The Salary Standardization Law (SSL) plays a crucial role in improving the pay of government employees in the Philippines. As part of the Salary Standardization Law of 2019 (Republic Act 11466), this program aims to provide fair and gradual salary increases for public sector workers over a span of several years. The second tranche, effective from 1 January 2025, will introduce updated salary scales for a wide array of government positions, benefiting employees at various levels of service.
The Impact of the SSL on Over 1.7 Million Government Workers
This new phase of the SSL will directly affect more than 1.7 million government employees, ranging from teachers and healthcare workers to administrative staff and uniformed personnel. A key feature of this tranche is that salary increases will differ across positions, with lower salary grades receiving a higher percentage increase to help close wage disparities.
Additional Incentives and Benefits for Government Workers
Along with salary increases, the second tranche will provide extra incentives and additional benefits to certain employees. These might include allowances, bonuses, or other compensatory perks depending on the employee’s role and responsibilities.
Overview of the Salary Adjustment Program
The Salary Adjustment Program is a four-year initiative designed to ensure consistent pay increases for government employees. It began in 2024 and is scheduled to end in 2027, with annual increments introduced in four phases or tranches. The second tranche, set for January 2025, builds on the groundwork laid by the first tranche in 2024, establishing a framework for systematic and equitable wage adjustments.
The program uses a standardized approach based on Salary Grades (SGs) and step levels, ensuring that employees across various sectors and roles receive salary increases proportionate to their current pay grades. This approach guarantees fairness and consistency, promoting equity for all government workers.
Tranche Implementation Timeline
- First Tranche: January 1, 2024
- Second Tranche: January 1, 2025
- Third Tranche: January 1, 2026
- Fourth Tranche: January 1, 2027
This phased approach helps balance the government’s fiscal responsibilities while gradually improving the compensation of public sector employees. It also ensures that the program remains financially sustainable over its four-year course.
Revised Pay Scale for the Second Tranche
The second tranche will introduce incremental salary adjustments for civilian government employees. For example, employees in Salary Grade 1, Step 1 will see their monthly salary increase from ₱13,530 in 2024 to ₱14,061 in 2025.
| Salary Grade (SG) | 2024 Monthly Salary | 2025 Monthly Salary | Increase (%) |
|---|---|---|---|
| SG 1 | ₱13,000 | ₱13,780 | 6.00% |
| SG 5 | ₱16,200 | ₱17,170 | 6.00% |
| SG 10 | ₱20,580 | ₱21,820 | 6.03% |
| SG 20 | ₱53,290 | ₱56,280 | 5.62% |
| SG 30 | ₱184,190 | ₱192,480 | 4.50% |
Average Increase in the Second Tranche
The adjustments in the second tranche show some significant improvements compared to the first tranche. For example, employees in managerial positions will see their average salary increase rise from 4.34% to 4.90%. Top leaders (SG 32-33) also receive a significant boost, with their average increase increasing from 2.38% in the first tranche to 4.67% in the second tranche. These improvements reflect an effort to increase pay across all levels, including leadership positions.
| Position Category | Tranche 1 Average Increase (%) | Tranche 2 Average 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% |
Who is Covered Under the SSL VI?
The second tranche applies to:
- Civilian government employees in the Executive, Legislative, and Judicial branches.
- Constitutional offices, such as the Commission on Audit (COA) and the Office of the Ombudsman.
- Employees of local government units (LGUs) and Government-Owned and Controlled Corporations (GOCCs), unless exempt under specific laws.
However, it’s important to note that military personnel and uniformed services have separate salary adjustment mechanisms and are not included in this program.
Additional Benefits Beyond Basic Salary
In addition to salary increases, government employees will enjoy other benefits designed to support their overall well-being:
- Annual Medical Allowance: Government employees receive ₱7,000 annually to help cover medical expenses, ensuring they have financial support for healthcare needs.
- Performance-Based Bonuses (PBB): Employees may earn extra pay based on their performance and how well their organization meets its goals.
- Uniform or Clothing Allowance: Each employee is given an annual allowance of ₱7,000 to help with the purchase of uniforms or appropriate work attire.
These added benefits provide further support for government employees, making the overall compensation package more comprehensive and encouraging high performance.
Fact Check: Debunking Misconceptions
Here are some common misconceptions surrounding the second tranche, along with clarifications:
- Claim: The second tranche includes a 23.24% salary increase for all government employees in 2025.
Fact: This claim is incorrect. The 23.24% increase is part of the fourth tranche, which is planned for 2024. The second tranche will involve more modest increases, ranging from 4% to 8%, depending on salary grade. - Claim: The Salary Standardization Law (SSL) will be fully implemented by 2024.
Fact: This is false. The SSL program spans until 2027, with the second, third, and fourth tranches scheduled for 2025, 2026, and 2027, respectively. - Claim: Only high-ranking officials benefit from salary adjustments under SSL.
Fact: This claim is not true. The SSL ensures equitable salary increases across all government levels. Employees in lower salary grades (SG 1-10) receive higher percentage increases to address wage gaps and ensure fairness.
The second tranche of the Salary Standardization Law marks a significant step in improving the compensation of government employees, ensuring that their hard work and dedication are properly rewarded.
