The Philippine government has officially introduced a salary increase for public sector employees under the Salary Standardization Law VI (SSL VI). This initiative, designed to raise government workers’ wages gradually over a four-year period, aims to address the financial challenges posed by inflation and the rising cost of living. On August 2, 2024, President Ferdinand Marcos Jr. signed Executive Order No. 64, which sets the schedule for salary adjustments from 2024 to 2027.
The primary objective of this initiative is to enhance the compensation of government workers, helping them cope with financial pressures and make government salaries more competitive within the workforce.
Implementation Timeline of Salary Increases
The salary increases under SSL VI will be rolled out gradually over four years, providing employees with periodic adjustments that reflect their salary grade and step. This phased approach will ensure that the government can manage its budget while offering meaningful relief to employees. Here’s the schedule for the adjustments:
- 1st Tranche: Effective January 1, 2024
- 2nd Tranche: Effective January 1, 2025
- 3rd Tranche: Effective January 1, 2026
- 4th Tranche: Effective January 1, 2027
The gradual increases allow government employees to experience consistent salary growth while ensuring that the financial impact on the government is manageable.
Salary Growth: How Much Will You Earn?
Under the SSL VI, salary increases are based on Salary Grade (SG) and Step. Each position within the government has a designated salary grade, and employees progress through steps based on factors such as experience and performance. Below is a breakdown of salary increases for selected salary grades from 2024 to 2027:
| Salary Grade | 2024 (1st Tranche) | 2025 (2nd Tranche) | 2026 (3rd Tranche) | 2027 (4th Tranche) |
|---|---|---|---|---|
| 1 | ₱13,530 | ₱14,061 | ₱14,634 | ₱15,208 |
| 5 | ₱17,205 | ₱17,866 | ₱18,581 | ₱19,296 |
| 11 | ₱28,512 | ₱30,024 | ₱31,705 | ₱33,387 |
| 15 | ₱38,413 | ₱40,208 | ₱42,178 | ₱44,148 |
| 20 | ₱60,157 | ₱62,967 | ₱66,052 | ₱69,138 |
| 24 | ₱94,132 | ₱98,185 | ₱102,603 | ₱107,022 |
| 30 | ₱196,199 | ₱203,200 | ₱210,718 | ₱218,237 |
| 33 | ₱428,994 | ₱438,844 | ₱449,157 | ₱459,469 |
Example of Salary Growth Over Four Years
To illustrate the impact of SSL VI, consider a government employee in Salary Grade 15 (Step 1). The salary increases over the four years would look like this:
- 2024 (1st Tranche): ₱38,413
- 2025 (2nd Tranche): ₱40,208
- 2026 (3rd Tranche): ₱42,178
- 2027 (4th Tranche): ₱44,148
By the end of 2027, this employee’s salary will have increased by ₱5,735, reflecting the steady growth provided by the program. Higher salary grades, such as Salary Grade 30, will experience even more significant increases, with employees seeing a rise of over ₱22,000 during the same period.
Who Will Benefit from SSL VI?
The SSL VI covers a wide range of civilian government employees, including those from various branches and offices within the government. Specifically, the beneficiaries include:
- Employees from the Executive, Legislative, and Judicial Branches: Including those working in national government agencies and departments.
- Personnel from Constitutional Commissions and Offices: Such as the Civil Service Commission, the Commission on Audit, and the Commission on Elections.
- Employees from Government-Owned and Controlled Corporations (GOCCs): Those not covered by separate compensation laws.
- Local Government Units (LGUs): Subject to the financial capacity of each LGU, ensuring a sustainable implementation of salary increases.
With over 1.3 million government employees expected to benefit from SSL VI, this law aims to provide equitable and competitive compensation for public servants across the country.
Additional Benefits for Government Employees
Apart from salary increases, SSL VI introduces several additional benefits to further support government employees. Some of the key benefits include:
- ₱7,000 Annual Medical Allowance: To help employees cover healthcare expenses, including HMO plans and other medical needs.
- ₱7,000 Annual Uniform/Clothing Allowance: Designed to assist workers in purchasing uniforms and work-related clothing.
- Performance-Based Bonuses (PBB): Government employees who meet or exceed performance standards will continue to receive bonuses, further incentivizing productivity and dedication to public service.
Conclusion
The Salary Standardization Law VI represents a significant step forward in ensuring that public sector employees are compensated fairly, addressing inflation and rising living costs. With the phased salary increases and additional benefits, SSL VI aims to improve job satisfaction, boost employee morale, and make government positions more competitive, all while maintaining fiscal responsibility for the country’s budget.
