WHEREAS, Item 1 of Congress Joint Resolution (JR) No. 4 (s. 2009) and Section 2 of Republic Act (RA) No. 11466 or the "Salary Standardization Law of 2019," affirm the policy of the State to provide govenrment personnel with just and equitable compensation in accordance with the principle of equal pay for work of equal value under the Compensation and Position Classification System (CPCS);

WHEREAS, Section 13 of Presidential Decree (PD) No. 985 or "The Budgetary Reform Decree on Compensation and Position Classification of 1976," as amended, states that the salary Schedule and the Wage Schedule shall be revised periodically subject to the approval of the President, in relation to: (a) the level of salaries and wages and employee benefits currently prevailing in private industry for comparable work; (b) changes in the basic work week; or (c) changes in the Minimum Wage Law;

WHEREAS, Section 17 of RA No. 11466 states that all provisions of PD No. 985, as amended by PD No. 1597, RA No. 6758 or the "Compensation and Position Classification Act of 1989," as amended, JR No. 1 (s. 1994), JR No. 4, and Executive Order (EO) N. 201 (s. 2016), which are not inconsistent with, expressly modified, revoked or repealed in the said Act shall continue to be in full force and effect;

WHEREAS, Fiscal Year (FY) 2023 marked the fourth and final tranche of the implementation of the Modified Salary Schedule for Civilian Government Personnel under RA No. 11466;

WHEREAS, 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 services; and

WHEREAS, Section 17, Article VII of the Constitution mandates the President to ensure the faithful execution of laws;

Section 1. Compensation Adjustment Strategy. To ensure an effective, competitive, and sustainable CPCS, the existing Salary Schedule for Civilian Government Personnel is hereby updated to conform with the following:

a. The compensation of all civilian personnel shall generally be competitive with the private sector in order to attract, retain, and engage high-performing civil servants;

b. The pat distinctions shall be based upon substantive differences in duties, responsibilities, accountabilities, and qualification requirements of the positions;

c. The value of government employee compensation is maintained over time; and

d. The compensation scheme must be within the financial capacity of the government, with the Personnel Service (PS) cost maintained at a reasonable level in relation to the overall govenrment expenditure.

Section 2. Coverage. The updated Salary Schedule authorized herein shall apply to all civilian government personnel in the Executive, Legislative, and Judicial Branches; Constitutional Commissions and other Constitutional Offices; Government -Owned or -Controlled Corporations (GOCCs) not covered by RA No. 10149 or the "GOCC Governance Act of 2011," and EO No. 150 (s. 2021); and local government units (LGUs), regardless of appointment status, whether regular, contractual or casual, appointive or elective, and on full-time or part-time basis.

The salary increase authorized herein shall not apply to individuals whose services are engaged through job orders, contracts of service, consultancy or service contracts with no employer-employee relationship, as well as GOCCs covered by a separate CPCS established by the Governance Commission for GOCCs (GCG) and approved by President.

Section 3. Updated Salary Schedule, including Step Increments. The updated Salary Schedule for Civilian Government Personnel, to be implemented in four (4) tranches, shall be as follows:  
 

