If you are working in government or planning to join public service, you have probably heard about the new salary grade 2025 update. This change is part of the Salary Standardization Law VI (SSL VI), which gives salary increases to government workers starting in January 2025. The goal is simple: to make government jobs more rewarding, fair, and competitive compared to private sector opportunities.

What Is Salary Grade?

In the Philippines, every government job is assigned a Salary Grade (SG). These grades run from SG-1 to SG-33. The higher the grade, the higher the pay.

• SG-1 is for entry-level workers such as clerks, aides, or utility staff.

• SG-33 is the highest, reserved only for the President of the Philippines.

Each grade (except SG-33) also has eight steps. A step is like a smaller level within the salary grade. Moving up a step means your pay goes up, even if you stay in the same grade.

What’s New in 2025?

The Salary Standardization Law VI introduces a four-year increase plan called tranches. These increases are spread over time so the government can manage its budget better.

Here’s how the tranches are scheduled:

1. First Tranche – Applied retroactively from January 1, 2024.

2. Second Tranche – Starts January 1, 2025.

3. Third Tranche – Starts January 1, 2026.

4. Fourth Tranche – Starts January 1, 2027.

The second tranche in 2025 is the one most employees will feel soonest. Salaries at all levels will rise again, making a real difference in take-home pay.

Budget for Salary Increases

The government has allocated around ₱70 billion in the 2025 national budget just for these salary adjustments. This shows how serious the government is about improving the welfare of its employees.

Who Benefits?

Salary grade levels are tied to different kinds of roles:

• Professional Supervisory (SG 9–33): School principals, police chiefs, directors, and high-ranking officers.

• Professional Non-Supervisory (SG 8–30): Teachers, engineers, accountants, researchers, and other specialized staff.

• Sub-Professional Supervisory (SG 8–18): Supervisors who lead technical workers.

• Sub-Professional Non-Supervisory (SG 1–10): Entry-level or support staff like clerks, drivers, and maintenance personnel.

Top government leaders also follow this system:

• SG-32: Vice President, Senate President, Speaker of the House, and Chief Justice.

• SG-33: President of the Philippines.

Medical Allowance in 2025

Starting 2025, government workers—both regular and contractual—will also get a ₱7,000 annual medical allowance. This acts like an extra health benefit, helping cover doctor visits, medicine, or emergencies.

Local Government Units (LGUs)

Not all LGUs pay the same salary rate. The amount depends on their classification:

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

• Lower-class municipalities: Can pay between 65% and 90% depending on their income.

This sliding scale ensures fairness without putting too much strain on smaller LGUs.

Why It Matters

The salary grade updates make government service more attractive. Here’s why:

1. Better Pay: Increases help employees cope with inflation and daily expenses.

2. Fair System: Clear salary grades and steps make pay transparent.

3. Health Support: The ₱7,000 medical allowance adds real value.

4. Retention of Talent: Higher salaries encourage skilled workers to stay in public service.

5. Competitive Edge: With better pay, government jobs can compete more with private companies.

Common Questions

Will salaries go up automatically?
Yes, but some agencies may take time to process the changes. If delayed, employees usually receive back pay to cover the missed months.

Do barangay officials get salary grades?
Yes. Barangay officials now also have set salaries based on a simplified grade system, making compensation clearer and more consistent.

How do steps work?
Step 1 is the entry pay for a salary grade. Over time, employees move up to Step 2, Step 3, and so on, until Step 8—the highest step in that grade.

Quick Example

Let’s say a new office clerk is hired under SG-1 Step 1. In 2024, that salary was ₱13,530 per month. With the 2025 increase, the same SG-1 Step 1 salary becomes ₱14,061. This may seem small, but as years go on and more tranches are added, the pay grows steadily.

The Bigger Picture

By 2027, when all four tranches are complete, salaries across government will look very different from 2023 levels. For example:

• Entry-level workers will have more stable pay and benefits.

• Mid-level professionals like teachers and nurses will see meaningful increases.

• Top officials will also get higher salaries, but the biggest benefit is felt by the lower-level employees who need it most.

Final Thoughts

The new Salary Grade 2025 changes are an important step forward for government employees in the Philippines. With structured pay increases, a clear system of grades and steps, and the added medical allowance, government service is becoming more rewarding.

This system not only improves lives of workers but also ensures that the public sector attracts and keeps talented people who serve the nation.