Question & AnswerQ&A (NATIONAL BUDGET CIRCULAR NO. 574, S. 2018)
The purpose of this Circular is to prescribe the guidelines, rules, and regulations for the implementation of the modified Base Pay Schedule for Military and Uniformed Personnel (MUP) beginning January 1, 2018, and other provisions of Congress Joint Resolution No. 1, s. 2018.
The Circular applies to all military personnel of the Armed Forces of the Philippines (AFP) under the Department of National Defense (DND), and uniformed personnel of the Philippine National Police (PNP), Philippine Public Safety College (PPSC), Bureau of Fire Protection (BFP), Bureau of Jail Management and Penology (BJMP) under the Department of the Interior and Local Government (DILG); Philippine Coast Guard (PCG) under the Department of Transportation (DOTr); and the National Mapping and Resource Information Authority (NAMRIA) under the Department of Environment and Natural Resources (DENR).
The modified Base Pay Schedule took effect on January 1, 2018.
The Hazard Pay for all Military and Uniformed Personnel is fixed at Five Hundred Forty Pesos (₱540.00) per month.
No. The grant of Provisional and Officers' Allowances, previously given as an interim measure, was discontinued starting January 1, 2018, following the implementation of the modified Base Pay Schedule.
The indexation of pension of retired Military and Uniformed Personnel with the base pay of those in active service is suspended with respect to the base pay increase authorized under Congress JR No. 1, s. 2018. The indexation shall remain based on the rates under the Base Pay Schedule provided in Congress JR No. 4, s. 2009. This suspension will be lifted on January 1, 2019 or upon the effectivity of a pension reform law, whichever comes earlier.
Agencies are responsible for the proper implementation of the provisions of this Circular. Responsible officers may be held liable for any payment not in accordance with the Circular, including refunding any excess or unauthorized payments.
The increase in base pay and related Personnel Services expenditures are charged against their respective agency budgets under RA No. 10964 or the FY 2018 General Appropriations Act (GAA). In case of deficiency, agencies may request funds from the Miscellaneous Personnel Benefits Fund through the Department of Budget and Management (DBM).
The HRMO or Administrative Officer must prepare Notices of Base Pay Adjustment (NOBPAs) for incumbent Military and Uniformed Personnel using the prescribed format, subject to agency head approval, and issue these to the personnel concerned.
Cases not covered by the provisions of this Circular shall be referred to the Department of Budget and Management (DBM) for resolution.