The Department of Budget and Management (DBM) has rolled out a new budget circular that outlines the implementation details for the second phase of the revised salary schedule for government employees, effective from January 1, 2025. DBM Secretary Amenah Pangandaman announced the guidelines on January 20 through National Budget Circular 597.
This circular applies to all government employees across the executive, legislative, and judicial branches, as well as those in constitutional commissions, other constitutional offices, state universities and colleges, and government-owned or -controlled corporations (GOCCs) not governed by Republic Act 10149 and Executive Order 150 from 2021. However, it does not include military and uniformed personnel, certain exempt government agencies, GOCCs under RA 10149 and EO 150, and individuals without an employer-employee relationship funded by non-personnel services budgets.
Funding for the salary adjustments in fiscal year 2025 will be drawn from the Miscellaneous Personnel Benefits Fund and any available funds under the 2025 General Appropriations Act, adhering to relevant financial regulations. For casual and contractual staff in national government agencies, salary adjustments and related fixed expenditures will be sourced from the agency’s lump sum appropriations in their 2025 budget.
For covered GOCCs, the salary increase will be funded from their approved corporate operating budgets, with no additional funds or expenditures provided by the national government. These corporations are also advised against borrowing and must ensure that their performance targets and annual programs or projects remain unaffected.
The DBM will issue Special Allotment Release Orders to the relevant agencies to facilitate the second phase of the salary adjustment as outlined in Executive Order 64. Additionally, Notices of Cash Allocation will be provided with a monthly breakdown to cover the total annual requirement for salary adjustments and related expenditures.
Any additional funding needed for positions filled after December 31, 2024, can be requested as part of the agency’s request for funds to cover personnel services deficiencies, provided the necessary documentation is submitted.
President Ferdinand R. Marcos Jr. issued EO 64 on August 2, 2024, to implement salary adjustments aimed at creating an effective, competitive, and sustainable compensation system that would attract, retain, and motivate skilled and dedicated civil servants. The updated salary schedule will be rolled out in four phases from 2024 to 2027.