President Ferdinand Marcos Jr. has issued an executive order to increase the salaries of and provide additional allowances to government workers.
The Presidential Communications Office (PCO) announced that Executive Order No. 64 was signed by Executive Secretary Lucas Bersamin, by the authority of the President, on August 2, 2024. The order takes effect immediately upon publication in the Official Gazette or a newspaper of general circulation.
“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 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 last adjustment to government workers’ salaries was in 2023, following the final tranche of the modified salary schedule under the Salary Standardization Law of 2019.
The new order covers all civilian government personnel in the Executive, Legislative, and Judicial Branches, Constitutional Commissions, and other Constitutional Offices. It also includes workers in government-owned or controlled corporations (GOCCs) and local government units (LGUs).
The salary increases will be implemented in four tranches, starting on January 1, 2024, with subsequent increases on January 1 of each year through 2027.
The Department of Budget and Management (DBM) has allocated P70 billion in the proposed P6.352-trillion national budget for 2025 to cover the funding requirements for the first and second tranches of salary adjustments.
Executive Order 64 takes effect retroactively, with the first tranche of implementation effective January 1, 2024.
In addition to salary adjustments, government workers will receive a medical allowance of P7,000 per annum as a subsidy for health maintenance organization (HMO)-type benefits.
The President tasked the DBM to issue guidelines necessary to implement specific provisions of EO 64.
However, the salary increases under EO 64 will not apply to those engaged through job orders, contracts of service, consultancy, or service contracts with no employer-employee relationship. Also excluded are those working in GOCCs, who are covered by a separate Compensation and Position Classification System.