DEPARTMENT of Budget and Management (DBM) Secretary Amenah “Mina” F. Pangandaman signed National Budget Circular No. 597, which sets out the guidelines, rules and regulations for the second tranche of salary increase for civilian government workers.
The said Circular was issued in accordance with the implementation of the updated Salary Schedule for Civilian Personnel pursuant to Executive Order (EO) Np. 64, s. 2024, signed by President Ferdinand “Bongbong” R. Marcos, Jr. in August 2024.
“In keeping with our President’s promise, we will implement the second tranche of the salary increase for our government workers this January 2025. We hope that this second tranche will provide much-needed financial relief and allow our government workers to better support their families, invest in their futures, and enhance their overall quality of life,” said Sec. Mina.
EO No. 64 states that the updated Salary Schedule shall be implemented in National Government Agencies in four (4) tranches, with the first tranche beginning January 1, 2024, the second on January 1, 2025, the third starting on January 1, 2026, and the fourth and final tranche beginning on January 1, 2027.
The salary increase is for all civilian government personnel, existing or created in the Executive, Legislative, and Judiciary Branches, Constitutional Commissions and other Constitutional Offices, State Universities and Colleges, and Government-Owned and Controlled Corporations (GOCCs), not covered by Republic Act (RA) No. 10149 and EO No. 150, s. 2021, regardless of the status of appointment, whether regular, casual, or contractual, appointive or elective, and on a full-time or part-time basis.
Meanwhile, the Circular does not cover military and uniformed personnel; government agencies exempted under RA No. 6758; GOCCs under RA No. 10149 and EO No. 150; individuals working without an employer-employee relationship and whose positions are funded from non-Personnel Services appropriations/budgets, such as consultants and experts engaged for a limited period of time to perform specific activities or services with expected outputs, workers under job contracts (_pakyaw_) and those paid under piecework basis, student workers and apprentices, and those providing services through job orders, contracts of service, or other similar situations.
The amount needed for the salary adjustment of civilian government workers for FY 2025 will be taken from the Miscellaneous Personnel Benefits Fund and any available appropriations under the FY 2025 General Appropriations Act, consistent with budgeting, accounting, and auditing rules and regulations.
For GOCCs covered by the Circular, the amount will come from their respective corporate operating budgets approved by the DBM.
The DBM also wishes to emphasize that the guidelines for local government units are covered by a separate Circular.
