Salary Grade 18 Philippines (2025): Comprehensive Guide

According to the official Salary Standardization Law implementation for 2025, government employees under Salary Grade 18 will receive the following monthly compensation based on step increments:

These figures represent the latest salary adjustments implemented in 2025, continuing the government's commitment to enhancing public service compensation. The step increments provide a structured path for salary progression based on years of service, performance evaluations, and other merit-based factors.

Several important government positions fall under the Salary Grade 18 classification. The most prominent include:

1. Director II - Mid-level director position responsible for managing divisions or departments within government agencies, developing and implementing policies, and overseeing program implementation.
2. Chief of Hospital II - Administrative position responsible for managing medium-sized government hospitals or healthcare facilities.
3. Division Chief - Senior management position responsible for leading specialized divisions within government departments.
4. Attorney VI - Senior legal position in government legal departments, handling complex legal matters and providing specialized counsel.
5. Engineer VI - Senior engineering position responsible for leading significant infrastructure projects and engineering teams.
6. Medical Officer VI - Senior medical position in government hospitals and health facilities, often with departmental leadership responsibilities.
7. Schools Division Superintendent I - Educational leadership position responsible for overseeing schools within a specific division or district.
8. Provincial/City Treasurer - Financial management position responsible for overseeing the treasury operations of a province or city.

To better understand SG 18's position within the government compensation structure, here's a comparison with adjacent salary grades according to the 2025 salary schedule:

This comparison illustrates the incremental progression in the government salary structure, with approximately 8.7% increase from SG 17 to SG 18, and about 8.8% increase from SG 18 to SG 19. These differences reflect not only salary increases but also the expanding scope of responsibilities and leadership requirements as one advances through the ranks.

The Director II position is one of the most significant roles within Salary Grade 18 and represents an important step in the career progression of administrative professionals in the Philippine government.

Qualifications and Responsibilities for Director II

To qualify for a Director II position, candidates typically need:

• Master's degree in Public Administration, Management, or related field (Doctorate preferred)
• Career Service Professional/Second Level Eligibility
• At least 5-7 years of supervisory/managerial experience
• Demonstrated leadership capabilities and proven administrative experience
• Advanced training in public administration, management, and leadership

Director II professionals have responsibilities that include:

• Managing divisions or departments within government agencies
• Developing and implementing policies and programs
• Supervising and evaluating personnel
• Budget planning and resource allocation
• Strategic planning and program implementation
• Stakeholder engagement and coordination
• Ensuring compliance with government policies and standards
• Mentoring and developing subordinate managers

For government employees, Salary Grade 18 represents a significant milestone in their career trajectory. The typical progression path involving SG 18 includes:

In Administrative Positions:

• Director I (SG 17): PHP 47,247 - 50,735 monthly
• Director II (SG 18): PHP 51,357 - 55,172 monthly
• Director III (SG 19): PHP 55,879 - 59,872 monthly
• Director IV (SG 22): PHP 78,455 - 84,048 monthly

In Healthcare Administration:

• Chief of Hospital I (SG 17)
• Chief of Hospital II (SG 18)
• Medical Center Chief I (SG 19)
• Medical Center Chief II (SG 21)

In Educational Administration:

• Principal IV (SG 17)
• Schools Division Superintendent I (SG 18)
• Schools Division Superintendent II (SG 19)
• Assistant Regional Director (SG 21)

This structured progression allows government employees to advance based on qualifications, performance, and years of service, with corresponding increases in compensation and responsibilities.

Government employees under Salary Grade 18 are entitled to various benefits beyond their basic salary:

1. Personal Economic Relief Allowance (PERA): PHP 2,000 monthly additional allowance.
2. Representation and Transportation Allowance (RATA): For positions requiring official travel and representation, typically PHP 18,000-20,000 monthly for SG 18 positions.
3. Clothing Allowance: Annual allowance for work attire, typically PHP 6,000 per year.
4. Mid-year and Year-end Bonuses: Equivalent to one month's basic salary each, totaling two months' salary annually.
5. Cash Gift: Additional year-end benefit, approximately PHP 5,000.
6. Productivity Enhancement Incentive (PEI): Performance-based bonus given annually.
7. PhilHealth and GSIS Benefits: Comprehensive health insurance and government service insurance coverage.
8. Pag-IBIG Fund: Housing development fund membership with loan privileges.
9. Special Hardship Allowance: For employees assigned to difficult areas (up to 25% of basic salary).
10. Anniversary Bonus: Given during milestone anniversaries of the agency.
11. Performance-Based Bonus (PBB): Additional incentive based on individual and organizational performance.
12. Executive Benefits: As SG 18 is considered an executive position, additional benefits may include higher insurance coverage, expanded healthcare options, and additional allowances specific to leadership roles.