First Tranche
Salary Grade	Step 1	Step 2	Step 3	Step 4	Step 5	Step 6	Step 7	Step 8
1	13,530	13,633	13,748	13,862	13,979	14,095	14,213	14,331
2	14,372	14,482	14,393	14,706	14,818	14,931	15,047	15,161
3	15,265	15,384	15,501	15,621	15,741	15,861	15,984	16,105
4	16,209	16,334	16,460	16,586	16,714	16,841	16,971	17,101
5	17,205	17,338	17,471	17,605	17,739	17,877	18,014	18,151
6	18,255	18,396	18,537	18,680	18,824	18,968	19,114	19,261
7	19,365	19,514	19,663	19,815	19.966	20,120	20,274	20,430
8	20,534	20,720	20,908	21,096	21,287	21,479	21,674	21,870
9	22,219	22,404	22,591	22,780	22,971	23,162	23,356	23,551
10	24,381	24,585	24,790	24,998	25,207	25,417	25,630	25,844
11	28,512	28,796	29,085	29,377	29,673	29,974	30,278	30,587
12	30,705	30,989	31,277	31,568	31,863	32,162	32,464	32,770
13	32,870	33,183	33,499	33,829	34,144	34,472	34,804	35,141
14	35,434	35,794	36,158	36,528	36,900	37,278	37,662	38,049
15	38,413	38,810	39,212	39,619	40,030	40,446	40,868	41,296
16	41,616	42,052	42,494	42,941	43,394	43,852	44,317	44,786
17	45,138	45,619	46,105	46,597	47,095	47,599	48,109	48,626
18	49,015	49,542	50,077	50,617	51,166	51,721	52,282	52,851
19	53,873	54,649	55,437	56,237	57,051	57,878	58,719	59,573
20	60,157	61,032	61,922	62,827	63,747	64,669	65,599	66,532
21	67,005	67,992	68,996	70,016	71,054	71,107	73,143	74,231
22	74,836	75,952	77,086	78,238	79,409	80,562	81,771	82,999
23	83,659	84,918	86,199	87,507	88,936	90,387	91,862	93,299
24	94,132	95,668	97,230	98,817	100,430	102,069	103,685	105,378
25	107,208	108,958	110,736	112,543	114,381	131,359	118,145	120,073
26	121,146	123,122	125,132	127,174	129,250	148,080	133,503	135,682
27	136,893	139,128	141,399	143,638	145,983	167,171	150,498	152,954
28	154,320	156,838	159,398	161,845	164,485	188,267	169,654	172,423
29	173,962	176,802	179,688	182,621	209,022	212,434	191,340	194,463
30	196,199	199,401	202,558	205,765	308,504	314,434	215,796	219,319
31	285,813	291,395	297,086	302,741	368,504	314,468	320,516	326,681
32	339,921	346,777	353,769	360,727	368,002	375,424	382,996	390,719
33	428,994	441,863

 

Second Tranche
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	14,383	14,509	14,626	14,743	14,862
2	14,925	15,035	15,146	15,258	15,371	15,484	15,599	15,714
3	15,852	15,971	16,088	16,208	16,329	16,448	16,571	16,693
4	16,833	16,958	17,084	17,209	17,337	17,464	17,594	17,724
5	17,866	18,000	18,133	18,267	18,401	18,538	18,676	18,813
6	18,957	19,098	19,239	19,383	19,526	19,670	19,816	19,963
7	20,110	20,258	20,408	20,560	20,711	20,865	21,019	21,175
8	21,448	21,642	21,839	22,035	22,234	22,435	22,638	22,843
9	23,226	23,411	23,599	23,788	23,978	24,170	24,364	24,558
10	25,586	25,790	25,996	26,203	26,412	26,623	26,835	27,050
11	30,024	30,308	30,597	30,889	31,185	31,486	31,790	32,099
12	32,245	32,529	32,817	33,108	33,403	33,702	34,004	34,310
13	34,421	34,733	35,049	35,369	35,694	36,022	36,354	36,691
14	37,024	37,384	37,749	38,118	38,491	38,869	39,252	39,640
15	40,208	40,604	41,006	41,413	41,824	42,241	42,662	43,090
16	43,560	43,996	44,438	44,885	45,338	45,796	46,261	46,730
17	47,247	47,727	48,213	48,705	49,203	49,708	50,218	50,735
18	51,304	51,832	52,367	52,907	53,456	54,010	54,572	55,140
19	56,390	57,165	57,953	58,753	59,567	60,394	61,235	62,089
20	62,967	63,842	64,732	65,637	66,557	67,479	68,409	69,342
21	70,013	71,000	72,004	73,024	74,061	75,115	76,151	77,239
22	78,162	79,277	80,411	81,564	82,735	83,887	85,096	86,324
23	87,315	88,574	89,855	91,163	92,592	94,043	95,518	96,955
24	98,185	99,721	101,283	102,871	104,483	106,123	107,739	109,431
25	111,727	113,476	115,254	117,062	118,899	120,766	122,664	124,591
26	126,252	128,228	130,238	132,280	134,356	136,465	138,608	140,788
27	142,663	144,897	147,169	149,407	151,752	153,850	156,267	158,723
28	160,469	162,988	165,548	167,994	170,634	173,320	175,803	178,572
29	180,492	183,332	186,218	189,151	192,131	194,797	197,870	200,993
30	203,200	206,401	209,558	212,766	216,022	219,434	222,797	226,319
31	293,191	298,773	304,464	310,119	315,883	321,846	327,895	334,059
32	347,888	354,743	361,736	368,694	375,969	383,391	390,963	398,686
33	438,844	451,713

