Lawmakers have strongly condemned the controversial transfer of more than P43 billion in guaranteed personnel benefits to the uncertain Unprogrammed Appropriations (UA) section of the 2026 General Appropriations Act (GAA). The move, set to be signed into law by the President on Monday, January 5, 2026, jeopardizes the salary upgrades and retirement security of hundreds of thousands of government workers.
A Breakdown of the Budget Reallocation
According to the ratified 2026 General Appropriations Bill (GAB) report, a massive P43.24 billion was stripped from guaranteed funding sources. Specifically, P10.77 billion intended for salary upgrades was removed from the Miscellaneous Personnel Benefits Fund. Furthermore, P32.47 billion for retirement and terminal leave benefits was taken out of the Pension and Gratuity Fund.
This colossal sum was then placed into a new, unprogrammed line item labeled “For Payment of Personnel Services Requirements.” The reallocation reportedly created budgetary space for over P54 billion in additional insertions into lump sum funds designated for local government units (LGUs), funds critics are labeling as “LGU pork.”
From Guarantee to Gamble: Consequences for Civil Servants
This maneuver fundamentally changes the nature of these critical benefits. By moving them to the Unprogrammed Appropriations, their payment is no longer automatic but becomes subject to the availability of excess government revenues. Essentially, what was a sure thing in the programmed budget has become a standby item.
ACT Teachers Partylist Representative Antonio Tinio slammed the decision as a “brutal betrayal of our civil servants.” He emphasized that the mandatory benefits for teachers, military personnel, police, and other government employees have been deliberately turned into a mere suggestion. This scheme echoes the recent problem with the 2025 Service Recognition Incentive, where many Department of Education personnel did not receive the full P20,000 due to alleged fund shortages.
Using Personnel as a Shield for Controversial Funds
Critics argue that the benefits of public sector workers are being used as a “human shield” to protect the controversial UA from a potential presidential veto. There have been widespread calls to veto the entire UA following exposés on corruption in UA-funded flood control projects in 2023 and 2024, which involved overpricing and ghost projects.
“They are hiding behind the needs of teachers and civil servants to preserve a system of unprogrammed funds that has become a cesspool of corruption,” Tinio stated. The fear is that the government will now argue that vetoing the UA would mean not paying salaries and pensions, a tactic described as manipulative and cruel.
The ACT Teachers Partylist maintains its call for the President to veto the Unprogrammed Appropriations in the 2026 GAB. However, they stress this must be paired with an immediate executive commitment to submit a supplemental budget specifically to restore the full P43.245 billion for the salary upgrades and retirement benefits. Their core demand remains clear: the people’s money must first go to the people’s servants, not to pork barrel and corrupt contractors.
