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Philippine Workers to Receive Confirmed Salary Increase, Find Out the New Hike

Philippine Workers to Receive a Salary Boost: Find Out the Details The government has approved a new law that will increase salaries for Philippine workers over the next four years. This is great news for public sector employees, who have been facing rising costs of living and inflation. The Salary Standardization Law VI (SSL VI) was signed into law on August 2, 2024, by President Ferdinand Marcos Jr. The law aims to improve the salaries of government employees to make them more competitive with those in the private sector. The salary increases will be implemented gradually over four years, starting in 2024. The first tranche of the salary hike will be given on January 1, 2024. The amount of the salary increase will vary depending on the employee's salary grade and step. For example, an employee in Salary Grade 15 (Step 1) will see their salary increase from ₱38,413 in 2024 to ₱44,148 in 2027, an increase of ₱5,735 over the four years. In addition to the salary increases, SSL VI also introduces several other key benefits, including: ₱7,000 Annual Medical Allowance ₱7,000 Annual Uniform/Clothing Allowance Performance-Based Bonuses (PBB) The SSL VI is a significant step forward in improving the compensation and welfare of public sector employees in the Philippines. The law will help to ensure that government employees receive the recognition and financial support they deserve for their crucial role in public service.

The Philippine government has officially rolled out the Salary Standardization Law VI (SSL VI), a landmark initiative aimed at increasing the salaries of public sector employees over a four-year period. This move was signed into law by President Ferdinand Marcos Jr. through Executive Order No. 64 on August 2, 2024. The salary adjustments are designed to help government employees cope with inflation, the rising cost of living, and other financial challenges.

Overview of SSL VI

The Salary Standardization Law VI is a government initiative aimed at improving the salary structure of civilian government employees in the Philippines. The program responds to economic pressures, such as inflation, to ensure that public sector wages remain competitive and aligned with the country’s economic landscape.

The primary goals of SSL VI are:

  • To offer competitive pay for government workers, ensuring their wages are on par with those in the private sector.
  • To increase job satisfaction, reduce turnover, and retain skilled employees in the public workforce.
  • To encourage greater productivity, efficiency, and commitment to public service by rewarding the efforts of government employees.

Implementation Timeline

The salary increases under SSL VI will be rolled out gradually over four years, allowing for manageable adjustments that align with the government’s budget and financial resources. Below is the timeline for the salary hikes:

  • 1st Tranche: January 1, 2024 – Initial salary adjustment
  • 2nd Tranche: January 1, 2025 – Continued salary increase
  • 3rd Tranche: January 1, 2026 – Further adjustment
  • 4th Tranche: January 1, 2027 – Final salary increase

This phased approach ensures that the adjustments are sustainable for the government while providing consistent and predictable salary increases to public sector employees.

Salary Increases: How Much Will You Earn?

Under SSL VI, salary increases are based on Salary Grade (SG) and Step. Each government position is assigned a salary grade, with each grade containing steps that reflect seniority or performance. The salary increases will vary depending on an employee’s grade and step.

Here’s an example of the salary growth for selected Salary Grades from 2024 to 2027:

Salary Grade2024 (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

For example, an employee in Salary Grade 15 (Step 1) will see their salary grow from ₱38,413 in 2024 to ₱44,148 in 2027, an increase of ₱5,735 over the four years.

Who Will Benefit from SSL VI?

The SSL VI benefits a wide range of government employees, including those in:

  • Executive, Legislative, and Judicial Branches: Workers in national government agencies, commissions, and departments.
  • Government-Owned and Controlled Corporations (GOCCs): Employees in GOCCs that are not covered by separate compensation laws.
  • Local Government Units (LGUs): Employees of LGUs, subject to the financial capacity of each local government.

With over 1.3 million government employees eligible, the SSL VI will provide fair and equitable compensation to workers across all sectors of government service.

Additional Benefits

In addition to salary increases, SSL VI introduces several other key benefits:

  • ₱7,000 Annual Medical Allowance: This allowance helps employees cover health maintenance organization (HMO) plans and other medical expenses.
  • ₱7,000 Annual Uniform/Clothing Allowance: This allowance supports employees in purchasing work-related clothing and uniforms.
  • Performance-Based Bonuses (PBB): Employees who meet or exceed performance standards will continue to receive PBB, further incentivizing productivity and excellence in public service.

Conclusion

The Salary Standardization Law VI represents a significant step forward in improving the compensation and welfare of public sector employees in the Philippines. By providing competitive salaries, along with additional benefits, SSL VI aims to create a more motivated and efficient workforce that is better equipped to face the economic challenges of the future. This initiative ensures that government employees receive the recognition and financial support they deserve for their crucial role in public service.

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Dhananjay Author

Dhananjay

नमस्ते मेरा नाम धनंजय है, मैं पिछले चार सालों से कंटेन्ट राइटिंग के क्षेत्र में कार्य कर रहा हूँ और लोगों को ऑटोमोबाईल, टेक्नॉलजी सरकारी योजना और निवेश स्कीम के बारे में जानकारी प्रदान करने की कोशिश करता हूँ ।

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