Gatchalian Assures No Reductions to Gov’t Workers’ Bonuses and Pensions in 2026 Budget

Manila: Senate Committee on Finance Chairperson Sherwin Gatchalian clarified on Tuesday that government workers' bonuses, personnel benefits, and pensions will remain intact in the 2026 national budget. This announcement dismisses claims that these benefits had been slashed or removed.

According to Philippines News Agency, Gatchalian addressed these concerns during a press briefing held in the Senate. He emphasized that the allocation for the Performance-Based Bonus (PBB) remained consistent between the National Expenditure Program (NEP) and the General Appropriations Act (GAA), both set at PHP27 billion. "Ang bonus mabibigay, hindi nabawasan ang bonus," Gatchalian stated, affirming that there would be no reduction in bonuses.

Gatchalian further explained that the allocation for the Miscellaneous Personnel Benefits Fund (MPBF) had significantly increased, with certain portions placed under unprogrammed appropriations to accommodate potential additional manpower needs. The MPBF allocation rose from PHP39 billion in 2025 to PHP77 billion in 2026, nearly doubling.

He assured that the bonuses and personnel benefits would not be removed, countering claims with, "Walang katotohanan na mawawala yung bonus." Gatchalian highlighted that the increased MPBF allocation allows for the hiring of additional personnel if necessary, with the executive's plans to expand manpower supported by this budget.

On the topic of pensions, Gatchalian firmly rejected reports of cuts, labeling them as false. He confirmed that pension allocations under both the NEP and the GAA remain at PHP147 billion, with no changes made to the amounts. This represents an increase compared to 2025 levels.

The clarification from Gatchalian follows ACT Teachers Party-list Rep. Antonio Tinio's concerns over a PHP43.24-billion line item under unprogrammed appropriations labeled "For Payment of Personnel Services Requirements." Tinio suggested that this amount mirrored reductions made to certain MPBF components and the Pension and Gratuity Fund, warning that placing them under unprogrammed appropriations could lead to funding uncertainty.