DBM: Second Tranche of Salary Hike 2017 for Gov't Workers

DBM has issued the guidelines for second tranche of salary hike for civilian personnel, military and uniformed personnel this 2017.

MANILA - Starting January 1, 2017, teachers, health workers, soldiers, policemen, and all other civil servants will receive a bigger take home pay based on the guidelines of Department of Budget and Management (DBM) on second tranche of salary adjustment. Check the schedule of implementation below.

This is in line with the Duterte administration's pledge to raise the compensation of the country's public sector civilian workers and military and uniformed personnel (MUP).

“These are the people who help and protect the Philippines. We want them to feel satisfied about their jobs, inspire them to be more productive workers and allow them to provide for their families. Raising their wages is only just,” said President Duterte.

Pursuant to Executive Order No.201 s. 2016 (EO 201), which grants a compensation adjustment for government workers and additional allowances for MUP in four tranches, the DBM issued National Budget Circular No. 568 and Local Budget Circular No. 113.

National Budget Circular No. 568 outlines the guidelines, rules, and regulations for the implementation of the second tranche of EO 201 for civilian personnel in the Executive, Legislative, and Judicial branches, the Constitutional Commissions and other Constitutional Offices, State Universities and Colleges (SUCs), and government-owned-and-controlled corporations (GOCCs) covered by the Compensation and Position Classification System (CPCS), under Republic Act No. 6758.




Local Budget Circular No. 113 on the other hand covers all positions for salaried local government unit (LGU) personnel and all positions for barangay personnel which are paid monthly honoraria. Government workers are set to have more money in their pockets as their salaries will increase in addition to the mid-year and year-end bonus.

In addition, an enhanced Performance-Based Bonus will be granted to those who meet their agency targets.

For instance, a Teacher 1 will get an annual compensation package of P324,962 while a Nurse 1 will get P398,822, bringing their total compensation to twice that of their private sector counterparts.

Second Tranche of Salary Hike Schedule 2017

Meanwhile, the MUP are now entitled to a provisional allowance, mid-year and year-end bonus, an enhanced Performance-Based Bonus subject to accomplishment of performance targets, as well as an increase in the hazard pay from P390.00 to P540.00 per month. Certain ranks will also receive augmentation in the form of officers’ allowance.

Thus, in 2017, the total annual compensation for a Police Officer 1 (PO1) and a military Private will be P399,396. This represents a 14 percent increase in compensation for a PO1 and a 10 percent increase in compensation for a Private.

The substantial increase in allowances will more justly reward our brave policemen and soldiers who put their lives on the line for the country.

Managers and executives will also receive substantial pay increases of 15 to 27 percent so the government may attract and retain the best talent.

A Division Chief will receive an amount ofP1,097,863 annually; a Director IV-level position P1,659,491 annually; a Secretary-level post P2,595,137 annually; and a highest-ranking General, P2,144,283 per annum.

This scheme intends to position their compensation packages closer to that of the private sector, in line with the principle of "equal pay for work of equal value."

Here's the full text of DBM Guidelines/National Budget Circular No. 568:


The compensation and allowances will be adjusted in accordance with the schedule provided in EO 201.

Funding for compensation adjustments of national government agencies is provided for in the General Appropriations Act (GAA) for FY 2017.

For covered GOCCs and GFIs, funding will be sourced from their respective corporate operating budgets. While for LGU personnel, the amount shall be sourced from LGU funds authorized by their respective sanggunian.