Marcos issues order increasing salaries of government workers

President Ferdinand Marcos Jr. has issued an executive order increasing the salaries of and granting additional allowance to workers in government.

The Presidential Communications Office (PCO) announced that Marcos issued Executive Order No. 64, signed by Executive Secretary Lucas Bersamin by authority of the President, on August 2, 2024.

The Palace said the order takes effect immediately upon publication in the Official Gazette or in a newspaper of general circulation.

“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.

The order states that the last time that salaries of government workers were adjusted was in 2023, when the fourth and final tranche of the modified salary schedule under the Salary Standardization Law of 2019 expired.

The latest presidential order covers all civilian government personnel in the Executive, Legislative, and Judicial Branches; Constitutional Commissions and other Constitutional Offices.

Also covered in the salary adjustments are workers in government-owned or controlled corporations (GOCCs) and local government units (LGUs).

The salary increases shall be implemented in four tranches, with the first one effective Jan. 1, 2024, second on Jan. 1, 2025, third on Jan. 1, 2026, and the fourth on Jan. 1, 2027.

The Department of Budget and Management (DBM) earlier said it allocated P70 billion in the proposed P6.352-trillion national budget next year to cover the funding requirements for the first and second tranches of the salary adjustments for workers in the bureaucracy.

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

Apart from salary adjustment, government workers shall also expect a medical allowance of P7,000 per annum as a subsidy for the availment of health maintenance organization (HMO)-type benefits.

The President tasked the DBM to issue the guidelines necessary to implement specific provisions of EO 64.

The salary increases under EO 64, however, would not apply to those engaged through job orders, contracts of service, consultancy or service contracts with no employer-employee relationship.

Similarly not covered by the order are those working in GOCCs, who are covered by separate Compensation and Position Classification System. — KG/VDV, GMA Integrated News