Marcos orders hike in government workers’ salaries, benefits

MANILA, Philippines — Citing “prevailing economic circumstances” and the need to maintain a “competent, agile and healthy” public workforce, President Marcos has issued an executive order (EO) raising the salaries of civilian government personnel and authorizing the grant of additional allowance to those deemed qualified.

Signed for the President on Aug. 2 by Executive Secretary Lucas Bersamin, EO 64 details the salary increase for all civilian government personnel in the executive, legislative and judicial branches as well as in constitutional commissions and other constitutional offices.

The wage increase, according to EO 64, also covers personnel of government-owned or -controlled corporations not covered by Republic Act 10149 or the “GOCC Governance Act of 2011” and EO 150 on compensation classification issued in 2021.

“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.

The updated salary schedule will be implemented in national government agencies in four tranches. The first tranche takes effect retroactively on Jan. 1 this year, the second on Jan. 1, 2025, the third and fourth on the same date in 2026 and 2027, the Presidential Communications Office said in a statement yesterday.

EO 64 takes effect immediately upon publication in the Official Gazette or in a newspaper of general circulation.

Aside from salary increase, qualified government employees will receive medical allowance of P7,000 per annum as subsidy for health maintenance organization-type benefits, it said.

The Department of Budget and Management (DBM) will issue the guidelines for implementing specific provisions of EO 64.

Marcos announced a salary increase for state workers during his third State of the Nation Address last month.

The DBM earlier said P36 billion had been allocated for Personnel Services expenditures under the 2024 General Appropriations Act.

A total of P70 billion, meanwhile, has been allotted in the 2025 National Expenditure Program to ensure the implementation of the first and second tranches of the salary increase.

The wage increase for government workers is expected to benefit 165,007 sub-professionals; 1,170,647 professionals such as teachers and lawyers and 22,640 personnel in executive functions, the DBM said.