Breaking Barriers: LGUs Implement Fourth Tranche Salary Hikes for 2023

January 10, 2023

In a significant development for local government employees, the Department of Budget and
Management (DBM) has issued Local Budget Circular No. 149, dated January 10, 2023, guiding
the implementation of the Fourth Tranche of the Modified Salary Schedule for Local
Government Personnel. This increase is pursuant to Republic Act No. 11466, commonly known
as the Salary Standardization Law of 2019, which ensures incremental salary adjustments over
four tranches from 2020 to 2023.

The circular covers all salaried personnel, including regular, contractual, and casual positions
across various local government units (LGUs), such as provinces, cities, municipalities, and
barangays. However, specific exclusions apply, including consultants, experts, and those
working on a piecework basis.

The new salary schedule, effective January 1, 2023, requires approval from the local Sanggunian
and is dependent on each LGU’s income classification. It aims to ensure fiscal sustainability
while balancing the increased compensation with the LGU’s regular income and expenditure
programs.

Personnel adjustments include salary hikes that reflect the LGU’s level and income classification,
alongside conditions for public health workers. The DBM ensures that no incumbent personnel
will receive lower salaries than those they had before this implementation.
This modification represents a crucial step toward better compensation, providing well–deserved
financial security for thousands of LGU personnel across the country.

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