DBM to complete salary hike study this month

MANILA, Philippines — The Department of Budget and Management (DBM) will conclude a study by the end of the month on a possible salary increase for government workers.

The DBM said the compensation and benefits study on the possible salary adjustment for government workers is ongoing and is expected to be finalized by end-June.

“We are ready to support the implementation of the salary adjustment once approved to ensure a competitive and equitable compensation package for our civil servants,” the DBM said.

“We will find a way to fund its implementation, subject to excess revenue to be collected by the government,” it said.

The study explores various aspects of the current compensation system, including salaries, benefits and allowances to identify areas for improvement.

It also involves benchmarking activities against the private sector and seeks to establish a fair and sustainable pay structure.

This is aimed at enhancing the welfare and productivity of state workers as well as cushioning the impact of inflation.

Results of the study will serve as basis for making necessary changes in the total compensation framework of civilian government personnel to ensure fair and timely salary adjustment.

Once finalized, the study will be presented to the DBM and the Governance Commission for Governvent-owned and controlled corporations.

It was last year when government workers received their latest pay increase as mandated under the Salary Standardization Law.

The SSL 5, signed by former president Rodrigo Duterte, stated that basic salaries of government workers increased by a weighted average of 23.24 percent in 2023. It also covered public school teachers and nurses.

The law seeks to raise the salaries of government employees, including nurses and teachers, in four tranches from 2020 to 2023.

This is a continuation of an executive order signed in 2016, which also provided four tranches of compensation hikes for government and military personnel from 2016 to 2019.