (GOCCs)
Who Won’t Get the Pay Raise?
Some groups are not included in this tranche:
- Uniformed personnel like those in the AFP, PNP, BFP, and BJMP (they have their own salary plan)
- Contract of Service (COS) and Job Order (JO) workers, since they’re not regular government employees
Other Allowances and Bonuses for 2025
Along with the new salary, government workers also receive other benefits:
- Medical Allowance: ₱7,000 yearly for health needs
- Clothing Allowance: ₱7,000 yearly for uniforms
- Mid-Year Bonus: One month’s pay, given in May
- Year-End Bonus: Another month’s pay, given in November
- Performance-Based Bonus: Given based on work performance
- Hazard Pay: Given to employees in risky jobs (e.g., healthcare, police, emergency staff)
These extra payments make sure workers have well-rounded financial support.
How the Salary Increase Helps the Economy
Higher salaries don’t just help workers—they help the country too. When government workers earn more, they spend more, which helps local businesses and services. This spending keeps the economy growing.
Raising salaries also helps the government attract and keep good workers. Skilled professionals are more likely to stay in government jobs if pay is fair. This helps public offices run better and provide good services to the people.
Clearing Up Confusions About the 2025 Increase
Some people believe all workers will get a 23% increase, but this isn’t true. In reality, raises range from 4% to 8%, depending on the salary grade.
There’s also a wrong belief that salary hikes stop after 2024. In fact, the Salary Standardization Law runs until 2027. And it’s not just top officials who benefit—the biggest increases go to those in lower salary grades to fix wage gaps.
Why the Increase Matters for Everyone
This salary adjustment helps:
- Reduce wage inequality
- Boost morale among public employees
- Keep skilled workers in government jobs
- Improve services for citizens
When government workers feel valued and well-paid, they do better work. This means better services for everyone.
What’s Next for Salary Adjustments?
The increases won’t stop in 2025. There will be more hikes in 2026 and 2027. These will continue the plan to raise pay across all levels while keeping the country’s budget safe and stable.
By 2027, the full four-year salary adjustment will be complete. This shows the government’s promise to support its workers long-term, while also helping the country’s economy grow.