CHAPTER 3: Salaries and Compensation


The Salary Schedule under the Compensation Plan is a table of salary grades with each salary grade consisting of several salary steps with corresponding money values.

  1. The 1st salary step is the minimum or hiring rate. The 2nd to 7th salary steps are the intermediate salary rates. The 8th  step is the maximum salary rate.
  2. All rates in the Salary Schedule represent full compensation for full-time employment in a 40-hour week regardless of where the work is performed.
  3. The daily wage represents full-time employment in   an 8-hour work day regardless of where the work is performed. The daily rate shall be computed based  on the authorized/actual monthly rate for the  position divided by 22 days.
  4. No employee shall receive a salary less than the  hiring rate for the position.

Periodic Salary Adjustment

  1. Due to Length of service
    1. One (1) step increment every three (3) years from last appointment to present position in the same agency. Step increment is the increase in salary from step to step within the salary grade of a position. The grant of step increments to a government personnel is based on their lengths of service pursuant to Item 8 of Joint Senate-house of Representatives Resolution No.1, s. 1994, as adopted under Executive Order No. 164 (Adopting a Revised Compensation and Classification System in the Government), dated March 8, 1994.
  2. Officials and employees of national government agencies (NGAs) including state universities and colleges (SUCs), government-owned or –controlled operations (GOCCs), government financial institutions (GFIs) and local government units (LGUs) who are appointed in the career service under permanent status and in the non-career service whose positions are found in the regular plantillas of agencies are covered.
  3. A one step increment shall be granted to officials and employees for every 3 years of continuous satisfactory service in their present positions.
  • Due to Meritorious Performance
  • Two (2) step increments to employees who attained a performance rating of “Outstanding” and who belong to the top five (5) percent of all incumbent officials and employees in the Department in a given year.
  • One (1) step Increment to employees who obtained a performance rating of “Very Satisfactory” and who belong to the top five (5) percent of all incumbent officials and employees in the Department in a given year.
  • One-time monetary incentive for recipients already at Step 7 or 8 who attained an “Outstanding or at least a “Very Satisfactory” rating in a given year.
  •  Due to Meritorious Service for those covered by Career Executive Service Performance Evaluation System (CESPES)
  • Upon original Appointment of CES rank, a CESO shall be entitled to a one-step salary adjustment in the salary grade attached to his/ her position.
  • Upon adjustment in CES rank, the CESO shall be entitled to a one-step salary adjustment in the salary grade attached to his/ her position.


Should the need to render overtime services become very necessary, overtime pay may be paid pursuant to Section 63, Chapter 7, Book VI of Executive Order No.  292 (Administrative Code of 1987), dated July 25, 1987, as implemented by Budget Circular No. 10, dated March 29, 1996.

Hours of work rendered in excess of forty (40) hours in a week shall be considered overtime service provided such overtime is with prior written authority from the respective Directors/ Heads of Offices.

  1. Overtime services shall include:
    1. Those rendered beyond eight (8) work hours of regular work days;
    1. Those rendered on rest days, such as Saturdays and Sundays; and
    1. Those rendered on holidays or non-working days.
  2. Personnel who rendered overtime services shall be granted overtime pay by the hour which shall be based on his/her actual hourly rate derived as follows:
  • Overtime Pay shall be computed as follows:
    • For ordinary work days: Plus 25% of the hourly rate (0.25 x HR)

Overtime Pay = 1.25 x HR x Number of Hours of Overtime Services Rendered

  • For rest days, holidays and non-work days: Plus

50% of the hourly rate (0.50 x HR)

Overtime Pay = 1.50 x HR x Number of Hours of

Overtime Services Rendered.

  • The total overtime pay of an employee for the year shall not exceed 50% of his/her annual basic salary.


Government Service Insurance System (GSIS) Contribution

All members, except the members of the Judiciary and Constitutional Commissioners, are mandated to pay contributions in accordance with the following schedule:

Monthly Salary/ CompensationPercentage of Monthly Compensation Payable By:
Regardless of AmountMemberEmployer


Human Development Mutual Fund (Pag-Ibig) Contribution

Under Republic Act No. 7742, membership is mandatory for all SSS and GSIS members earning P4,000 and above in monthly compensation.

P1,500 and below1%2%
Over P1,5002%2%


Philippine Health Insurance Corporation (PhilHealth)

The Philippine Health Insurance Corporation (PhilHealth) was created in 1995 to implement universal health coverage in the Philippines. It is a tax-exempt, government-owned and controlled corporation (GOCC) of the Philippines, and is attached to the Department of Health.

YearMonthly Basic SalaryPremium RateMonthly Premium
2023P 10, 000.004.50%P 450.00
P 10,000.01 to P 89,999.99P 450.00 to P4,050.00
P 90, 000.00P 4,050.00
2024 to 2025P 10, 000.005.00%P 500.00
P 10,000.01 to P 99,999.99P 500.00 to P 5,000.00
P 100, 000.00P 5,000.00

Income Tax


Income Tax Tables under TRAIN Law:

Annual IncomeTax Rate
250,000.00 and below 
Above 250,000 to 400,0015% of excess over 250,000
Above 400,000 to 800,00022,500 +20% of excess over 400,000
Above 800,000 to 2 million102,500 +25% of excess over 800,000
Above 2 million to 8 million402,500.00 +30% of excess over 2 million
Above 8 million2.2025 million +35% of excess over 8 million


Employment StatusSchedule
Service Providers/Contractual15th and 30th of the month
Regular1st week of the month

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