The Department of Budget and Management (DBM) said Wednesday it signed a circular which provides the guidelines, rules and regulations for the second tranche of the salary increase for the civilian government workers.
It said the National Budget Circular No. 597 was issued in line with the implementation of the updated salary schedule for the civilian personnel pursuant to Executive Order (EO) No. 64, s. 2024, which was signed by President Ferdinand Marcos Jr. in August 2024.
“We hope that this second tranche will provide much-needed financial relief and allow our government workers to better support their families, invest in their futures, and enhance their overall quality of life,” said DBM Secretary Amenah Pangandaman.
EO No. 64 states that the updated salary schedule should be implemented in national government agencies in four tranches, with the first beginning on Jan. 1, 2024, the second on Jan. 1, 2025, the third on Jan. 1, 2026 and the fourth and final tranche on Jan. 1, 2027.
This applies to all civilian government personnel, existing or hereafter created in the executive, legislative and judicial branches, the constitutional commissions and other constitutional offices, state universities and colleges and government-owned and controlled corporations (GOCCs) not covered by Republic Act (RA) No. 10149 and EO No. 150, s. 2021, regardless of appointment status, whether regular, casual, or contractual; appointive or elective; and on a full-time or part-time basis.
Meanwhile, the circular would not apply to military and uniformed personnel; government agencies that are exempt from RA No. 6758; GOCCs under RA No. 10149 and EO No. 150; individuals engaged without employer-employee relationship and funded from non-personnel services appropriations/budgets, such as consultants and experts engaged for a limited period to perform specific activities or services with expected outputs, laborers engaged through job contracts (pakyaw) and those paid on piecework basis, student workers and apprentices and those whose services are engaged through job orders, contracts of service, or others similarly situated.
The amounts required for the salary adjustment of the civilian government personnel in FY 2025 should be charged against the miscellaneous personnel benefits fund and any available appropriations under the FY 2025 General Appropriations Act, subject to budgeting, accounting, and auditing rules and regulations.
The DBM said that for GOCCs covered by the circular, the amounts should be charged against their respective corporate operating budgets, as approved by the agency.