In a bold move to improve public service morale and economic stability, the Philippine government has enacted significant salary and allowance hikes for both civilian government employees and military personnel.
These increases, taking effect in 2025, mark a critical step toward uplifting the lives of public servants and their families as the country sets its sights on achieving upper middle-income status.
Civilian Government Workers to Receive Salary Raises Until 2027
Under Executive Order No. 64, the Department of Budget and Management (DBM) has begun the second tranche of salary increases for civilian government employees in 2025. This is part of a four-year rollout that began in 2024 and will continue through 2027.
Salary Increase Tranches for Civilian Workers:
| Tranche | Effective Date | Description |
|---|---|---|
| 1st | January 1, 2024 | Initial salary increase implemented |
| 2nd | January 1, 2025 | Ongoing implementation phase |
| 3rd | January 1, 2026 | Next scheduled increment |
| 4th | January 1, 2027 | Final tranche completing the salary adjustment timeline |
The increase applies to all civilian employees, regardless of rank, whether appointed or elected, full-time or part-time, working in:
- The Executive, Legislative, and Judicial branches
- State Universities and Colleges (SUCs)
- Government-Owned and Controlled Corporations (GOCCs)
- Constitutional bodies
₱7,000 Annual Medical Allowance for Civilian Workers
To further support the welfare of state employees, the 2025 national budget includes ₱9.6 billion allocated to public sector health programs.
This allows for a ₱7,000 annual medical allowance per worker, which can be used for Health Maintenance Organization (HMO) services and other medical needs.
According to Budget Secretary Amenah Pangandaman, this new benefit provides “much-needed financial relief and support in health-related emergencies.”
Soldiers Get a 133% Increase in Subsistence Allowance
Alongside civilian salary upgrades, the government has also greenlit a 133% rise in monthly subsistence allowances for soldiers, under Executive Order No. 84. This measure is retroactive to January 1, 2025 and boosts the allowance from ₱4,500 to ₱10,500 per month.
New Subsistence Allowance for Armed Forces:
| Year | Monthly Allowance | Increase % |
|---|---|---|
| Pre-2025 | ₱4,500 | – |
| 2025 | ₱10,500 | 133% |
Covered personnel include all officers and enlisted members of the Armed Forces of the Philippines (AFP).
Nearly 100% Base Pay Increase for Lowest-Ranking Military and Police Personnel Since 2018
The substantial hike in 2025 builds upon the base pay adjustments initiated in 2018, which saw a Police Officer I’s monthly pay double from ₱14,834 to ₱29,668.
Impact of 2018 Salary Adjustments:
| Rank/Position | Previous Base Pay | New Base Pay (2018) | % Increase |
|---|---|---|---|
| Police Officer I | ₱14,834 | ₱29,668 | 100% |
| MUP Average Increase | – | – | 58.7% |
These reforms cover personnel under the Department of National Defense (DND), Department of the Interior and Local Government (DILG), Philippine Coast Guard (PCG), and National Mapping and Resource Information Authority (NAMRIA).
Philippines Aims for Upper Middle-Income Country Status
These compensation measures also align with the Marcos administration’s broader economic vision. With a Gross National Income (GNI) per capita of $4,230 (2023), the Philippines is classified as a lower middle-income country by the World Bank.
The goal is to breach the $4,516 GNI threshold to become an upper middle-income economy.
The total government workforce benefiting from these reforms is estimated at 1.8 million employees.
The Philippine government’s latest compensation reforms represent a strong commitment to boosting the morale and welfare of public servants.
With significant hikes for both civilian and military personnel, these measures not only enhance living standards but also reinforce the country’s trajectory toward sustained economic growth and global development benchmarks.
FAQs
When will the salary increases for civilian government workers be fully implemented?
The full implementation is planned over four years, from 2024 to 2027, under Executive Order No. 64.
What is the new subsistence allowance for Filipino soldiers in 2025?
The allowance has increased by 133%, from ₱4,500 to ₱10,500 per month, effective January 1, 2025.
Who benefits from the ₱7,000 medical allowance in 2025?
All civilian government workers in national agencies will receive this annual allowance starting in 2025.