LOCAL government employees, including barangay workers, stand to receive higher pay after the Department of Budget and Management (DBM) approved the implementation of the third tranche of salary increases.
The DBM has issued Local Budget Circular No. 172, which provides the guidelines for the implementation of the third tranche of the salary hike for local government personnel under Executive Order (EO) No. 64, Series of 2024.
All LGU personnel, whether regular, contractual or casual, elective or appointive, and full-time or part-time, as well as barangay personnel receiving monthly honoraria, will be granted a salary increase.
Consultants and experts engaged for specific projects, job-order and contract-of-service workers, laborers paid on a piecework basis and student workers and apprentices are not included in the salary adjustment.
According to DBM, LGUs may either fully adopt the salary schedule, implement the schedule corresponding to their income classification, or adopt lower but uniform salary rates if funds are insufficient or if necessary to comply with personnel services limits.
LGUs must also ensure that they can fund on a ‘sustainable basis’ the increased salaries, along with the bonuses and incentives and contributions to government-mandated benefits.
The DBM said the funding for the salary adjustments, honoraria increases and related expenditures will come exclusively from local government funds and must comply with the personnel services limitations prescribed under the Local Government Code.
The third tranche of the salary increase may only be implemented by the LGUs if they have already implemented the second tranche salary schedule for at least one year.
The third tranche must likewise remain in effect for a minimum of one year, the DBM said.
The pay adjustment forms part of the government’s four-year salary increase program for civilian government workers.
EO No. 64, issued in August 2024, updated the salary schedule for civilian government personnel as part of efforts to maintain a competitive, effective and sustainable compensation system in the public sector.