PBBM approves salary increases, higher medical allowance for GOCC employees

President Ferdinand "Bongbong" Marcos Jr. approved the Compensation and Position Classification System (CPCS) II, which includes salary increases and a tiered medical allowance for Government-Owned or Controlled Corporations (GOCCs) employees.

For GOCCs that have implemented CPCS I, the salary increases will be retroactive to January 1, 2025, if they receive authority from the Governance Commission for GOCCs.

During the 2025 GOCCs Day rites, the Authority of the Freeport Area of Bataan (AFAB) remitted approximately P130 million in dividends, a significant increase from its P50 million contribution last year.

President Marcos Jr. urged GOCCs to modernize their operations, adopt new technologies, and uphold transparency in the use of public funds to deliver more efficient and dignified public service.

He challenged GOCCs to lead in digital transformation and institutional reform to make government services simpler, faster, and more accessible to all Filipinos.

Marcos emphasized that embracing modernization is a necessity for GOCCs to meet global standards and rising public expectations.

He also stressed the importance of transparency and accountability in managing GOCC funds, warning that lost public trust is difficult to regain.

The Department of Finance (DOF) projects continued rise in GOCC dividend contributions, with P116.84 billion already remitted as of September, and Marcos highlighted that these are projected to hit around P157 billion by the end of 2025.

These remittances are crucial for funding the government's priority programs and adhere to Marcos' directive for fiscal discipline among GOCCs.

Under the Dividends Law, GOCCs are mandated to declare and remit at least 50 percent of their annual net earnings to the national government.