DBM to gov’t offices: Fast track release of workers’ 4th salary hike

MANILA, Philippines — The Department of Budget and Management (DBM) has ordered government offices to fast track the release of their personnel’s fourth salary increase scheduled this year.

This after it has been delayed by the impasse in Congress on the proposed P3.757-trillion 2019 national budget.

Circular Letter (CL) No. 2019-7A issued by then officer-in-charge and now DBM Acting Secretary Janet B. Abuel on March 29 amended the earlier CL 2019-7 dated March 26, which identified the source of funds from the reenacted budget to cover expenses in the second quarter while this year’s appropriations remain unapproved.

Under CL 2019-7, the funding for the fourth tranche of pay increase under Executive Order (EO) No. 201 amended by EO 76, inclusive of the required government premiums in PhilHealth and Employees Compensation Insurance Premiums (Ecip), were supposed to be issued special allotment release orders (Saro) and was not covered by the obligational authority covering personnel services, maintenance and other operating expenses, and retirement and life insurance premiums chargeable against automatic appropriations.

But the amendment under CL 2019-7A made funding for the pending salary adjustments chargeable against agency-specific budgets.

As such, the higher pay for the period of January until June will already be covered by agency budgets.

Doing so will “effect the immediate payment” of the much-awaited compensation adjustments, Abuel said in CL 2019-7A.

“Accordingly, it is understood that the fourth tranche compensation adjustment, inclusive of the required government premiums in PhilHealth and Ecip, for the period January to June 2019 shall be among the items authorized to be obligated for the second quarter, chargeable against agency-specific budgets,” Abuel added.

EO 76 allowed the government to source the final tranche of government employees’ salary increase from any available appropriations under the reenacted budget from last year.

DBM had explained that EO 201 issued by former President Benigno S. Aquino III in 2016 mandated passage of the annual budget before pay hikes can be implemented.

Earlier documents on the proposed 2019 budget showed that the government will allot P1.185 trillion for personnel expenses this year, up from P1.061 trillion last year.