MANILA — The 2026 national budget includes P21.7 billion specifically allocated for the first tranche of salary increases for military and uniformed personnel (MUP), as confirmed in the General Appropriations Act (GAA) signed by President Ferdinand Marcos Jr. on January 5, 2026.
This funding covers the initial phase of the Modified Uniformed Personnel Pension and Salary System reforms under Republic Act No. 11922 (signed in 2024), which aims to gradually raise base pay across all ranks while introducing sustainability measures (higher contributions, adjusted pension formula).
Breakdown of the P21.7 Billion Allocation
- Purpose: Covers the first-year incremental cost of the pay hike for active MUP (Armed Forces of the Philippines, Philippine National Police, Bureau of Fire Protection, Bureau of Jail Management and Penology, Philippine Coast Guard, etc.).
- Affected Personnel: Approximately 500,000+ active uniformed personnel.
- Salary Increase Structure (per 2024 law):
- First tranche (2026): ~10–15% increase depending on rank (exact percentage per rank to be detailed in implementing rules).
- Subsequent tranches: Phased increases until full alignment with civilian salary standardization (target completion ~2030).
- Funding Source: Regular appropriations under the Department of Budget and Management (DBM) and respective agencies (DND, DILG, etc.).
Budget Secretary Amenah Pangandaman (prior to her resignation) and current DBM officials have assured that the P21.7 billion is fully funded and protected from realignment or veto — a priority item retained even after partial vetoes on other unprogrammed appropriations.
Context & Rationale
- Long-standing Demand — MUP pay has lagged civilian government salaries for decades, leading to morale issues and recruitment/retention challenges.
- Fiscal Impact: The total long-term liability of the MUP pension system remains ~P9–10 trillion; the pay hike is paired with reforms (higher employee contributions from 12% to 15%, adjusted pension computation) to make it more sustainable.
- President Marcos’ Stance: The President has repeatedly affirmed that soldiers and uniformed personnel “deserve fair and sustainable compensation,” balancing welfare with fiscal responsibility.
The salary adjustment is expected to take effect in early 2026 (likely April or May payroll), pending release of the implementing guidelines by DBM and concerned agencies.
Here are visuals related to the announcement: budget signing ceremony, MUP personnel in formation, and charts showing projected pay scale improvements.
A long-awaited boost for our men and women in uniform — implementation details to follow in the coming weeks.