If you are a government employee or planning to work in public service, you should learn about salary grade 2025. This update comes from the Salary Standardization Law VI (SSL VI), which increases the salaries of government workers starting January 2025. The goal is to provide fair pay, attract more talent, and improve the benefits of working in the public sector.



Understanding Salary Grades



A salary grade (SG) is the level that decides how much a government worker earns. The system has 33 levels in total:



SG-1: The lowest grade, usually for entry-level positions like clerks, aides, and utility staff.



SG-33: The highest grade, given only to the President of the Philippines.



Each grade (except SG-33) also has eight steps. These steps allow workers to get higher pay within the same grade, even without a promotion.



The New Salary Law



Under SSL VI, salary increases are divided into four tranches. This step-by-step process allows the government to manage its budget while steadily improving pay.



Here’s the rollout:



First Tranche – January 1, 2024 (retroactive).



Second Tranche – January 1, 2025.



Third Tranche – January 1, 2026.



Fourth Tranche – January 1, 2027.



The 2025 tranche is the second phase and will deliver another increase to government workers.



Budget for 2025



The national government has prepared around ₱70 billion in the 2025 budget to fund these salary increases. This shows that improving the lives of public employees is a top priority.



Who Will Benefit?



Salary grades apply to all types of government workers, from entry-level staff to high-ranking officials.



Professional Supervisory (SG 9–33): Directors, principals, and chiefs of offices.



Professional Non-Supervisory (SG 8–30): Teachers, nurses, accountants, engineers, and other skilled professionals.



Sub-Professional Supervisory (SG 8–18): Supervisors managing support or technical workers.



Sub-Professional Non-Supervisory (SG 1–10): Clerks, drivers, and other entry-level employees.



For the country’s top officials:



SG-32: Vice President, Senate President, House Speaker, Chief Justice.



SG-33: President of the Philippines.



Added Health Benefit



Beginning 2025, all government employees will also receive a ₱7,000 annual medical allowance. This applies to both permanent and contractual staff. It helps cover medical checkups, medicine, and other healthcare needs.



Salary Grades in LGUs



Local Government Units (LGUs) follow the salary grade system too, but the percentage of the rate they can pay depends on their income level:



Special cities and 1st-class provinces: Pay 100% of the standard rate.



Lower-class municipalities: Pay 65% to 90% of the standard rate, depending on budget capacity.



This ensures smaller LGUs can still give fair increases without overspending.



Why the Update Matters



The 2025 salary increase has many benefits:



Clear pay system – Workers know exactly how salaries are set.



Better retention – Higher pay keeps skilled employees in government.



Improved hiring – Competitive salaries attract new professionals.



Extra support – The medical allowance helps with health expenses.



Motivated workforce – Employees feel valued and deliver better service.



FAQs About Salary Grades



When will the new salaries take effect?

The second tranche starts January 2025. If there are delays, employees will receive back pay.



Are barangay officials included?

Yes, they now have fixed salary levels under the system.



What are salary steps?

Step 1 is the starting pay in each grade. Workers can move up to Step 8, with each step giving a salary increase.



Example of an Increase



An SG-1 Step 1 worker earned about ₱13,530 in 2024. With the 2025 tranche, the salary will increase to ₱14,061. Pay will continue to rise with the 2026 and 2027 tranches.



Looking Ahead to 2027



By the final tranche in 2027, the salary structure will be much better:



Entry-level workers will have higher, more secure pay.



Teachers, nurses, and professionals will see salaries closer to private sector standards.



Top officials will also benefit, but the most meaningful increases will go to lower-grade employees.



Final Thoughts



The Salary Grade 2025 update is a big step toward improving the lives of government workers in the Philippines. With steady salary hikes, fairer pay levels, and new health benefits, employees can look forward to better financial stability and support.



This reform not only rewards workers but also helps build a stronger and more motivated public service.