 

Third Tranche
Salary Grade	Step 1	Step 2	Step 3	Step 4	Step 5	Step 6	Step 7	Step 8
1	14,634	14,730	14,849	14,968	15,089	15,211	15,333	15,456
2	15,522	15,636	15,752	15,869	15,986	16.103	16,223	16,342
3	16,486	16,610	16,732	16,856	16,982	17,106	17,234	17,360
4	17,506	17,636	17,767	17,898	18,031	18,163	18,298	18,433
5	18,581	18,720	18,858	18,998	19,137	19,280	19,423	19,565
6	19,716	19,862	20,009	20,158	20,307	20,456	20,609	20,761
7	20,914	21,069	21,224	21,382	21,539	21,699	21,859	22,022
8	22,423	22,627	22,832	23,038	23,246	23,456	23,668	23,883
9	24,329	24,523	24,720	24,917	25,117	25,318	25,521	25,725
10	26,917	27,131	27,347	27,565	27,786	28,007	28,230	28,456
11	31,705	31,820	32,109	32,401	32,697	32,998	33,302	33,611
12	33,947	34,069	34,357	34,648	34,943	35,242	35,544	35,850
13	36,125	36,283	36,599	36,919	37,244	37,572	37,904	38,241
14	38,764	39,141	39,523	39,910	40,300	40,696	41,097	41,503
15	42,178	42,594	43,015	43,442	43,874	44,310	44,753	45,202
16	45,694	46,152	46,615	47,084	47,559	48,040	48,528	49,020
17	49,562	50,066	50,576	51,092	51,614	52,144	52,678	53,221
18	53,818	54,371	54,933	55,499	56,075	56,657	57,246	57,842
19	59,153	59,966	60,793	61,632	62,486	63,353	64,236	65,132
20	66,052	66,970	67,904	68,853	69,818	70,772	71,727	72,671
21	73,303	74,337	75,388	76,456	77,542	78,645	79,692	80,831
22	81,796	82,963	84,151	85,356	86,582	87,746	89,011	90,295
23	91,306	92,622	93,962	95,330	96,823	98,341	99,883	101,318
24	102,603	104,209	105,841	107,500	109,185	110,898	112,533	114,301
25	116,643	118,469	120,326	122,212	124,131	126,079	128,061	130,073
26	131,807	133,870	135,968	138,100	140,268	142,469	144,707	146,983
27	148,940	151,273	153,644	155,906	158,353	160,235	162,752	165,310
28	167,129	169,752	172,418	174,797	177,545	180,339	182,660	185,537
29	187,531	190,482	193,480	196,528	199,624	202,005	205,191	208,430
30	210,718	214,038	217,207	220,425	223,691	227,224	230,595	234,240
31	300,961	306,691	312,532	318,182	323,938	329,989	336,092	342,310
32	356,237	363,257	370,418	377,359	384,805	392,400	400,150	408,055
33	449,157	462,329

 

