Salary schedules are more than just numbers on paper—they reflect how governments value their workforce. In the Philippines, Executive Order No. 64, series of 2024, introduced an updated Salary Schedule for civilian government personnel. This reform ensures competitiveness, sustainability, and fairness in compensation. For U.S.-based readers, this offers a fascinating glimpse into how another country structures public service pay, balancing fiscal responsibility with employee welfare.
Background of Executive Order No. 64
Executive Order No. 64 provides an updated Salary Schedule for civilian government personnel. The goal is to maintain a Compensation and Position Classification System (CPCS) that attracts, retains, and engages high-performing civil servants.
The implementation is divided into four tranches from Fiscal Year 2024 to 2027. The third tranche begins on January 1, 2026, marking a significant milestone in the reform.
Purpose of the Circular
The Circular serves as the official implementing guidelines for the third tranche of the updated Salary Schedule. It ensures consistency across agencies and provides clarity on how adjustments should be applied to different categories of personnel.
Coverage of the Salary Schedule
The Circular applies to all civilian government personnel across the Executive, Legislative, and Judicial branches, as well as Constitutional Commissions, State Universities and Colleges (SUCs), and Government-Owned and Controlled Corporations (GOCCs).
This broad coverage underscores the government’s commitment to equitable compensation across diverse institutions.
Exclusions: Who Is Not Covered
Not all personnel fall under this Circular. Exclusions include:
Military and uniformed personnel
Agencies exempt from RA No. 6758 with their own CPCS
GOCCs governed by the Governance Commission for GOCCs (GCG)
Individuals without employer-employee relationships, such as consultants, job order workers, apprentices, and piece-rate laborers
This distinction ensures that specialized groups follow compensation systems tailored to their unique roles.
Implementation Timeline
The third tranche takes effect on January 1, 2026. New salary rates are outlined in Annex A of the Circular, ensuring transparency and uniformity.
Rules for Adjusting Salaries
The Circular provides detailed rules for salary adjustments:
Incumbents: Salaries adjusted based on designated steps of their salary grade.
Between steps: If salaries fall between steps, they are adjusted upward.
Exceeding Step 8: Salaries capped at Step 8; no further increases.
New hires: Start at Step 1 of their salary grade.
Contractual/casual personnel: Adjusted to Step 1, with daily wages computed by dividing monthly rates by 22 workdays.
Compulsory retirees: Eligible for increases if extended beyond December 31, 2025.
These rules ensure fairness while preventing salary inflation beyond established limits.
Implementation in GOCCs
GOCCs under DBM coverage must implement the schedule no earlier than January 1, 2026. If funds are insufficient, they may adopt lower rates at a uniform percentage. Sustainability is emphasized, requiring GOCCs to fund salary adjustments alongside mandatory contributions to retirement, health, and insurance programs.
Procedural Guidelines
Human Resource Management Officers (HRMOs) or Administrative Officers (AOs) must prepare Notices of Salary Adjustment (NOSAs) using prescribed formats. However, NOSAs are not required for personnel whose salaries already exceed Step 8. Digital signatures are permitted, following DBM guidelines.
Fund Sources
Funding is critical to implementation:
Civilian personnel adjustments are incorporated into agency budgets under the FY 2026 General Appropriations Act (GAA).
Casual and contractual personnel adjustments come from lump sum appropriations.
GOCCs must use their Corporate Operating Budgets (COBs) without borrowing or relying on national government funds.
This ensures fiscal discipline while supporting employee welfare.
Release of Funds
Funds are released through:
GAA Allotment Orders for salary adjustments based on filled positions as of December 31, 2025.
General Allotment Release Orders for related fixed expenditures like RLIP requirements.
Agencies may request additional funds for newly filled positions, subject to documentation.
Exempt Entities
Certain agencies and GOCCs remain exempt, governed by their own CPCS approved by the President. This flexibility allows specialized institutions to maintain compensation systems aligned with their mandates.
Applicability to Top Officials
Salary adjustments for the President, Vice-President, and Members of Congress take effect only after the expiration of current terms, ensuring constitutional compliance.
Responsibilities of Agencies
Agencies bear responsibility for proper implementation. Officers are held liable for unauthorized payments, and employees must refund any excess compensation. This accountability framework safeguards public funds.
Lessons for Global Audiences
The Philippine government’s structured approach to salary adjustments highlights the importance of balancing employee welfare with fiscal sustainability. For U.S. readers, this offers insights into how compensation reforms can be phased, monitored, and enforced across diverse institutions.
By ensuring transparency, accountability, and sustainability, the Circular sets a strong example of governance in action.