MANILA — President Ferdinand Marcos, Jr. has issued an executive order declaring a salary hike for government employees and granting them additional allowance.

Executive Order No. 64, signed and released to the public on Friday, sought to help government workers cope with economic challenges that the Philippines is facing.

“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 personnel in order to maintain a competent, committed, agile, and healthy workforce, thereby promoting social justice, integrity, efficiency, accountability, and excellence, and ultimately translating to increased productivity and higher-quality public service,” the chief of state said.

This is also meant to fulfill his promise to government workers during his State of the Nation Address last month.

Marcos announces salary increase for government employees

Under the EO, the updated salary schedule applies to government staffs in the Executive, Legislative, and Judicial Branches; Constitutional Commissions and other Constitutional Offices.

Upon publication in the Official Gazette, it takes effect immediately and the tranches of implementation will roll out retroactively from January 1, 2025 until 2027.

The Department of Budget and Management (DBM) already said it has allocated P70 billion in the proposed P6.352-trillion 2025 national budget for the salary hike of government workers.

DBM hopes salary hike for gov’t workers included in Marcos’ SONA 2024

HMO BENEFITS

Qualified state employees will also receive a medical allowance of P7,000 per annum for their health maintenance organization (HMO) benefits coverage.

Budget Secretary Amenah Pangandaman said in a press briefing on Thursday that the 2025 proposed national budget is allocating over P9.6 billion for HMO benefits of government workers.