The landscape of public sector compensation in the Philippines has undergone a monumental shift. Effective January 1, 2026, the Department of Budget and Management (DBM) officially commenced the implementation of the Third Tranche of the Salary Standardization Law VI (SSL 2026). Authorized under Executive Order No. 64, s. 2024 and guided by National Budget Circular No. 601, this pay hike is designed to address the erosion of purchasing power caused by inflation and to attract top-tier professional talent to the civil service.
Whether you are an aspiring civil servant preparing your PDS Form Revised 2026 or a seasoned public officer checking your new monthly salary, understanding the updated salary grade system is essential. This comprehensive guide breaks down the legal framework, eligibility rules, key highlights, and the complete Salary Grade 2026 table.
The Legal Framework: Executive Order No. 64 and NBC No. 601
The implementation of SSL 2026 is the third step in a four-year salary adjustment program spanning from 2024 to 2027. Signed by President Ferdinand R. Marcos Jr. on August 2, 2024, Executive Order No. 64 updated the compensation schedule for civilian government personnel.
To execute this mandate for the fiscal year 2026, Acting Budget Secretary Rolando Toledo issued National Budget Circular No. 601 (NBC No. 601) on January 22, 2026.
The primary objectives of this multi-year salary standardization effort are:
- Combat Inflation: Rebuilding the purchasing power of government employees amidst macroeconomic adjustments.
- Market Competitiveness: Narrowing the gap between public and private sector compensation, aiming to bring public pay to at least 70% of the market median.
- Retain Talent: Encouraging highly skilled professionals to remain in public service rather than seeking opportunities abroad or in private industries.
Official DBM Statement: “The third tranche of the salary increase reflects the President’s firm belief that those who serve the public deserve fair compensation that allows them to care for their families and live with dignity.” — Acting Budget Secretary Rolando Toledo
Who is Covered and Who is Excluded?
The updated salary schedule applies extensively across the bureaucracy, but there are strict legal limitations on who is eligible.
Covered Personnel
According to NBC No. 601, the salary increase covers all civilian government personnel, whether regular, casual, or contractual; appointive or elective; full-time or part-time, in the following offices:
- National Government Agencies (NGAs): Executive, Legislative, and Judicial branches, including Constitutional Commissions and Offices.
- State Universities and Colleges (SUCs): Academic and administrative staff.
- Government-Owned or Controlled Corporations (GOCCs): Specifically those not covered by separate compensation systems (such as RA 10149).
- Local Government Units (LGUs): Subject to Local Budget Circular No. 170 and 172 (issued in mid-2026) and dependent on the LGU’s financial capacity and local sanggunian approval.
Excluded Personnel
The following categories are explicitly excluded from the civilian SSL 2026 table:
- Military and Uniformed Personnel (MUP): These personnel (AFP, PNP, BFP, BJMP, PCG, BuCor) follow a separate Base Pay Schedule under Executive Order No. 107 (s. 2025).
- GOCCs with Separate Frameworks: Entities governed by a Compensation and Position Classification System approved by the Governance Commission for GOCCs (GCG).
- Non-Employees: Individuals engaged without an employer-employee relationship, such as Job Order (JO) workers, Contract of Service (COS) personnel, and external consultants.
Complete SSL 2026 Salary Grade Table (Third Tranche)
Every civilian government position is assigned a Salary Grade (SG) from 1 to 33, with each grade containing 8 steps. Below is the official monthly basic salary table for the Third Tranche, effective January 1, 2026, under NBC No. 601.
| Salary Grade (SG) | Step 1 (Minimum) | Step 8 (Maximum) | Representative Government Positions |
|---|---|---|---|
| SG 1 | ₱14,634 | ₱15,456 | Utility Worker I, Administrative Aide I |
| SG 2 | ₱15,522 | ₱16,342 | Administrative Aide II |
| SG 3 | ₱16,486 | ₱17,360 | Utility Worker II, Administrative Aide III |
| SG 4 | ₱17,506 | ₱18,433 | Administrative Aide IV (Clerk II), Driver |
| SG 5 | ₱18,581 | ₱19,565 | Administrative Aide V |
| SG 6 | ₱19,716 | ₱20,761 | Administrative Aide VI (Clerk III) |
| SG 7 | ₱20,914 | ₱22,022 | Administrative Assistant I |
| SG 8 | ₱22,423 | ₱23,883 | Administrative Assistant II |
| SG 9 | ₱24,329 | ₱25,725 | Administrative Officer I, Midwife I |
| SG 10 | ₱26,917 | ₱28,456 | Administrative Assistant III |
| SG 11 | ₱31,705 | ₱33,611 | Teacher I, Agriculturist I, Social Welfare Officer I |
| SG 12 | ₱33,947 | ₱35,850 | Teacher II, Engineer I, Accountant I |
| SG 13 | ₱36,125 | ₱38,241 | Teacher III |
| SG 14 | ₱38,764 | ₱41,503 | Teacher IV, Medical Officer I |
| SG 15 | ₱42,178 | ₱45,202 | Nurse I, Teacher V, Social Welfare Officer II |
| SG 16 | ₱45,694 | ₱49,020 | Nurse II, Engineer II, Accountant II |
| SG 17 | ₱49,562 | ₱53,221 | Nurse III, Dentist II, Teacher VII |
| SG 18 | ₱53,818 | ₱57,842 | Master Teacher I, Social Welfare Officer III |
| SG 19 | ₱59,153 | ₱63,500 | Master Teacher II, Principal I, Head Teacher VI |
| SG 20 | ₱66,052 | ₱70,000 | Master Teacher III |
| SG 21 | ₱73,303 | ₱78,026 | Master Teacher IV |
| SG 22 | ₱81,796 | ₱87,000 | Principal IV, Accountant IV |
| SG 23 | ₱91,306 | ₱97,000 | Chief Administrative Officer |
| SG 24 | ₱102,603 | ₱109,000 | Nurse VII |
| SG 25 | ₱116,643 | ₱124,000 | Schools Division Superintendent |
| SG 26 | ₱131,807 | ₱140,000 | Director I |
| SG 27 | ₱148,940 | ₱158,000 | Director II |
| SG 28 | ₱167,129 | ₱178,000 | Bureau Director, City Vice-Mayor |
| SG 29 | ₱187,531 | ₱200,000 | Assistant Secretary |
| SG 30 | ₱210,718 | ₱226,000 | Undersecretary, Provincial Governor |
| SG 31 | ₱300,961 | ₱334,000 | Senator, Congressman, Department Secretary |
| SG 32 | ₱356,237 | ₱398,000 | Vice President, Senate President, House Speaker |
| SG 33 | ₱449,157 | ₱462,000 | President of the Philippines |
Note: The figures represent the basic monthly pay. Actual take-home pay is subject to mandatory GSIS, PhilHealth, and Pag-IBIG deductions, alongside withholding taxes.
