Title
MUP Pay Increase Implementation 2018
Law
National Budget Circular No. 574, S. 2018
Decision Date
Jan 11, 2018
Effective January 1, 2018, the modified Base Pay Schedule significantly increases the salaries of military and uniformed personnel while establishing fixed Hazard Pay and suspending pension indexation for retirees, as mandated by Congress Joint Resolution No. 1, S. 2018.

Questions (NATIONAL BUDGET CIRCULAR NO. 574, S. 2018)

Congress Joint Resolution (JR) No. 1, s. 2018 provides the modified Base Pay Schedule. It shall be implemented in two (2) years—FY 2018 and FY 2019.

To prescribe the guidelines, rules, and regulations for implementing the modified Base Pay Schedule for the MUP beginning January 1, 2018, and to cover other related provisions of Congress JR No. 1, s. 2018.

Military personnel of the AFP under the DND; uniformed personnel of the PNP, PPSC, BFP, and BJMP under the DILG; Philippine Coast Guard under the DOTr; and NAMRIA under the DENR.

Their actual monthly base pay as of December 31, 2017 shall be adjusted effective January 1, 2018 according to the rates in the Modified Base Pay Schedule in the Annex.

P540.00 per month.

Item IV of Congress JR No. 1, s. 2018.

Provisional Allowances and Officers’ Allowances that were previously given as interim measures under EO No. 201, s. 2016, are no longer part of MUP compensation beginning January 1, 2018.

The indexation of pension of retired MUP with the base pay of those in active service is suspended with respect to the base pay increase authorized in Congress JR No. 1, s. 2018.

It remains based on the Base Pay Schedule provided under Congress JR No. 4, s. 2009.

On January 1, 2019, or upon the effectivity of a pension reform law, whichever comes earlier.

The HRMO/AO of concerned agencies prepares NOBPAs for incumbent MUP, subject to approval by the Head of the Agency.

The NOBPAs shall be issued to the personnel concerned.

It is subject to the usual accounting and auditing rules, and to appropriate re-adjustment if found not in order.

Charged against their respective agency budgets for PS authorized under RA No. 10964 or the FY 2018 General Appropriations Act (GAA).

The agency may submit a request to the DBM for the release of funds charged to the Miscellaneous Personnel Benefits Fund.

Agencies are responsible for proper implementation; responsible officers may be held liable for payments not in accordance with the circular, without prejudice to refund by personnel of excess or unauthorized payments.

Cases not covered by the provisions of the circular shall be referred to the DBM for resolution.

January 1, 2018.


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