DBM bids for 100% increase in military, police pay

Budget Secretary Benjamin Diokno (Malacañang file photo)

Department of Budget and Management (DBM) Secretary Benjamin Diokno announced on Friday that the proposal to increase the salaries of the military and the uniformed personnel (MUP) is now in the hands of Congress.

In a statement, Diokno said the draft resolution containing the modified base pay schedule of MUP has already been endorsed to Congress after it was approved by the Office of the President last September 20.

“We need the approval of both houses of Congress to implement this because Congress has the power of the purse,” he said.

If adopted, Diokno said a Police Officer 1 and those with equivalent rank could enjoy a 100% increase in their salary, or possibly a P29,668-monthly base pay.

Diokno said salary adjustments would result to a 58.7% average increase for all MUP ranks effective January 1, 2018.

“The Resolution, if approved by both houses of Congress, will double the base pay of a Police Officer (PO) I in the Philippine National Police (PNP) or a Private in the Department of National Defense (DND), and equivalent ranks in the Bureau of Jail Management and Penology (BJMP), Bureau of Fire Protection (BFP), Philippine Public Safety College (PPSC), Philippine Coast Guard (PCG), and the National Mapping and Resource Information Authority (NAMRIA),” the DBM chief noted.

Diokno said the increase in the base pay would “result to increases in other allowances and bonuses that are computed as a percentage of Base Pay such as Longevity Pay (or Foggy Pay), Mid-Year Bonus, Year-End Bonus, and will effectively discontinue the grant of provisional and officers’ allowances, an interim measure pending the modification of the base pay schedule.”

The DBM head also said “the net take-home pay will be much higher than the previous arrangement since the Longevity Pay is tax-exempt, while the interim allowances (Provisional and Officers’ Allowances) are subject to income tax. Tax-exempt collateral allowances (e.g., Flying Pay, Sea Duty Pay, Instructor’s Duty Pay, etc.) are expected to increase as well.”

Moreover, Diokno said “the passage of the first package of the Comprehensive Tax Reform program would further increase the net take-home pay of the MUP with the lowering of income tax rates.”

According to DBM estimates, the increase in the base pay of soldiers, police, firefighters and jail guards would entail an additional cost of P63.4 billion to the government.

“The increase in the compensation of the MUP will be funded from the Miscellaneous Personnel Benefits Fund (MPBF), and from any available allotment in the respective budgets of the agencies concerned,” Diokno said. /kga