ILOILO – The provincial government is in need of P56 million to provide retroactive salary increases for over 2,000 regular employees from January 2024.
This challenge arises from Department of Budget and Management (DBM) regulations that limit retroactive increases to national government employees, requiring local government units (LGUs) like Iloilo to wait until their budgets are approved.
Gov. Arthur Defensor Jr. explained that although the capitol has potential budget sources for these increases, he must first lobby the DBM to allow retroactivity for LGU employees.
“According to the DBM circular, retroactive increases apply only to the national government. For LGUs, increases take effect upon budget approval,” Defensor said.
He plans to advocate through the League of Provinces of the Philippines for permission to grant retroactive increases to LGU employees, especially if the LGU, such as the Iloilo province, has sufficient funds.
The proposal for the salary increase has been submitted through Supplemental Budget Number 2 to the Sangguniang Panlalawigan (SP) for approval.
Upon endorsement, the Salary Standardization Law (SSL) VI will be implemented for the employees.
DBM Secretary Amenah Pangandaman recently emphasized the importance of these increases. “The initial tranche is retroactive to January 1, 2024, which means there will be a salary differential or back pay,” she said.
The salary hike is scheduled across four tranches, with the first occurring this year and the second planned for 2025.
Pangandaman further assured, “We have secured funding not only for 2024 but also for 2025. The increase this year is guaranteed, and there will be an additional increase next year.”
She said P70 billion has been earmarked in the FY 2025 Miscellaneous Personnel Benefits Fund (MPBF) to cover these increments under SSL VI, with the second tranche effective from January 1, 2025.
The national government has allocated approximately P36 billion from the FY 2024 General Appropriations Act (GAA) for the first tranche of SSL VI, covering various branches and offices across the government spectrum, including LGUs.
This salary adjustment aligns with the Philippine Development Plan and the “Bagong Pilipinas” initiative, aiming to revitalize the country through extensive societal and governmental reforms./PN