Philippines Second Tranche 2025: The Salary Standardization Law (SSL) is an essential step in improving the compensation of government employees in the Philippines. As part of the Salary Standardization Law of 2019 (Republic Act 11466), the government aims to provide fair, consistent, and gradual salary increases for public workers over several years. The second phase, which will take effect on January 1, 2025, will introduce revised salary scales for various government positions, directly benefiting over 1.7 million employees, including teachers, healthcare workers, administrative staff, and uniformed personnel.
Key Features of the Second Tranche
The second tranche of salary adjustments under the SSL will vary in percentage increases based on the employee’s salary grade. Those in lower salary grades are expected to see more significant increases to address wage discrepancies. Additionally, some employees will receive additional incentives such as allowances, bonuses, and other forms of compensation.
Overview of the Salary Adjustment Program
The Salary Adjustment Program is a long-term initiative designed to enhance the pay of government employees systematically. The program began in 2024 and will continue until 2027, with pay increases spread across four tranches. The second tranche, which is set to take effect in January 2025, builds on the first tranche, which introduced the basic framework for salary increases.
The SSL ensures a standardized and equitable approach to salary adjustments, with changes based on Salary Grades (SGs) and step levels. This guarantees that all employees, regardless of their job function, receive a fair increase proportionate to their current salary grade.
Implementation Timeline for the Salary Adjustment
- First Tranche: January 1, 2024
- Second Tranche: January 1, 2025
- Third Tranche: January 1, 2026
- Fourth Tranche: January 1, 2027
This phased approach allows the government to balance fiscal responsibilities while progressively improving the pay of public sector workers over the course of four years.
Revised Pay Scales for the Second Tranche
The second tranche will introduce incremental salary adjustments for civilian government employees. For example, employees in Salary Grade 1, Step 1 will see their monthly salary increase from ₱13,530 in 2024 to ₱14,061 in 2025.
| 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% |
Average Salary Increase in the Second Tranche
The second tranche will see notable increases in the pay of government employees, particularly for those in managerial and leadership positions. For instance, employees in managerial roles (SG 25-28) will see their average increase rise from 4.34% in Tranche 1 to 4.90% in Tranche 2. Similarly, top leaders in SG 32-33 will experience a significant jump, with their average increase going from 2.38% to 4.67%.
| 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% |
Who Is Covered Under the SSL VI?
The second tranche of the Salary Standardization Law applies to various government employees, including:
- Civilian employees in the Executive, Legislative, and Judicial branches
- Constitutional offices like the Commission on Audit (COA) and the Office of the Ombudsman
- Local Government Units (LGUs) and Government-Owned and Controlled Corporations (GOCCs) that are not exempt under specific laws
However, it does not cover military personnel and uniformed personnel, who follow separate salary adjustment systems.
Additional Benefits for Government Employees
Along with the salary increases from the second tranche, government employees will receive additional benefits that support their well-being:
- Annual Medical Allowance: A ₱7,000 medical allowance to cover healthcare-related expenses each year.
- Performance-Based Bonuses (PBB): Extra compensation based on performance and organizational achievements.
- Uniform or Clothing Allowance: An annual allowance of ₱7,000 to help employees purchase appropriate work attire.
These additional benefits aim to support employees beyond their regular salaries and encourage excellent performance.
Fact Check: Debunking Common Myths
There are a few misconceptions regarding the second tranche of the SSL. Let’s address them:
- Claim: The second tranche includes a 23.24% salary increase for all government employees.
- Fact: This is false. The 23.24% increase was part of the fourth tranche, not the second. The second tranche will feature more modest increases, ranging between 4% and 8%, depending on the employee’s salary grade.
- Claim: The SSL will be completed by 2024.
- Fact: The SSL program will continue until 2027, with additional phases scheduled for 2026 and 2027. The 2024 tranche is just the first of several.
- Claim: SSL only benefits high-ranking officials.
- Fact: This is incorrect. The SSL program ensures that all government employees, including those in lower salary grades, benefit from salary adjustments. It prioritizes equitable pay, with lower salary grades receiving larger percentage increases to address wage gaps.
The Salary Standardization Law (SSL) is a significant step towards ensuring that government employees receive fair and consistent salary increases. By implementing this structured and phased approach, the government is promoting equity across all sectors while ensuring fiscal sustainability.
