The Philippine government is officially rolling out the second tranche of salary increases for civilian workers starting April 2025. This adjustment is part of Executive Order No. 64, signed in August 2024, aimed at strengthening compensation structures within the public sector. The Department of Budget and Management (DBM) will implement this through National Budget Circular No. 597, which outlines detailed guidance on eligibility, funding, and execution.
The initiative supports long-term goals of public service enhancement, talent retention, and professionalization across government agencies.
What Is National Budget Circular No. 597?
This circular provides the framework for executing the second stage of salary adjustments under EO No. 64. It outlines:
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The updated salary schedules applicable from April 2025
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The agencies and employees eligible for the adjustment
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The retroactive implementation guidelines to ensure back pay from the effective date
Government agencies must align payrolls accordingly and coordinate with HR offices for the timely application of these increases.
Who Will Benefit from the Salary Increase in 2025?
The salary hike covers a wide spectrum of government workers, including:
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Civilian personnel under the Executive branch
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Employees in the Judiciary and Legislative departments
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Staff from Constitutional Commissions and Offices
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Faculty and non-academic staff of State Universities and Colleges (SUCs)
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Employees of Government-Owned and Controlled Corporations (GOCCs) not covered by EO No. 150 or RA 10149 (GOCC Governance Act)
These groups are part of the structured compensation system and stand to gain from more competitive salaries aligned with current inflation and cost-of-living challenges.
Who Is Excluded from the Adjustment?
Not all public sector workers are covered. The following are not included in this round of salary increases:
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Military and uniformed personnel, who follow a different pay structure
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Workers from agencies not included under the Revised Compensation System
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Independent contractors or consultants without formal employment status
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Those paid via non-personnel service (NPS) budget lines
These exclusions ensure that only those within the civil service structure receive increases under this EO, while other groups may receive separate adjustments under different directives.
Funding Sources for the Salary Adjustment
The financing of the 2nd tranche increase will depend on the type of employing government unit:
| Government Entity | Funding Source |
|---|---|
| National Government Agencies | General Appropriations Act (GAA) 2025 & MPBF |
| GOCCs | Corporate Operating Budgets |
| Local Government Units (LGUs) | Subject to DBM Guidelines and available local funds |
The DBM is expected to release separate budget execution guidelines for LGUs to manage and apply the increases based on their fiscal capacity.
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What Government Workers Can Expect
Each eligible employee’s salary increase will depend on:
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Current salary grade within the compensation schedule
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Length of government service and experience
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Agency classification and functional responsibilities
Workers are encouraged to connect with their agency’s HR and finance departments to confirm the specific details of their salary adjustments.
Benefits and Impacts of the April 2025 Salary Hike
The adjustment delivers several positive outcomes:
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Financial Relief: Helps government employees cope with inflation and rising living costs
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Talent Retention: Reduces the public-to-private sector brain drain
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Public Service Quality: Encourages motivation, productivity, and accountability in civil service roles
By offering competitive and reliable compensation, the government strengthens its ability to build and sustain a professional and capable workforce.
How the Increase Aligns with Civil Service Reforms
The 2nd tranche is part of a wider reform agenda that seeks to:
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Attract skilled professionals into public service through better compensation
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Promote merit-based advancement and accountability
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Create a standardized and transparent pay structure across agencies
These reforms aim to modernize the Philippine civil service and foster greater institutional trust and performance.
Conclusion
The second tranche of salary adjustments under Executive Order No. 64 signals the Philippine government’s ongoing commitment to public sector development. With the revised pay structure taking effect in April 2025, civil servants across departments will benefit from greater financial stability and motivation. As the country continues its journey toward a modernized civil service, consistent and fair compensation will remain central to building a competent and loyal workforce.
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