DBM eyes retroactive pay hikes for local gov’t workers

Budget Secretary Amenah “Mina” Pangandaman

Budget Secretary Amenah Pangandaman has proposed amending the Local Government Code to allow retroactive salary increases for local government workers.

“We need to change the [Local Government Code], the law there … Help us lay it out so that you will not be exempted, you can do it retroactively,” Pangandaman said during the Public Financial Management Competency Program on Friday.

In a statement, Pangandaman pointed out that the Local Government Code of 1991, or Republic Act No. 7160, does not allow retroactive changes in how local government unit (LGU) employees are paid. This means that local governments cannot adjust past salaries or benefits based on new standards.

Earlier, the budget department approved the salary increase for government employees which is retroactive including the midyear bonus.

READ: DBM: 4-part pay hike for gov’t workers to start in 2025

However, this does not apply to military and uniformed personnel, as well as certain state offices and state-owned corporations that have their own salary structures while LGUs are expected to implement heightened rates proportional to their class and financial capacity.

Health allowance

Additionally, she mentioned that the Department of Budget and Management has started providing a health allowance for its employees and expressed hope that local governments will adopt a similar benefit for their own workers.

“There are limitations, but we tried. In the meantime, at least there is an increase in salary. Hopefully, maybe you can also embrace the health allowance we made.” the budget chief said.

Moreover, Pangandaman’s call to update the local government code supports the Marcos administration’s hopes that local government employees receive the support they need.