MANILA — President Ferdinand Marcos, Jr. has signed an executive order mandating a salary increase and additional allowances for government employees.
Executive Order No. 64, announced on Friday, aims to assist government workers in managing the economic challenges currently affecting the Philippines.
“Given the prevailing economic circumstances, including the erosion of purchasing power due to inflation, there is a need to update the salaries and benefits of government personnel in order to maintain a competent, committed, agile, and healthy workforce, thereby promoting social justice, integrity, efficiency, accountability, and excellence, and ultimately translating to increased productivity and higher-quality public service,” stated the President.
This move aligns with his commitment to government employees, as mentioned during his State of the Nation Address last month.
The updated salary schedule will apply to employees in the Executive, Legislative, and Judicial Branches, as well as Constitutional Commissions and other Constitutional Offices. The order will be effective immediately upon publication in the Official Gazette, with implementation phases retroactive from January 1, 2025, to 2027.
The Department of Budget and Management (DBM) has already earmarked P70 billion for the salary increases in the proposed P6.352-trillion national budget for 2025. Additionally, eligible state employees will receive a medical allowance of P7,000 annually for health maintenance organization (HMO) benefits.
Budget Secretary Amenah Pangandaman revealed in a press briefing on Thursday that the proposed 2025 national budget includes over P9.6 billion allocated for HMO benefits for government workers.