Marcos orders wage hike for government workers
Metro Manila, Philippines — President Ferdinand Marcos Jr. has issued an executive order (EO) increasing the salaries of government workers and granting them medical allowance.
EO 64 was signed by Executive Secretary Lucas Bersamin on Friday, Aug. 2, and publicized on Saturday.
According to the EO, Marcos said there is a need to update the salaries and benefits of government personnel “[g]iven the prevailing economic circumstances, including the erosion of purchasing power due to inflation.”
The move will “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 president said.
The salary increase for government employees takes effect immediately upon publication in the Official Gazette or in a newspaper of general circulation.
The wage hike will be implemented in four tranches every Jan. 1 starting this year until 2027. This means the EO takes effect retroactively.
The updated salary schedule under EO 64 applies to all civilian government personnel in the following:
+ Executive, legislative, and judicial branches
+ Constitutional commissions and other Constitutional offices
+ Government-Owned or Controlled Corporations (GOCCs) not covered by the “GOCC Governance Act of 2011” and EO 150 (s.2021)
+ Local government units
Government employees will receive a medical allowance of ₱7,000 per annum starting fiscal year 2025, as a “subsidy for the availment of health maintenance organization (HMO)-type benefits.”
The Department of Budget and Management will issue the guidelines necessary to implement specific provisions of EO 64, the Presidential Communications Office said.
Marcos mentioned the increase in wages and benefits for government employees during his third State of the Nation Address on July 22.
In a Malacañang briefing on Aug. 1, Budget Secretary Amenah Pangandaman said ₱70 billion is allocated in 2025 for the first and second tranches of the salary increase. Around ₱9 billion is set aside next year for the medical allowance, she added.
