As of May 2025, the Philippine government has implemented the second tranche of the Salary Standardization Law V (SSL V), affecting compensation across all levels of public service. This structured salary increase is part of the multi-year plan passed under Republic Act No. 11466. The aim is to improve the competitiveness of government salaries and retain high-quality personnel in public institutions.
Tranche 2, rolled out this year, adjusts the salary schedules for civilian government employees, including teachers, healthcare workers, administrative staff, and technical personnel. These adjustments are based on position classifications and salary grades (SGs), ensuring that each role receives an equitable increase aligned with the government’s fiscal capacity.
Department-Wise Salary Adjustments Explained
Each government department receives salary adjustments depending on employee roles, classification, and the allocated budget. Agencies such as the Department of Education (DepEd), Department of Health (DOH), Department of Public Works and Highways (DPWH), and the Department of Social Welfare and Development (DSWD) see tailored implementations due to their diverse staffing structures.
For instance, teachers under DepEd are now receiving higher mid-level salary adjustments to reflect both inflation and the added responsibilities from evolving educational needs. Similarly, nurses under DOH have seen incremental salary hikes, addressing previous gaps compared to private sector counterparts. These increases are essential for workforce morale and performance retention, especially post-pandemic.
Updated Department-Wise Salary Table – May 2025
The table below outlines sample monthly salary rates for selected departments under Tranche 2 of SSL V, effective as of May 2025:
| Salary Grade | Department | Position Example | Previous Monthly (₱) | New Monthly (₱) |
|---|---|---|---|---|
| SG 11 | DepEd | Teacher I | 25,439 | 27,000 |
| SG 15 | DOH | Nurse I | 33,575 | 36,000 |
| SG 18 | DPWH | Engineer II | 42,159 | 45,267 |
| SG 9 | DSWD | Social Welfare Officer I | 21,211 | 22,900 |
| SG 24 | BIR/DOF | Revenue Officer III | 83,406 | 89,100 |
These figures reflect the continuing commitment of the government to align salaries with regional benchmarks while maintaining budgetary control. The updated figures apply uniformly nationwide, though some departments may offer additional allowances based on local cost-of-living factors or hazard pay.
Strategic Goals Behind the Salary Tranche Reform
The rationale behind SSL V and its tranche-based rollout is both economic and strategic. Beyond increasing public sector competitiveness, the salary structure overhaul addresses wage distortions, strengthens governance through better motivation, and enhances talent acquisition across vital service areas.
Tranche 2 is particularly important in bridging the disparity between frontline workers and administrative roles. By boosting salaries of personnel in healthcare, education, infrastructure, and social development sectors, the government aims to reduce turnover and improve the overall service delivery.
Moreover, this tranche builds on lessons from the pandemic. Government functions proved indispensable during crises, prompting the realization that public servants must be adequately compensated not only to retain them but to empower them in future emergencies.
What Public Employees Should Expect Moving Forward
Public employees are advised to consult their HR departments for personalized breakdowns of their salary changes. The Department of Budget and Management (DBM) has issued updated circulars guiding all implementing agencies, and salary disbursements are expected to reflect the Tranche 2 changes in the second quarter of 2025.
The implementation is automatic for eligible positions, with adjustments reflected in pay slips starting from April 2025. Retroactive application may apply in cases of delayed agency processing, subject to confirmation by the respective agency’s finance division.
Conclusion
The Salary Tranche 2 update represents a crucial phase in the government’s broader compensation reform strategy. As the second leg of the SSL V rollout, it reflects a long-term vision for a more stable and incentivized public sector. With increased transparency, consistent application, and continued support from the DBM, public workers can look forward to fairer, more sustainable pay scales that match the demands of their roles and the expectations of the Filipino public.
FAQ
Who is eligible under Salary Tranche 2?
All civilian personnel in national government agencies, including those in constitutional commissions and state universities and colleges, are covered by the Salary Standardization Law.
When did the new rates take effect?
The updated salary rates took effect in April 2025 and are reflected in May pay cycles.
Are job order and contractual workers included?
No, SSL V applies only to regular and permanent government employees.
Will there be further increases after this?
Yes. The SSL V includes two more tranches, expected in 2026 and 2027, to complete the four-year implementation cycle.
How are local government employees affected?
LGU employees may adopt the SSL V rates upon approval of their respective Sanggunian and subject to budget availability.
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