Marcos issues EO for gov’t personnel’s salary increase

President Ferdinand “Bongbong” Marcos Jr. has issued an Executive Order (EO) to increase salaries and grant an additional allowance to government employees.

Under EO 64, which was signed by Executive Secretary Lucas Bersamin on August 2, 2024, the updated salary schedule applies to all civilian government personnel in the executive, legislative, and judicial branches; constitutional commissions and other constitutional offices including government-owned or controlled corporations (GOCCs) and local government units.

“Given the prevailing economic circumstances, including the erosion of purchasing power due to inflation, there is a need to update the salaries and benefits of government personnel in order to maintain a competent, committed, agile, and healthy workforce, thereby promoting social justice, integrity, efficiency, accountability, and excellence, and ultimately translating to increased productivity and higher-quality public service,” Marcos said.

In a statement, Department of Budget and Management (DBM) Secretary Amenah Pangandaman said she has ordered the completion of guidelines for the release of the salary increase as she welcomed the signing of EO 64.

Pangandaman said the salary increase is retroactive to January 1, 2024 with an estimated cost of P36 billion. It will be implemented in four tranches.

“I am happy to announce na ang salary increase ay napondohan natin hindi lang for 2024 but also for 2025. Secured po ang increase this year at may increase din next year,” Pangandaman said.

“We can look forward to another round of salary increases with the implementation of the second tranche of SSL (Salary Standardization Law) VI next year,” she added.

She said the DBM has earmarked P70 billion under the Fiscal Year 2025 Miscellaneous Personnel Benefits Fund to cover the additional cost requirements for both the first and second tranches of SSL VI, with the latter taking effect on January 1, 2025.

Pangandaman said government employees will receive an annual medical allowance not exceeding P7,000 as a subsidy for the availment of health maintenance organization (HMO)- type benefits starting January 2025.

“Matagal ko na po itong pangarap na matanggap ng ating mga government workers. I have been pushing for this advocacy since 2017, and I am happy that only in the administration of President BBM that this advocacy finally became a reality. Ayaw po natin na lugi ang ating mga government employees pagdating sa benepisyo,” she said.

“Masaya po tayo na kasama sa EO ang medical allowance. Pagdating ko sa executive, napansin ko na wala po tayong HMO. Pinaglaban po talaga natin ito. For 2025 National Expenditure Program, P9.5 billion ang nakalaan dito,” she added. (TPM/SunStar Philippines)