Fourth Tranche
Salary Grade	Step 1	Step 2	Step 3	Step 4	Step 5	Step 6	Step 7	Step 8
1	15,208	15,304	15,423	15,542	15,663	15,784	15,906	16,030
2	16,118	16,233	16,349	16,466	16,582	16,700	16,820	16,939
3	17,120	17,244	17,366	17,490	17,616	17,740	17,868	17,994
4	18,180	18,309	18,440	18,751	18,704	18,836	18,971	19,106
5	19,296	19,434	19,573	19,712	19,852	19,994	20,137	20,280
6	20,474	20,620	20,767	20,916	21,065	21,215	21,367	21,520
7	21,872	22,034	22,196	22,362	22,526	22,693	22,860	23,030
8	23,399	23,603	23,808	24,014	24,221	24,432	24,644	24,859
9	25,433	25,627	25,823	26,021	26,220	26,421	26,624	26,828
10	28,247	28,462	28,678	28,896	29,116	29,337	29,561	29,787
11	33,387	33,501	33,790	34,082	34,378	34,679	34,983	35,292
12	35,650	35,771	36,059	36,350	36,645	36,944	37,246	37,552
13	37,828	37,987	38,303	38,623	38,948	39,276	39,608	39,945
14	40,505	40,882	41,263	41,650	41,040	42,436	42,837	43,243
15	44,148	44,564	44,985	45,412	45,844	46,281	46,723	47,172
16	47,829	48,286	48,750	49,219	49,694	50,175	50,662	51,154
17	51,877	52,381	52,891	53,407	53,929	54,459	54,993	55,536
18	56,332	56,885	57,447	58,013	58,589	59,171	59,760	60,356
19	61,916	62,729	63,556	64,395	65,249	66,116	66,999	67,895
20	69,138	70,056	70,990	71,938	72,903	73,857	74,813	75,756
21	76,594	77,628	78,679	79,747	80,833	81,936	82,982	84,121
22	85,431	86,598	87,785	88,991	90,216	91,380	92,645	93,930
23	95,296	96,612	97,952	99,320	100,814	102,331	103,873	105,308
24	107,022	108,627	110,260	111,918	113,603	115,317	116,952	118,719
25	121,559	123,385	125,242	127,128	129,047	130,995	132,977	134,989
26	137,362	139,425	141,523	143,655	145,823	148,024	150,262	152,538
27	155,217	157,550	159,921	162,184	164,630	166,512	169,030	171,587
28	173,788	176,411	179,077	181,457	184,205	186,999	189,319	192,196
29	194,570	197,521	200,519	203,567	206,663	209,044	212,230	215,469
30	218,237	221,556	224,726	227,943	231,209	234,743	238,113	241,758
31	308,730	314,460	320,302	325,952	331,707	337,758	343,862	350,080
32	364,586	371,607	378,767	385,708	393,154	400,750	408,500	416,404
33	459,469	472,641

The rates in the above updated Salary Schedule represent the monthly remuneration for regular or contractual personnel, whether appointive or elective, and working on full-time basis. The remuneration for those on part-time basis shall be proportionate to the actual services rendered.

The daily wage for casual personnel shall be computed by dividing the corresponding monthly salary rate in the above Schedule by twenty-two (22) working days.

Section 4. Salary Adjustment for Personnel of LGUs. The updated Salary Schedule authorized herein for civilian government personnel may likewise be granted to personnel of LGUs, subject to the following:

a. Authorization from their respective sanggunian as provided under Sections 447(a), 458(a), and 468(a) of RA No. 7160 or the "Local Government Code of 1991," as amended, and

b. Compliance with the PS limitation in the LGU budget under Sections 325 and 331 of RA no. 7160.

The rates of pay in LGUs, which shall be determined on the basis of the class and financial capability of each LGU shall be at the following percentages of the rates in the Salary Schedule under Section 3 hereof, subject to any modification that will be made pursuant to RA No. 11964 or the "Automatic Income Classification of Local Government Units Act," and its Implementing Rules and Regulations (IRR):
 

Percentage of the Salary Schedule
	For Provinces/Cities	For Municipalities
Special Cities	100%
1st Class	100%	90%
2nd Class	95%	85%
3rd Class	90%	80%
4th Class	85%	75%
5th Class	80%	70%
6th Class	75%	65%

LGUs may fully adopt the Salary Schedule in Section 3 hereof, notwithstanding the above ceilings, subject to compliance with the PS limitation and budgetary authorization requirements of RA No. 7160, as well as the guidelines to be issued by the DBM pursuant to Section 7(d) of RA No. 11964 and its IRR: Provided, that the salary schedule adopted shall be uniformly applied to all positions in the said LGU.

The basic pay of barangay personnel shall be in the form of honoraria consistent with RA No. 7160, which shall be at the same percentage of the Salary Schedule adopted by the LGU. They may be given Year-End Bonus (YEB) based on the monthly honoraria as of October 31 of the year and Cash Gift of Five Thousand Pesos (P5,000).

However, the minimum YEB of One Thousand Pesos (P1,000) for the punong barangay and Six Hundred Pesos (P600) for other mandatory barangay officials shall not be subject to the PS limitation.

Section 5. Implementation Schedule. The updated Salary Schedule in Section 3 hereof shall be implemented in National Government Agencies (NGAs) in four (4) tranches, with the first tranche beginning 1 January 2024, the second tranche beginning on 1 January 2025, the third tranche beginning on 1 January 2026, and the fourth and final tranche beginning on 1 January 2027.

For covered GOCCs and LGUs, the implementation period shall not be less than four (4) years, depending on their financial capabilities: Provided, that each tranche shall start no earlier than the dates abovementioned.

