The Department of Budget and Management has allocated P106 billion to support President Marcos' directive to increase the salaries of government employees.
Budget Secretary Amenah F. Pangandaman said that DBM has set aside P36 billion for the current year and an additional P70 billion for the following year to ensure the implementation of the salary increase's first and second tranches.
Pangandaman explained that the 2024 budget allocation falls under Personnel Services expenditures, while the funding for the next year has been included in the 2025 National Expenditure Program, which outlines the administration's proposed budget.
She said the salary raise would be in addition to the medical allowance that government workers will receive as an extra perk beginning next year.
In his State of the Nation Address (SONA), President Marcos stated that he had given the go-ahead to the recommendation of the DBM to raise the salaries of government workers.
"Mayroon ding napipintong umento sa sweldo na makukuha nila sa apat na tranche. Naglaan na po tayo ng pondo para dito simula sa taong ito at sa mga susunod na taon," the President mentioned.
[There is also an impending salary increase that they will receive in four tranches. We have already allocated funds for this starting this year and in the succeeding years.]
All salary tranches include specific pay rates for each salary level and step increase. The Office of the President is set to issue an Executive Order outlining the salary increase.
The expected salary increase for government workers is set to benefit 165,007 sub-professionals; 1,170,647 professionals, including teachers and lawyers; and 22,640 personnel in executive roles.
Before this, the DBM and the Governance Commission for GOCCs conducted a study to lay the groundwork for enhancing the salaries and benefits of government employees, aiming to create a competitive, financially viable, and fair compensation system.
The study aimed to assess the government's ability to compete with the private sector in providing appropriate compensation and benefits to workers.
It also aimed to identify compensation strategies to bring government employees' salaries closer to current market rates.