A clarification from the DBM

The Department of Budget and Management (DBM) would like to clarify recent claims about the proposed 2026 National Budget, particularly allegations that salary increases and retirement benefits for teachers, government employees, and uniformed personnel will be delayed or affected.

First, the reported P24 billion “reduction” was not removed or canceled. This amount is intended for the increase in subsistence allowance of uniformed personnel and was simply transferred from the Miscellaneous Personnel Benefits Fund (MPBF) to the budgets of the concerned agencies.

This move follows the government’s policy of placing regular and specific benefits directly under agency budgets, so funds can be released and used more directly, faster, and with greater transparency. Second, the salary increases of current government employees, whether civilian or uniformed, are already included in their respective agency budgets. These were not removed, not postponed, and will not be delayed. Since these are no longer under the MPBF, claims that they will be affected are not accurate.

The only possible impact, if any, would be on new hires, and this would depend on how quickly vacant positions are filled. Even then, the government has Special Purpose Funds, including the MPBF and the Pension and Gratuity Fund (PGF), to ensure there are sufficient mechanisms to address staffing and personnel needs. Third, the pension of uniformed personnel is not affected.

The only group that may be impacted are those newly retiring under optional retirement, and this will still go through existing rules, processes, and safeguards. Overall, the funds in question were not reduced. 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. Once again, DBM stresses that claims saying the salaries and benefits of teachers, government workers, and uniformed personnel will be affected by the proposed 2026 National Budget are incorrect.

The DBM remains fully committed to protecting the welfare of public servants and to ensuring responsible, transparent, and accountable management of public funds.