Salary schedules are more than just numbers—they represent transparency, fairness, and accountability in public service. In the Philippines, the updated Third Tranche Salary Schedule effective January 1, 2026, provides a clear framework for how civilian government employees are compensated. For international readers, especially those in the U.S., this offers an interesting comparison to how structured pay scales are used globally to ensure equity across diverse roles.
The Structure of the Salary Schedule
The salary schedule is organized into Salary Grades (SG) ranging from 1 to 33, with each grade broken down into Steps 1 to 8.
Salary Grade (SG): Represents the level of responsibility and complexity of a position.
Steps: Reflect incremental increases within the grade, often tied to tenure, performance, or service awards.
This system ensures that employees progress in a predictable, standardized manner, avoiding arbitrary pay disparities.
Entry-Level Salaries: SG 1 to SG 10
At the lower end of the scale, SG 1 Step 1 starts at ₱14,634 per month, gradually increasing to ₱15,456 at Step 8.
By SG 10, salaries range from ₱26,728 (Step 1) to ₱28,279 (Step 8).
These grades typically cover clerical, support, and junior administrative roles—positions essential to government operations but traditionally lower in pay.
Mid-Level Salaries: SG 11 to SG 20
Mid-level positions see significant jumps:
SG 11 Step 1: ₱31,075
SG 20 Step 8: ₱72,390
These grades often include technical staff, analysts, and mid-management roles. The progression reflects the government’s effort to retain skilled professionals by offering competitive compensation.
Senior-Level Salaries: SG 21 to SG 30
Senior positions command higher salaries:
SG 21 Step 1: ₱73,303
SG 30 Step 8: ₱234,240
These grades cover directors, senior managers, and specialized experts. The steep increases highlight the value placed on leadership and advanced expertise.
Executive-Level Salaries: SG 31 to SG 33
At the top of the scale:
SG 31 Step 1: ₱290,361, rising to ₱342,509 at Step 8
SG 32 Step 1: ₱356,237, reaching ₱408,055 at Step 8
SG 33 Step 1: ₱449,157, capped at ₱462,329 at Step 2
These grades are reserved for the highest-ranking officials, reflecting the immense responsibility of national leadership roles.
Key Observations from the Table
Predictable Growth: Each grade shows consistent increases across steps, ensuring fairness.
Capped Salaries: Employees earning above Step 8 as of December 31, 2025, will not receive further increases.
Daily Wage Computation: Casual personnel wages are calculated by dividing monthly rates by 22 workdays.
Retention Strategy: Higher salaries at mid- and senior levels aim to reduce turnover among skilled professionals.
Why This Matters Globally
For U.S.-based readers, the Philippine salary schedule offers a fascinating case study in structured compensation. While American public sector pay often varies by state or agency, the Philippine model emphasizes uniformity and transparency nationwide.
This approach ensures that employees across different regions and institutions are compensated fairly, reducing disparities and promoting trust in government systems.
Transparency in Numbers
The 2026 salary schedule is more than a table—it’s a roadmap for fair compensation. By clearly defining pay across grades and steps, the Philippine government demonstrates its commitment to equity, sustainability, and accountability.
For global audiences, this serves as a reminder that structured pay systems can strengthen public institutions by valuing employees consistently and transparently.