AFP Pay and Benefits Increase Act

Section 2 requires adjusting the rate of base pay of AFP officers and enlisted personnel according to the pay schedule stated by rank and salary grade.
Section 2 sets the following base pay salary grades by rank:
- General — 30
- Lieutenant General — 29
- Major General — 28
- Brigadier General — 27
- Colonel — 26
- Lieutenant Colonel — 25
- Major — 24
- Captain — 23
- First Lieutenant — 22
- Second Lieutenant — 21
- Cadet/P2LT — 19
- Chief Master Sergeant — 18
- Senior Master Sergeant — 17
- Master Sergeant — 16
- Technical Sergeant — 15
- Staff Sergeant — 14
- Sergeant — 13
- Corporal — 12
- Private First Class — 11
- Private — 10
- Candidate Soldier — 7
Section 2 provides that Civil Service Commission (CSC) qualification standards shall not apply to the AFP.
Section 2 requires the AFP, in coordination with the CSC, to formulate a continuing program of education for all AFP officers and enlisted personnel.
Section 2 mandates that all benefits currently received by AFP members under other existing laws shall continue to be received.

Section 3 requires the Department of National Defense (DND) to establish a system governing selection, hiring, appointment, transfer, promotion, or dismissal of all personnel and officers in the AFP.
Section 3 requires the system to include incentives for deserving soldiers and military personnel in the form of:
- scholarship grants through coordination with the Department of Education (DepEd) and Commission on Higher Education (CHED) to deserving children
- hospital care
- social services
- other non-cash benefits aimed at strengthening professionalism and excellence in the AFP
Section 3 allows scholarship grants to children of prisoners of war or those missing in action, and to children of those who were killed in action or otherwise died as a result of such service.

Section 4 requires the DND, in coordination with the Housing and Urban Development Coordinating Council, to establish a special housing assistance program for AFP officers and personnel.
Section 4 states the objective of the program: ensuring that every soldier has a home that is structurally sound, environmentally safe, affordable, and located in a wholesome community.
Section 4 provides that deserving soldiers and military personnel shall receive housing assistance with amounts based on rank, geographic location, and family status.
Section 4 provides that the family of those who were killed in battle or otherwise died as a result of such service may receive housing assistance.

Section 5 directs that the amount necessary for the initial implementation of the Act shall be charged against AFP appropriations savings and/or other definite sources determined by the Department of Budget and Management (DBM) to be sufficient and readily available.
Section 5 requires that, thereafter, whatever sum may be necessary for continued implementation shall be incorporated in the regular appropriations of the AFP in the annual General Appropriations Act.

Section 6 requires the DND and DBM to jointly submit an annual report to the President of the Senate and the Speaker of the House of Representatives on implementation of the Act.
Section 6 requires the report to include information on application of the budget for the salary and other benefits provided under the Act.
Section 6 requires the DBM, in consultation with the DND, to periodically review and adjust every five (5) years the rate of base pay.
Section 6 mandates that base pay adjustments consider labor productivity, consumer price index, oil price, and other similar economic indicators determined by the National Economic and Development Authority (NEDA).

Section 7 requires implementation in staggered phases.
Section 7 caps the total implementation period at not to exceed two (2) years, considering the financial position of the national government.
Section 7 requires any partial implementation to be uniform and proportionate for all ranks.

Section 8 requires the DBM and the DND/AFP to issue the necessary implementing guidelines to carry out the Act.

Section 9 provides that all laws, decrees, orders, rules and regulations, and other issuances, or parts thereof, inconsistent with the Act are repealed or modified accordingly.

Section 10 provides that the Act takes effect fifteen (15) days after its complete publication in the Official Gazette or in at least two (2) newspapers of general circulation, whichever comes earlier.
The Act is Republic Act No. 9166, approved June 07, 2002.