The Philippine government has officially rolled out a salary increase for public sector employees under the Salary Standardization Law VI (SSL VI). This program, set to be implemented over a four-year period, aims to gradually raise government workers’ wages, providing relief amidst inflation and the rising cost of living. On August 2, 2024, President Ferdinand Marcos Jr. signed Executive Order No. 64, which lays out the schedule for these salary adjustments, set to take effect from 2024 to 2027.
The primary goal of this initiative is to ensure that government salaries remain competitive, addressing financial challenges, boosting morale, and enhancing the overall quality of the public sector workforce.
Overview of SSL VI
The Salary Standardization Law VI (SSL VI) is a comprehensive program designed to improve the salary structure for civilian government employees in the Philippines. The initiative responds to growing economic pressures, particularly inflation, ensuring that government compensation stays aligned with economic conditions.
Key Objectives of SSL VI:
- To provide competitive pay, ensuring government employees’ salaries are comparable to those in the private sector.
- To enhance job satisfaction and retention by offering better compensation.
- To recognize the dedication and value of public workers, fostering greater efficiency and productivity.
SSL VI aims to make government salaries more attractive and competitive. The salary increase is implemented in four phases, allowing the government to manage its budget while addressing the financial needs of its employees.
Implementation Timeline
The salary adjustments will be carried out over four years, from 2024 to 2027. This gradual approach ensures a smooth transition and allows for efficient budget allocation. The adjustments are scheduled as follows:
| Tranche | Effective Date | Adjustment |
|---|---|---|
| 1st | January 1, 2024 | Initial salary adjustment |
| 2nd | January 1, 2025 | Continued salary increase |
| 3rd | January 1, 2026 | Further adjustment to salaries |
| 4th | January 1, 2027 | Final salary increase |
The phased salary increases are designed to provide employees with regular and predictable pay rises, supporting financial stability for the workforce.
Salary Increases: How Much Will You Earn?
Salary increases under SSL VI are based on Salary Grade (SG) and Step. Each government position is assigned a specific salary grade, which determines the base salary, while the step reflects salary increments based on years of service and performance.
Here’s a breakdown of Step 1 salaries for selected Salary Grades from 2024 to 2027:
| Salary Grade | 2024 (1st Tranche) | 2025 (2nd Tranche) | 2026 (3rd Tranche) | 2027 (4th Tranche) |
|---|---|---|---|---|
| 1 | ₱13,530 | ₱14,061 | ₱14,634 | ₱15,208 |
| 5 | ₱17,205 | ₱17,866 | ₱18,581 | ₱19,296 |
| 11 | ₱28,512 | ₱30,024 | ₱31,705 | ₱33,387 |
| 15 | ₱38,413 | ₱40,208 | ₱42,178 | ₱44,148 |
| 20 | ₱60,157 | ₱62,967 | ₱66,052 | ₱69,138 |
| 24 | ₱94,132 | ₱98,185 | ₱102,603 | ₱107,022 |
| 30 | ₱196,199 | ₱203,200 | ₱210,718 | ₱218,237 |
| 33 | ₱428,994 | ₱438,844 | ₱449,157 | ₱459,469 |
Example Scenario: Salary Growth Over Four Years
For instance, a government employee assigned to Salary Grade 15 (Step 1) will see the following salary increases:
- 2024 (1st Tranche): ₱38,413
- 2025 (2nd Tranche): ₱40,208
- 2026 (3rd Tranche): ₱42,178
- 2027 (4th Tranche): ₱44,148
By the end of 2027, this employee’s salary will have grown by ₱5,735 compared to the initial salary in 2024.
Higher salary grades like SG 30 will experience an even more substantial increase. Employees in this grade will see their salaries grow from ₱196,199 in 2024 to ₱218,237 by 2027—an increase of ₱22,038.
Who Will Benefit from SSL VI?
SSL VI benefits a wide array of civilian government employees, including:
- Executive, Legislative, and Judicial Branch Employees – Workers in national government agencies and departments.
- Personnel in Constitutional Commissions and Offices – Such as the Civil Service Commission and Commission on Audit.
- Employees of Government-Owned and Controlled Corporations (GOCCs) – Those not covered by separate compensation laws.
- Local Government Units (LGUs) – Salary adjustments are subject to each LGU’s financial capacity.
With over 1.3 million government employees set to benefit, the law aims to ensure fair and equitable compensation for public servants at all levels.
Additional Benefits
Alongside salary increases, SSL VI provides several additional benefits to support government workers:
- ₱7,000 Annual Medical Allowance – Helps employees cover medical expenses, including HMO plans and other healthcare needs.
- ₱7,000 Annual Uniform/Clothing Allowance – Assists employees in purchasing uniforms and work-related clothing.
- Performance-Based Bonuses (PBB) – Employees who meet or exceed performance standards will continue to receive PBB, further incentivizing quality work.
These benefits are designed to provide additional support to employees, improving their overall financial well-being and enhancing job satisfaction.