Salary Grade 18 positions can be found across various government departments and agencies, including:

1. Department of Health (DOH): Chief of Hospital II positions managing medium-sized healthcare facilities and Medical Officer VI positions providing specialized healthcare services and departmental leadership.
2. Department of Education (DepEd): Schools Division Superintendent I positions overseeing educational programs and schools within a specific division or district.
3. Department of Justice (DOJ): Attorney VI positions handling complex legal cases and providing specialized legal counsel.
4. Department of Public Works and Highways (DPWH): Engineer VI positions leading significant infrastructure projects and engineering teams.
5. Department of Agriculture (DA): Agricultural Center Chief positions overseeing agricultural development programs.
6. Local Government Units (LGUs): Provincial/City Treasurer positions managing financial operations and Division Chiefs overseeing key municipal or city functions.
7. Department of Social Welfare and Development (DSWD): Program directors overseeing social welfare initiatives.
8. Department of Interior and Local Government (DILG): Provincial/City Directors implementing governance programs.

For professionals aspiring to reach Salary Grade 18 positions, the following qualifications are typically required:

1. Educational Requirements: A master's degree is typically required for most SG 18 positions, with some specialized roles preferring doctoral degrees or additional professional certifications.
2. Professional Licensure: Most SG 18 positions require professional licenses relevant to their field (e.g., Medical license, Engineering license, Legal license).
3. Civil Service Eligibility: Career Service Professional/Second Level Eligibility is mandatory for permanent government positions.
4. Experience: SG 18 roles typically require 7-10 years of relevant work experience, including 5-7 years in supervisory or management positions.
5. Leadership Training: Formal leadership training, management certifications, or extensive supervisory experience is required for SG 18 positions.
6. Performance Record: Consistent outstanding performance evaluations in previous government positions are often considered in promotions to SG 18.

Professionals in Salary Grade 18 positions face unique challenges and opportunities:

Challenges:

• Managing larger departments and more complex organizational structures
• Balancing administrative responsibilities with strategic leadership
• Implementing government policies while addressing local needs
• Working within budget constraints while delivering quality public services
• Navigating bureaucratic processes while driving innovation
• Coordinating with multiple stakeholders and government agencies

Opportunities:

• Significant impact on public service delivery and policy implementation
• Enhanced leadership experience and professional growth
• Pathway to higher executive positions within government
• Opportunity to implement meaningful policy changes
• Professional recognition and status within the government service
• Competitive compensation package with comprehensive benefits
• Opportunity to mentor and develop future leaders in public service

The Chief of Hospital II position under Salary Grade 18 represents one of the important hospital administrative positions in the Philippine healthcare system. As leaders of medium-sized healthcare institutions, Chief of Hospital II professionals play crucial roles in shaping healthcare outcomes and implementing national health policies at the hospital level.

Hospital Size and Complexity

Chief of Hospital II positions are typically assigned to:

• Medium-sized government hospitals with 100-200 beds
• District hospitals serving multiple municipalities
• Specialized healthcare facilities
• Hospitals with comprehensive medical services

Professional Development Requirements

To maintain their position and advance further, Chief of Hospital II professionals must engage in continuous professional development, including:

• Advanced healthcare management training
• Policy development and implementation workshops
• Financial management and resource allocation seminars
• Leadership and organizational development programs
• Healthcare quality improvement and patient safety training

Impact on Healthcare Outcomes

Chief of Hospital II professionals significantly influence healthcare outcomes through:

• Strategic implementation of DOH policies and programs
• Development of hospital improvement plans
• Enhancement of healthcare delivery methodologies
• Strengthening hospital-community partnerships
• Mentoring of medical professionals and lower-level administrators
• Resource mobilization and stakeholder engagement

The Schools Division Superintendent I position under Salary Grade 18 represents an important educational leadership role in the Philippine education system. These professionals oversee educational programs and schools within specific divisions or districts.

