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Gov’t employees’ salary increase, possible in 2024 – DBM

Gov’t employees’ salary increase, possible in 2024 – DBM

In a significant move towards employee welfare, the proposed 2024 national budget has set aside an initial allocation of P16.95 billion. This fund aims to roll out enhanced compensation packages for dedicated government employees.

DBM’s Provision for Employee Compensation

The Department of Budget and Management (DBM) has taken the initiative by making this provision under the Miscellaneous Personnel Benefits Fund of the National Expenditure Program (NEP). Budget Secretary Amenah Pangandaman, in her announcement on Wednesday, August 16, highlighted the potential implementation of the salary increment. This step, aimed at empowering the public sector, is slated for the next fiscal year. It will follow a comprehensive review of the Compensation and Position Classification System.

Review of the Compensation System

It’s worth noting that the DBM had previously allocated P48 million from the 2023 budget appropriations. This fund, sourced from the Governance Commission for GOCCs (GCG), will be instrumental in financing a specialist services group. Their primary role? To conduct an in-depth review of the current compensation system. Secretary Pangandaman stated, “The final cost requirement [of the increase] will be finalized once the study’s results have been presented.”

Significance of Competitive Remuneration

The budget department has always emphasized the importance of competitive remuneration for civilian government personnel. Such a strategy ensures the effective delivery of services to the general public. “Ito po ay para ma-encourage ang ating mga kababayan na pumasok sa gobyerno… (This is to motivate our fellow Filipinos to serve in the government and inspire existing employees to excel),” added Pangandaman.

Previous Salary Increases and Allowances

Come January 2023, the last tranche of the salary increase was rolled out. This was based on the designated step increments as per the salary schedule in Republic Act 11466 or the Salary Standardization Law of 2019, s. 2020. Additionally, the DBM had allocated P1.368 billion in the final proposed NEP. This was to fund the P1,000 increase in the uniform allowance for over 1.3 million government employees. A parallel review of their existing benefits was also conducted to ascertain the need for specific adjustments.

Scrutiny of the Proposed National Expenditure

As of now, the House Committee on Appropriations is meticulously scrutinizing the P5.768 trillion proposed national expenditure for 2024. In line with this, the House of Representatives aims to approve the 2024 NEP by September 30, 2023, during its third and final reading.

For more details on the national budget and related policies, visit the official DBM website.

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