The Department of Budget and Management (DBM) has allocated P21.7 billion for the first phase of base pay increases for military and uniformed personnel, effective 1 January 2026.

On Wednesday, DBM Acting Secretary Rolando Toledo said the funding covers the initial tranche of adjustments approved under Executive Order No. 107. President Ferdinand Marcos Jr. signed the order on 3 December 2025.

The pay hike applies to military members under the Department of National Defense and uniformed personnel within the Department of the Interior and Local Government, the Philippine Coast Guard, the Bureau of Corrections, and the National Mapping and Resource Information Authority.

The base pay increase is scheduled in three annual tranches, with the subsequent phases taking effect on 1 January 2027, and 1 January 2028.

Of the initial P21.7 billion, P15.4 billion is earmarked for active-duty personnel, while P6.3 billion will cover pension obligations.

Toledo also announced that P71.1 billion has been set aside to increase the daily subsistence allowance to P350, effective this month. Additionally, the agency allotted P4.06 billion to fund 10,077 new military and uniformed personnel positions in 2026.

Funds for the salaries, allowances, and pensions have already been transferred to the respective agencies to ensure timely disbursement, according to the DBM.