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Department of Budget and Management Secretary Benjamin Diokno assured that the fourth tranche salary adjustment will be implemented as soon as the 2019 budget is passed.


According to the Secretary, the DBM cannot implement the scheduled hike for 2019 yet without the basis of appropriations, which is still pending in Congress.


Responding to claims from House Majority Leader Congressman Rolando Andaya that the DBM can go ahead with the implementation of fourth tranche, Secretary Diokno cited Executive Order (EO) No. 201, s. of 2016 as governing the grant of compensation adjustments. According to Section 11 the said EO, the implementation of the salary schedule is “subject to appropriations by Congress”. Accordingly, Section 15 of the same EO, in identifying the funding source for the salary adjustments, provides that “the DBM [...] shall be [...] authorized to implement or adjust the compensation corresponding to the appropriations provided in the GAA”.


Pending the passage of the 2019 General Appropriations Bill, government employees will continue to receive salaries indexed to the third tranche of the compensation adjustment.


The implementation of the fourth tranche of compensation adjustments will be applied retroactively from January 1, 2019 once the 2019 GAA is signed into law. In effect, government employees will receive salary differentials within the year.


Budget chief refutes other allegations by Andaya

Secretary Diokno added that Congress Joint Resolution No. 3, s. of 2018 only extends the validity of 2018 appropriations for Capital Outlays (CO) and Maintenance and Other Operating Expenses (MOOE), and does not cover Personnel Services, contradicting averments from Congressman Andaya that the extension will allow possible funding sources for the compensation adjustment from remaining appropriations in the 2018 budget.


Finally, Secretary Diokno dispelled assertions from Congressman Andaya saying that the salary hike for Military and Uniformed Personnel (MUP) was implemented without a funding source in the 2018 GAA. Adjustments in the base pay schedule of MUP were provided for through a budget set aside in the Miscellaneous Personnel Benefits Fund (MPBF) under Personnel Services in the 2018 GAA.





PR No. 2019-7


For inquiries, further questions and requests for interview, please contact Marianne Ongjuco:

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Telephone: (+632)-735-4847
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