Public servants’ salary hike, housing allowances add to rising recurrent budget

The proposed figure makes an increase of P1.82 billion, or 2.8 percent, over the approved P65.95 billion for the 2025/2026 financial year. Delivering the 2026/2027 Budget Speech on Monday, Minister of Finance, Ndaba Gaolathe, explained that a significant portion of the increase stems from new and expanded personnel-related expenditures. He said the government has set aside P802.82 million for tuition fees covering new and continuing students, as well as re-sponsorships. In addition, P560.62 million has been earmarked for salary incremental creep, while P542 million will fund housing and upkeep allowances for public service employees at salary scales A3 to D1.

The housing provision follows the Collective Labour Agreement between the government and trade unions last year.