Second Tranche Salary Increase in the Philippines: The Salary Standardization Law VI (SSL VI), launched in 2024, seeks to provide competitive pay for over 1.7 million public servants in the Philippines. This pay adjustment will be executed in four phases from 2024 through 2027. These incremental increases aim to bring government wages in line with private sector salaries, while also mitigating the effects of inflation on government workers.
The second phase of this salary adjustment, effective January 1, 2025, provides an average salary hike between 4.2% and 4.67% for employees across sub-professional, professional, managerial, and executive levels. For example, a Teacher I (SG-11) will see their pay increase from ₱28,512 in 2024 to ₱30,024 in 2025, marking a 5.3% raise. This phase focuses on reducing pay disparities at different levels and improving the competitiveness of key roles within the government.
In addition to salary hikes, the second phase introduces enhancements to allowances and benefits, including a Medical Allowance of ₱7,000 annually and a Uniform/Clothing Allowance of ₱7,000 annually. These adjustments aim to ensure a more equitable compensation framework while fostering a healthier, more motivated public workforce.
Table of Contents
- Overview of SSL VI Tranches
- Detailed Breakdown of the 2nd Salary Tranche
- Salary Increase Details in the Second Tranche
- Salary Adjustments for Key Government Positions
- Salary Grades for the Second Tranche
- How the 2nd Tranche Applies to LGUs
- Overview of New Allowances and Benefits
- Key Incentives in the 2nd Tranche
- Funding and Implementation Timeline
Overview of SSL VI Tranches
The Salary Standardization Law VI rolled out in stages, aiming to gradually adjust government employee pay to be more competitive with the private sector. The following timeline outlines the four phases of implementation:
1st Tranche: January 1, 2024
2nd Tranche: January 1, 2025
3rd Tranche: January 1, 2026
4th Tranche: January 1, 2027
Details of the 2nd Salary Tranche
The second phase of SSL VI carries forward the salary increases, aiming to help government employees cope with inflation while raising their living standards. The ultimate goal is to align government wages more closely with private sector salaries to make public service jobs more attractive.
Salary Increases in the 2nd Tranche
Under the second tranche, salaries across various government categories will see continued growth, though the percentage increase differs based on Salary Grade (SG) and position type. Below is a summary of how salary adjustments vary:
| Category | SSL VI 1st Tranche Increase (%) | SSL VI 2nd Tranche Increase (%) |
|---|---|---|
| Sub-Professional (SG 1-10) | 4.2% | 4.3% |
| Professional (SG 11-24) | 4.88% | 4.67% |
| Managerial (SG 25-28) | 4.34% | 4.90% |
| Executives (SG 29-31) | 3.42% | 4.67% |
| Top Leaders (SG 32-33) | 2.38% | 4.67% |
These salary hikes are designed to progressively align public sector wages with market norms, addressing disparities especially for sub-professional and professional roles compared to managerial and executive levels.
Salary Adjustments for Key Roles
The second tranche continues to make substantial increases in key government positions. Below are some examples:
- Teacher I (SG-11)
- 2024 Salary: ₱28,512
- 2025 Salary: ₱30,024
- Percentage Increase: 5.30%
- Nurse I (SG-15)
- 2024 Salary: ₱38,413
- 2025 Salary: ₱40,208
- Percentage Increase: 4.67%
These increases are essential for maintaining competitive salaries for roles that are critical to public service, such as educators and healthcare workers, enhancing service delivery in these sectors.
Salary Grade Structure for the Second Tranche
The second phase of SSL VI introduces an updated salary scale, ensuring that government workers receive more competitive compensation, particularly at the entry and mid-level professional ranks. Below is the salary schedule for different Salary Grades under the second tranche:
| Salary Grade | Step 1 | Step 2 | Step 3 | Step 4 | Step 5 | Step 6 | Step 7 | Step 8 |
|---|---|---|---|---|---|---|---|---|
| 1 | ₱14,372 | ₱14,482 | ₱14,593 | ₱14,706 | ₱14,818 | ₱14,931 | ₱15,047 | ₱15,161 |
| 10 | ₱24,585 | ₱24,790 | ₱24,998 | ₱25,207 | ₱25,417 | ₱25,630 | ₱25,844 | ₱26,061 |
| 15 | ₱40,208 | ₱40,446 | ₱40,868 | ₱41,296 | ₱41,616 | ₱42,052 | ₱42,494 | ₱42,941 |
| 25 | ₱121,146 | ₱123,122 | ₱125,132 | ₱127,174 | ₱129,250 | ₱131,359 | ₱133,503 | ₱135,682 |
These salary increments provide room for career growth as employees progress through the different steps within their assigned Salary Grades.
Application of the 2nd Tranche in LGUs
Local Government Units (LGUs) are also implementing the second phase of SSL VI, although the increase percentages may vary based on the financial health of each LGU. Here is a general guideline for salary adjustments in LGUs:
- 1st Class Provinces: 100% of the salary increase
- 2nd Class Provinces: 95% of the salary increase
- 3rd Class Municipalities: 85% of the salary increase
- 4th Class Municipalities: 80% of the salary increase
LGUs with fewer financial resources may implement the salary increases at lower rates than more economically stable units.
Allowances in the Second Tranche
Along with salary adjustments, the second tranche introduces several allowances under the Total Compensation Framework (TCF), such as:
- Medical Allowance: Up to ₱7,000 annually for health-related expenses.
- Uniform/Clothing Allowance: Up to ₱7,000 annually to cover the cost of uniforms or appropriate clothing for work.
- Personnel Economic Relief Allowance (PERA): This allowance continues to support government employees amidst inflationary pressures.
Key Incentives in the 2nd Tranche
Several incentives remain under the second tranche, including:
- Representation and Travel Allowance (RATA): For eligible government officials based on their position.
- Performance-Based Bonus (PBB): Awarded to employees who meet performance targets.
- Collective Negotiation Agreement (CNA) Incentive: Given to employees who help cut costs or exceed performance goals.
Funding and Implementation Timeline
The second tranche takes effect from January 1, 2025. The funding for this phase comes from the Miscellaneous Personnel Benefits Fund (MPBF) and additional agency budgets, ensuring a balanced approach to salary adjustments that aligns with the government’s fiscal capabilities.
In summary, the second tranche of the Salary Standardization Law VI marks a significant effort to make government salaries more competitive while improving the living standards of public sector workers. The gradual increases will benefit millions of employees and support the sustainability of the public service workforce.
