The Philippine government is implementing the second tranche of the much-anticipated Government Salary Increase 2025 under Executive Order No. 64. This phase is part of the salary standardization law designed to enhance the compensation of public servants nationwide. With more than 1.7 million employees across various agencies, this pay hike aims to make government positions more competitive and equitable.
Table of Contents
Breakdown of the Second Tranche Under EO 64
The second tranche under EO 64 continues the gradual adjustment of salaries across salary grades and position classifications. From entry-level to executive roles, the increments vary but aim to close gaps in compensation within the public service sector. Here’s an illustrative breakdown:
Position Level |
Previous Monthly Rate |
New Monthly Rate (2025) |
% Increase |
|---|---|---|---|
Salary Grade 1 (Utility) |
PHP 13,000 |
PHP 13,900 |
6.92% |
SG 11 (Admin Officer) |
PHP 27,000 |
PHP 29,200 |
8.15% |
SG 18 (Mid-Level Mgmt) |
PHP 45,000 |
PHP 48,600 |
8.00% |
SG 24 (Director IV) |
PHP 86,742 |
PHP 93,700 |
8.01% |
SG 30 (Sec. Level) |
PHP 171,000 |
PHP 183,300 |
7.20% |
These adjustments aim to reflect inflation, align with private sector rates, and retain skilled personnel within the public sector.
How the Public Sector Pay Hike Affects Civil Servants
The public sector pay hike is more than just a numbers game. It has direct implications on employee morale, recruitment, and retention. For many civil servants, especially in underserved regions, the increment can help offset the rising cost of living. Moreover, the updated compensation structure seeks to minimize brain drain by making government work financially viable for skilled professionals.
Mid-level professionals such as engineers, educators, and IT personnel, who often consider transitioning to the private sector, may now reconsider as the revised pay levels close the compensation disparity. The boost is particularly significant for those in health and education sectors—areas critical to national development.
EO 64 and the Road to Salary Standardization
Executive Order 64, signed in early 2024, outlines a four-year plan to gradually improve government compensation. The Government Salary Increase 2025 represents the second step in that journey. This law is not just about economics—it reflects the administration’s acknowledgment of the crucial role played by public servants in national development.
This move builds upon the foundations laid by previous salary standardization laws, but EO 64 distinguishes itself with its aggressive timetable and structured pay matrix. It also incorporates performance-based bonuses and allowances, incentivizing excellence in service.
Funding the Pay Hike: Where the Budget Comes From
One concern many observers raise is sustainability. The second tranche is backed by the General Appropriations Act for Fiscal Year 2025, which allocates over PHP 90 billion specifically for salary adjustments. This budget ensures that agencies from LGUs to national departments can comply without disrupting operations.
Finance and budget officials have clarified that this is part of a broader fiscal reform strategy. Government borrowing and revenue collection have improved over the past year, enabling the state to fund salary hikes without triggering deficits.
Timeline and What’s Next for 2026
The implementation of the second tranche started in January 2025 and will be fully applied by the end of Q2. The next stage of the public sector pay hike is scheduled for January 2026. It’s expected to focus more on aligning upper-tier government positions with competitive benchmarks across Southeast Asia.
Employees are advised to coordinate with their HR units for exact breakdowns applicable to their roles. Performance evaluations will also play a growing role in the coming phases.
Conclusion
The Government Salary Increase 2025 under EO 64 is not just a technical adjustment—it’s a meaningful shift in how public service is valued in the Philippines. By aligning pay with professional standards and inflationary realities, the government is taking solid steps to build a more motivated, stable, and competent civil workforce. As the nation navigates forward, continued monitoring and responsive policy-making will be essential to ensure that this wage reform benefits both employees and the public they serve.
FAQ
What is EO 64 and how does it relate to the salary increase?
EO 64 is the executive order signed to implement the four-year salary standardization program, including the Government Salary Increase 2025.
Who qualifies for the public sector pay hike?
All civilian government personnel, including those in local government units, state universities, and government-owned corporations, are covered.
When did the second tranche take effect?
The second tranche began implementation in January 2025 and will be fully reflected in pay slips by June 2025.
Will there be a third tranche in 2026?
Yes. The third tranche is scheduled for rollout in January 2026 as part of the ongoing salary standardization reforms.
How is the pay hike funded?
It is funded through the 2025 national budget under the General Appropriations Act, specifically earmarked for compensation adjustments.
