In consonance with the actualization of SSL VI (Salary Standardization Law VI), the government of the Philippines confirmed several salary adjustments to its civil servants.
Such a move seeks to increase the compensation scheme of government employees to both private sector levels and adjust for inflationary factors affecting these workers. The full implementation of the law starts in tranches from 2024 to 2027, with the second tranche expected to kick in on January 1, 2025.
SSL VI Overview
Essentially, SSL VI provides for formal salary increases over a four-year period. Following the first (2024) implementation, the second tranche is set to commence by January 2025, third tranche to come January 2026, and final adjustment in January 2027. The staggered implementation allows for manageable and sustainable salary increases under the fiscal program of government.
Second Tranche Details (2025)
January 1, 2025, is the effective date of the following tranche, which will see an adjustment of salaries by an average of 4.2%-4.67%, depending on salary grade. One adjustment would be that of Teacher I under Salary Grade 11, whose salary for the year 2024 at ₱28,512 shall be ₱30,024 in the year 2025, a 5.3% increase.
For Nurse I under Salary Grade 15, the amount rises from ₱38,413 in 2024 to ₱40,208 in 2025, an increase of 4.67%. Such adjustments will make public sector positions more competitive and attractive, especially in vital services like education and health.
Allowances and Benefits
Salary increases under SSL VI will be supplemented by enhanced allowances to help government employees further. It provides a medical allowance of ₱7,000 per year for meeting healthcare expenses.
Employees will also get a uniform or clothing allowance of ₱7,000 per annum for work attire requirements. Such benefits will reduce employees’ out-of-pocket expenses and enhance their welfare.
Performance-Related Incentives
Performance-based incentives are also incorporated under SSL VI to spur excellence and productivity. Representation and Travel Allowance (RATA) is adjusted depending on responsibility and rank.
The Performance-Based Bonus (PBB) will be given to government employees who attain or exceed their targets, and the Collective Negotiation Agreement (CNA) incentive is given for commendable performance and efficient processes. The incentives mentioned promote a culture of meritocracy and continuous improvement within the public sector.
Implementation Among Local Government Units (LGUs)
The rollout of SSL VI is being affected by the various capacities of the LGUs concerned. First-class provinces will implement all the increases, while second-class provinces will implement the increase at 95%.
Third-class municipalities will apply 85% of the scheduled increases while fourth-class municipalities will apply just 80%. This mechanism assures that all corners of the country get to take part in salary increases without jeopardizing their financial position.
Fiscal Sustainability and Funding
The funders of the SSL VI scheme are quite substantial. An initial funding of around ₱32 billion was released in 2024 for salary adjustment, while the budget for 2025 increases to ₱70 billion under the National Expenditure Program with the second tranche in mind.
The respective tranches will be funded from the Miscellaneous Personnel Benefits Fund (MPBF) and the budget of the respective agencies, ensuring the sustainability of the salary increases.
Impact on the Public Sector Workforce
The SSL VI, when implemented, is expected to have multiple favorable outcomes. Competitive salaries and benefits shall result in improved retention of competent personnel in the public sector, with reduced attrition; better compensation packages will attract highly qualified individuals to government jobs; and a motivated and well-rewarded labor force could deliver high-standard services to the citizenry. Ultimately, SSL VI corrects wage disparities and alleviates inflationary pressures, leading to an efficient and effective government workforce.
Conclusion
The Salary Standardization Law VI is a significant commitment of the Philippine government to improving the lives of civil servants. Development of a highly motivated and competitive public sector through structured salary, new allowances, and performance-based incentives under SSL VI will have far-reaching benefits, not just for government ranks, but for the very communities they are serving.