BEYOND BUDGET
Assalamu alaikum wa Rahmatullahi wa Barakatuh.
It fills my heart with profound gratitude that President Ferdinand R. Marcos Jr. has approved the increase in the base pay and subsistence allowance of all military and uniformed personnel (MUP) through Executive Order (EO) No. 107 issued last Dec. 3, 2025. For me, helping bring this policy to completion as I concluded my term at the Department of Budget and Management (DBM) is a quiet but meaningful privilege.
The updated base pay schedule benefits all military personnel under the Department of National Defense, and uniformed personnel under the Department of the Interior and Local Government, the Philippine Coast Guard (PCG), the Bureau of Corrections (BuCor), and the National Mapping and Resource Information Authority (NAMRIA).
In his message, PBBM honored the dedication, service, and excellence of our MUPs. As EO 107 states: “Given the prevailing economic circumstances, there is a need to update the base pay schedule and increase the sub-sistence allowance of MUP in recognition of their vital role in nation-building, and in order to boost their mo-rale and maintain a competent, committed, agile, and healthy workforce.”
The increase will be implemented in three tranches beginning Jan. 1, 2026; followed by Jan. 1, 2027; and the final tranche on Jan. 1, 2028. This long-awaited upgrade is not an overnight decision by PBBM, but the culmina-tion of 16 months of transparent, deliberate, and responsible work.
In addition, the EO raises the daily subsistence allowance of all uniformed personnel to ₱350 effective Jan. 1, 2026—more than double the long-standing rate of ₱150. This covers members of the Philippine National Po-lice, Bureau of Fire Protection, Bureau of Jail Management and Penology, PCG, BuCor, and NAMRIA. It likewise reiterates the P200 increase in the subsistence allowance of all military personnel effective Jan. 1, 2025 as pre-scribed under EO 84, signed on March 14, 2025.
The requirements for funding these increases will be charged against available appropriations under the FY 2026 General Appropriations Act and other available funds, subject to existing budgeting, accounting, and au-diting regulations.
Furthermore, EO 107 establishes an Inter-Agency Technical Working Group (IATWG)—composed of the DBM, Department of Finance, Bureau of the Treasury, and Government Service Insurance System—to conduct a comprehensive review of the MUP Pension System.
The DBM is expected to release the implementing guidelines for EO 107 within 90 days of its effectivity.
Dispelling disinformation
Unfortunately, some have chosen to view this development through a distorted lens. Instead of seeing it for what it truly is—a long-delayed recognition of our brave soldiers and uniformed personnel—others have politi-cized it.
While the Association of General and Flag Officers (AGFO) and the entire uniformed services community welcomed the signing of EO 107, they also issued a joint statement correcting the disinformation being circu-lated, particularly the claim that this salary increase is a “bribe to secure loyalty amidst political noise.”
They were clear and resolute: “We categorically reject these claims as baseless disinformation. Such distor-tions not only obscure the facts but also insult the integrity of the long-standing efforts made by the retiree community to secure the welfare of both the MUP retiree and their active-duty counterparts. The truth is verifi-able. This pay adjustment is the result of a transparent, 16-month administrative process, not a sudden politi-cal decision.”
These false narratives conveniently ignore facts.
The initiative began in August 2024 after EO 64, s. 2024—updating the pay of civilian personnel—was ap-proved. AGFO and the Philippine Military Academy Alumni Association Inc. (PMAAAI) raised concerns regarding inflation and inequality, prompting them to advocate for adjustments for the MUP sector.
By May 2025, and with guidance from lawmakers, the AGFO, PMAAAI, AGFO Foundation Inc. (AFI), National ROTC Alumni Association (NARAA), and the Advocates for International Interest (ANI) united to petition the Office of the President for a salary increase. As their joint statement underscored: “This was a collective, grass-roots effort from the sector, independent of any political crisis.”
On Sept. 19, retired MUP leaders held a dialogue with the President in Malacañang. I was there, together with Defense Secretary Gibo Teodoro and AFP Chief of Staff Romeo Brawner, Jr. And the DBM was tasked to examine the fiscal viability of the proposal. After a comprehensive and responsible review, we submitted the draft EO in October—and the rest, as they say, is history.
A recognition beyond numbers
This long-awaited increase in base pay and subsistence allowance is more than a policy decision. It is a reaf-firmation of the nation’s gratitude—timely, rightful, and deeply deserved.
It will provide overdue relief for our financially burdened MUPs. It will strengthen stability and dignity with-in the ranks. It will uplift morale, and it will encourage more Filipinos to embrace a life of uniformed service, knowing that their sacrifices will be honored not only in words, but through clear and sustained support.
Beyond Budget, this is, in every sense, what Bagong Pilipinas stands for: A nation where citizens are valued, respected, and uplifted—where no one is left behind.
(Amenah F. Pangandaman is the former Secretary of the Department of Budget and Management.)