President Marcos has issued Executive Order (EO) No. 64, increasing the government workers' salaries and granting them an additional allowance.

Executive Secretary Lucas P. Bersamin, by authority of the President, signed EO 64 on August 2, 2024. It takes effect immediately.

“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 in order 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 in his EO.

Under EO 64, the updated salary schedule applies to all civilian government personnel in the Executive, Legislative, and Judicial Branches; Constitutional Commissions; and other Constitutional Offices.

Government-Owned or-Controlled Corporations (GOCCs) not covered by the “GOCC Governance Act of 2011” and EO No. 150 (s.2021) and the Local Government Units (LGUs) are also covered by the EO 64.

Under the EO, the salary increase for the Philippine President, Vice President, and Congress members shall only take effect once the respective terms of the incumbents expire. This means only the successors of President Marcos, Vice President Duterte, and the present Members of Congress will benefit from this EO.

The updated salary schedule will be implemented in National Government Agencies (NGAs) in four tranches: Jan. 1, 2024, Jan. 1, 2025, Jan. 1, 2026, and Jan. 1, 2027.

EO 64 takes effect retroactively, which means that the first tranche of implementation will be effective on Jan. 1, 2024.

Aside from this, qualified government employees will receive a medical allowance of P7,000 per annum as a subsidy for availing health maintenance organization (HMO)-type benefits.

However, government officials and employees who are already receiving HMO-based healthcare services under special laws are excluded from getting medical services, as well as officials and employees in the legislative and judicial branches and other offices vested with fiscal autonomy.

The Department of Budget and Management (DBM) is tasked to issue the guidelines necessary to implement specific provisions of EO 64.