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DBM: Congress okay of 100% base-pay hike of military, uniformed personnel awaits Presidential signature.

The Department of Budget and Management (DBM) said the Congressional approval of a 100-percent pay hike for the military, police and other uniformed personnel was awaiting the signature of President Duterte before it would finally take effect.

The Congressional approval came as the DBM also announced the continued pace in infrastructure spending this year.

The DBM said the joint Congress resolution agreed in mid-December to increase the base pay of Military and Uniformed Personnel (MUP).

'The proposed joint resolution will double the base pay of a Police Officer [PO] I in the Philippine National Police or a Private in the Armed Forces of the Philippines and equivalent ranks in the Bureau of Jail Management and Penology, Bureau of Fire Protection, Philippine Public Safety College, Philippine Coast Guard, and the National Mapping and Resource Information Authority,' the DBM statement last week said.

It said a PO1 and those with equivalent rank would enjoy a-100 percent increase 'resulting to a monthly base pay of P29,668.'

'Overall, the salary adjustments would result to a 58.7- percent average increase for all MUP ranks, effective January 1 this year,' it said.

The House Joint Resolution 18 and Senate Joint Resolution 11 'both allow for a second tranche of base-pay increase for the ranks of senior PO4 up to director general and equivalent ranks to be implemented beginning January 1, 2019. By fiscal year 2019, the average increase will be 72.18 percent for all ranks'

It said the increase in base pay would also mean a consequent 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 and year-end bonus.

'It would also effectively discontinue the grant of provisional and officers' allowances, an interim measure pending the modification of the base-pay schedule,' it said.

The DBM said the net take-home pay would 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.'

The DBM also said the uniformed personnel would also expect higher take-home pay with the implementation of the new tax law and the lowering of income-tax rates.

It said the government would fund the base-pay increase from the Miscellaneous Personnel Benefits Fund, 'and from any available allotment in the respective budgets of the agencies concerned.' The increase would mean an additional cost of P64.2 billion for 2018.

'The resolution will have the force and effect of a law upon the approval of the President. Such an approval is imminent as the Office of the President had earlier officially endorsed the resolution as urgent,' it said.

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Publication:Business Mirror (Makati City, Philippines)
Date:Jan 3, 2018
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