The implementation of the Salary Standardization Law VI (SSL VI) is transforming government compensation in the Philippines. Introduced in 2024, this law benefits over 1.7 million public employees, aiming to bridge the wage gap between government and private sector jobs while countering inflationary pressures.
Understanding SSL VI and Its Phased Implementation
SSL VI follows a four-tranche rollout from 2024 to 2027 to ensure fiscal sustainability while gradually improving salaries.
- 1st Tranche – Implemented in January 2024
- 2nd Tranche – Effective January 2025
- 3rd Tranche – Scheduled for January 2026
- 4th Tranche – Final adjustments by January 2027
This structured approach allows government employees to receive incremental salary increases and improved allowances while maintaining budget stability.
Key Highlights of the Second Tranche (2025)
Starting January 1, 2025, the Second Tranche of SSL VI introduces substantial pay hikes, ranging from 4.2% to 4.67% across various job categories. Notable improvements include:
- Higher Salaries: Public sector employees will receive a gradual but significant increase in their compensation.
- Additional Allowances: Enhanced medical and uniform allowances ensure better support for government workers.
- Step Increments: Employees will continue to progress within their respective eight-step salary structure for long-term growth.
Also Read: Government Employees to Receive Annual ₱7,000 Medical Allowance Starting 2025
Salary Adjustments Across Job Categories
Example Salary Increases
The following table highlights salary adjustments for key government positions:
| Position | Salary Grade | 2024 Salary | 2025 Salary | Increase (%) |
|---|---|---|---|---|
| Teacher I | SG-11 | ₱28,512 | ₱30,024 | 5.3% |
| Nurse I | SG-15 | ₱38,413 | ₱40,208 | 4.67% |
Revised Salary Scale
The Second Tranche maintains an eight-step salary structure to ensure career progression.
| Salary Grade | Step 1 | Step 2 | Step 3 | Step 4 | Step 5 | Step 6 | Step 7 | Step 8 |
| 1 | ₱14,372 | ₱14,482 | ₱14,593 | ₱14,706 | ₱14,818 | ₱14,931 | ₱15,047 | ₱15,161 |
| 10 | ₱24,585 | ₱24,790 | ₱24,998 | ₱25,207 | ₱25,417 | ₱25,630 | ₱25,844 | ₱26,061 |
| 15 | ₱40,208 | ₱40,446 | ₱40,868 | ₱41,296 | ₱41,616 | ₱42,052 | ₱42,494 | ₱42,941 |
Enhanced Allowances and Incentives
Beyond salary increases, SSL VI introduces additional benefits to further support government employees.
Allowances
- Medical Allowance: ₱7,000 annually for healthcare expenses.
- Uniform/Clothing Allowance: ₱7,000 annually for work attire.
- Personnel Economic Relief Allowance (PERA): A continued financial aid to help cope with inflation.
Performance-Based Incentives
Government employees may also receive performance-driven bonuses, including:
- Representation and Travel Allowance (RATA): Based on rank and workdays.
- Performance-Based Bonus (PBB): Rewarding employees for meeting departmental goals.
- Collective Negotiation Agreement (CNA) Incentive: Recognizing outstanding work performance and efficiency.
Implementation Across Local Government Units (LGUs)
The implementation of SSL VI varies among LGUs, depending on their financial capacity.
| LGU Classification | Implementation Rate |
| 1st Class Provinces | 100% |
| 2nd Class Provinces | 95% |
| 3rd Class Municipalities | 85% |
| 4th Class Municipalities | 80% |
Higher-tier LGUs can fully implement salary adjustments, while lower-tier municipalities may adopt partial increases based on available resources.
Sustainability and Funding Sources
The Second Tranche is financed through:
- Miscellaneous Personnel Benefits Fund (MPBF): Ensures funds for salary adjustments.
- Agency Budget Allocations: Covers additional financial requirements.
By balancing budget allocations and fiscal responsibility, the government ensures the long-term sustainability of these salary adjustments.
Also Read: Philippines Minimum Wage Increase 2025: A Game-Changer for Workers
Conclusion: Strengthening the Public Workforce
The Second Tranche of SSL VI marks a significant step towards equitable pay and better working conditions for government employees. By implementing higher salaries, increased allowances, and performance-based incentives, the Philippine government enhances workforce motivation, retention, and efficiency.
Frequently Asked Questions (FAQs)
1. Who benefits from the Salary Standardization Law VI (SSL VI)?
SSL VI benefits all government employees, including teachers, healthcare workers, and other public sector employees, by gradually increasing salaries and allowances over four years.
2. How much will salaries increase under the Second Tranche?
Salary increases range between 4.2% and 5.3%, depending on the employee’s salary grade. For example, a Teacher I (SG-11) will see an increase from ₱28,512 to ₱30,024, a 5.3% boost.
3. Will all government employees receive the same benefits?
While all government employees receive salary adjustments, allowances, and incentives may vary based on rank, tenure, and local government classifications.
4. How is SSL VI funded?
SSL VI is funded through the Miscellaneous Personnel Benefits Fund (MPBF) and agency budget allocations, ensuring sufficient financial resources without straining the national budget.
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