Salary Boost for Government Workers Under EO 64 Begins This Month

The Department of Budget and Management (DBM) has announced that the second tranche of the salary increase for civilian government workers will be implemented starting January 2025.

Budget Secretary Amenah Pangandaman signed National Budget Circular No. 597, outlining the rules for the updated Salary Schedule in line with Executive Order (EO) No. 64, s. 2024, signed by President Ferdinand “Bongbong” Marcos Jr. in August 2024.

Commitment to Support Government Workers

“In line with the President’s promise, we will implement the second phase of the salary hike this January. We hope it provides much-needed financial relief and enhances the quality of life for government employees,” Pangandaman said.

EO No. 64 mandates the updated Salary Schedule to be implemented in four phases:

• First tranche: January 1, 2024
• Second tranche: January 1, 2025
• Third tranche: January 1, 2026
• Fourth and final tranche: January 1, 2027

Coverage and Exclusions

The salary adjustment applies to civilian government personnel, including employees in the Executive, Legislative, and Judicial branches, Constitutional Commissions, State Universities and Colleges, and Government-Owned and Controlled Corporations (GOCCs) not covered by RA No. 10149 and EO No. 150, s. 2021.

It covers all appointment statuses, whether regular, casual, or contractual; appointive or elective; and full-time or part-time.

The Circular does not apply to:

• Military and uniformed personnel
• Government agencies exempt from RA No. 6758
• GOCCs under RA No. 10149 and EO No. 150
• Consultants, laborers paid on piecework basis, student workers, apprentices, and individuals engaged without an employer-employee relationship

Funding Sources

The salary adjustments for Fiscal Year 2025 will be funded through the Miscellaneous Personnel Benefits Fund and the General Appropriations Act for 2025, adhering to budgeting and auditing rules. For eligible GOCCs, the funds will be drawn from their approved corporate operating budgets.