Employees of Government-Owned or -Controlled Corporations (GOCCs) are set to receive higher pay and improved benefits, following President Ferdinand “Bongbong” Marcos Jr.’s announcement of a new compensation package during the 2025 GOCCs Day celebration, according to this PCO advisory.
The President confirmed the approval of the Compensation and Position Classification System II (CPCS II), which grants salary increases to GOCC personnel nationwide. He described the move as a long-overdue recognition of the vital role public servants play in national development.
“And in support of the hardworking men and women who make this possible, I have approved the Compensation and Position Classification System II that will increase the salaries of GOCC employees. Well-deserved naman,” Marcos declared.
In addition to salary hikes, employees will also receive tiered medical allowances. The amount will depend on the financial capacity of their respective corporations, ensuring both sustainability for agencies and improved welfare for personnel.
Retroactive Pay and Broader Impact
For GOCCs that already implemented CPCS I, the increases will be applied retroactively starting January 1, 2025, once they secure an Authority to Implement from the Governance Commission for GOCCs (GCG). This retroactivity means thousands of employees may soon receive additional back pay, providing families with an unexpected financial boost.
Marcos emphasized that the decision reflects government recognition of the contributions of GOCCs to the country’s progress. He noted that beyond administrative duties, these corporations have played an essential role in building infrastructure, expanding services, and uplifting marginalized communities.
Boosting Morale and Productivity
The announcement has been met with optimism among public sector employees, who see the increase as not only financial relief but also validation of their service. Labor analysts suggest that higher compensation could improve morale, reduce turnover, and strengthen the capacity of GOCCs to deliver efficient public service.
“GOCCs have been instruments of growth, equity, and empowerment. And through their contributions, we have built infrastructure, expanded services, invested in communities—especially those that have long been marginalized,” Marcos said.
A Step Toward Inclusive Growth
The salary adjustment also aligns with the administration’s broader push for inclusive growth. By ensuring that employees across government corporations enjoy fair compensation, the government hopes to set an example of balanced economic management—rewarding productivity while safeguarding institutional sustainability.
Policy experts highlight that this move could encourage further professionalization of the sector, making GOCCs more competitive in attracting talent compared to private corporations. It also demonstrates the government’s responsiveness to the welfare of its workers at a time when inflation and the rising cost of living continue to challenge Filipino families.
Looking Ahead
The rollout of CPCS II is expected to be closely monitored by both the GCG and the Department of Budget and Management (DBM) to ensure consistent application across agencies. Officials say the reform underscores a growing commitment to elevate the quality of public service while ensuring that those who serve the nation are supported in return.
As President Marcos concluded, the measure is both practical and symbolic: a recognition that strengthening the public workforce is essential to sustaining national development.