First tranche of govt wage hike to be given this year – DBM

THE first tranche of the salary increase for government workers will be distributed starting this year and be given retroactively starting January 2024, Budget Secretary Amenah Pangandaman said yesterday.

Pangandaman, in a briefing in Malacanang, said the salary hike is the first of the four tranches that President Marcos Jr. announced in his third State of the Nation address last month.

She said the Department of Budget and Management (DBM is waiting for the issuance of an executive order on the details of the salary adjustments to start the distribution.

“As of now, we are perfecting the Executive Order. And we are hoping for the issuance of the Executive Order soon,” she said, adding the hike starting this year would be done yearly until 2027.

She said about P70 billion has been set aside to cover the first tranche of the salary hike this year and the second tranche next year.

The last time a salary hike was implemented was from 2020 to 2023 under the Salary Standardization Law of 2019.

There are about 1.3 million workers in the government at present.

Pangandaman said the provision of the annual P7,000 medical allowance for government employees, which was also announced by the President in his SONA, will be distributed starting next year.

She said P9.6 billion has been allocated in the proposed 2025 budget for the medical allowance of government workers.

She said the medical allowance would be given in cash and could be used to avail of Health Maintenance Organization (HMO) benefits and various medical services.

The DBM this week submitted to Congress the proposed P6.352 trillion National Expenditure Program (NEP) for 2025, which is 10.1 percent higher than this year’s P5.758 trillion budget.

The proposed budget aims to prioritize food security, social protection, housing, infrastructure, health care, disaster resilience, digital connectivity and energization. It also aligns with the key priorities of the Philippine Development Plan.

The Regional Tripartite Wages and Productivity Board (RTWPB) – Calabarzon is set to hold a public consultation on the possibility of adjusting the minimum wage rate in the region on August 8 in Dasmariñas City, Cavite.

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