In a major win for public servants, the Philippine government has officially confirmed a salary increase for public sector workers starting 2025.
The announcement marks the final phase of the Salary Standardization Law V (SSL V) and aims to align public sector salaries more closely with private sector standards.
With inflation and the rising cost of living affecting households nationwide, this move is expected to offer much-needed financial relief while also improving retention, morale, and efficiency across government offices.
Breakdown of the 2025 Salary Increase
The Department of Budget and Management (DBM) has released a partial breakdown of new salary rates across various Salary Grades (SGs). Below is a table outlining key increases:
| Salary Grade | Current Monthly Rate | New Monthly Rate (2025) | Approximate Increase |
|---|---|---|---|
| SG 1 | PHP 13,000 | PHP 13,700 | PHP 700 |
| SG 10 | PHP 22,190 | PHP 23,200 | PHP 1,010 |
| SG 20 | PHP 54,251 | PHP 56,870 | PHP 2,619 |
| SG 24 | PHP 86,742 | PHP 90,420 | PHP 3,678 |
| SG 27 | PHP 122,841 | PHP 128,400 | PHP 5,559 |
These increases reflect the government’s aim to uplift salaries across all levels of public service—from administrative personnel to senior officials.
Who Is Eligible for the 2025 Government Salary Increase?
The 2025 salary adjustment will apply to:
- All regular and permanent national and local government employees
- Public school teachers and nurses
- Military and uniformed personnel
- Government executives and rank-and-file workers
However, it does not cover contractual employees or job order workers, who are classified under different employment rules and benefits schemes.
Budget Allocation and Implementation
The General Appropriations Act of 2025 has allocated sufficient funds to support this salary hike. According to DBM officials, the increase was planned with fiscal responsibility in mind and will not affect ongoing national infrastructure or public service projects.
The payment adjustments will begin January 2025, with eligible employees seeing the change reflected in their first salary cycle of the year.
Why This Matters – Economic Impact
This salary hike comes at a critical time. With inflationary pressures still impacting the prices of basic goods and services, the additional income can help cushion the effects of economic strain on government employees.
Beyond that, the increase is expected to:
- Improve morale in sectors facing staffing shortages, such as education and healthcare
- Encourage retention of skilled professionals in government roles
- Boost productivity and satisfaction through better compensation
However, economic analysts caution about the long-term sustainability of wage hikes without matching productivity reforms or new revenue streams.
What’s Next After SSL V?
As SSL V ends in 2025, public sector labor groups and lawmakers are already discussing a possible Salary Standardization Law VI (SSL VI). The new law, if drafted, could further adjust pay scales in response to ongoing inflation trends and private sector competitiveness.
The Civil Service Commission (CSC) is also considering implementing a performance-based evaluation system, which would link future increases to employee performance and efficiency, moving toward a more accountable and merit-driven system.
workers amid rising living costs. With clear funding and structured implementation, the increase will help improve morale, retention, and economic resilience across the public sector. Eligible workers should expect the new rates starting 2025.
FAQs
Who qualifies for the 2025 salary hike?
All permanent and regular public workers employed by national and local government units, including teachers, nurses, and uniformed personnel.
When will the increase take effect?
The salary hike will be implemented starting 2025 and reflected in the first payroll cycle of the year.
Is there funding allocated for the hike?
Yes, the DBM has included funds in the 2025 national budget, ensuring that all eligible personnel will receive the adjusted salary.