EXPLAINER: How much will government workers get in 2027 with final salary hike?

Government employees are scheduled to receive the fourth and final tranche of their wage hike next year, as part of the administration’s Salary Standardization initiative under Executive Order 64 issued in August 2024.

The salary adjustments cover civilian government personnel in the Executive, Legislative, and Judicial branches, constitutional commissions, and other constitutional offices, along with workers in government-owned and -controlled corporations and local government units (LGUs).

Below are the expected wages of government workers starting January 1, 2027:

Under the Executive Order, a typical government employee under Salary Grade 15 could expect a maximum monthly salary of P47,172, up from P45,202 in 2026, and P41,296 under the first tranche of adjustments.

“Given the prevailing economic circumstances, including the erosion of purchasing power due to inflation, there is a need to update the slaries, and benefits of government personnel in order to maintain a competent, committed, agile, and health workforce, thereby promoting social justice, integrity, efficiency, accountability, and excellence, and ultimately translating to increased productivity and higher-quality public services,” the Executive Order, issued on August 2, 2024, read.

Latest government data show that inflation decelerated to a five-month low of 6.1% in August, bringing the year-to-date average to 5.2%, still above the government’s full-year target range of 2.0% to 4.0%.

The Bangko Sentral ng Pilipinas (BSP) expects inflation to average 6.1% this year, largely due to the anticipated El Niño and its impact on food prices and the minimum wage increases. —LDF, GMA News