The Government of the Philippines has announced the second phase of the Salary Standardization Law (SSL) 2025, which aims to enhance the compensation of government employees. This salary increase is part of a multi-year adjustment plan introduced through Executive Order 64, signed by President Ferdinand R. Marcos Jr. and implemented by the Department of Budget and Management (DBM).
The second tranche will take effect in January 2025 and will benefit millions of government workers by offering systematic salary increments while ensuring fiscal responsibility. This initiative is designed to improve employee retention, attract skilled professionals, and recognize the contributions of public sector workers.
Key Features of SSL 2025 Second Tranche
The Salary Standardization Law (SSL) follows a structured pay increase plan to gradually improve the earnings of government workers while maintaining economic stability. Below are the key highlights of the second tranche adjustments:
- Incremental Salary Growth – Employees will receive scheduled pay increases based on their Salary Grade (SG) and Step Level.
- Implementation Timeline – The second phase will be implemented starting January 2025.
- Coverage – The salary increase applies to all government employees, including national government agencies, local government units, and government-owned corporations.
- Budget Allocation – The funding for these increases is derived from the General Appropriations Act (GAA) 2025 and the Miscellaneous Personnel Benefits Fund (MPBF).
- Objective – To create a more competitive and fair salary structure for government workers while maintaining financial sustainability.
SSL 2025 Second Tranche Salary Table
Below is an overview of the salary increases under the second tranche of SSL 2025. These figures represent the monthly salary adjustments across different Salary Grades (SG) and Step Levels.
| Salary Grade | Step 1 | Step 2 | Step 3 | Step 4 | Step 5 | Step 6 | Step 7 | Step 8 |
|---|---|---|---|---|---|---|---|---|
| 1 | 14,061 | 14,164 | 14,278 | 14,393 | 14,509 | 14,626 | 14,743 | 14,862 |
| 5 | 17,866 | 18,000 | 18,133 | 18,267 | 18,401 | 18,538 | 18,676 | 18,813 |
| 10 | 25,586 | 25,790 | 25,996 | 26,203 | 26,412 | 26,623 | 26,835 | 27,050 |
| 15 | 40,208 | 40,604 | 41,006 | 41,413 | 41,824 | 42,241 | 42,662 | 43,090 |
| 20 | 62,967 | 63,842 | 64,732 | 65,637 | 66,557 | 67,479 | 68,409 | 69,342 |
| 25 | 111,727 | 113,476 | 115,254 | 117,062 | 118,899 | 120,766 | 122,664 | 124,591 |
| 30 | 203,200 | 206,401 | 209,558 | 212,766 | 216,022 | 219,434 | 222,797 | 226,319 |
This table reflects progressive salary increments that will ensure fair compensation for government employees at all levels.
Summary of SSL 2025 Second Tranche Updates
| Feature | Details |
|---|---|
| Policy Name | Salary Standardization Law (SSL) 2025 Second Tranche |
| Implementation Date | January 2025 |
| Approved By | President Ferdinand R. Marcos Jr. |
| Administering Agency | Department of Budget and Management (DBM) |
| Budget Allocation | General Appropriations Act (GAA) and Miscellaneous Personnel Benefits Fund (MPBF) |
| Objective | Ensure fair compensation, enhance employee retention, and maintain fiscal responsibility |
| Coverage | All government employees, including GOCCs and LGUs |
Objectives of the SSL 2025 Second Tranche Adjustments
The salary increases under this law are aimed at achieving the following goals:
- Fairness and Equity – Addressing salary disparities among different government positions and ensuring fair compensation.
- Attracting and Retaining Talent – Aligning government salaries with private sector standards to increase workforce competitiveness.
- Economic Stability – Implementing gradual increments to avoid sudden financial burden while improving employee welfare.
How is the SSL 2025 Second Tranche Funded?
The salary increases under the SSL 2025 Second Tranche are fully funded through designated government budgets to ensure smooth implementation. The funding sources include:
- National Government Agencies (NGAs) – Financed through the Miscellaneous Personnel Benefits Fund (MPBF) and General Appropriations Act (GAA) 2025.
- Government-Owned or Controlled Corporations (GOCCs) – Salary increases will be covered by their approved corporate operating budgets.
- Local Government Units (LGUs) – Funding will be drawn from their respective local budgets.
For contractual and casual employees, funding will be sourced from agency lump sum appropriations to ensure they also receive salary adjustments.
Potential Impact of the SSL 2025 Second Tranche Adjustments
The implementation of SSL 2025 Second Tranche is expected to have positive effects on government employees and the public sector:
- Higher Income for Public Sector Workers – Government employees will experience salary growth, improving their standard of living.
- Stronger Workforce Morale – Increased salaries will help boost motivation and productivity.
- Economic Benefits – Higher salaries may contribute to improved consumer spending and economic growth.
Key Considerations and Challenges
Although the SSL 2025 Second Tranche is a step forward, certain challenges need to be addressed:
- Fiscal Constraints: The government must balance salary increases with responsible budget management.
- Implementation Delays: The adjustments rely on smooth bureaucratic processing and funding allocation.
- Regional Salary Variations: Some LGUs may face difficulties funding salary increases due to limited local budgets.
Final Thoughts on SSL 2025 Second Tranche
The Salary Standardization Law (SSL) 2025 Second Tranche is an essential part of improving compensation for government workers while maintaining fiscal responsibility. With a systematic and well-structured approach, this initiative aims to uplift the public sector workforce, ensuring competitive wages and financial stability for employees.
The government encourages all public sector workers to stay informed about the salary adjustments and prepare for their updated compensation structure in 2025.
John Stepp is a distinguished financial journalist with a rich background in economics, holding a Bachelor’s degree from IIT Delhi and a Master’s in Financial Analysis from Stanford University, USA.
