The Salary Standardization Law of 2019 (Republic Act 11466) aims to ensure fair and gradual salary increases for public workers over several years. The second tranche, which will take effect on 1 January 2025, will introduce updated salary scales for a wide range of government positions, benefiting employees across different levels of service.
Beneficiaries of the Second Tranche
This new phase of the SSL is expected to directly help over 1.7 million government employees, including teachers, healthcare workers, administrative staff, and uniformed personnel. One key feature of this tranche is that the salary increases will vary, meaning the percentage increase won’t be the same for everyone. Employees in lower salary grades are expected to receive higher percentage increases to help address wage gaps.
Additional Incentives and Benefits
In addition to salary adjustments, the second tranche will also include extra incentives and additional benefits for some employees. These may include allowances, bonuses, or other forms of compensation depending on the job position.
Overview of the Salary Adjustment Program
The Salary Adjustment Program is a four-year initiative designed to provide systematic pay increases for government employees. It began in 2024 and will conclude in 2027, with annual increments distributed in four phases or tranches. The Second Tranche set to take effect in January 2025, builds upon the foundation laid by the First Tranche in 2024, which introduced the framework for structured and equitable wage increases.
Tranche Implementation Timeline
- First Tranche: January 1, 2024
- Second Tranche: January 1, 2025
- Third Tranche: January 1, 2026
- Fourth Tranche: January 1, 2027
By phasing the adjustments over four years, the government aims to balance its fiscal responsibilities while steadily enhancing the compensation of public sector workers. This gradual rollout helps ensure that the program is financially sustainable and can deliver meaningful improvements to employee pay.
Revised Pay Scale for the Second Tranche
The Second Tranche introduces incremental salary adjustments for civilian government employees. For example, employees in Salary Grade 1, Step 1 will see their basic monthly salary increase from ₱13,530 (2024) to ₱14,061 (2025).
| Salary Grade (SG) | 2024 Monthly Salary | 2025 Monthly Salary | Increase (%) |
|---|---|---|---|
| SG 1 | ₱13,000 | ₱13,780 | 6.00% |
| SG 5 | ₱16,200 | ₱17,170 | 6.00% |
| SG 10 | ₱20,580 | ₱21,820 | 6.03% |
| SG 20 | ₱53,290 | ₱56,280 | 5.62% |
| SG 30 | ₱184,190 | ₱192,480 | 4.50% |
Average Increase in 2nd Tranche of SSL VI
Compared to the Tranche 1 increases, the Tranche 2 adjustments show some notable improvements. For example, employees in managerial positions see their average increase go from 4.34% to 4.90%. Top leaders (SG 32-33) also have a significant boost, with their average increase rising from 2.38% in Tranche 1 to 4.67% in Tranche 2. This shows an effort to improve pay for all levels, including leadership roles.
At the same time, employees in sub-professional (SG 1-10) and professional (SG 11-24) categories continue to see steady increases, helping those in essential roles receive fairer compensation.
| Position Category | Tranche 1 Average Increase (%) | Tranche 2 Average Increase (%) |
|---|---|---|
| Sub-Professional (SG 1-10) | 4.2% | 4.3% |
| Professional (SG 11-24) | 4.88% | 4.67% |
| Managerial (SG 25-28) | 4.34% | 4.90% |
| Executives (SG 29-31) | 3.42% | 4.67% |
| Top Leaders (SG 32-33) | 2.38% | 4.67% |
Who is Covered under the SSL VI?
The Second Tranche applies to:
- Civilian government employees in the Executive, Legislative, and Judicial branches.
- Constitutional offices, such as the Commission on Audit (COA) and the Office of the Ombudsman.
- Employees of local government units (LGUs) and Government-Owned and Controlled Corporations (GOCCs), provided these are not exempt under specific laws.
It is important to note that the program does not include military personnel and uniformed personnel, who have their own salary adjustment mechanisms.
Additional Benefits Beyond Basic Salary
Along with the salary increases from the 2nd Tranche of SSL VI, government employees receive additional benefits that support their needs. These benefits aim to assist with healthcare-related expenses and reward good performance.
- Annual Medical Allowance: Government workers are given ₱7,000 every year to help cover medical and healthcare expenses. This allowance ensures they have financial support for health needs.
- Performance-Based Bonuses (PBB): Employees can earn extra pay based on their performance and how well their organization achieves its goals. This bonus motivates workers to do their best.
- Uniform or Clothing Allowance: Each year, employees receive an annual uniform allowance of ₱7,000. This helps them purchase appropriate work attire without incurring personal expenses.
These benefits provide additional support beyond the regular salary increases, helping employees with personal expenses and encouraging excellent performance.
Fact Check: Debunking Misconceptions
There are several misconceptions surrounding the second tranche. Let’s clarify them:
- Claim: The second tranche includes a 23.24% salary increase for all government employees in 2025.
- Fact: This claim is false. The 23.24% average increase was part of the Fourth Tranche, implemented in 2024. The salary adjustments for the Second Tranche (2025) are more modest, with projected increases ranging between 4% and 8%, depending on the employee’s salary grade.
- Claim: The Salary Standardization Law (SSL) tranches will be fully implemented and completed by 2024.
- Fact: This claim is false. The SSL program is designed to run until 2027, with additional tranches still scheduled for 2026 and 2027. The 2024 tranche is just one of several stages in the program.
- Claim: Salary adjustments under SSL only benefit high-ranking officials.
- Fact: This claim is incorrect. The SSL program ensures that all government employees benefit from salary increases. In fact, it prioritizes equitable adjustments, with lower salary grades receiving higher percentage increases to address wage gaps and promote fairness.
