If you are working in government or planning to apply for a public job, it’s important to know the changes in salary grade 2025. This update is part of the Salary Standardization Law VI (SSL VI), which provides salary increases for government workers starting January 2025. The goal is to make government jobs more competitive, fair, and rewarding for employees.



What Are Salary Grades?



A salary grade (SG) is a number that shows the pay level of a government position. The Philippines uses 33 grades, where higher grades mean higher pay.



SG-1: Entry-level positions like clerks, aides, and support staff.



SG-33: The top level, assigned only to the President of the Philippines.



Most salary grades also have eight steps. Each step is a small pay increase within the same grade. Workers can move up steps over time, even without promotion.



Salary Standardization Law VI



The SSL VI gives salary increases in four tranches spread across four years. This phased approach helps the government budget properly while still rewarding employees.



First Tranche – January 1, 2024 (retroactive)



Second Tranche – January 1, 2025



Third Tranche – January 1, 2026



Fourth Tranche – January 1, 2027



The 2025 tranche is the second round, bringing another boost to monthly pay.



Government Budget for 2025



To fund these salary adjustments, the government has set aside about ₱70 billion in the 2025 national budget. This investment shows how important government employees are to national growth and service.



Who Will Benefit?



The salary grade system applies to every government worker, from new hires to top leaders.



Professional Supervisory (SG 9–33): School principals, chiefs, directors, and agency heads.



Professional Non-Supervisory (SG 8–30): Teachers, engineers, nurses, and accountants.



Sub-Professional Supervisory (SG 8–18): Supervisors of clerks, drivers, and support workers.



Sub-Professional Non-Supervisory (SG 1–10): Entry-level workers such as aides and clerks.



For national officials:



SG-32: Vice President, Senate President, House Speaker, Chief Justice



SG-33: President of the Philippines



Added Medical Allowance



Starting in 2025, all government workers will also receive a ₱7,000 annual medical allowance. This benefit covers both regular and contractual employees and can be used for medical checkups, medicine, and other health needs.



Salary Grades in LGUs



Local Government Units (LGUs) also follow the salary grade schedule, but the rates they can pay depend on their income class.



Special cities and 1st-class provinces: Pay 100% of the standard salary.



Lower-class municipalities: Pay between 65% and 90% of the rate.



This system makes sure that all LGUs can implement salary increases fairly without overspending.



Why This Matters



The 2025 salary updates bring many benefits to public service:



Fair structure – Everyone knows the salary scale.



Retention – Better pay helps workers stay in government.



Attraction – Competitive pay brings more skilled professionals.



Health support – The medical allowance adds extra care.



Motivation – Employees feel more valued and provide better service.



FAQs



When will the increase start?

The second tranche begins in January 2025. If delayed, workers will receive back pay.



Are barangay officials included?

Yes, they now follow a fixed salary system.



What are salary steps?

Each grade starts at Step 1. Moving up to Step 8 gives gradual salary increases over time.



Example of Salary Increase



In 2024, an SG-1 Step 1 worker earned ₱13,530 per month. With the 2025 increase, this rises to ₱14,061. Salaries will continue to go up in 2026 and 2027.



Looking Toward 2027



By the last tranche in 2027, the salary structure will be much stronger:



Entry-level workers will earn higher, more stable pay.



Teachers, nurses, and other professionals will have more competitive salaries.



Top officials will also benefit, but the biggest improvements will go to lower-grade workers.



Conclusion



The Salary Grade 2025 update is a positive step for government employees in the Philippines. With steady raises, clearer pay levels, and added benefits, workers can expect fairer compensation and better support.



This reform not only helps employees but also strengthens the public sector by keeping skilled professionals motivated to serve the nation.