President Ferdinand Marcos Jr. has issued Executive Order No. 64, declaring a salary increase and additional allowances for government employees to help them manage economic challenges. The order, signed and released on Friday, aims to update the salaries and benefits of government personnel amid inflation and other economic pressures.
President Marcos emphasized the need to maintain a competent and efficient workforce by enhancing their compensation, which is also aligned with his promise during the State of the Nation Address last month. The salary adjustments will apply to staff in the Executive, Legislative, and Judicial Branches, as well as Constitutional Commissions and Offices.
The new salary schedule will take effect immediately upon publication in the Official Gazette and will be implemented retroactively from January 1, 2025, until 2027. The Department of Budget and Management has allocated P70 billion in the proposed P6.352-trillion 2025 national budget for the salary increases.
Additionally, state employees will receive an annual medical allowance of P7,000 for their health maintenance organization (HMO) coverage. Budget Secretary Amenah Pangandaman announced that over P9.6 billion is set aside in the proposed national budget for HMO benefits of government workers.
