From L-R: DBM Asec. Myrna Chua, DBM Secretary Benjamin Diokno and DBM Undersecretary Janet Abuel discuss the legal basis on the implementation of 4th tranche salary adjustment for government workers at the DBM Executive Lounge in Manila.(January 14, 2019)

Secretary Benjamin E. Diokno held a special conference on the 4th tranche of salary adjustment earlier today. This is following the filing by House Majority Leader Congressman Rolando Andaya of a Petition for Mandamus to compel the release of the 4th tranche compensation adjustment starting January 2019.

The budget chief, together with DBM Undersecretary Janet Abuel and DBM Assistant Secretary Myrna Chua, cited Section 11 of Executive Order (EO) No. 201, s. of 2016—the governing EO on the grant of compensation adjustments—which explicitly provides that the implementation of the salary schedule is “subject to appropriations by Congress.”

“The implementation of the 4th tranche compensation adjustment is on hold not because the DBM decided so, but because we are constrained by the provisions in the very same EO that authorized the compensation adjustment,” explained Usec. Abuel.

It was emphasized that Section 15 of the said EO, in identifying the funding source for the salary adjustments, provides that, “The funding requirements of the compensation adjustment in FYs 2017, 2018, and 2019 will be included in the proposed annual National Expenditure Program submitted to Congress for its approval. The DBM [...] shall then be [...] authorized to implement or adjust the compensation corresponding to the appropriations provided in the GAA.”

In light of these legal provisions, the DBM is merely implementing the clear provisions of the said EO. Contrary to claims that the Miscellaneous Personnel Benefits Fund (MPBF) may be used to cover the 4th tranche salary adjustment, the MPBF covers only the salary adjustment for 2018 and does not include any amount for the salary increase for 2019.

“Around 1.7 million personnel in the National Government Agencies, including military, police, and teachers are affected by the salary adjustment, with an estimate of 45-50 billion pesos to implement the 4th tranche,” Asec. Chua added.

In any event, the Petition is welcomed in order to settle the substantial dispute that exists in the interpretation of the provisions of the EO No. 201, s. of 2016 and the implementation of the 4th tranche compensation adjustment in view of the reenacted budget.

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