pnp salary increase 2019
FINANCE & LIFESTYLE SALARY INCREASE

An Explainer for the PNP, MUP 2019 Salary Increase


(UPDATED) The much awaited 2019 salary increase of PNP and MUP personnel is now coming to a reality, thanks to the signing of the 2019 General Appropriations Act (GAA) or the annual budget of the Philippine Government.

For those who can remember, President Duterte signed Republic Act (RA) 11260 on April 15, 2019. This despite the word war traded between the Senate and House of Representatives regarding the illegal insertions by the congressmen on the then proposed 2019 budget.

According to the Senate, those insertions can be considered a form of “pork”.

Anyway, so much for that. We will discuss now the 2019 Salary increase which is actually the 2nd tranche of J.R. No. 1.


Backgrounder

In 2018, President Duterte signed Joint Resolution No. 1 (J.R. No. 1) entitled “Joint Resolution Authorizing the Increase in Base Pay of Military and Uniformed Personnel in the Government, and For Other Purposes.”

The implementation of 1st tranche of the salary increase under the law, J.R. No. 1 started last January 1, 2018,

The mass media famously misquoted the 1st tranche (2018) as the law that “doubled the salary of policemen”. In fact, it was only the PO1s/Pat that got doubled.

Nevertheless, other ranks also received a considerable increase.

For purposes of accuracy of discussion, we will be referring to the 2019 Salary Increase as 2nd Tranche under J.R. No. 1 interchangeably. That is the same with the 2018 Salary Increase as the 1st Tranche.

Joint resolution no. 1
Fig. 1 – Joint Resolution No. 1 – the legal basis of 2018 (1st tranche) and 2019 (2nd tranche) of salary increase for MUPS

Legal basis of 2019 Salary Increase

The legal basis of this Salary Increase is J.R. No. 1, s. 2018. What this law effectively did was:

  1. Increase the Base Pay of MUPs, divided into 2 tranches to be implemented in 2018 and 2019 respectively (the 1st tranche in 2018 doubled the base pay of PO1s/Pat and increased considerably the base pay of other ranks); and
  2. Repeal the some provisions for allowances (Provisional and Officers Allowances) of MUPs in E.O. 201, s. 2016. Meaning, MUP personnel can no longer expect Provisional and Officers’ Allowance from the 3rd and 4th tranche that was provided by EO 201 because it was repealed by J.R.No. 1. (But be aware that the other allowances and bonuses, such as: Increased Hazard Pay, Productivity Enhancement Incentive (PEI), Mid-year Bonus and Enhanced Performance-Based Bonus(PBB), as provided by EO 201 are still existing and in effect.

When the law took effect on January 1, 2018, the implementation of 1st Tranche (2018) started therewith.

It increased the base pay of MUPs across all ranks as a result.

The implementation of 2019 salary increase or 2nd tranche (the last tranche BTW) under the law (J.R. No. 1) should be last January 1, 2019.

However, the fiasco that resulted from the word wars between the Senate and House of Representatives caused the delay in the release of 2019 annual budget. This was only signed last April 15, 2019.

RELATED: How Much is the Mid-year Bonus 2019 of PNP, MUPs?

Reason for late implementation of 2nd Tranche (2019)

According to Paragraph VI of J.R. No. 1, s. 2018, the annual General Appropriations Act (GAA) or the annual budget is the funding source of the 2nd Tranche (2019).

Thus, the late signing of the annual budget mentioned above has greatly impacted the implementation of the 2nd Tranche of the salary increase.

We can expect that the 2nd tranche will be implemented soon since the annual budget has now been signed. And don’t worry, the implementation will be retroactive.

Meaning, you can expect a differential for the months that it was not yet implemented.

Ranks receiving the 2019 salary increase and the Rationale behind

As you may have understood by now, this 2019 salary increase of PNP and MUP or 2nd tranche is a continuation of the 2018 salary increase.

In the 1st tranche, the PNCOs felt the significant increase.

We had a discussion about the 2018 (1st) tranche in a previous article. However, that discussion only revolved around the base pay itself and failed to put into account the other pay that has a significant effect on the overall takehome pay – the Longevity Pay.

As the DBM has publicized in the past, the rationale of this specific salary increase is to raise the salary with consideration on the overall take-home pay and not just the base pay.

Supposedly, as the rank goes higher, its benefits and take home pay should also increase. However, that is not the case with the 1st tranche (2018) increase.

See how the take-home pay of some PNCO is higher than the PCO as shown in the graph below:

2018 and 2019 salary increase comparison
Fig. 2 – The take-home pay of some PNCOs is higher than that of some PCOs.

READ MORE: Are PNP, MUPs’ salary increase covered by EO 76?

How much will be added in our salary for this 2019 (2nd) tranche?

