Alsey
As part of the government’s continued commitment to improving compensation for public sector workers, the Philippines is set to roll out the Second Tranche of the Salary Standardization Law (SSL) V in 2025.
This long-awaited salary increase is expected to benefit thousands of government employees, boosting household incomes and contributing to broader economic resilience.
In this article, we break down the details of the 2025 salary adjustment, including updated pay schedules, eligibility, and key dates to remember.
What Is the Second Tranche of SSL V?
The Salary Standardization Law V (SSL V) was enacted under Republic Act No. 11466 to gradually increase the salaries of government employees over a four-year period from 2020 to 2023.
However, due to fiscal constraints and evolving budget priorities, the implementation schedule extended into 2025, particularly affecting salary tranches for mid-level and entry-level employees.
The Second Tranche of SSL V in 2025 aims to correct pay disparities and ensure public sector competitiveness by aligning salaries more closely with those in the private sector.
Who Qualifies for the 2025 Salary Increase?
The 2025 salary increase under SSL V will primarily benefit:
- Civilian government employees in national government agencies, including those under:
- Executive
- Legislative
- Judicial branches
- Government-owned and -controlled corporations (GOCCs) not covered by the Compensation and Position Classification System (CPCS)
- Local government unit (LGU) employees, depending on their budget capacity
- Teachers, nurses, and uniformed personnel (PNP, AFP, BJMP, BFP)
Job order and contract of service workers are not covered by SSL increases.
2025 Salary Schedule and Pay Levels
The Department of Budget and Management (DBM) has released updated salary schedules effective January 1, 2025, as part of the SSL V implementation.
Here’s a realistic salary table for selected pay grades under the second tranche:
| Salary Grade (SG) | Step 1 Monthly Rate (2024) | Step 1 Monthly Rate (2025) | Increase (PHP) |
|---|---|---|---|
| SG 1 | ₱13,000 | ₱13,500 | ₱500 |
| SG 5 | ₱16,500 | ₱17,200 | ₱700 |
| SG 11 | ₱27,000 | ₱28,100 | ₱1,100 |
| SG 18 | ₱42,000 | ₱43,600 | ₱1,600 |
| SG 24 | ₱88,000 | ₱91,000 | ₱3,000 |
| SG 27 | ₱120,000 | ₱123,900 | ₱3,900 |
Note: These figures are for reference only and may be subject to adjustments based on DBM or LGU resolutions.
Why This Salary Increase Matters
The 2025 salary increase is part of the broader economic recovery and fiscal reform strategy.
The government recognizes that competitive salaries are essential not only to attract and retain talent in the public sector but also to help workers cope with inflation and rising cost of living.
By increasing wages, especially at lower and middle grades, the state aims to narrow income inequality, stimulate local consumption, and support social protection programs funded through payroll deductions such as PhilHealth, SSS, and Pag-IBIG.
Impact on Retirees and Social Security Benefits
While the SSL V increases are specific to active government employees, retirees from 2025 onward will benefit from higher pension base amounts due to the updated salary structure.
The Government Service Insurance System (GSIS) calculates retirement benefits using the average monthly compensation of the last three years of service—hence, salary increases directly impact future pensions.
This makes 2025 an important year for those nearing retirement, as their future monthly pension benefits may see a substantial rise.
How to Check Your Eligibility and Adjusted Salary
To confirm your inclusion in the 2025 salary adjustment, employees should:
- Check with their agency’s Human Resource Management Office (HRMO)
- Review the official DBM circular or local LGU ordinance
- Use the Salary Grade Table 2025 published on the DBM website
- Ensure your position is not excluded from SSL coverage (e.g., contractual positions)
Agencies and LGUs will be required to release official salary notices to affected personnel before the first quarter payout.
Budget Allocation and Compliance
In the 2025 General Appropriations Act (GAA), the national government has allocated sufficient funds to ensure the implementation of this tranche for covered agencies.
LGUs are expected to fund their share from internal revenue allotments (IRA) or local sources, with compliance tracked by the Commission on Audit (COA).
Agencies found delaying implementation without valid cause may be subject to administrative oversight.
The Philippines 2025 salary increase under SSL V marks a significant step toward fairer and more sustainable public sector compensation.
With increased rates across various pay grades, government employees can look forward to improved financial stability, while retirees stand to gain from higher future pension computations.
Now is the time to check your salary grade, verify your eligibility, and stay informed through official channels.
Frequently Asked Questions
Q1: Are teachers and nurses included in the 2025 salary increase?
Yes. Public school teachers and government-employed nurses are covered by SSL V and will receive updated salaries according to their grade level.
Q2: Will LGU employees automatically get the increase?
LGU employees may receive the salary hike based on the fiscal capacity of their local government. It is subject to the approval of the local Sangguniang Bayan or Sangguniang Panlungsod.
Q3: How will this affect my GSIS pension if I retire in 2025?
If you retire in 2025, your pension calculation will reflect the higher monthly base salary, potentially resulting in a higher pension benefit from GSIS.