DBM IMPLEMENTS THIRD TRANCHE OF SALARY INCREASE FOR CIVILIAN GOVERNMENT EMPLOYEES

AS promised by President Ferdinand R. Marcos Jr., the Department of Budget and Management (DBM) has begun implementing the third tranche of the updated salary schedule for civilian government personnel effective January 1, 2026.

“Pangakong salary increase sa mga kawani ng gobyerno, tinupad ni Pangulong Ferdinand R. Marcos Jr.,” Presidential Communications Office (PCO) Undersecretary and Palace Press Officer Claire Castro said during a press briefing in Malacañang on Monday.

Castro said the salary increase is based on National Budget Circular (NBC) No. 601 dated January 22 that was issued by the Department of Budget and Management (DBM)led by Acting Secretary Rolando Toledo.

NBC No. 601 was based on President Marcos’ Executive Order (EO) No. 64 series of 2024, which mandated that the salary increases be delivered in four tranches from 2024 to 2027.

“Naniniwala si Pangulong Marcos Jr. na nararapat lang mabigyan ng tamang pagkilala ang mga kawani ng pamahalaan na walang humpay na nagsisilbi sa bayan,” Castro said.

Castro said according to Secretary Toledo, the salary increase mandated under EO No. 64 seeks to improve the well-being of government employees and strengthen the civil service.

NBC No. 601 applies to all civilian government personnel- whether regular, casual, or contractual; appointive or elective; and full-time or part-time- in the executive, legislative, and judicial branches.

Castro said the Circular also applies to civilian personnel in constitutional commissions and constitutional offices, state universities and colleges, and in government-owned or controlled corporations (GOCCs) that are not covered by Republic Act No. 10149 or the GOCC Governance Act of 2011, and EO No. 95, series of 2025 titled Approving the Compensation and Position Classification System (CPCS) II and Pay Grades for GOCCs.

The DBM said those who are excluded from the Circular are military and uniformed personnel; GOCCs covered by a CPCS established by the Governance Commission for GOCCs and approved by the President; and individuals engaged without employer-employee relationship such as job order and contract of service workers, and consultants.

The fourth and final tranche of the pay increase will take effect on January 1, 2027.