Salary Increase Effective January 2026 Under the Salary Standardization Law

The Third Tranche of the Salary Standardization Law, effective January 2026, represents a pivotal stage in the government’s long-term compensation reform. While earlier tranches introduced gradual and cautious pay adjustments, the third tranche delivers more substantial increases across salary grades, making the reform more tangible for public sector employees. It reflects a shift from incremental correction to meaningful modernization of government pay structures.

Compared with the first and second tranches, the 2026 adjustment produces higher percentage and absolute salary gains, particularly in middle-level positions. Step differentials within grades are wider, and salary compression is reduced, allowing clearer distinctions between entry-level, supervisory, and senior roles. These changes improve internal equity and better align compensation with responsibility and experience.

For example, a Teacher I, classified under Salary Grade 11, benefits noticeably from the third tranche. Under the January 2026 schedule, a Teacher I at Step 1 now receives a monthly basic salary of ₱31,705, rising progressively to ₱33,611 at Step 8. Compared with earlier tranches, this represents a more visible increase in take-home pay and establishes a higher base for future benefits and retirement calculations.