We already mentioned above the PNP ranks that are the recipient of the 2019 Salary Increase, including the rationale behind the overall pay scheme.

Now, the amount to be added on your existing base pay for this 2019 salary increase of PNP personnel will be discussed.

The table below shows the basis for all of the discussion. The calculations for Long Pay is based on the approximate/average number of long pay of each rank. If your Long pay does not correspond to the sample, just recalculate it using the correct number that is applicable for you.

2019 salary increase pnp
Fig. 3 – Salary grade, approximate long pay, Combined base pay and Long pay for 2018 and 2019.

Below is a graphical presentation summarizing this year’s salary increase:

breakdown of 2019 salary increase
Fig. 4 – A graphical presentation summarizing this year’s salary increase. Note when the stack per rank is combined, it corresponds to the estimated take-home pay.

Other factors such as Withholding Tax

But, that’s not all! If we will deduct the Withholding Tax from the combined Base Pay (BP) and Long Pay (LP), you will see the disparity that we are pointing out. Here, have a look:

2019 salary inrease graph
Fig. 5 – Comparison of 2018 and 2019 take-home pay when tax is deducted.

This is very clear in the photo below showing the comparison of take-home pay less tax for 2018 versus 2019. Just look at how the take-home pay of PLT being lesser than that of some PNCOs.

2019 salary increase less tax
Fig. 6 – If we will deduct the Withholding Tax from the Combined Base Pay and Long Pay (BP+LP), the take-home salary of some PNCOs is even bigger than that of PLT.

Also, note that while the base pay of some PNCOs did not increase, the tax of Pat to PCMS also did not change. In comparison, the tax of PEMS to PGEN increased significantly, which eventually took out also a significant portion of their increase.

2019 PNP withholding tax
Fig. 7 – Comparison of 2018 and 2019 Tax rate for PNP. Do note the difference which shows that the PNCOs that has no salary increase for 2019 has no change in their taxes as well. It is a win-win situation.

The salary increase is logical and fair

So, in a bid to have a systematic and logical salary schedule, in which the take-home pay of higher rank must also be higher than those ranks below it, the 2nd tranche (2019) corrected it.

Also, the salary difference between and among the ranks is tied to the salary grade. Look in Fig. 3 above, you will see that the salary grade of PEMS is 19 while the next rank of PLT is salary grade 22. There are actually two salary grades between the rank of PEMS and PLT.

Thinking logically, mas malayo dapat ang agwat ng salary ng dalawang to.

The point out, this salary increase scheme is very logical and if viewed on a stricter sense, you can say na mas pabor sa PNCOs ito. To those PNCOs who kept on complaining that it is unfair. It is not. The PNCOs were prioritized in 2018 salary increase. 2019 (2nd tranche) merely corrected the disparity of “very close salary difference between ranks”.

When will it be implemented

The PNP Finance Service posted to its Facebook page on Tuesday, a snippet of a directive/memo indicating that the PNP is now ready to implement the 2019 Salary Increase covering the ranks mentioned above (PEMS to PGEN) starting May 2019.

2019 salary increase pnp
Fig. 8 – This is the Facebook post of PNP Finance Service, unofficially confirming the implementation in May 2019.

Consequently, the incoming May salary is expected to reflect it. You can expect that this will be deposited on individual Payroll accounts of PNP uniformed personnel this coming May 13, 2019.

Will you receive salary differentials for January to April?

Definitely YES! The implementation of this 2nd tranche 2019 salary increase for PNP and MUP may have been late due to the reasons stated above, but the law clearly provides that its effectivity and implementation should start from January 1, 2019.

Therefore, you will receive a full differential representing the actual amount to be added on base pay for months of January, February, March, and April. However, the exact date for its release is not yet announced pending the DBM guidelines for it. (Like my FB page to get updated.)

Below is the table showing the total salary differential that you would expect to receive:

2019 salary differential
Fig. 9 – The differential from January to April 2019 is shown in numbers colored light green.

What about for the Pensioners?

The J.R. No. 1 suspended the indexation of pension to base pay in 2018 because there is a pending bill back then on pension reform.


The J.R. No. 1 further provides that if no pension reform law is passed in 2018, the pension indexation will take effect on January 1, 2019.

The indexation of pension to base pay 2019 is deemed to take effect now because no pension reform law has been passed in 2018

Hopefully, for the pensioners, it will be implemented soon. Here’s the provision of J.R. No. 1 on that matter:


Suspension of indexation of pension to base pay 2019
Fig. 10 – Joint Resolution No. 1 on Indexation of Pension to base pay

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Marinong Pulis
This blog is an attempt by the author to create an alter-ego that is not bound by rank, hierarchy or politics. One that does not represent his personal character but rather shall remain as an identity purely found online.
http://www.angmarinongpulis.com

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