Approved! 3rd Tranche Salary Increase for Gov't Employees Effective Jan 1, 2026 Great news, government workers

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Good news, mga Kawani! 

The Department of Budget and Management (DBM) has officially released National Budget Circular No. 601, authorizing the 3rd Tranche of the salary schedule effective January 1, 2026.

The Department of Budget and Management (DBM) has officially issued National Budget Circular (NBC) No. 601, dated January 22, 2026, authorizing the immediate implementation of the Third Tranche of the updated salary schedule for civilian personnel.

This latest adjustment is part of the four-tranche salary modification mandated by Executive Order (EO) No. 64, s. 2024, aimed at keeping government compensation competitive with the private sector.

Key Highlights of NBC No. 601

• Effective Date: The new salary rates are effective retroactively from January 1, 2026.

• Legal Basis: Executive Order No. 64, s. 2024 and the FY 2026 General Appropriations Act (GAA).

• Who is Covered?

• All civilian personnel in the Executive, Legislative, and Judicial Branches.
• Constitutional Commissions and other Constitutional Offices.
• State Universities and Colleges (SUCs).
• Government-Owned or -Controlled Corporations (GOCCs) under the Compensation and Position Classification System (CPCS).
• Scope: Applies to all Regular, Casual, and Contractual personnel (appointive or elective) on a full-time or part-time basis.

Exclusions

The circular clarifies that the following are not covered by this specific issuance:

• Military and Uniformed Personnel (MUP).
• GOCCs with their own approved compensation systems (under RA 10149).
• Individuals engaged without an employer-employee relationship (e.g., Job Orders, Consultants, Apprentices).

Implementation & Funding

For most national government agencies, the funding for this increase is already built into the 2026 Agency Budget.

• Incumbent Employees: Your Human Resource (HR) unit will issue a Notice of Salary Adjustment (NOSA) to reflect your new salary grade and step.

• New Hires: Appointments effective January 1, 2026, onwards will automatically follow the new rate.

Source Document

For the complete salary table (Annex A) and detailed guidelines, you can download the official PDF directly from the DBM website:

📄 Download National Budget Circular No. 601