The Standardization Law (SSL) is a crucial step in the initiative to raise government workers’ wages. Aiming to provide fair and steady pay increases for public employees over a number of years, the Salary Standardization Law of 2019 (Republic Act 11466) includes this program.
With the implementation of Philippines Second Tranche 2025 on January 1, 2025, personnel of all service levels will benefit from revised pay scales for a variety of government jobs. It is anticipated that more than 1.7 million government workers, including educators, medical professionals, secretaries, and uniformed people, will benefit directly from this new SSL phase.
The fact that the pay rises in this tranche will differ, meaning that no two people will see the same percentage increase, is one of its main characteristics. Higher percentage increases are anticipated for workers in lower pay grades in order to help close the wage gap.
Philippines Second Tranche 2025
The Philippine Department of Budget and Management (DBM) said that government employees in the country should anticipate receiving the second component of their pay raises this month. A document on adopting rules and regulations for the disbursement of the cash has been distributed by the agency. The increase in pay is consistent with Executive Order 64, which President Ferdinand Marcos Jr. issued in August 2024 and which grants raises to eligible government workers, including himself.
The government claimed that the dividend started last year and that the whole increase will be paid out in four tranches starting on the first day of 2024, 2025, 2026, and 2027. The first tranche was paid out retrospectively in August of last year, with an estimated value of 36 billion pesos. For select employees, the second tranche will also include additional incentives and benefits in addition to wage changes. Depending on the role, this might include bonuses, allowances, or other types of pay.
What is this program?
The Salary Adjustment Program is a four-year program that aims to provide government workers regular wage raises. With yearly increments given out in four stages, or tranches, it started in 2024 and will end in 2027. The First Tranche in 2024 established the groundwork for planned and fair salary increases, and the Second Tranche, which is scheduled to begin in January 2025, builds on that.
Salary Grades (SGs) and step levels serve as the foundation for the program’s standardized methodology, which guarantees equity and uniformity across a range of positions and industries. Regardless of their department or job function, this approach promotes fairness by ensuring that workers get modifications commensurate with their present wage grades.
Government workers eligible for salary increase
The rise is available to civil officials in the legislative, executive, and judicial departments as well as those employed by constitutional commissions, state organizations and colleges, and companies that are owned and managed by the government. Workers will get additional pay whether they are full-time or part-time, regular, casual, contractual, appointive, or elective.
However, the pay increase does not apply to government agencies exempt from RA 6758, military and uniformed personnel, GOCCs under RA 10149 and EO 150, those working without an employer-employee relationship, or those receiving funding from non-personnel services allocations or budgets.
Average Increase in 2nd Tranche of SSL VI
There are several noticeable improvements in the Tranche 2 modifications as compared to the Tranche 1 increases. For instance, the average raise for workers in management roles increases from 4.34% to 4.90%. The average rise for top leaders (SG 32–33) has also increased significantly, going from 2.38% in Tranche 1 to 4.67% in Tranche 2.
This demonstrates an attempt to raise wages across the board, even for senior positions. Sub-professional (SG 1-10) and professional (SG 11-24) workers continue to earn consistent raises at the same time, which contributes to more fair remuneration for those in critical responsibilities.
| Position Category | Tranche 1 Average Increase (%) | Tranche 2 Average Increase (%) |
|---|---|---|
| Sub-Professional (SG 1-10) | 4.2% | 4.3% |
| Professional (SG 11-24) | 4.88% | 4.67% |
| Managerial (SG 25-28) | 4.34% | 4.90% |
| Executives (SG 29-31) | 3.42% | 4.67% |
| Top Leaders (SG 32-33) | 2.38% | 4.67% |
Additional benefits under this program
Government workers receive additional benefits to help meet their demands in addition to the pay raises from the 2nd Tranche of SSL VI. The payment is intended to reward high performance and help with healthcare-related costs.
- Annual Medical Allowance: To aid with medical and healthcare costs, government employees receive ₱7,000 annually. Their financial assistance for medical expenses is guaranteed by this payment.
- Performance-Based Bonuses (PBB): Workers may receive additional compensation in accordance with their output and the degree to which their company meets its objectives.
- Uniform or Clothing Allowance: Employees are given ₱7,000 annually for their uniforms and this enables individuals to buy suitable work clothes without having to pay for it out of pocket.
Fact Check: Debunking Misconceptions
The second tranche is the subject of various myths. To make them clearer:
Claim: A 23.24% pay raise for all government workers in 2025 is part of the second tranche, according to the claim.
Fact: The claim is untrue. The average rise of 23.24% was a component of the 2024 Fourth Tranche. With anticipated increases varying from 4% to 8%, dependent on the employee’s pay grade, the Second Tranche (2025) compensation changes are more moderate.
Claim: By 2024, all of the Salary Standardization Law’s (SSL) tranches will have been implemented and finished.
Fact: The claim is untrue. There are still more tranches planned for 2026 and 2027, but the SSL program is intended to extend until 2027. The program has many stages, the 2024 tranche being only one of them.
Claim: Only senior officials gain from salary modifications made under SSL.
Fact: This claim is not true. Salary increases for all government employees are guaranteed by the SSL program. Actually, in order to close pay inequalities and advance justice, it gives priority to equitable adjustments, with lower income classes obtaining larger percentage increases.
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Samarth Choudhary is a Chief Editor at keralacobank.com. He has overall editorial experience of 10 years in online media. He has completed his graduation from University of California and masters in Finance from University of Dallas in year 2010. His major interest and expertise is in Finance, Taxes, Government Aid and Schemes. His Major focus is to help users to get relevant information which are published on keralacobank.com in easy and precise form.