In a significant move to uplift the public service sector, the Philippine government has commenced the second tranche of salary increases under Executive Order No. 64 as part of the Government Salary Standardization Law.
The 2025 phase will directly benefit over 1.7 million government employees, aiming to create fairer, more competitive, and more sustainable compensation structures across various agencies.
From entry-level utility workers to high-ranking officials, the pay hike seeks to align public sector compensation with inflation and private-sector benchmarks. This step not only enhances morale but also strengthens employee retention in key sectors such as health, education, and technology.
Breakdown of the Second Tranche (2025)
The second tranche continues the multi-year compensation restructuring initiated in 2024. Adjustments vary by salary grade (SG), with higher increments awarded at mid-level and leadership positions to reduce wage gaps and improve service equity.
| Position Level | Previous Monthly Rate | New Monthly Rate (2025) | % Increase |
|---|---|---|---|
| SG 1 (Utility Worker) | ₱13,000 | ₱13,900 | 6.92% |
| SG 11 (Admin Officer) | ₱27,000 | ₱29,200 | 8.15% |
| SG 18 (Mid-Level Mgr) | ₱45,000 | ₱48,600 | 8.00% |
| SG 24 (Director IV) | ₱86,742 | ₱93,700 | 8.01% |
| SG 30 (Secretary Level) | ₱171,000 | ₱183,300 | 7.20% |
These figures reflect efforts to standardize wages, retain talent, and support the financial well-being of civil servants.
How This Affects Civil Servants
The 2025 salary hike offers both financial and professional incentives for public employees. This initiative:
- Improves morale among public servants, especially those in underpaid positions
- Encourages skilled professionals—such as engineers, educators, and healthcare workers—to remain in public service
- Helps address cost-of-living increases, particularly in urban centers
- Promotes internal equity, reducing wage disparities between junior and senior roles
The health and education sectors stand to benefit significantly. Mid-level professionals who once eyed private sector opportunities may now reconsider staying in government due to improved compensation.
Executive Order No. 64 and Salary Standardization
Signed in early 2024, EO 64 marks a turning point in public sector wage reform. This executive order establishes a four-year salary increase schedule, spanning from 2024 to 2027. The 2025 second tranche is a critical phase in this timeline.
What sets EO 64 apart:
- Performance-based bonuses are now integrated alongside base salaries
- A structured pay matrix creates consistency across departments and levels
- The salary increases are inflation-adjusted and benchmarked against ASEAN standards
By prioritizing transparency and fairness, EO 64 paves the way for a stronger, more respected civil service system.
Where the Budget Comes From
Funding for the second tranche of the salary increase is secured through the General Appropriations Act (GAA) for FY 2025, with over ₱90 billion allocated for this purpose.
The government has taken steps to ensure this initiative is fiscally sustainable:
- Enhanced tax collection and revenue efforts
- Controlled government borrowing
- Strategic budget reforms that prioritize essential sectors like education, public health, and security
This approach ensures agencies can meet the new salary mandates without disrupting operations or compromising service delivery.
Timeline and What’s Next in 2026
The second tranche is already being implemented as of January 2025, with full application expected by the end of Q2. All eligible employees should see the increase reflected in their monthly payroll before July 2025.
Looking ahead to January 2026, the third tranche will continue salary adjustments, likely focusing on:
- Aligning executive-level roles with international standards
- Revising allowances and bonuses based on job performance
- Further narrowing the private-public sector wage gap
Employees are encouraged to consult HR departments to understand specific changes applicable to their positions.
The Philippine Government Salary Increase 2025, under the second tranche of EO 64, is a pivotal step in professionalizing and empowering the nation’s civil service workforce.
While the changes vary by grade, all public employees—from entry-level to executive—stand to gain both financially and professionally.
As the nation continues to prioritize reforms, this initiative reflects a broader vision of valuing public service, enhancing work conditions, and retaining top talent across government institutions. With more adjustments coming in 2026, civil servants can look forward to a future of greater recognition and equitable compensation.
FAQs
When will the second tranche of the 2025 salary increase be fully implemented?
The implementation started in January 2025 and will be fully applied across agencies by the end of Q2 2025.
Does this salary hike cover all government employees?
Yes, the hike applies to all eligible government personnel, including national and local agency workers, as structured under EO 64.
How is the salary increase funded?
The increase is supported by the 2025 General Appropriations Act, with over ₱90 billion allocated to ensure full coverage and fiscal sustainability.