DBM: Gov’t workers to get 2-in-1 pay hike starting Jan. 2025

Government workers should expect two tranches of salary increase, covering the years 2024 and 2025, to be reflected on their paychecks starting January next year.

This was after the Department of Budget and Management (DBM) allocated P70 billion in the proposed P6.352-trillion 2025 national budget for the salary increase of state workers. 

“For budgeting purposes, we included P70 billion in the FY (Fiscal Year) 2025 MPBF (Miscellaneous Personnel Benefits Fund) to cover funding requirements for Tranches 1 and 2. This is the case since the Personnel Services budget of each agency under the NEP (National Expenditure Program) is still based on 2023 rates,” Budget Secretary Amenah Pangandaman told GMA News Online.

Broken down, Pangandaman said the P70 billion earmarked for salary increase of workers in the bureaucracy would be P35 billion for Tranche 1 and another P35 billion for Tranche 2.

At a Palace briefing on Thursday, the Budget chief said that the first tranche of salary adjustment this year would be retroactive — covering the period January to December 2024.

The retroactive salary hike in 2024 would also coincide with the scheduled adjustment for 2025.

Asked if the salary adjustments that could be expected by a government worker starting January next year would be the adjusted rate for 2024 as well as the adjusted rate for 2025, Pangandaman said, “Correct.”

“Yes, kasama na second tranche (Yes, the second tranche is included),” she said.

The Marcos administration will be implementing another four-round salary adjustment initiative for government workers beginning 2024 until 2027.

“We are proposing four tranches of [salary adjustments],” Pangandaman said.

The Budget chief earlier said the DBM is now crafting the executive order for the government’s four-tranche wage increase program.

President Ferdinand "Bongbong" Marcos Jr. vowed in his third State of the Nation Address (SONA) that salaries of state workers will be increased.

The salary increase for government workers is expected to benefit 165,007 sub-professionals; 1,170,647 professionals, such as teachers and lawyers; and 22,640 personnel in executive functions, according to the DBM.

Data from the Budget Department showed that the number of permanent positions in the entire bureaucracy stands at 1.943 million, which include both civilian and military/uniformed personnel. —KBK, GMA Integrated News