DBM streamlines release of pay, benefits for gov’t workers

MANILA, Philippines — Government employees are expected to receive their salaries, bonuses, and allowances faster after the Department of Budget and Management (DBM) removed a separate request requirement for agencies seeking funds to cover personnel-related deficiencies.

In a statement on Monday, the DBM said Budget Secretary Kim Robert de Leon signed Circular Letter No. 2026-10, dated Sept. 30, allowing the agency to identify and facilitate the release of funds for covered Personnel Services (PS) deficiencies, using personnel and financial data already regularly submitted by government agencies.

“Now, because of the President’s directive that benefits due to citizens and employees should not be delayed, [these benefits] should not be unnecessarily delayed,” De Leon said.

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The new system eliminates the need for agencies to go through another round of paperwork for covered deficiencies, allowing the DBM to act based on information already available in government records.

“[Agencies] no longer need to request [the funds]. They only need to update what we call the master list of their plantilla positions,” De Leon said.

“Once we see that there is a deficiency, even without a request, we will download to them the funds needed to cover the deficiency,” he added.

Step increment

For instance, the almost a million public school teachers often wait several months—from a short two months, to even six months or longer—to receive their updated salary adjustments due to a step increment on their salary grade every three years of their continuous service.

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Under the circular, agencies are required to review their Personnel Services Itemization and Plantilla of Personnel and update their Plantilla of Personnel every last week of the month.

The updated records, together with required Financial Accountability Reports, will serve as the basis for the DBM’s assessment to determine their actual funding PS requirements and facilitate the corresponding fund releases.

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The streamlined process covers deficiencies involving salaries, step increments, Personnel Economic Relief Allowance, uniform/clothing allowance, midyear bonus, year-end bonus and cash gift, medical allowance, Productivity Enhancement Incentive (PEI), representation and transportation allowances.

The reform also includes government counterpart contributions to the Philippine Health Insurance Corp., Pag-Ibig Fund, Employees Compensation Insurance Premium, and Retirement and Life Insurance Premium.

Improved processing

The improved processing under the new circular will be tested as several mandated bonuses, such as cash gift, year-end bonus, and PEI, are due to be given to government workers in November and December.

According to the DBM, the measure is intended to reduce paperwork for agencies while allowing it to respond more quickly to funding requirements for government personnel.

The circular, however, does not cover all personnel-related funding deficiencies.

Requirements arising from hiring, promotion, reclassification, and other human resource actions undertaken after Sept. 30, 2026, when the circular takes effect, will still require a separate budget request for DBM review and evaluation.

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PS requirements outside the scope of the circular will also remain subject to the existing request process. /cb