National Budget Circular No. 562 and Local Budget Circular No. 108

National Budget Circular No. 562

Earlier today, the Department of Budget and Management (DBM) has issued the National Budget Circular No. 562 and Local Budget Circular No. 108 that will implement the first tranche of the compensation adjustments of government workers and additional allowances for Military and Uniformed Personnel (MUP), as mandated under Executive Order 201 (s. 2016).

Concerned agencies may start the process on the adjustment of compensations as early as next week.

“With the issuance of these circulars, the salaries of civilian personnel will be adjusted in accordance with the First Tranche Monthly Salary Schedule as provided in the Executive Order. Likewise, the new allowances for MUP will be granted in accordance with the schedule provided in the EO. Meanwhile, the Hazard Pay for MUP shall be increased from the current rate of P240 per month to P390 per month,” Budget Secretary Florencio B. Abad said.

Since the Executive Order 201’s is retroactive to January 1, 2016, civilian personnel will receive salary differentials and MUPs will receive the Hazard Pay differential and new allowances due them since January, Abad added.

Abad also clarified that the funds will be released to agencies next week, however, this does not mean the adjusted salaries and new allowances will be received by all covered personnel next week.

“The Human Resource Office of agencies will, of course, need time to implement the procedures for salary adjustment and process the release of funds to employees,” he said.

To read more about National Budget Circular No. 562, please download it on PDF format below or visit DBM’s news update on their website at:

Download National Budget Circular No. 562


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