Benefits for Government Employees in the First Quarter of FY 2026
Good News!
The first quarter of Fiscal Year 2026 brings several important benefits for government employees.
These allowances and entitlements are mandated by law and funded under the 2026 General Appropriations Act (GAA), ensuring timely release.
In this post we give you a breakdown of what employees can expect this 1st quarter of the year.
Salary Increase (3rd Tranche under EO 64, s. 2024) — for Civilian Personnel
Starting January 1, 2026, civilian government workers will receive the scheduled salary adjustment under the third tranche of the compensation standardization program under Executive Order No. 64 approved by President Marcos Jr. in 2024. The budget for this salary increase is included in the National Budget for 2026.
This increase is part of the government’s effort to make public sector pay more competitive and equitable. [See more]
Base Pay Increase (1st Tranche under EO 107, s. 2025)
Also, starting January 1, 2026, military and uniformed personnel (MUPs) will receive a higher base pay as part of their salary increase. Just like the salary increase of civilian government personnel, the budget for the base pay of MUPs is likewise included in the 2026 GAA ensuring that it is implemented this year. [See more]
Step Increment for Length of Service
Employees who have served three continuous years in the same position are entitled to a step increment. This recognizes loyalty and sustained service, providing a modest but meaningful boost to monthly pay. Once the employee has a Notice of Step Increment (NOSI) this benefit may already be enjoyed in the 1st quarter of the year. [See more]
Personnel Economic Relief Allowance (PERA)
The ₱2,000 monthly PERA continues to be provided to all qualified government employees. This allowance helps cushion the impact of rising living costs and remains a staple benefit across agencies. [See more]
Representation and Transportation Allowance (RATA)
Officials and employees holding positions entitled to RATA will continue to receive this benefit. It supports the performance of official duties, particularly those requiring representation and mobility.
RATA by GABOTAF
Uniform/Clothing Allowance
Usually released in April but may be released in March provided all other agency requirements in the 1st quarter have been paid, this allowance ensures employees can comply with prescribed dress codes without additional financial burden. The ₱7,000.00 non taxable uniform or clothing allowance is a one-time annual benefit. [See more]
Leave Privileges
Government employees continue to enjoy standard leave benefits such as vacation and sick leave credits, which accrue monthly and may be monetized when needed. Government employees can also avail of the three (3) day Special Privilege Leave (SPL) as early as the first month of the year. [See more]
Wellness Leave
In addition to traditional leave credits, employees are now entitled to Wellness Leave, a benefit introduced to promote physical and mental well-being. This leave allows government workers to take time off specifically for preventive health care, medical check-ups, or rest days aimed at reducing stress and burnout.
Unlike sick leave, which requires illness as a basis, wellness leave is proactive—encouraging employees to maintain good health before problems arise. [See more]
Retirement and Pension Benefits
Funds for retirement gratuities and pensions are fully secured under the 2026 budget. Retiring employees in the first quarter can expect timely processing and release of their benefits.
Government Share on Premium Contributions
In addition to the personal contributions of government employees to mandatory contributions like GSIS, PhilHealth, and Pag-IBIG, the government also contributes an equal share to ensure that their health insurance is covered and that they will have a pension and savings upon retirement. These premium contributions are made by the government on a monthly basis.
Other Authorized Benefits
Depending on agency-specific policies, employees may also receive hazard pay, subsistence allowance, or special benefits tied to their roles. These remain subject to DBM guidelines and agency funding.
Final Note
The first quarter of FY 2026 reflects the government’s commitment to honoring its obligations to public servants. With salary adjustments, allowances, and secured benefits—including the new Wellness Leave—employees can plan their finances and health confidently, knowing that their compensation and well-being are prioritized.
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Question
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