How much will gov't workers get in 3rd tranche of salary increase?

MANILA, Philippines — Government employees can expect higher pay starting this month as the third tranche of the updated salary schedule takes effect in January.

Under Executive Order No. 64, the third tranche raises the basic salary of civilian personnel with Salary Grade 1 to P14,634, reflecting a P573 increase from the previous year.

The salary hike, however, varies by grade, with Step 1 of Grades 1 to 7 receiving around a 4% increase, while Step 1 of Salary Grades 8, 9, and 10 sees slightly bigger boosts of 4.5%, 4.7%, and 5.2%, respectively.

While it may appear so, higher salary grades do not always get the bigger raises. Salary Grade 31 officials, which include department heads earning at least P293,191, will receive a 2.65% increase in 2026, raising their pay to P300,961.

According to the executive order, the updated salary schedule applies to appointed or elected regular personnel, including contractual employees working on a full-time basis. 

For part-time government employees, monthly pay will be prorated based on actual services rendered. For instance, the daily wage for casual personnel is calculated by dividing their corresponding Salary Grade by 22 working days.

Local government employees may also receive the salary adjustment if approved by their Sangguniang Bayan and if their budget for personnel services still complies with limits set under the Local Government Code of 1991.

How much local government personnel get also varies according to the class of their city, province or municipality, all dependent still on their respective financial capability. 

For example, an employee in a second-class city could receive 95% of the updated salary schedule. Employees in lower-class LGUs would likely receive a smaller percentage, while only special cities and first-class provinces and cities are eligible for the full 100% increase.

When is the salary increase not applied?

Government employees working on job orders, service contracts or consultancy agreements with no formal employer-employee relationship do not receive increases. 

Under the 1987 Constitution, the president, vice president and members of Congress also do not receive salary increases while in office. Any adjustment takes effect only after their current terms expire.

On top of the salary hike, the executive order also imposes a medical allowance of P7,000 a year for qualified civilian personnel. 

Implemented over four tranches, with the last in January 2027, the updated salary schedule seeks to align government compensation with private-sector standards and encourage Filipinos to pursue careers in public service.

The Department of Budget and Management typically issues a national budget circular before January ends, informing government agencies of each tranche’s implementation, including how funds will be released, the funding sources and the procedures to follow.