MANILA – The Department of Budget and Management (DBM) has issued a budget circular containing the guidelines for the implementation of the second tranche of the updated salary schedule for government workers in 2025.
The new salary rates for all government personnel, regardless of appointment status, went effective on January 1, 2025, according to National Budget Circular 597 issued by DBM Secretary Amenah Pangandaman on January 20.
The new budget circular covers all government personnel in the executive, legislative, and judicial branches; constitutional commissions and other constitutional offices; state universities and colleges; and government-owned or -controlled corporations (GOCCs) not covered by Republic Act (RA) 10149 (GOCC Governance Act) and Executive Order (EO) 150 (Compensation and Position Classification System or CPCS) issued in 2021.
The circular excludes military and uniformed personnel, government agencies that are exempt from RA 6758 (An Act Prescribing a Revised Compensation and Position Classification System in the Government and for Other Purposes), GOCCs under RA 10149 and EO 150, and individuals engaged without employer-employee relationship and funded from non-personnel services (PS) appropriations or budgets.
“The amounts required for the salary adjustment of civilian government personnel in FY (fiscal year) 2025 shall be charged against the Miscellaneous Personnel Benefits Fund (MPBF) and any available appropriations under RA No. 12116 or the FY 2025 General Appropriations Act (GAA), subject to budgeting, accounting, and auditing laws, rules, and regulations,” the circular posted Tuesday night on the DBM Facebook page read.
“The amounts required to implement the salary adjustment and related fixed expenditures of casual and contractual personnel in NGAs (national government agencies) whose salaries are drawn from the lumpsum appropriations for non-itemized positions shall be sourced from the agency’s lump sum appropriations included in its FY 2025 budget,” it added.
For covered GOCCs, the funding requirements for the salary increase will be charged against their approved corporate operating budgets (COBs), provided that the national government would not release funds or any related expenditures.
GOCCs should not resort to borrowings and should make sure that the performance targets in their DBM-approved COBs are met and their programs or projects for the year are not adversely affected.
The DBM will release to the agencies concerned the Special Allotment Release Orders to implement the second tranche of the salary adjustment prescribed under EO 64.
It will also issue the corresponding Notices of Cash Allocation with a monthly breakdown, to cover the total annual requirement for the salary adjustment and related fixed expenditures, consistent with the applicable guidelines.
“Any additional requirement for the newly-filled positions after the December 31, 2024 cut-off date may be included in the agency’s request for the release of funds for PS deficiency, subject to the submission of the pertinent documents required for the processing of PS deficiency,” according to the circular.
President Ferdinand R. Marcos Jr. on August 2, 2024 issued EO 64, implementing salary adjustments for government workers to ensure an effective, competitive, and sustainable CPCS that attracts, retains, and motivates competent and dedicated civil servants.
Based on EO 64, the updated salary schedule for government personnel will be implemented in four tranches (2024 to 2027). (PNA)