Philippines 2nd Tranche Salary Increase for 2025: The Philippines 2nd Tranche Salary Increase for 2025 is not just another routine update—it’s a pivotal part of the nation’s broader vision to enhance the professionalism, efficiency, and well-being of its civil service workforce. Rolled out under the continuation of the Salary Standardization Law V (SSL V), this second tranche of the government’s salary hike program reaffirms the state’s commitment to its public sector employees. From clerks to administrators, this pay raise affects a wide array of roles, rewarding those who keep the government machinery running smoothly every day.
Whether you’re a teacher at a state university, a health worker in a government hospital, or an accountant at a regional office, this article is crafted to help you understand the scope of the 2025 increase, what it means for your paycheck, and how it fits into your professional and financial future. The guide is designed for clarity, simplicity, and usefulness—balancing expert analysis with real-world applications.
Philippines 2nd Tranche Salary Increase for 2025
| Key Info | Details |
|---|---|
| Implementation Date | January 1, 2025 |
| Coverage | Government employees in executive, legislative, judicial branches, SUCs, GOCCs (non-RA 10149) |
| Excluded Groups | Military/uniformed personnel, GOCCs under RA 10149, job orders, contract of service |
| Example Salary Adjustment | SG 11 increases from PHP 25,439 (2024) to PHP 27,000 (2025) |
| Total SSL V Period | 2020–2027 (SSL V started in 2020, this is the 2nd of 4 tranches in the extended rollout) |
| Official Source | Department of Budget and Management (DBM) |
The Philippines 2nd Tranche Salary Increase for 2025 stands as a major investment in the people who dedicate their careers to public service. Beyond the numbers, it’s a recognition of value—a symbol that the work you do matters. For institutions, it means higher staff retention and improved service delivery. For individuals, it’s an opportunity to gain more stability and plan with confidence.
As the rollout begins, equip yourself with knowledge. Understand your classification, check your new rate, and make wise use of the increase. Whether you’re a teacher, engineer, health worker, or administrator, this increase is a step forward—for your career, your finances, and your contribution to the nation.
What Is SSL V and Why Does It Matter?
The Salary Standardization Law V (SSL V) is more than a compensation initiative—it’s a long-term workforce strategy. Enacted through Republic Act No. 11466, it was designed to recalibrate government salaries to better reflect the demands and contributions of civil service positions, all while staying competitive with private sector benchmarks.
Objectives of SSL V:
- Modernize salary structures to attract highly qualified professionals
- Promote retention by offering clear, structured salary growth
- Enhance motivation and performance across government functions
- Ensure salary equity across equivalent roles in different agencies
SSL V initially spanned from 2020 to 2023, but further government planning extended the reform through 2027 to sustain momentum and maintain consistency in workforce compensation upgrades. The 2025 tranche is the second installment of this four-year extension.
Who Qualifies for the 2nd Tranche Salary Increase?
Included in the 2025 Update:
- Employees in all three branches of government: executive, legislative, and judicial
- Faculty and staff of State Universities and Colleges (SUCs)
- Officials and staff of constitutional commissions and offices
- Employees of GOCCs not governed by RA 10149 or EO 150
Importantly, this tranche applies exclusively to employees holding plantilla positions. These are permanent posts in the civil service system, typically tied to regular government functions and subject to merit-based promotions.
Excluded from the Increase:
- Military and uniformed personnel (e.g., AFP, PNP, BJMP, BFP), who have a separate wage structure
- Personnel of GOCCs covered under RA 10149 and Executive Order 150
- Job order workers and contract-of-service hires, who operate under different compensation mechanisms
- Positions funded through non-Personnel Services (PS) budgets, including grant-based hires
If your role seems borderline or unclear, it’s best to confirm with your agency’s HR office or the Civil Service Commission (CSC).
How Much Will Salaries Increase in 2025?
Salaries will rise based on Salary Grades (SG) and step levels, with higher grades receiving proportionally larger increases. Here’s a quick look at sample adjustments:
| Salary Grade | 2024 Monthly Rate | 2025 Monthly Rate (New) |
|---|---|---|
| SG 1 | PHP 13,000 | PHP 13,700 |
| SG 5 | PHP 16,543 | PHP 17,370 |
| SG 11 | PHP 25,439 | PHP 27,000 |
| SG 18 | PHP 46,725 | PHP 49,000 |
| SG 24 | PHP 85,074 | PHP 90,078 |
| SG 33 (Highest) | PHP 457,478 | PHP 483,886 |
You can view the full table of salary adjustments by downloading the updated circular from the DBM’s SSL V page.
Factors Affecting Individual Salary Increases:
- Step Increment: Employees may be at different step levels within the same SG
- Years of Service: Some agencies adjust steps based on tenure or promotions
- Agency-Specific Implementations: Budget availability and internal alignment
Why This Tranche Is Significant for Employees and Institutions
This salary adjustment isn’t just about individual earnings—it’s about system-wide improvement. Here’s how it benefits employees and the institutions they serve:
1. Economic Empowerment for Families
A higher take-home pay empowers employees to cover basic needs more comfortably, support their children’s education, and weather economic challenges such as inflation.
2. Enhanced GSIS and PhilHealth Contributions
Higher base salaries mean bigger contributions to GSIS and PhilHealth, which translate into stronger pension and health insurance coverage.
3. Retention of Skilled Professionals
With higher salaries, government roles become more competitive with the private sector, reducing talent drain and improving institutional memory.
4. Productivity Through Morale
Financial incentives remain a top motivator for performance. Consistent increases reinforce a culture of recognition and drive among personnel.
5. Better Talent Recruitment
As salaries rise, more graduates and professionals consider careers in public service, ensuring the future of quality governance and service delivery.
How to Prepare for the 2025 Salary Adjustment
Step 1: Verify Eligibility and Plantilla Status
Ask your HR if your position is covered by SSL V and the 2025 tranche. Confirm whether your role is a plantilla position and what your current SG and Step are.
Step 2: Review Salary Grade Tables
Compare your current salary with the new 2025 figures. Download the latest SSL V compensation schedule to anticipate the changes.
Step 3: Track Agency Announcements
Stay tuned to your department’s bulletins and to dbm.gov.ph for official issuances, guidelines, or changes to the rollout.
Step 4: Plan Budget Adjustments Accordingly
Use the raise to improve your financial strategy. Consider:
- Increasing savings or emergency funds
- Paying down debts
- Investing in skill-building or insurance
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FAQs About Philippines 2nd Tranche Salary Increase for 2025
1. Will the increase apply to part-time or temporary staff?
No, only those with full-time, regular plantilla appointments are eligible.
2. What if I was promoted in late 2024?
You will be covered by the 2025 rates applicable to your new SG and Step, effective January 1, 2025.
3. Are there regional differences in how this is applied?
Salary grades are nationally standardized, but local implementation (like disbursement timelines) may vary by agency or LGU.
4. Can job order personnel expect any bonus or financial relief in 2025?
While not included in SSL V, job order workers may receive benefits under other government assistance programs. Check your agency’s budget or local initiatives.
5. Will there be a new round of hiring or reclassification in light of SSL V?
Some agencies may expand their plantilla or reclassify roles to match operational needs. Monitor CSC and DBM for updates.
