Dbm 4Th Tranche 2024

In 2024, the Philippine government initiated the first tranche of a four-part salary increase for civilian personnel, as outlined in Executive Order No. 64, s. 2024. This adjustment aimed to enhance the competitiveness and sustainability of the government’s compensation system, ensuring that public servants are adequately compensated and motivated. The implementation of this first tranche was detailed in National Budget Circular No. 594, issued by the Department of Budget and Management (DBM) on August 12, 2024.

Overview of the Salary Adjustment Program

The salary increase program is structured into four tranches, with each tranche designed to incrementally raise the salaries of government employees. The first tranche, effective January 1, 2024, was implemented retroactively to ensure that employees received the full benefit of the adjustment. The subsequent tranches are scheduled for implementation in the following years, aiming for full realization by 2027. This phased approach allows for a manageable financial impact on the government’s budget while progressively improving the compensation of public servants.

Key Features of the First Tranche

• Effective DateJanuary 1, 2024 (retroactive)
• CoverageAll civilian government personnel, including those in regular, casual, and contractual positions
• ImplementationIn accordance with the updated Salary Schedule under Executive Order No. 64, s. 2024
• Release of FundsSpecial Allotment Release Orders (SAROs) issued to agencies to facilitate the salary adjustments
• DocumentationNotices of Salary Adjustment (NOSAs) and Notices of Step Increment (NOSIs) prepared to formalize the adjustments

Implementation Process and Guidelines

The DBM provided comprehensive guidelines to ensure the smooth and consistent implementation of the first tranche. Agencies were required to adjust the salaries of their personnel to the corresponding rates in the updated Salary Schedule. For new hires, the salary was set at Step 1 of the appropriate Salary Grade, while incumbents’ salaries were adjusted based on their current positions and steps. Contractual and casual personnel were also included in the adjustment, with their salaries aligned to the updated schedule.

To facilitate the implementation, the DBM issued SAROs to the concerned agencies, covering the total annual requirement for the salary adjustment and related fixed expenditures. These releases were subject to review and post-audit to ensure compliance with the prescribed guidelines. The agencies were also tasked with preparing the necessary NOSAs and NOSIs to formalize the salary adjustments and step increments.

Illustrative Examples

To aid agencies in applying the new salary rates, the DBM provided illustrative examples in Annex C of National Budget Circular No. 594. These examples demonstrated how to adjust salaries for various scenarios, including promotions, step increments, and reassignments. For instance, an employee promoted from Salary Grade (SG) 11 to SG-15 would have their salary adjusted to the corresponding rate in the new salary grade, effective on the date of promotion. Similarly, employees entitled to step increments would have their salaries adjusted to the appropriate step within their current salary grade.

Impact and Significance

The implementation of the first tranche of the salary adjustment program marked a significant step towards enhancing the compensation and welfare of government employees. By aligning public sector salaries with those in the private sector, the government aims to attract and retain competent and dedicated civil servants. The adjustment also serves to motivate employees, recognizing their contributions to public service and encouraging continued excellence in their work.

Furthermore, the phased implementation of the salary increases ensures that the adjustments are financially sustainable, allowing the government to manage its budget effectively while fulfilling its commitment to public servants. The program underscores the government’s recognition of the vital role that its employees play in delivering quality services to the public.

Future Tranches

Looking ahead, the subsequent tranches of the salary adjustment program are scheduled as follows

• Second TrancheJanuary 1, 2025
• Third TrancheJanuary 1, 2026
• Fourth TrancheJanuary 1, 2027

Each tranche will build upon the previous one, progressively raising the salaries of government personnel to the final levels prescribed in Executive Order No. 64, s. 2024. The DBM will continue to issue the necessary circulars and guidelines to facilitate the implementation of these future tranches, ensuring that all adjustments are made in accordance with the established salary schedule and within the allocated budget.

The first tranche of the salary adjustment program, implemented in 2024, represents a significant investment in the country’s human capital. By enhancing the compensation of government employees, the government not only improves the welfare of its workers but also strengthens the overall effectiveness and efficiency of public service delivery. The continued phased implementation of the remaining tranches will further solidify these gains, ensuring that the Philippine government remains a competitive and attractive employer in the public sector.

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