The Philippine government is set to implement the second tranche of the Salary Standardization Law of 2019 (Republic Act 11466) on January 1, 2025. This initiative aims to gradually increase the salaries of public sector employees, ensuring fair compensation across various government positions.
The Salary Standardization Law (SSL) is an essential policy that ensures government employees receive structured and sustainable salary increases over several years. By implementing salary adjustments in multiple phases, the government ensures a fair and equitable wage structure that considers fiscal responsibility while addressing employee compensation needs.
Philippines Second Tranche 2025
The Salary Adjustment Program is a four-year initiative designed to provide systematic pay increases for government employees. It follows a structured approach to ensure that employees across different government agencies receive fair salary adjustments. The phases of implementation are as follows:
| Tranche | Implementation Date |
|---|---|
| First Tranche | January 1, 2024 |
| Second Tranche | January 1, 2025 |
| Third Tranche | January 1, 2026 |
| Fourth Tranche | January 1, 2027 |
By phasing the adjustments over four years, the government ensures financial sustainability while improving employee compensation. This phased approach also helps in gradually addressing wage disparities and ensuring that salary increases are manageable within the national budget.
Revised Pay Scale for the Second Tranche
The 2025 salary adjustments will vary based on salary grades (SGs), with lower salary grades receiving higher percentage increases to address wage gaps. This means that employees in lower pay brackets will benefit more significantly in terms of percentage increases compared to those in higher salary grades. The aim is to bridge the gap and provide a more equitable wage distribution for government employees.
| 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% |
These salary adjustments help ensure that government employees at all levels receive meaningful increases that align with their responsibilities and cost-of-living considerations.
Comparison of Tranche 1 and Tranche 2 Adjustments
Government employees at different levels will experience varying average increases. The salary adjustments are designed to be progressive, ensuring that all government employees benefit from structured pay increases while maintaining fairness across different levels of service. Below is a comparison of the average increases from Tranche 1 to Tranche 2:
| 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% |
These salary adjustments ensure that employees at various levels of service receive fair and reasonable salary increments that reflect their contributions and responsibilities.
Who is Covered Under SSL VI?
The Second Tranche applies to a broad range of government employees across different branches and offices. The law ensures that eligible government workers, regardless of their department or agency, receive fair compensation improvements. The Second Tranche applies to:
- Civilian government employees in the Executive, Legislative, and Judicial branches.
- Employees of constitutional offices, such as the Commission on Audit (COA) and the Office of the Ombudsman.
- Local government unit (LGU) employees and Government-Owned and Controlled Corporations (GOCCs), unless exempted.
It is important to note that uniformed personnel, such as those in the military and police forces, have their own separate salary adjustment mechanisms. The SSL program primarily benefits civilian government employees.
Additional Benefits Beyond Basic Salary
In addition to salary increases, government employees will receive various benefits aimed at improving their financial well-being and work conditions. These benefits provide additional financial support and incentives that enhance employee welfare and motivation.
- Annual Medical Allowance: ₱7,000 per year to help cover healthcare expenses. This allowance is crucial in supporting government employees’ medical needs, ensuring they can manage healthcare-related costs more effectively.
- Performance-Based Bonuses (PBB): Extra pay based on performance and organizational achievements. Employees who meet or exceed their performance targets are rewarded with additional financial incentives, encouraging productivity and efficiency in government services.
- Uniform or Clothing Allowance: ₱7,000 annually for work attire expenses. This allowance ensures that employees can maintain professional and appropriate work attire without incurring personal financial burdens.
These benefits, combined with salary adjustments, contribute to the overall welfare of government employees, helping them manage personal expenses while staying motivated in their roles.
Fact Check: Debunking Misconceptions
Several misconceptions surround the Second Tranche of SSL VI. Below are some common claims and the corresponding facts:
- Claim: The second tranche includes a 23.24% salary increase for all government employees in 2025.
- Fact: False. The 23.24% average increase was part of the Fourth Tranche in 2024. The 2025 increases range from 4% to 8%, depending on salary grade.
- Claim: The SSL tranches will be fully implemented by 2024.
- Fact: False. The program runs until 2027, with further increases scheduled for 2026 and 2027. The phased implementation ensures that salary adjustments remain financially sustainable.
- Claim: Salary adjustments under SSL only benefit high-ranking officials.
- Fact: Incorrect. The program ensures that all government employees benefit, with lower salary grades receiving higher percentage increases, to promote fairness and address wage gaps.
Conclusion
The Second Tranche of the Salary Standardization Law is a key step in ensuring fair and progressive salary increases for government employees. With incremental adjustments and additional benefits, the program continues to support public sector workers while maintaining financial sustainability. By implementing structured salary increases and providing additional incentives, the government aims to improve employee welfare, retain skilled professionals, and enhance overall public service efficiency.
