If you work in government or plan to apply for a public sector job, you should know about the new salary grade 2025 update. This is part of the Salary Standardization Law VI (SSL VI), which raises salaries for government employees starting January 2025. The purpose is to make public service more rewarding, fair, and competitive compared to private sector jobs.
What Is a Salary Grade?
A salary grade (SG) is a number that represents the pay level of a government job. In the Philippines, salary grades range from SG-1 to SG-33. The higher the grade, the higher the salary.
-
SG-1: For entry-level jobs like clerks, aides, or utility staff.
-
SG-33: The top grade, reserved only for the President of the Philippines.
Most grades also have eight steps (except SG-33). Each step is like a mini-level inside the grade. Employees can move up steps over time and receive higher pay even without changing positions.
Salary Standardization Law VI
The new law adjusts salaries gradually through four tranches. This makes it easier for the government to manage costs while steadily improving pay.
The tranches are scheduled as follows:
-
First Tranche – Retroactive from January 1, 2024.
-
Second Tranche – Starts January 1, 2025.
-
Third Tranche – Begins January 1, 2026.
-
Fourth Tranche – Starts January 1, 2027.
For workers, the 2025 tranche is important because it brings another raise right away.
Budget for 2025
The government has prepared around ₱70 billion in the 2025 national budget to cover these salary increases. This large amount shows strong support for improving the welfare of government employees.
Who Benefits?
The salary grade system applies to every government employee, from entry-level workers to top officials.
-
Professional Supervisory (SG 9–33): Positions like school principals, police chiefs, and directors.
-
Professional Non-Supervisory (SG 8–30): Skilled workers such as teachers, engineers, accountants, and nurses.
-
Sub-Professional Supervisory (SG 8–18): Supervisors of clerks, technicians, and other support staff.
-
Sub-Professional Non-Supervisory (SG 1–10): Entry-level jobs like clerks, drivers, and maintenance staff.
For top national leaders:
-
SG-32: Vice President, Senate President, House Speaker, and Chief Justice.
-
SG-33: President of the Philippines.
New Medical Allowance
Starting in 2025, government employees will also get a ₱7,000 annual medical allowance. This benefit is given to both regular and contractual workers and can be used for checkups, medicine, or emergencies.
Salary Grades in LGUs
Local Government Units (LGUs) implement salary increases based on their income class.
This approach ensures fairness while preventing smaller LGUs from overspending.
Why This Update Matters
The salary increase in 2025 has several benefits:
-
Fairer pay system – Clear structure for salaries.
-
Retention – Better pay helps keep employees in public service.
-
Recruitment – Higher wages attract more skilled workers.
-
Extra health support – The medical allowance adds real value.
-
Motivation – Employees feel more appreciated and motivated.
Common Questions
Will the salary increase come right away?
Yes, but some offices may take time to process. If delayed, employees usually receive back pay.
Do barangay officials have salary grades?
Yes, barangay officials now follow a salary system with set pay levels.
How do steps work?
Each salary grade has Step 1 as the base. Employees can move up to Step 8, with each step providing a salary increase.
Sample Salary Increase
An SG-1 Step 1 worker earned ₱13,530 in 2024. With the 2025 tranche, the same level will increase to ₱14,061. Over the next years, salaries will rise further through the remaining tranches and step progressions.
Looking Ahead
By 2027, when all four tranches are complete, the government salary system will look very different:
-
Entry-level workers will have higher, more stable wages.
-
Teachers, nurses, and mid-level professionals will earn more competitive salaries.
-
Top officials will also benefit, but the most meaningful improvements will be for lower grades, where workers need them the most.
Final Thoughts
The new Salary Grade 2025 update under SSL VI is good news for government employees in the Philippines. With structured increases, fair salary grades, and a medical allowance, workers can look forward to better pay and improved support.
This reform not only improves the lives of employees but also strengthens public service by attracting and keeping talented individuals who are dedicated to serving the country.