Manila: The Department of Budget and Management (DBM) has refuted claims that salary hikes and pensions for teachers, government workers, and uniformed personnel will be delayed under the 2026 national budget, calling these inaccurate and misleading.

According to Philippines News Agency, the DBM stated that reports of a supposed PHP24-billion 'reduction' on the Miscellaneous Personnel Benefits Fund (MPBF) were inaccurate, emphasizing that the amount was not removed or canceled but merely realigned. The department clarified that this amount is intended for the increase in subsistence allowance of uniformed personnel and was transferred to the budgets of the concerned agencies.

The DBM explained that the realignment follows government policy to place regular and specific benefits directly under agency budgets to enable funds to be released and used more directly, faster, and with greater transparency. Furthermore, the department assured that salary increases for incumbent government personnel, both civilian and uniformed, are already incorporated in agency budgets and will not be delayed.

The budget agency also noted that since these items are no longer under the MPBF, claims that salary hikes will be affected are not accurate. Any potential impact would only apply to new hires and would depend on how quickly vacant positions are filled. Existing mechanisms, including the MPBF and the Pension and Gratuity Fund (PGF), remain in place to address staffing and personnel needs.

On the issue of pensions, DBM assured that uniformed personnel will not be affected, except possibly those newly retiring under optional retirement, which will still be processed under existing rules. The department stressed that the realignment was meant to improve budget execution, not to reduce benefits.

The DBM reiterated that the funds in question were not reduced but were realigned to more appropriate and direct budget items to improve implementation. The department reaffirmed its commitment to public servants, ensuring responsible, transparent, and accountable management of public funds.