The National Budget Circular (NBC) No. 597 issued on January 20, 2025, outlines the implementation of the second tranche of the updated Salary Schedule for Civilian Government Personnel, as mandated by Executive Order (EO) No. 64, s. 2024. This policy is designed to enhance the competitiveness of compensation for government workers and ensure the sustainability of the Civilian Personnel Compensation and Position Classification System (CPCS).
Key Details of the Salary Update
Purpose
The updated salary schedule aims to:
- Attract and retain skilled individuals in public service.
- Motivate government employees through fair and competitive pay.
- Ensure sustainability in government compensation expenses.
Coverage
This policy applies to civilian personnel in the Executive, Legislative, and Judicial branches, as well as:
- Constitutional offices under the Fiscal Autonomy Group.
- State universities and colleges (SUCs).
- Government-Owned or Controlled Corporations (GOCCs).
Exclusions: Military and uniformed personnel, student workers, apprentices, and those engaged without employer-employee relationships are excluded.
The New Salary Schedule
Effective January 1, 2025, the second tranche provides updated salaries across various salary grades and steps. Here’s a summary of its application:
Salary Adjustments
- For New Hires: Salaries are set to Step 1 of the relevant salary grade.
- For Incumbents:
- Adjustments align with the step they occupy as of December 31, 2024.
- Those earning above Step 8 will not receive further increases.
- Salaries falling between steps are rounded up to the higher step.
- Contractual and Casual Workers:
- Adjusted rates are computed based on the monthly equivalent of daily wages.
Special Cases
Employees reassigned to positions with lower grades due to organizational changes will retain their previous salaries under the non-diminution of pay principle.
Implementation Guidelines
Procedures
- Agencies must prepare Notices of Salary Adjustment (NOSAs) for affected employees, specifying the new salary rates.
- GOCCs must ensure they have sufficient funds to implement the adjustments without borrowing or disrupting operations.
Fund Sources
- Funding for salary adjustments is drawn from the Miscellaneous Personnel Benefits Fund (MPBF) and the General Appropriations Act (GAA).
- GOCCs will utilize their corporate operating budgets, provided they meet specific conditions.
Timelines
- Adjustments take effect on January 1, 2025.
- Relevant funds must be released by the Department of Budget and Management (DBM) to ensure timely implementation.
Salary Tables and Examples
The new salary schedule includes detailed figures for all grades and steps. Here are illustrative examples:
Example 1: Incumbent Adjustment
- Position: Planning Officer II, Salary Grade 15
- Old Salary (Step 1): ₱38,413
- New Salary (Step 1): ₱40,208
Example 2: Contractual Personnel
- Position: Budget and Management Specialist II, Salary Grade 16
- Old Salary (Step 2): ₱42,052
- New Salary (Step 2): ₱43,996
Special Cases
- If an employee’s existing salary exceeds the highest step of their grade, no adjustment is applied.
Frequently Asked Questions
Who benefits from the salary adjustment?
All regular, casual, and contractual civilian government employees within the specified coverage benefit from this schedule.
What happens if a GOCC lacks sufficient funds?
GOCCs may implement partial adjustments proportionate to their available budget, ensuring compliance with the CPCS guidelines.
When will the adjustments take effect?
The new salaries are effective starting January 1, 2025.
Conclusion
The second tranche of the Salary Schedule for Civilian Personnel represents a crucial step in improving the public sector’s workforce quality and motivation. By providing fair and competitive compensation, the government reaffirms its commitment to effective service delivery and equitable treatment for its employees. Agencies are encouraged to follow the outlined procedures to ensure smooth implementation and compliance with this policy.