Qualifications and Responsibilities

To qualify for a Schools Division Superintendent I position, candidates typically need:

• Master's degree in Education, Educational Management, or related field (Doctorate preferred)
• Valid Professional Teaching License issued by the Professional Regulation Commission (PRC)
• At least 10-12 years of teaching experience, including 5-7 years in school administration
• Demonstrated leadership capabilities and proven administrative experience
• Advanced training in educational management and leadership

Schools Division Superintendent I professionals have responsibilities that include:

• Overseeing the implementation of educational policies and programs within their division
• Supervising and evaluating school principals and other educational leaders
• Managing division resources and budget
• Developing and implementing division improvement plans
• Coordinating with local government units and other stakeholders
• Ensuring compliance with DepEd policies and standards
• Mentoring and developing school administrators 9

Comparison with Private Sector Equivalents

When comparing Salary Grade 18 positions with their private sector equivalents, several factors come into consideration:

While private sector positions may offer higher base salaries, government positions at the SG 18 level provide significant job security, comprehensive benefits, and work-life balance that may not be available in equivalent private sector roles. Additionally, the opportunity to contribute to public service and national development represents a unique value proposition for government employment at this level.

The implementation of Salary Grade 18 compensation may vary slightly across different regions in the Philippines, particularly in terms of additional allowances and benefits:

Metro Manila

• Base Salary: Standard SG 18 rates
• Additional: Higher cost of living allowance
• Housing: Limited government housing or higher housing allowances
• Transportation: Enhanced transportation benefits due to urban congestion

Provincial Areas

• Base Salary: Standard SG 18 rates
• Additional: Potentially lower cost of living allowance
• Housing: Better access to government housing facilities
• Special Allowances: Hardship allowances for remote or challenging areas

Autonomous Regions

• Base Salary: Standard SG 18 rates
• Additional: Potential regional autonomy bonuses
• Cultural Integration: Additional allowances for cultural integration activities
• Security: Potential security allowances in certain areas

Despite these regional variations, the base salary structure for SG 18 remains consistent nationwide, ensuring equitable compensation for government employees regardless of their location

Salary Grade 18 represents a significant tier within the Philippine government's compensation structure, offering substantial responsibilities, competitive compensation, and clear career advancement opportunities. With the 2025 salary adjustments, SG 18 employees will receive improved compensation ranging from PHP 51,357 to PHP 55,172 monthly, complemented by comprehensive benefits.

For professionals in public service, attaining a Salary Grade 18 position signifies recognition of their expertise, leadership capabilities, and commitment to public service. It serves as both a rewarding milestone and a stepping stone to higher executive positions within the government hierarchy. As the government continues to enhance its compensation framework, SG 18 positions remain attractive opportunities for qualified professionals seeking meaningful and impactful careers in public service. 2

Whether in healthcare administration, educational leadership, legal services, or other government sectors, Salary Grade 18 professionals play crucial roles in implementing government programs, leading teams, and ensuring effective public service delivery across the Philippines.

Government employees under Salary Grade 18 are subject to income tax regulations, which can significantly impact their take-home pay. Understanding these tax implications is essential for effective financial planning:

Income Tax Brackets

Based on the current tax structure, SG 18 employees typically fall within the 25-30% tax bracket, depending on their step level and additional allowances.

Tax-Exempt Benefits

Several benefits received by SG 18 employees are tax-exempt, including:

• 13th Month Pay (up to PHP 90,000)
• GSIS, PhilHealth, and Pag-IBIG contributions
• Hazard Pay (subject to certain limitations)
• De Minimis Benefits (within prescribed limits)

Tax Planning Strategies

SG 18 employees can optimize their tax situation through:

• Maximizing contributions to tax-advantaged retirement accounts
• Utilizing available tax exemptions and deductions
• Timing receipt of certain benefits and allowances
• Participating in government housing programs with tax advantages

Effective tax planning can significantly enhance the net compensation of SG 18 employees, potentially increasing take-home pay by 5-10% compared to those who do not actively manage their tax obligations.