P43-B gov’t fund transfer to affect workers’ benefits
The proposed 2026 national budget could delay pay increases and retirement benefits for teachers, civil servants and uniformed personnel after more than P43 billion in mandatory personnel benefits were moved to the government’s unprogrammed appropriations (UAs).
ACT Teachers Rep. Antonio Tinio pointed out on Friday that the ratified 2026 General Appropriations Bill transferred P10.77 billion for salary upgrades and P32.47 billion for retirement and terminal leave benefits from guaranteed, programmed funds into a new unprogrammed budget item labeled “Payment of Personnel Services Requirements.”
UAs may only be released if the government generates excess revenue, making the funding uncertain.
Tinio said the shift affected allocations previously under the Miscellaneous Personnel Benefits Fund and the Pension and Gratuity Fund, while lawmakers expanded lump-sum funds for local government units (LGUs) by more than P53 billion.
‘Brutal betrayal’
According to the bicameral conference committee report, the Miscellaneous Personnel Benefits Fund was originally allocated P111.57 billion but was cut down to P77.05 billion. The Pension and Gratuity Fund decreased from P198 billion to P165.6 billion.
“This is a brutal betrayal of our civil servants,” Tinio said. “The General Appropriations Act has deliberately turned the mandatory benefits of hundreds of thousands of government employees, including our teachers, as well as military and uniformed personnel, into a mere suggestion, subject to the availability of funds.”
“They have chosen to guarantee billions in new lump-sum ‘LGU pork’ under the Local Government Support Fund while putting the rightful compensation and retirement security of public sector workers on the chopping block,” he added.
Recurring troubles
Tinio said the move echoed problems encountered in 2025, when the Department of Education personnel and other government employees did not receive the full P20,000 service recognition incentive due to a reported lack of funds.
The lawmaker also accused the administration of using personnel benefits to shield the UA from a possible presidential veto, amid mounting calls to scrap the fund following reports of corruption involving unprogrammed flood control projects in 2023 and 2024.
“They are hiding behind the needs of teachers and civil servants to preserve a system of unprogrammed funds that has become a cesspool of corruption. [They] will say: ‘If the UA is removed, employees’ salaries and pension cannot be paid.’ This is manipulative and cruel,” Tinio said.
President Marcos is expected to sign the 2026 budget into law on Monday.
The teacher-solon reiterated his call for Marcos to veto the unprogrammed appropriations, but said this should be accompanied by an immediate commitment from the executive branch to submit a supplemental budget restoring the P43.24 billion for salary upgrades and retirement benefits.
“Public servants’ pay and benefits should not be used to protect a corrupt system,” Tinio said.
