The Philippine government has announced that government employees will get their mid-year bonus along with the first installment of their salary increase this year. Budget Secretary Amenah Pangandman confirmed the news on Monday, saying that the guidelines for the salary adjustment have already been sent out.
Starting retroactively from January 2024, the salary increase includes the mid-year bonus. Secretary Pangandman stated, “The adjustments will be made available as early as this month, but it will depend on each government agency.”
The Department of Budget and Management (DBM) has already provided the guidelines for this change. Now, it is up to the individual departments and agencies to calculate and implement these adjustments quickly.
This year marks the beginning of a four-year plan that includes annual salary raises for government workers, starting retroactively from January 2024. These increases will continue with additional adjustments each year until January 2027.
To support these changes, the government will use the existing funds for Personal Services, with any extra funds needed coming from the Miscellaneous Personnel Benefits Fund (MPBF). “We have set aside P36 billion in the MPBF for the first tranche of the Salary Standardization VI this year,” explained Secretary Pangandman. For 2025, the government plans to allocate approximately P70 billion for the second tranche and any adjustments needed for the first tranche.
With the first tranche, government workers can expect an average salary increase of 4.41 percent. For entry-level positions, the salary will go up by about 4 to 5.20 percent, which means the lowest basic salary will rise from P13,000 to P13,530. Higher grades will see increases ranging from 2.35 percent to 5.60 percent, depending on their position level.
The salary hike initiative, signed by President Ferdinand Marcos Jr. on August 2, applies to all civilian government personnel across various branches and agencies, excluding those covered by specific governance acts. While national government employees will benefit from these increases retroactively, local government staff will see changes effective from the release of the executive order.
