The Philippine government is moving forward with the third phase of salary increases for public employees under the Salary Standardization Law V (SSL V). This initiative, which started in 2020, aims to narrow the pay gap between the public and private sectors by offering structured pay raises to government workers. The SSL V is a four-phase plan, with the upcoming update marking the penultimate phase. As inflation continues to impact many, the 2025 update is getting a lot of attention from those in public service who are hoping for better pay.
Breakdown of the 3rd Tranche Hike: What’s New in 2025
With this third tranche, employees at various salary levels will see raises based on their current positions. The increases are designed to help lower and middle-tier employees the most, as part of the government’s focus on improving pay for rank-and-file workers. For instance, an Administrative Aide I at Salary Grade 1 will now make around PHP 13,000 a month, up from PHP 12,517 in 2024. On the other hand, professionals under SG 18 or higher could see increases of PHP 2,000 to PHP 4,000 depending on their department and tenure.
Here’s a quick look at how the salaries will change:
| Salary Grade | 2024 Monthly Rate (PHP) | 2025 Monthly Rate (PHP) | Increase (PHP) |
|---|---|---|---|
| SG 1 | 12,517 | 13,000 | 483 |
| SG 10 | 20,219 | 21,150 | 931 |
| SG 18 | 42,159 | 44,300 | 2,141 |
| SG 24 | 86,742 | 89,750 | 3,008 |
| SG 27 | 121,427 | 124,500 | 3,073 |
Who Benefits from the Government Employee Raise?
This third tranche is expected to benefit around 1.7 million government workers, including teachers, police officers, military personnel, administrative staff, and even senior government officials. Those in entry-level health and education roles will likely see the most significant increases, reflecting the government’s emphasis on supporting essential services. Police, military, and other uniformed personnel will also receive raises that correspond to their rank and years of service.
Moreover, this salary adjustment aims to address pay compression issues that have long plagued the public sector. By offering more substantial differences in pay between ranks, the government hopes to boost morale and help workers cope with the rising cost of living.
The Bigger Picture: What Does the SSL V Mean for the Public Sector?
The 2025 update isn’t just about pay increases—it’s also about improving the overall competitiveness of the public sector. By offering better salaries, the government hopes to retain skilled employees and reduce the brain drain to the private sector or overseas opportunities. A more attractive salary package could encourage better performance and create greater stability within government institutions.
On top of that, the SSL V also promotes transparency in how public sector wages are determined. The clear structure and timeline of salary increases give workers a sense of stability, allowing them to plan their careers with more confidence. For taxpayers, it provides accountability, as pay raises are tied to the national budget and subject to legislative oversight.
What’s Next? Looking Ahead to the Final Tranche
While the 2025 tranche will kick in this July, preparations are already underway for the last phase of the salary increase, set for 2026. Many stakeholders are hoping that future adjustments will address pay issues for specialized positions, which have long advocated for higher compensation. Whether the final phase will include additional adjustments for inflation or new allowances remains to be seen, but it’s clear that the discussion will continue as the economy evolves.
FAQs
What is the Salary Standardization Law 2025 Update?
The SSL V update for 2025 is the third of four scheduled salary hikes for government employees. It aims to adjust pay scales according to inflation and improve equity across the public sector.
How much is the 3rd tranche hike?
The 3rd tranche hike varies by salary grade, with most increases ranging from PHP 483 to PHP 3,000 monthly, depending on the employee’s rank.
Who qualifies for the government employee raise in 2025?
All permanent government employees, including teachers, healthcare workers, military personnel, police, and administrative staff, qualify for the raise.
When will the 3rd tranche be implemented?
The new rates for the 3rd tranche will take effect in July 2025, following the approved SSL V schedule.
Is this the final tranche of SSL V?
No, the final tranche is planned for 2026. The 2025 increase is the third installment of the four-phase salary increase plan under SSL V.
