By Ruth Abbey Gita-Carlos
MANILA, January 27, 2025 — The Department of Budget and Management (DBM) has released a budget circular outlining the guidelines for the implementation of the second tranche of the updated salary schedule for government employees. The new salary rates, which took effect on January 1, 2025, are part of the government's ongoing efforts to ensure competitive and sustainable compensation for civil servants under the 2024-2027 pay adjustment program.
National Budget Circular 597, signed by DBM Secretary Amenah Pangandaman on January 20, covers all personnel in the executive, legislative, and judicial branches of government, including constitutional commissions, state universities and colleges, and government-owned and -controlled corporations (GOCCs) not governed by Republic Act (RA) 10149 or Executive Order (EO) 150. However, the circular excludes military and uniformed personnel, certain GOCCs, and employees without an employer-employee relationship. Casual and contractual personnel whose salaries come from lump sum appropriations will have their pay adjustments covered by their respective agencies' budgets. For GOCCs, funding for the pay hike will come from their approved corporate operating budgets (COBs), with a reminder that the national government will not release additional funds for this purpose. Agencies are advised to ensure that their performance targets and ongoing projects are not negatively impacted by the salary adjustments.
The DBM will issue Special Allotment Release Orders to implement the salary adjustments, along with Notices of Cash Allocation to ensure a smooth rollout of the second tranche. Additional funding requests for newly-filled positions will be processed according to the agency’s budget for personal services.
This move follows Executive Order 64, signed by President Ferdinand R. Marcos Jr. in August 2024, which aims to provide better pay for government workers while ensuring a competitive and sustainable compensation system.
Comments