Thousands of government employees in the Philippines are receiving a salary boost as the Department of Budget and Management (DBM) implements the second tranche of salary hikes this April 2025. This increase is part of a multi-phase plan under Executive Order No. 64, signed in August 2024.
According to Budget Secretary Amenah F. Pangandaman, this phase underscores the government’s commitment to improving public sector compensation and supporting economic resilience for civil servants.
What Is National Budget Circular No. 597
National Budget Circular No. 597 lays out the guidelines for implementing the second wave of salary increases for eligible civilian workers. As a continuation of EO No. 64, this circular identifies the agencies, pay grades, and employee classifications that will benefit from this pay hike.
The new salary adjustments are effective starting January 2025, but the full impact and monthly rollout across departments are being felt in April due to varying payroll schedules and HR system updates.
Who Is Eligible for the Second Tranche in April 2025
The salary increase applies to a wide spectrum of government-employed civilian workers under the compensation framework. Covered sectors include:
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Departments under the Executive Branch
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Members of the Legislative and Judiciary
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Employees of Constitutional Commissions and Offices
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Workers from State Universities and Colleges (SUCs)
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Personnel in Government-Owned or Controlled Corporations (GOCCs) not governed by EO No. 150 or the GOCC Governance Act of 2011
This broad coverage ensures that professionals from various civil sectors are rewarded, particularly those contributing to frontline services and administration.
Who Is Excluded from the Salary Adjustment
Despite the wide coverage, some groups are not eligible under this phase of salary implementation. According to Circular No. 597, the following are excluded:
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Military and uniformed personnel
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Agencies exempt from the Revised Compensation and Position Classification System
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Individuals not in a formal employer-employee relationship
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Contractual workers paid from non-personnel service budgets
These groups may be considered under separate legislative or executive initiatives later in the year.
How Is the Salary Hike Being Funded
The funding for this second salary increase is strategically allocated to ensure no disruptions to the national budget.
For national government agencies:
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Sourced from the Miscellaneous Personnel Benefits Fund (MPBF)
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Additional appropriations under the 2025 General Appropriations Act (GAA)
For qualified GOCCs:
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Funded through their respective Corporate Operating Budgets
Local Government Units (LGUs) are currently not included under this circular. However, DBM has announced that separate guidelines for LGU salary adjustments will be released soon.
What This Salary Increase Means for Civilian Workers
The 2nd tranche of salary hikes is a positive step for Filipino public servants. For many mid-level and entry-level government workers, this additional income could improve household budgets, provide relief against inflation, and increase workplace satisfaction.
Employees are encouraged to check with their department’s Human Resource office to understand the specific changes to their monthly salary. Adjustments will vary based on rank, classification, and years of service.
A Move Toward Competitive Government Compensation
This salary adjustment is not just about inflation protection — it’s also part of a bigger mission to reform and professionalize the Philippine bureaucracy. By aligning pay with private sector standards and making government roles more attractive, the administration hopes to retain top talent and reduce skill gaps across essential departments.
It also signals a step toward reducing internal income disparities within government agencies, creating a fairer system of compensation and job valuation.
FAQs
Who qualifies for the April 2025 salary hike?
Government workers in executive, legislative, and judiciary branches, including those in state universities and some GOCCs, are covered by this increase.
Are LGU employees included in the second tranche?
No, LGUs are not included in this phase. The DBM has announced that separate guidelines for LGUs will be released in a future circular.
What is the source of funds for the salary hike?
For national agencies, funds come from the MPBF and the 2025 General Appropriations Act. GOCCs must use their corporate operating budgets.
Are contractual or job-order workers included?
No, only those with a formal employer-employee relationship under the specified compensation system are eligible.
When will employees see the hike reflected in their salary?
Although effective from January 2025, most departments will fully reflect the hike in April due to internal processing and HR schedules.
Will military and police personnel get a separate increase?
Yes, they are excluded from this round but are typically covered under separate mandates or military compensation frameworks.
How do I confirm if I’m eligible?
You should check with your HR or finance department, which will provide details based on your classification, agency type, and pay grade.
What is the long-term goal of these salary tranches?
To make government service more competitive, attract skilled professionals, and strengthen the overall effectiveness of the civil service.
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Aanchal is a passionate writer with a keen interest in storytelling, content creation, and creative expression. She enjoys exploring diverse topics and crafting engaging narratives that captivate readers.