The Department of Budget and Management (DBM) on Monday said government workers will receive a salary increase this year as it issued the implementation guidelines for the Salary Standardization Law VI (SSL VI).
Budget Secretary Amenah Pangandaman said she already signed the National and Local Budget Circulars earlier this morning. The circulars have been issued and will likely be published by tomorrow.
This means the directives are now set for dissemination, allowing government agencies to begin implementing the necessary salary adjustments for state employees under SSL VI, according to the DBM chief.
Pangandaman earlier instructed concerned DBM officials to hasten the completion of the guidelines and inform the public of the implications of the new salary adjustments and allowances for government employees on the same day that President Marcos signed Executive Order No. 64 on August 2, 2024.
She clarified that existing Personnel Services (PS) funds will be utilized to carry out the required salary changes, with any shortfalls to be covered by the Miscellaneous Personnel Benefits Fund (MPBF).
“They can use their existing PS (funds) that they have right now, and whatever deficits they have, we will cover it through the MPBF,” Pangandaman said.
“We have earmarked P36 billion under the MPBF for the implementation of the first tranche of SSL VI this year. Meanwhile, in the 2025 National Expenditure Program, we have allocated some P70 billion pesos, also under the MPBF, for the second tranche and adjustments of the first tranche,” she added.
Pangandaman also emphasized how the adjustments, retroactive to January 2024 and inclusive of midyear benefits, must be processed promptly. She urged the respective Human Resources departments within each agency to act swiftly to ensure the timely disbursement of the increases.
The SSL VI is designed to make public personnel’s salaries more competitive with those in the private sector, which would potentially boost productivity, enhance service delivery, and improve overall government effectiveness.
This initiative underscores the administration’s dedication to the “Bagong Pilipinas” vision, which seeks to build a stronger, more prosperous nation through comprehensive reforms.
The signing and release of Local Budget Circular No. 160 on August 12, 2024, marks a significant step forward in the government’s commitment to improving the welfare of its public servants.
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