From 2025’s salary increase, the Philippine government has announced the implementation of salary increases for government employees in 2026 which is on its third tranche. The structured salary adjustment will be implemented through the Salary Standardization Law VI (SSL VI), representing a step toward economic stability for government employees. Many public servants have expressed both relief and anticipation regarding this announcement, particularly given the prolonged effects of inflation on household budgets.
As the SSL VI program enters its third year of implementation, government officials emphasize the importance of understanding its broader implications for the public service sector. As per latest update, the Department of Budget and Management (DBM) has allotted a budget of PHP 40 Billion for the said salary hike.
The salary increase is designed to address the ongoing economic challenges faced by government workers while maintaining the quality of public services delivered to Filipino citizens.
A Quick Timeline of SSL VI
The 2026 salary increase is part of a broader rollout under Executive Order No. 64, series of 2024, signed by President Ferdinand Marcos Jr. Here’s how the timeline looks:
- 1st tranche – January 1, 2024
The first increase was rolled out, setting the baseline for the next three years. - 2nd tranche – January 1, 2025
This continued the adjustment to bring pay closer to market levels. - 3rd tranche – January 1, 2026 ✅
The current increase takes effect, marking the midpoint of the reforms. - 4th tranche – January 1, 2027
The final tranche will complete the four-year cycle.
Each step builds on the previous one, giving employees a predictable and transparent salary growth path.
Who Will Benefit From the 2026 Tranche?
The 2026 tranche applies broadly across government, ensuring no sector is left behind. Beneficiaries include:
- Civilian personnel in the Executive, Legislative, and Judicial branches
- Employees in Constitutional Commissions and other Constitutional Offices
- Workers in Government-Owned or Controlled Corporations (GOCCs) not covered by RA 10149 or EO 150 (2021)
- Personnel in Local Government Units (LGUs), provided their local funds allow it
This coverage makes SSL VI one of the most comprehensive government compensation programs to date.
How Much Will Salaries Increase in 2026?
The Salary Standardization Law VI promises an average 18% increase in basic pay spread out from 2024 to 2027. By 2026, government employees will already have received two earlier bumps.
- Each Salary Grade (SG 1–33) has a fixed adjustment in the 2026 table.
- The adjustments are transparent and standardized, ensuring fairness across all agencies.
- For example, employees in lower salary grades may see proportionally larger percentage increases, designed to support those most affected by rising costs of living.
In short, the 2026 tranche reflects the midpoint of the entire adjustment—already significant for families budgeting around growing expenses.
What Extra Benefits Come With SSL VI?
Beyond the salary hike, several additional benefits continue under SSL VI:
- ₱7,000/year medical allowance
An HMO-type subsidy designed to ease health-related expenses. - Performance-Based Bonuses (PBB)
Employees meeting agency and individual targets remain eligible. - Other allowances under existing rules
These remain intact, ensuring that the compensation package is more than just base pay.
Each of these perks helps round out the total benefits package, signaling the government’s effort to support not just financial but also health and performance needs.
Why the Government Is Implementing SSL VI
The rationale for SSL VI, outlined in EO 64, is clear:
- Inflation adjustment – Rising prices have eroded the real value of salaries.
- Retention of competent workers – Better pay helps keep skilled, committed personnel in government service.
- Public service quality – By motivating employees with fair pay, the government hopes to boost accountability and efficiency.
At its core, this program is about making sure public service careers remain viable and rewarding.
LOCAL-BUDGET-CIRCULAR-NO-165What This Means for Government Employees in 2026
For employees, the 2026 increase is more than just numbers on a pay slip—it represents recognition. It means being able to plan a little more confidently, whether for family expenses, education, or healthcare. It’s also a signal that the government acknowledges the challenges of working in public service and is taking steps to address them.
Frequently Asked Questions
- When will the 2026 salary increase take effect?
It takes effect on January 1, 2026, as the third tranche of SSL VI. - Does the increase cover all government employees?
Yes, it covers civilian personnel in national agencies, constitutional offices, GOCCs (with some exceptions), and LGUs (depending on funds). - How big is the 2026 salary increase?
It varies per salary grade but is part of an average 18% increase spread across four years (2024–2027). - Will allowances also change in 2026?
Allowances like the ₱7,000/year medical subsidy and Performance-Based Bonuses continue under existing rules.
What Filipinos Say About the 2026 Salary Increase
Whenever news of a salary adjustment for government workers comes out, it sparks a mix of reactions. Here are some common sentiments shared on Facebook groups, Reddit threads, and news comment sections:
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“Finally, kahit paano may dagdag na pambili sa araw-araw.”
Many government workers welcome the increase, saying it helps offset the rising cost of food, transport, and school expenses. -
“Maganda na may tranches, pero sana mas malaki ang dagdag para ramdam talaga.”
Some appreciate the structured rollout but wish the adjustments were bigger to better match private sector rates. -
“Kahit maliit, at least sure at regular ang increase.”
Others value the certainty and predictability, noting that small but steady hikes make it easier to budget long-term. -
“LGUs pa rin ang problema—kung walang pondo, hindi rin lahat makikinabang.”
Concerns remain that some local government units may struggle to implement the increase due to limited funds. -
“Hindi lang sahod ang solusyon. Sana mas maayos din ang benefits at working conditions.”
A recurring point is that while salary hikes are important, real improvement comes from combining pay, benefits, and workplace reforms.
These voices reflect both gratitude and cautious optimism, highlighting the reality that salary reform is only one piece of the puzzle in improving public service careers.
Conclusion
By the time the 2026 salary increase for government employees takes effect, many public servants will already have felt the relief of two prior adjustments. This third tranche reinforces the government’s commitment to fair pay and sustained support. For employees, it’s not just about catching up with inflation—it’s about knowing their work is valued and their service recognized.