Civilian government employees can look forward to another round of salary adjustments next year as the Department of Budget and Management (DBM) has earmarked P40 billion in the proposed P6.79-trillion national budget for 2026.

Speaking at the Kapihan sa Manila Bay Forum on Thursday, Budget Secretary Amenah Pangandaman said the amount will cover the third tranche of the Salary Standardization initiative, effective January 1, 2026.

“That’s four tranches until 2027,” Pangandaman said, referring to Executive Order (EO) 64 signed by President Ferdinand Marcos Jr. in August 2024.

EO 64 mandates salary increases for civilian government personnel across four phases: January 1 of 2024, 2025, 2026, and 2027. The second tranche was implemented earlier this year.

The salary adjustments apply to all civilian personnel in the Executive, Legislative, and Judicial branches; constitutional commissions and offices; state universities and colleges; and government-owned and controlled corporations (GOCCs) not covered by RA 10149 and EO 150, series of 2021. This includes regular, casual, contractual, appointive, and elective employees, whether full-time or part-time.

Excluded from the increases are military and uniformed personnel, agencies exempt from RA 6758, GOCCs under RA 10149 and EO 150, and individuals engaged without an employer-employee relationship—such as consultants, contract-of-service workers, job-order hires, laborers paid by piecework, and student workers.

The steps determine pay adjustments based on length of service, with Step 1 as the hiring rate and succeeding steps as progressive increments.