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DBM STAND BASED ON EO 201

Budget must first be approved before wage hike can happen


The scheduled wage hike for government workers this year may only be implemented once the 2019 budget is passed into law, the Department of Budget and Management (DBM) said Wednesday.

Budget Secretary Benjamin Diokno noted Wednesday there would be no legal foundation for the fourth salary adjustment without the proposed 2019 general appropriations law enacted.

“The DBM cannot implement the scheduled hike for 2019 without legal basis, which is still pending in Congress,” Diokno told reporters during a press conference in Pasig City.

House Majority Rolando Andaya Jr. on Tuesday threatened to sue Diokno if the DBM fails in making good the salary hike for government employees.

“This is a free country. He can file,” Diokno said Wednesday, noting that the absence of an enacted General Appropriations law makes the 2019 salary increase unconstitutional.

“There’s no legal basis for adjusting the pay ... You cannot force me to do something which is unconstitutional.”

The salary increase should be reflected when employees get their salaries on January 15.

Diokno emphasized, however, that Executive Order 201 series of 2016 was explicit that implementing the salary adjustment is “subject to appropriations by Congress.”

“The DBM ... shall be ... authorized to implement or adjust the compensation corresponding to the appropriations provided by the GAA,” according to the EO’s Section 15.

Once Congress approves the 2019 budget, Diokno said the salary adjustment will be a retroactive implementation.

“The implementation of the fourth tranche of compensation adjustments will be applied retroactively from January 1, 2019, once the general appropriations bill has been passed,” he explained.

The fourth tranche of the salary standardization law states that the monthly salary of entry-level personnel in the teaching profession, or Teacher 1, will increase to P20,754 from P20,179.

Last year, Andaya said P121.7 billion was allotted to the proposed 2019 national budget for the salary increases of civilian and military personnel.

Malacañang on Monday made an urgent call for Congress to pass the 2019 budget immediately, as further delays in approval would affect the salary of state workers and hamper the implementation of government projects. —VDS, GMA News