Order also covers as much as P7k medical subsidy
President Marcos issued an executive order granting a four-tranche salary increase and annual medical allowance of as much as P7,000 to qualified government workers.
EO 64 covers all civilian government personnel in the executive, legislative, and judicial branches, constitutional commissions, and other constitutional offices.
Mr. Marcos said he ordered the increase in salaries of government personnel to “attract, retain, and engage high-performing civil servants.”
“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 workers, thereby promoting social justice, integrity, efficiency, accountability, and excellence, and ultimately translating to increased productivity and higher quality public services,” he said in the EO.
On top of the salary increase, qualified government personnel will also receive an annual medical allowance not exceeding P7,000 starting in 2025, as a subsidy for HMO-type benefits.
Government officials and employees with HMO-based health care services under special laws, as well as officials and employees in the legislative and judicial branches and other offices vested with fiscal autonomy, are excluded from the grant of the medical allowance.
There will also be a pay hike among those who are working in government-owned or -controlled corporations not covered by the GOCC Governance Act of 2011, as well as all personnel of local government units, regardless of their appointment status.
The salary increases, however, do not apply to individuals working in government through job orders, contracts of service, consultancy, or service contracts with no employer-employee relations, and GOCCs covered by a separate Compensation and Position Classification System established by the Governance Commission for GOCCs and approved by the President.
Based on EO 64, the first of the four tranches of the salary increase for government workers took effect on Jan. 1 and will be given retroactively.
The second tranche will be implemented on Jan. 1, 2025, while the third and fourth tranches will start on the same date in 2026 and 2027.
The funds for the pay hike among LGU personnel will be charged against their respective local governments.
The basic pay of village personnel will be in the form of honoraria, while their year-end bonus based on the monthly honoraria as of Oct. 31 of the year and 5,000 worth of cash gift may also be given to them.
Budget Secretary Amenah Pangandaman on Saturday ordered the swift issuance of guidelines for the salary adjustments of government workers.
“We will rush the implementing guidelines so that government employees will see their first round of salary increases this 2024,” she said.
Pangandaman said approximately P36 billion from the Miscellaneous Personnel Benefits Fund (MPBF) under the 2024 General Appropriations Act would be allotted for the implementation of the first tranche of salary increase.
She added the DBM has earmarked around P70 billion under the 2025 MPBF to cover the additional cost requirements for both first and second tranches.
Editor’s Note: This is an updated article. Originally posted with the headline Marcos issues EO to increase salary, allowance of gov’t workers
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