DBM Assures No Delay in Salary Increases, Benefits Under Proposed 2026 Budget

The Department of Budget and Management (DBM) on Monday sought to dispel claims that salary increases, pensions, and gratuity benefits for teachers, government employees, and uniformed personnel would be delayed or reduced under the proposed 2026 National Budget.

In a two-page statement released on January 5, the DBM clarified that reports citing a ₱24-billion “reduction” in personnel-related funds were inaccurate. According to the agency, the amount in question was neither removed nor cancelled but was instead realigned from the Miscellaneous Personnel Benefits Fund (MPBF) to the budgets of concerned agencies. The funds are intended specifically to support increases in the subsistence allowance of uniformed personnel.

The DBM explained that this realignment follows government policy to place regular and specific personnel benefits directly under agency budgets. This approach, the agency said, allows funds to be released and utilized more efficiently, with greater speed and transparency, rather than coursed through centrally managed special purpose funds.

The agency further stressed that salary increases for existing government employees—both civilian and uniformed—are already built into their respective agency budgets for 2026. These increases, it said, have not been removed, postponed, or delayed, contrary to circulating claims.

Any potential impact, the DBM noted, would be limited to new hires and would depend on how quickly vacant positions are filled. Even in such cases, the government maintains sufficient mechanisms to address personnel requirements, including access to S

pecial Purpose Funds such as the MPBF and the Pension and Gratuity Fund (PGF).

On retirement benefits, the DBM underscored that pensions for uniformed personnel remain unaffected. The only group that may experience any change would be those newly retiring under optional retirement schemes, which will continue to be processed under existing rules, procedures, and safeguards.

“Overall, the funds in question were not reduced,” the DBM said. “They were simply realigned to more appropriate and direct budget items. The purpose of this adjustment is to improve implementation, not to reduce the benefits of public servants.”

The agency reiterated its commitment to protecting the welfare of public servants and ensuring responsible, transparent, and accountable management of public funds, while emphasizing that claims of adverse effects on salaries and benefits under the proposed 2026 National Budget are incorrect.