DBM rolls out third tranche of government salary hikesMANILA, Philippines — The Department of Budget and Management (DBM) has ordered the implementation of the third tranche of the updated salary schedule for civilian government personnel starting Jan. 1, as part of the four-year pay adjustment program. The DBM laid down detailed rules on how agencies should adjust pay. Salaries of incumbents will be aligned with the corresponding step in the new schedule, while new hires will receive Step 1 of the salary grade of their position. For those whose current pay already exceeds Step 8 of their salary grade, the circular states that their salary will be capped at Step 8 and they “shall not be entitled to salary increase” under this tranche. The circular was signed by acting Budget Secretary Rolando Toledo and takes effect Jan. 1, marking the third step in the government’s four-tranche pay adjustment program that will run until 2027.

Source: Philippine Star January 25, 2026 20:16 UTC