DBM Announces Four-Part Salary Increase for Government Employees Starting in 2025
MANILA – The Department of Budget and Management (DBM) has revealed plans to implement a four-tranche salary increase for government workers, with the first two tranches set to commence next year. This initiative, amounting to P70 billion, will be included in the proposed 2025 national budget.
During a press briefing at Malacañang, Budget Secretary Amenah Pangandaman confirmed that the 2025 budget also allocates P9.6 billion for a medical allowance, providing P7,000 per government employee. These commitments were made by President Marcos in his State of the Nation Address (SONA) on July 22.
“The P70 billion is allocated for the initial tranche of a retroactive salary adjustment for this year and the second tranche for next year. Our plan is to start the four tranches this year and spread it over the following years—covering 2024 to 2027,” Pangandaman stated.
The DBM has indicated that the salary hike will benefit various categories of government employees, including 165,007 subprofessionals, 1,170,647 professionals such as teachers and lawyers, and 22,640 personnel in executive roles.
Confident Stance
Pangandaman expressed confidence that the DBM would successfully advocate for the proposed salary increase and the 2025 national budget in Congress. The last salary adjustment for government workers was implemented under Republic Act No. 11466, also known as the Salary Standardization Law of 2019, which phased the salary increases from 2020 to 2023.
The 2025 budget provision of P9.6 billion for annual medical allowances will ensure each government employee receives P7,000. Pangandaman emphasized that the allowance will be disbursed in cash to facilitate easier access to health maintenance organization (HMO) services for government agencies.
This budgetary move aims to enhance the welfare of government employees by providing both salary increases and medical allowances, reflecting the administration's commitment to supporting its workforce.
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