The second tranche of the Salary Standardization Law V (SSL V) took effect on January 1, 2021, marking a significant step in ensuring government employees receive pay that keeps pace with inflation and private sector standards. This salary increase, implemented under Republic Act 11466, was based on Senate Bill 1219 and House Bill 5712, which were signed into law by President Rodrigo Duterte on January 8, 2020. For public sector workers, this tranche directly impacts take-home pay and overall career growth, as it is part of the four-year scheduled salary adjustments provided under SSL V.
Key Points
This tranche specifically raised the Salary Grades (SG) 1 to 33 across all civilian positions in national government agencies, local government units (LGUs), and government-owned and controlled corporations (GOCCs).
The adjustments vary by salary grade, but in general:
Lower salary grades (SG 1 to SG 10) received higher percentage increases, sometimes over 15%, to ensure livable wages.
Middle grades (SG 11 to SG 20) received moderate increases between 8% and 12%.
Higher salary grades (SG 21 to SG 33) saw smaller percentage increases, typically 5% or less, given their already higher base pay.
The salary table below outlines the standardized pay structure across different Salary Grades (SG) and corresponding steps. Each grade represents a specific level of position or responsibility, while the steps within each grade reflect incremental salary increases based on tenure or performance.
Salary Grade
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7
Step 8
1
14,061
14,164
14,278
14,393
14,509
14,626
14,743
14,862
2
14,925
15,035
15,146
15,258
15,371
15,484
15,599
15,714
3
15,852
15,971
16,088
16,208
16,329
16,448
16,571
16,693
4
16,833
16,958
17,084
17,209
17,337
17,464
17,594
17,724
5
17,866
18,000
18,133
18,267
18,401
18,538
18,676
18,813
6
18,957
19,098
19,239
19,383
19,526
19,670
19,816
19,963
7
20,110
20,258
20,409
20,560
20,711
20,865
21,019
21,175
8
21,448
21,642
21,839
22,035
22,234
22,435
22,638
22,843
9
23,226
23,411
23,599
23,788
23,978
24,170
24,364
24,558
10
25,586
25,790
25,996
26,203
26,412
26,623
26,835
27,050
11
30,024
30,308
30,597
30,889
31,185
31,486
31,790
32,099
12
32,245
32,529
32,817
33,108
33,403
33,702
34,044
34,310
13
34,421
34,733
35,049
35,369
35,694
36,022
36,354
36,691
14
37,024
37,384
37,749
38,118
38,491
38,869
39,252
39,640
15
40,208
40,604
41,006
41,413
41,824
42,241
42,662
43,090
16
43,560
43,996
44,438
44,885
45,338
45,796
46,261
46,730
17
47,247
47,727
48,213
48,705
49,203
49,708
50,218
50,735
18
51,304
51,832
52,367
52,907
53,456
54,010
54,572
55,140
19
56,390
57,165
57,953
58,753
59,567
60,394
61,235
62,089
20
62,967
63,842
64,732
65,637
66,557
67,479
68,409
69,342
21
70,103
71,000
72,004
73,024
74,061
75,115
76,151
77,239
22
78,162
79,277
80,411
81,564
82,735
83,887
85,096
86,342
23
87,315
88,574
89,855
91,163
92,592
94,043
95,518
96,955
24
98,185
99,721
101,283
102,871
104,483
106,123
107,739
109,431
25
111,727
113,476
115,254
117,062
118,899
120,766
122,664
124,591
26
126,252
128,228
130,238
132,280
134,356
136,465
138,608
140,788
27
142,663
144,897
147,169
149,407
151,752
153,850
156,267
158,723
28
160,469
162,988
165,548
167,994
170,634
173,320
175,803
178,572
29
180,492
183,332
186,218
189,151
192,131
194,797
197,870
200,993
30
203,200
206,401
209,558
212,766
216,022
219,434
222,797
226,319
31
293,191
298,773
304,464
310,119
315,883
321,846
327,895
334,059
32
347,888
354,743
361,736
368,694
375,969
383,391
390,963
398,686
33
438,844
451,713
Only 2 steps for Grade 33
Frequently Asked Questions
Do bonuses and allowances increase under the Second Tranche?
Yes. Since benefits like the mid-year bonus, year-end bonus, and cash gift are based on your monthly basic salary, they automatically increased starting 2021 with the implementation of the Second Tranche.
What DBM guidelines cover the Second Tranche?
The DBM issued Budget Circular No. 2021-1 to implement the Second Tranche of SSL V. This document outlines the new salary tables and provides instructions for agencies on applying the increases.
Were all government employees covered by the Second Tranche?
All civilian government personnel, whether permanent, casual, or contractual, were covered as long as they had an employer-employee relationship with the government. However, Job Order (JO) and Contract of Service (COS) workers were not included.
The Salary Standardization Law V Second Tranche was more than just a pay adjustment; it was a commitment by the government to recognize the value of public service. While the increases may not always match private sector offers, they provide stability, incremental growth, and fairness across the system.
If you’re in government service, you can take reassurance that these reforms aim to balance public sector sustainability with your own financial well-being. And with every tranche, you’ll see your compensation gradually improve, reflecting the vital role you play in nation-building.
