DEPARTMENT of Budget and Management (DBM) Secretary Amenah “Mina” F. Pangandaman has signed National Budget Circular No. 597, outlining the guidelines, rules, and regulations for the implementation of the second tranche of salary increases for civilian government employees.
This circular is part of the implementation of the updated Salary Schedule for Civilian Personnel as mandated by Executive Order (EO) No. 64, s. 2024, signed by President Ferdinand “Bongbong” R. Marcos, Jr. in August 2024.
“Sa pagpapatuloy po ng pangako ng ating Pangulo, ipatutupad po natin ngayong January 2025 ang pangalawang bahagi ng salary increase para sa ating mga kawani ng gobyerno. We hope that this second tranche will provide much-needed financial relief and allow our government workers to better support their families, invest in their futures, and enhance their overall quality of life,” Secretary Pangandaman stated.
Implementation Timelines:
EO No. 64 mandates a phased implementation of the salary schedule in four tranches:
- First tranche: January 1, 2024
- Second tranche: January 1, 2025
- Third tranche: January 1, 2026
- Fourth tranche: January 1, 2027
This updated Salary Schedule applies to civilian personnel across all branches of government, including the Executive, Legislative, and Judicial branches, Constitutional Commissions and Offices, State Universities and Colleges, and Government-Owned and Controlled Corporations (GOCCs) not covered by Republic Act (RA) No. 10149 and EO No. 150, s. 2021. It includes employees regardless of appointment status (regular, casual, or contractual), employment type (full-time or part-time), or position (appointive or elective).
Exceptions:
The circular excludes:
- Military and uniformed personnel
- Agencies exempt from RA No. 6758
- GOCCs under RA No. 10149 and EO No. 150
- Individuals without an employer-employee relationship, such as consultants, laborers under job contracts, student workers, apprentices, and workers engaged through job orders or contracts of service
Funding Sources:
The salary adjustments for FY 2025 will be sourced from:
- The Miscellaneous Personnel Benefits Fund and available appropriations under the FY 2025 General Appropriations Act, subject to existing budgeting and auditing rules.
- For applicable GOCCs, funds will be sourced from their corporate operating budgets, as approved by the DBM.
A separate circular will be issued to address the guidelines for salary increases for local government units.