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.
Contents
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 Grade | 2024 (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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