Double base pay for uniformed men beginning January 2018

 

By Rose de la Cruz

 

The Congress Joint Resolution increasing the base pay of Military and Uniformed Personnel (MUP) was approved by the Senate on third and final reading last December 13, effectively doubling the base pay of Police Officer 1 or a private in the Armed Forces of the Philippines and equivalent ranks in the Bureau of Jail Management and Penology, Bureau of Fire Protection, Philippine Public Safety College, Philippine Coast Guard and the National Mapping and Resources Information Authority.

 

A PO1 and those with equivalent rank will enjoy a 100 percent raise or a monthly base pay of P29,668. Overall the salary adjustment will result in a 58.7 percent average increase for all MUP ranks, effective January 1, 2018.

 

House Joint Resolution (HJR) No. 18 and Senate Joint Resolution (SJR) No. 11 both allow for a second tranche of base pay increase for the ranks of Senior PO IV up to Director General and equivalent ranks to be implemented beginning January 1, 2019. By Fiscal Year (FY) 2019, the average increase will be 72.18% for all ranks.

 

The Department of Budget and Management said the increase in Base Pay will lead to increases in other allowances and bonuses that are computed as a percentage of Base Pay, such as Longevity Pay (or Foggy Pay), Mid-Year Bonus, Year-End Bonus, and will effectively discontinue the grant of provisional and officers’ allowances, an interim measure pending the modification of the base pay schedule.

              

The net take-home pay will be much higher than the previous arrangement since the Longevity Pay is tax-exempt, while the interim allowances (Provisional and Officers’ Allowances) are subject to income tax. Tax-exempt collateral allowances (e.g., Flying Pay, Sea Duty Pay, Instructor’s Duty Pay, etc.) are expected to increase as well.

  

Finally, the implementation of the new tax law will further increase the net take-home pay of the MUP with the lowering of income tax rates.       

 

The increase in the base pay of soldiers, police, firefighters and jail guards will entail an additional cost of P64.2 billion for FY 2018. The increase in the compensation of the MUP will be funded from the Miscellaneous Personnel Benefits Fund (MPBF), and from any available allotment in the respective budgets of the agencies concerned.

 

The resolution will have the force and effect of a law upon the approval of the President. Such an approval is imminent as the Office of the President had earlier officially endorsed the resolution as urgent.

 

 

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