DBM: Mid-year bonus included in gov’t workers’ pay hike

Department of Budget and Management (DBM) Secretary Amenah Pangandaman. (File Photo)

MANILA, Philippines — The mid-year bonus of government workers will be included in the first tranche of their salary increase to be released this year.

Budget Secretary Amenah Pangandman made the statement on Monday after announcing that the Department of Budget and Management (DBM) has already released the guidelines on the raise.

“Retroactive from January [2024], kasama din ang mid-year bonus,” Pangandaman told reporters in Malacañang in a chance interview.

READ: Marcos signs order for gov’t workers’ wage hike, extra allowance

She said the amount will be released as early as this month (August), depending on the government agencies.

“Itong month na ito maibibigay ang retroactive nila [pero] depende sa agency,” she noted.

READ: Cebu groups call for wage increase on Labor Day

Computation of the adjustment

Pangandaman said the DBM has already released its guidelines, and she already sent it to all national government agencies to begin “the computation of the adjustment.”

“So it’s up to the departments now, agencies at lahat na mag-implement ng adjustment para mapabilis ang pag release ng adjustments na ito,” she went on.

READ: DBM: 4-part pay hike for gov’t workers to start in 2025

The DBM earlier revealed that the first of the four-tranche salary increases for national government employees will start this year, retroactively from January 2024, and followed by yearly salary adjustments from January 2025 to January 2027.

In a press conference, Pangandaman said the existing Personal 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 na meron sila ngayon, and whatever po ’yung kulang, ’yun po ’yung kukunin natin sa MPBF,” the budget secretary explained.

First tranche

“We have earmarked P36 billion under the MPBF for the implementation of the first tranche of SSL VI (Salary Standardization VI) this year,” Pangandaman stressed.

“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.

Under the first tranche, the average rate of salary increase from Salary Grade-1 (SG-1) to SG-31 will be 4.41 percent, bringing the compensation of government employees to 84.33 percent of the market.

At the Sub-Professional Level (SGs 1 to 10), the increase will be between 4 percent and 5.20 percent, meaning – the minimum basic salary (SG-1) will be adjusted from P13,000 to P13,530, resulting in a P530 increase.

Professional level

At the Professional Level (SGs 11 to 24), the increase will range from 4.50 percent to 5.60 percent.

For Managerial Level (SGs 25 to 28), the increase will be within 4.15 percent to 4.40 percent; while for Executive Level (SGs 29 to 31), it will be from 2.65 percent to 3.90 percent; and for Top Leaders (SGs 31 to 33), the increase will be within 2.35 percent to 2.40 percent.

It was on August 2 when President Ferdinand Marcos Jr. signed the order for government workers’ salary increase and additional allowance.

The wage hike will apply to all civilian government personnel in the Executive, Legislative and Judicial Branches; Constitutional Commissions; other Constitutional Offices; Government-Owned or Controlled Corporations (GOCCs) not covered by Republic Act 10149 or the “GOCC Governance Act of 2011” and EO No. 150 (s. 2021), and the local government.

In an episode on television program Malacañang Insider, Pangandaman clarified that while workers in the national government will enjoy the retroactive implementation of the salary increase, the same won’t happen to local government employees whose increase will only be effective upon the release of the EO or on August 2.