Tuesday, November 10, 2015

Government Employees to Receive 45% Salary Hike in 2016

2016 is a bright year for the civilian and uniformed employees of the government for they will be receiving a 45% increase of their salary once the law is approved and fully implemented.

PH Currency
President Benigno S. Aquino III endorsed to Congress a proposed bill entitled, “Salary Standardization Law of 2015,” the November 9, Official Gazette said

4 Principles of Salary Increase

DBM Secretary Florencio Abad declared why the government employees shall be given an increase of their salary based on the 4 principles:

1. Fair and reasonable compensation based on fiscal realities;
2. Competitiveness of pay in relation to the private sector;
3. Strengthening the link between pay and performance by enhancing the performance-based incentive system; and
4. Tempering the cost impact of the compensation increase to allow for higher take home pay.

Coverage of Compensation Plan

The proposed compensation plan is composed of across the board salary increase plus a mid-year bonus equivalent to one month basic salary and the new Performance-based Bonus (PBB) as an added bonus contingent on performance.

The mid-year bonus, in addition to the present year-end bonus or 13th month pay, will account for an 8 percent increase in annual salary. The PBB is equivalent to 1 to 2 months basic salary or an 8 to 16 percent increase depending on the position.

Why Higher Salaries

“Higher salaries help attract and retain critical talent. We want to attract the best and brightest managers and executives to join and stay in government. More than a proposal for a salary increase, SSL 4 is an advocacy to further improve government service. With competitive compensation, we intend to bolster the recruitment of agencies that need to fill up vacancies in senior technical and middle management positions,” Abad said.

In this case, the minimum salary grade (SG 1) shall be raised from P9,000 to P11,068 monthly.

The salary increase stipulated in SSL 2015 will take effect on January 1, 2016.

Source: "Aquino endorses pay increase for public servants", PH Government Official Gazette, November 9, 2015


  1. This is good news, most especially to me since I work for the government.

  2. Wow this is really a good news for our fellow public servants...they really deserve such increase.. i have heard that SSS pensioners will soon have their increase too (possibly next year)... 2016 might be a great start for pinoys... cheers!

  3. Wow! This is indeed great news for all the affected employees. 45% increase is huge. It's just right for them.

  4. I think the Salary Standardization Law is good for the employees. It can also be a way to stop corruption.

  5. This is never good... The presidents salary increase is 200,000 plus, based on the present salalry of 120,000... and the teachers salary is 20k from 18k. Di makatarungan yan!

  6. Happy for our public servants! I know they deserve better but this is a good start. I hope the government will be firm on its implementation.


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