Iloilo needs PHP 56M for retroactive wage hike

By Rjay Zuriaga Castor

The provincial government of Iloilo requires at least PHP 56 million to comply with the retroactive salary increase for government workers, effective from January 2024.

“We are preparing for it. I just met with the budget team, but of course, we first need money, and based on our accounting office, we can find a source. What do we need to do? We need a supplemental budget so we can comply,” said Governor Arthur Defensor Jr. on Wednesday, August 14.

Defensor said they are currently preparing the supplemental budget to include the necessary funds for the salary increase.

The PHP 56 million is needed for the retroactive pay, but Defensor noted that the province may require a smaller amount if the increase is not applied retroactively.

He also assured that the implementation would follow the timeline set by the Department of Budget and Management (DBM).

The governor disclosed plans to meet with DBM officials to lobby concerns about the implementation of the hike, particularly for local government units (LGUs).

Defensor is set to meet with League of Provinces President and South Cotabato Governor Jun Tamayo Jr. next week to discuss the salary increase.

The DBM previously announced that the first of the four-tranche salary increases for national government employees would begin this year, retroactive to January 2024, with subsequent increases from January 2025 to January 2027.

The funds for the pay hike among LGU personnel will be charged to their respective local governments.

This means that the LGUs will determine the percentage of the salary schedule they will implement based on their financial capacity.

For example, special cities and first-class provinces and municipalities must pay 100 percent of the provided rates, while sixth-class municipalities may only pay 65 percent of the new rates.

President Ferdinand Marcos Jr. signed the order for the salary increase and additional allowances for government workers on August 2.