The Philippine government is bent on enhancing public workers’ compensation via the Salary Standardization Law VI (SSL VI). Now on its second year, SSL VI will provide another salary adjustment that will be effective starting March 2025.
This increase is intended primarily for the benefit of Salary Grades 1 to 11 employees and is designed to mitigate the difference between public and private sector salaries. It will further help government employees contend with inflation and the high cost of living.
An Overview of the Salary Standardization Law VI (SSL VI)
SSL VI is a four-year salary adjustment program effective since 2024 and ending in 2027. Its main objective is the establishment of a transparent and competitive salary structure for government personnel. It aims to attract skilled workers into public service and acknowledges their loyalty and good performance.
March 2025 will see the second tranche provided by the SSL VI. It embodies the government’s commitment to aligning public sector salaries with those in the private sector. Enhanced salary rates will thus provide employees with a better grip on rising living expenses.
Salary Adjustment for Grades 1-11 in March 2025
The basic salaries of government employees under Salary Grades 1 to 11 will receive significant increases in March 2025. For instance, a Salary Grade 1 employee at Step 1 will receive PHP 14,061, compared with PHP 13,530 from the previous year. Likewise, those in Salary Grade 11 at Step 1 will see their salaries raised to PHP 30,024.
Every grade is divided into eight steps, representing the merit increase based on time in service. The higher pay is awarded as employees move through the steps that acknowledge their performance and allegiance over these years.
Allowances, Incentives, Implementation at the Local Level
Basic salary adjustments notwithstanding, government personnel will continue to receive allowances aimed at their well-being. For 2025, every employee will be entitled to medical and clothing allowances of PHP 7,000 each. These allowances serve to provide employees with a decent living and well-groomed appearance.
Performance-driven incentives are also an important aspect of SSL VI. The Performance-Based Bonus (PBB) awards employees for achieving certain performance standards at the office level. Qualifying employees who are involved in productivity through collective negotiations are also rewarded with the Collective Negotiation Agreement (CNA) Incentive.
The program also includes Local Government Units (LGUs); however, the implementation rate depends on the available financing of each LGU. First-class provinces can absorb the full salary increase, while second-class provinces would implement approximately 95%; third-class municipalities would effect about 85% of salary increase, while fourth-class municipalities will avail only around 80%. This grants flexibility while at the same time stimulates salary reforms across the country.
Funding and Support for the Program from the Government
The funding for SSL VI is contained in the national budget, which guarantees that all government agencies and qualified persons participate.The employees occupying Salary Grade 1 through Grade 11 will now find their salaries better positioned amid the competitive market, with additional allowances and performance-based incentives, all aimed to induce greater motivation, efficiency, and service quality along the public sector. The adjustments recognize not only the staff effort in government work but also set into momentum the attainment of a more sound and professional civil service in the years ahead.