3rd Tranche Salary Schedule of Government Employees effective January 1, 2026

Good News!

Government employees will once again receive salary increase this year. This year is the 3rd tranche salary increase under Executive Order No. 64, s. 2024. It will be implemented in four tranches, next year (2027) will be its last year of implementation.

Salary Increase for FY 2026

Executive Order No. 64, s. 2024 provides the updated salary schedule of Civilian Government Personnel, to be implemented in four (4) tranches, as follows:

1st Tranche for Fiscal Year 2024;

2nd Tranche for Fiscal Year 2025;

3rd Tranche for Fiscal Year 2026; and

4th Tranche for Fiscal Year 2027

Salary Schedule for the 3rd Tranche Salary Increase of Government Employees for FY 2026

Below is a screenshot of the 3rd Tranche Salary Schedule of civilian government personnel effective January 1, 2026, subject to appropriations.

The third tranche raises the basic salary of civilian personnel with Salary Grade 1 from ₱14,061 to P14,634, reflecting a P573 increase from the previous year.

The salary hike, however, varies by grade, with Salary Grades 1 to 7 receiving around a 4% increase, while Salary Grades 8, 9, and 10 sees slightly bigger boosts of 4.5%, 4.7%, and 5.2%, respectively.

Meanwhile, higher salary grades seem to look higher in amounts but they only get around 2.5% increase.

Is the Salary Increase Funded?

We note that this salary schedule was used as basis in the preparation of budget proposals of agencies for Personnel Services for Fiscal Year 2026 pursuant to Budget Call for FY 2026 issued under National Budget Memorandum No. 153.

This means that, the subject salary increase is included in the National Budget for FY 2026. The National Budget is subject to approval by the President through the General Appropriations Act.