Key Highlights of the 2026 Salary Structure
Understanding how these changes translate into real-world careers is crucial for public servants. Here are the key takeaways for major sectors:
1. Education Sector (DepEd Teachers)
Public school teachers are among the biggest beneficiaries of the updated schedule.
- A Teacher I (SG 11) now starts at a basic pay of ₱31,705.
- A Teacher III (SG 13) receives ₱36,125.
- The classroom promotion track peaks with Master Teacher IV (SG 21) at ₱73,303, allowing high-performing educators to double their entry-level salary without leaving classroom teaching for administrative roles.
2. Healthcare Sector (Public Health Workers)
Government nurses, doctors, and allied medical professionals benefit from competitive rates:
- Nurse I (SG 15) starts at ₱42,178.
- Nurse II (SG 16) starts at ₱45,694.
- These rates are significantly higher than the average private sector entry-level salaries for nurses, which can hover near the Minimum Wage NCR 2026 levels.
3. Administrative and Support Roles
Entry-level clerks and administrative aides also experience a helpful boost:
- Administrative Aide I (SG 1) starts at ₱14,634.
- For specialized support roles, such as the Salary Grade of Records Officer series or Administrative Assistants, salaries scale cleanly between SG 4 and SG 15 depending on the complexity of the position.
Additional Benefits and Allowances under EO 64
The basic monthly salary is only one part of a government employee’s total compensation package. Under EO 64, public servants are entitled to several additional benefits:
- Annual Medical Allowance: Qualified civilian personnel receive a ₱7,000 per annum medical allowance as a subsidy for health maintenance organization (HMO)-type benefits.
- PERA (Personnel Economic Relief Allowance): A standard ₱2,000 monthly allowance given to all covered employees.
- Mid-Year & Year-End Bonuses: Each bonus is equivalent to one (1) month of basic salary.
- Cash Gift: An annual year-end cash benefit of ₱5,000.
- Performance-Based Bonus (PBB): A variable incentive based on the agency’s performance and individual ratings.
How to Progress Through Salary Steps and Grades
A common question among public servants is how to move up the pay ladder. There are two primary mechanisms:
Step Increments (Within the Same Salary Grade)
Each Salary Grade has 8 steps. Employees move from Step 1 toward Step 8 primarily based on length of service (one step increment for every three years of continuous, satisfactory service) or through merit (for exceptional performance). Step increments provide a steady 3% to 4% increase in basic pay without requiring a change in job title.
Promotion (To a Higher Salary Grade)
To jump to a higher Salary Grade (e.g., from Nurse I to Nurse II), an employee must apply for a vacant position, meet the qualification standards (education, experience, training, and civil service eligibility), and undergo the selection process. When preparing your application, make sure you comply with the latest civil service guidelines to ensure a smooth administrative process.
Summary and Looking Forward
The rollout of the Third Tranche of SSL 2026 under Executive Order No. 64 represents a vital step in maintaining the financial dignity of the country’s civil servants. By aligning public sector pay with economic realities, the government is fostering a more motivated and competent workforce.
As public servants enjoy these updated rates throughout 2026, the final phase of this salary standardization program—the Fourth Tranche—is scheduled to take effect on January 1, 2027, promising further adjustments to carry public service compensation into the future.
Sources & Citations
- Department of Budget and Management (DBM). National Budget Circular No. 601: Implementation of the Third Tranche of the Updated Salary Schedule for Civilian Government Personnel. https://www.dbm.gov.ph
- Official Gazette of the Republic of the Philippines. Executive Order No. 64, s. 2024: Updating the Salary Schedule for Civilian Government Personnel and Authorizing the Grant of an Additional Allowance. https://www.officialgazette.gov.ph
- Civil Service Commission (CSC). Compensation and Position Classification System Guidelines. https://www.csc.gov.ph
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