Philippines 2025 Salary Boost Alert: The Philippines 2025 Salary Boost Alert is making waves across the public sector, and for good reason. Government employees throughout the country are now enjoying the benefits of the second tranche of salary increases, which officially took effect on January 1, 2025. This salary upgrade is part of the ongoing rollout of the Salary Standardization Law V (SSL V), a multi-year plan introduced through Executive Order No. 64, signed by President Ferdinand Marcos Jr. in August 2024.
This initiative is more than just a pay raise—it’s a step toward enhancing the livelihood of Filipino public servants and ensuring that government jobs remain competitive and desirable. Whether you’re a teacher, a municipal employee, or part of a government-owned corporation, this guide will help you understand how the salary hike impacts your role, benefits your finances, and fits into the broader economic picture.
Philippines 2025 Salary Boost Alert
| Feature | Details |
|---|---|
| Effective Date | January 1, 2025 |
| Law Implemented | Executive Order No. 64 (SSL V) |
| Who Benefits | Civilian government employees: regular, contractual, casual |
| Who is Excluded | Military, uniformed personnel, consultants, job orders |
| Salary Increase Range | ~4% to 8% average, depending on salary grade |
| Example Increase | SG 1: ₹13,530 → ₹14,061; SG 33: ₹428,994 → ₹438,844 |
| Next Tranche | January 2026 (3rd tranche) |
| Official Source | Department of Budget and Management |
The 2025 salary boost is not just a numbers game—it’s a commitment to valuing public service. It reinforces the government’s pledge to create a more equitable and motivated workforce. By investing in the welfare of its employees, the Philippines is investing in the strength and sustainability of its institutions.
Looking ahead, with two more tranches to go, public servants can look forward to continued improvement in compensation through 2026 and 2027. This signals long-term support for government workers and recognition of their critical role in nation-building.
What is the Salary Standardization Law V?
The Salary Standardization Law V (SSL V) is the fifth version of a long-standing initiative to harmonize the pay scales of Philippine government workers. The goal is to reduce disparities between the salaries of public and private sector employees while attracting top-tier talent to public service. This law mandates a gradual increase in pay through four yearly tranches, beginning in 2024 and concluding in 2027.
Four-Year Implementation Schedule:
- First Tranche – Rolled out in January 2024
- Second Tranche – Ongoing as of January 2025
- Third Tranche – Scheduled for January 2026
- Fourth Tranche – Expected in January 2027
Each tranche increases the base pay across all salary grades, meaning workers in different roles and at different levels of seniority can expect incremental raises over time.
Who Are the Beneficiaries of the 2025 Salary Increase?
The second tranche covers civilian personnel in a wide array of government institutions, including but not limited to:
- National Government Agencies
- Local Government Units (LGUs)
- State Universities and Colleges (SUCs)
- Constitutional Commissions and Offices
- Government-Owned and -Controlled Corporations (GOCCs) not governed by RA 10149
If you’re appointed or elected, full-time or part-time, regular or casual, or even a contractual employee with a formal employer-employee relationship, you likely qualify.
Who is Not Covered?
Certain groups are not eligible for the second tranche under SSL V:
- Military and uniformed personnel, including members of the police and armed forces
- Job order workers and consultants, due to lack of formal employment contracts
- Interns and apprentices
- Employees of GOCCs that fall under RA No. 10149 and EO No. 150
Breakdown: How Much Are the Salary Increases in 2025?
Let’s take a closer look at how these increases manifest in actual peso amounts. Based on the DBM’s salary grade table, here’s a sample of what the updated salaries look like:
- Salary Grade 1, Step 1: from ₹13,530 to ₹14,061
- Salary Grade 7, Step 1: from ₹18,620 to ₹19,492
- Salary Grade 10, Step 1: from ₹22,190 to ₹23,349
- Salary Grade 24, Step 1: from ₹91,883 to ₳94,640
- Salary Grade 33, Step 1: from ₹428,994 to ₹438,844
To view the entire table of updated salaries, visit the official salary grade breakdown.
What This Means for Government Employees
1. Boosted Financial Stability
The increase allows for better household budgeting, more savings, and additional investment opportunities for government employees and their families.
2. Higher Workplace Satisfaction
Public servants often feel overlooked. This financial recognition helps improve morale and encourages long-term commitment to public service.
3. Talent Retention and Recruitment
More attractive salaries help the government retain qualified staff and appeal to young professionals looking to serve the country while earning competitive pay.
4. Support for Families
Many public employees are the primary breadwinners in their homes. A stable increase in pay positively affects children’s education, healthcare access, and quality of life.
5. Macro-Economic Benefits
Higher disposable incomes can boost domestic spending, helping stimulate the local economy, especially in provincial areas where many government workers reside.
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How Is the Program Funded?
The second tranche of SSL V is funded through the 2025 General Appropriations Act (GAA). This ensures a sustainable and well-planned fiscal rollout. The Department of Budget and Management (DBM) is responsible for monitoring and releasing funds to the appropriate agencies.
For GOCCs, salary increases must be financed internally through their corporate operating budgets, and only if they have the financial capacity to do so without requiring additional government subsidy.
FAQs On Philippines 2025 Salary Boost Alert
Q1: Will my salary automatically increase?
Yes. If you qualify under the guidelines, your salary will be adjusted based on the new salary grade and step level for 2025.
Q2: How does the increase affect taxes and deductions?
While the gross pay increases, so might your withholding tax and other deductions. Still, your net pay will likely be higher. You can use the BIR Tax Calculator to see estimates.
Q3: Are LGUs obligated to follow the increase?
Not always. LGUs must show that they have enough funds to implement the hike. If not, they may defer or apply the increase partially.
Q4: Are teachers and healthcare workers included?
Yes. Public school teachers, government nurses, and other frontliners are part of this initiative and benefit according to their current salary grade.
Q5: How can I verify my current salary grade and step?
Speak to your agency’s HR department. You can also find updated information on the DBM’s website or their latest circulars.
