MANILA, Philippines — Teachers, civil servants, and uniformed personnel may face delays in salary increases and retirement benefits under the proposed 2026 national budget, after over P43 billion in mandatory personnel benefits were shifted to unprogrammed appropriations (UAs).
ACT Teachers Rep. Antonio Tinio said on Friday that the ratified 2026 General Appropriations Bill moved P10.77 billion for salary upgrades and P32.47 billion for retirement and terminal leave benefits from guaranteed, programmed funds into a new UA item called “Payment of Personnel Services Requirements.” Funds under UAs are only released if the government generates excess revenue, making their availability uncertain.
Tinio noted that the shift affected allocations previously under the Miscellaneous Personnel Benefits Fund and the Pension and Gratuity Fund, while lawmakers increased lump-sum allocations for local government units (LGUs) by over P53 billion.
Under the bicameral conference committee report:
- Miscellaneous Personnel Benefits Fund: cut from P111.57 billion to P77.05 billion
- Pension and Gratuity Fund: cut from P198 billion to P165.6 billion
“This is a brutal betrayal of our civil servants,” Tinio said. “The General Appropriations Act has deliberately turned the mandatory benefits of hundreds of thousands of government employees, including our teachers, as well as military and uniformed personnel, into a mere suggestion, subject to the availability of funds.”
He criticized lawmakers for prioritizing billions in new lump-sum LGU funds while reducing allocations meant for the compensation and retirement security of public sector workers.
Tinio also said the move reflects recurring problems, recalling that in 2025, Department of Education personnel and other government employees did not receive the full P20,000 service recognition incentive due to reported lack of funds.
The lawmaker accused the administration of using personnel benefits to shield the UA from a potential presidential veto, amid past corruption reports linked to unprogrammed flood control projects.
President Ferdinand Marcos Jr. is expected to sign the 2026 budget into law on Monday. Tinio reiterated his call for the president to veto the unprogrammed appropriations, coupled with a supplemental budget restoring the P43.24 billion for salary upgrades and retirement benefits.
“Public servants’ pay and benefits should not be used to protect a corrupt system,” Tinio said.