GOCCs and LGUs which do not have adequate or sufficient funds shall partially implement the Salary Schedule authorized herein. In case of partial implementation, the same shall be at a uniform percentage across all positions for every GOCC/LGU.

Section 6. Retroactive Application. The first tranche of implementation of the Salary Schedule for civilian personnel shall be effective 1 January 2024.

For covered GOCCs, the retroactive application of the first tranche shall be subject to their capacity to pay and compliance with other requirements under existing laws: Provided, that the initial implementation shall not be later than 1 January 2024.

For LGUs, the implementation of the first tranche shall be subject to the pertinent provisions of this Order and RA No. 7160.

Section 7. Medical Allowance. Beginning FY 2025, a Medical Allowance in an amount not exceeding Seven Thousand Pesos (P7,000) per annum shall be granted to each qualified govenrment civilian personnel as a subsidy for the availment of health maintenance organization (HMO)-type benefits. The Medical Allowance shall be categorized under the Standard Allowances and Benefits component of the Total Compensation Framework embodied in JR No. 4, and RA No. 11466. The grant of the Medical Allowance shall be subject to the conditions and guidelines to be issued by the DBM or the GCG, as the case may be.

The following are excluded from the grant of the herein Medical Allowance.

a. Government officials and employees who are already receiving HMO-based health care services by virtue of special laws; and

b. Officials and employees in the legislative and judicial branches and other offices vested with fiscal autonomy.

The heads of the foregoing agencies and offices may grant a similar Medical Allowance to their employees or continue to procure allowable HMO plans, subject to the limitations and guidelines that the DBM may issue in consultation with the said offices.

Section 8. Exempt Entities. Exempt entities refer to: (i) government agencies that are not covered by CPCS authorized under RA No. 6758; (ii) GOCCs governed by the CPCS established by the GCG under RA No. 10149 and EO No. 150; and (iii) those authorized by law and have actually implemented their own CPCS.

The exempt entities shall be governed by their respective CPCS, which shall be made effective upon the recommendation of the DBM or the GCG, as the case may be, and approved by the President.

Section 9. Applicability to Certain Officials. Consistent with Section 6, Article VII and Section 10, Article VI of the Constitution, the salaries authorized herein for the President of the Philippines, Vice President of the Philippines, and Members of the Congress shall take effect only after the expiration of the respective terms of the present incumbents.

Section 10. Funding. The funding sources for the amounts required to implement this EO shall be as follows:

a. For NGAs, the amount needed for the salary adjustment in FY 2024 shall be charged against any available appropriations under RA No. 11975 or the "Fiscal Year 2024 General Appropriations Act (GAA)" and any other available appropriations, subject to relevant budgeting, accounting, and auditing rules and regulations. The DBM, following the compensation adjustment strategy embodied in Section 1 hereof, and consistent with its authority under Section 7 of RA No. 6758, shall then be authorized to implement or adjust the compensation corresponding to the appropriations provided in the GAA.

The funding requirement for the salary adjustment in FYs 2025, 2026, and 2027 will be included in the proposed annual National Expenditure Program (NEP) submitted to the Congress for authorization.

b. For GOCCs, the amounts shall be charged against their respective corporate funds in the corporate operating budgets approved by the DBM.

c. For LGUs, the amounts shall be charged against their respective local government funds in accordance with the pertinent provisions of this EO and RA No. 7160.

d. Funding requirement for Medical Allowance for FY 2025 and succeeding fiscal years shall be included in the NEP as a component of the Standard Allowances and Benefits of the Total Compensation Framework, subject to the approval of Congress.

Section 11. Implementing Guidelines. The DBM shall issue the guidelines necessary to implement specific provisions of this EO.

Section 12. Separability. If any part or provision of this Order shall be held invalid or unconstitutional, the other provisions not affected thereby shall remain in full force and effect.

Section 13. Repeal. All other orders, rules, regulations, guidelines and issuances, or parts thereof which are inconsistent with the provisions of this Order are hereby repealed, amended, or modified accordingly.

Section 14. Effectivity. This Order shall take effect immediately upon publication in the Official Gazette or in a newspaper of general circulation.

DONE, in the City of Manila, this 2^nd day of August, in the year of our Lord, Two Thousand and Twenty-Four.

(SGD.) FERDINAND R. MARCOS, JR.

 

By the President:

(SGD.) LUCAS P. BERSAMIN
Executive Secretary