President Ferdinand R. Marcos Jr. has signed Executive Order (EO) 107, a landmark directive that updates the base pay schedule and subsistence allowance of all Military and Uniformed Personnel (MUP) in the Philippines. The reform, announced on December 3, marks one of the most systematic and forward-looking adjustments to MUP compensation in recent years.
For a country that heavily relies on the dedication of its security forces—from soldiers and police officers to coast guard and corrections personnel—this move is significant. EO 107 doesn’t only adjust salaries; it sets a multi-year roadmap that ensures predictability, fairness, and a more resilient compensation structure for those who serve on the front lines of national safety.
Understanding EO 107: What Exactly Is Changing?
Three-Tranche Salary Increase: 2026, 2027, and 2028
One of the centerpieces of EO 107 is the three-step base pay adjustment:
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First tranche: January 1, 2026
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Second tranche: January 1, 2027
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Third tranche: January 1, 2028
This phased implementation allows the government to responsibly fund the increases while ensuring consistent annual improvements to MUP compensation. Each tranche specifies an exact salary adjustment, offering full transparency.
The order covers uniformed personnel under:
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Department of National Defense (DND)
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Department of the Interior and Local Government (DILG)
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Philippine Coast Guard (PCG)
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Bureau of Corrections (BuCor)
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National Mapping and Resource Information Authority (NAMRIA)
In short, everyone from AFP soldiers to PCG rescue teams will benefit from this structured pay raise.
A Major Boost in Subsistence Allowance
Beyond base pay, EO 107 grants a significant increase in subsistence allowance, raising it to ₱350 per day, up from the current ₱150. This adjustment begins January 1, 2026.
A similar allowance increase was rolled out earlier this year under EO 84 for AFP personnel, showing a consistent effort to improve daily living conditions for service members. With rising food prices and shifting economic realities, this boost is both timely and essential.
Why EO 107 Matters: Morale, Retention, and Readiness
Supporting Those Who Uphold National Security
EO 107 clearly states the rationale: improving MUP compensation helps sustain a competent, committed, agile, and healthy workforce. In practical terms, better pay and allowances strengthen:
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Morale: When personnel feel valued, performance improves.
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Retention: Competitive compensation helps keep skilled officers in service.
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Operational readiness: Well-supported personnel are better equipped to respond to national threats, disasters, and emergencies.
For communities—whether in Luzon, Visayas, Mindanao, or even Filipino families abroad—this translates to a stronger and more reliable security presence.
Budget Sources and Funding Outlook
The implementation is carefully structured to fit within national fiscal planning:
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For 2026: Funding will come from budget allocations already set in the 2026 national budget plus other allowable sources.
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For 2027–2028: The required amount will be included in the yearly National Expenditure Program submitted to Congress.
This forward-planning approach ensures that compensation improvements remain sustainable and aligned with the broader economic landscape.
A Deeper Reform: Reviewing the MUP Pension System
Perhaps the most transformative part of EO 107 is not the immediate salary increase, but the order to conduct a comprehensive review of the current MUP pension system.
Creation of the Inter-Agency Technical Working Group (IATWG)
To spearhead this, EO 107 forms an Inter-Agency Technical Working Group (IATWG) composed of representatives from:
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Department of Budget and Management (DBM)
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Department of Finance (DOF)
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Bureau of the Treasury
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Government Service Insurance System (GSIS)
Their task:
✔️ Conduct a full audit and review of the MUP pension structure
✔️ Explore sustainability challenges
✔️ Recommend legislative reforms
✔️ Draft policy changes for long-term pension security
This is significant because the long-debated MUP pension reform has major implications for future generations of uniformed personnel and the national budget.
Timeline and Accountability Measures
Under the executive order:
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All MUP agencies must assign authorized representatives to the IATWG within 30 days of EO 107’s effectivity.
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The DBM is required to issue detailed implementing guidelines within 90 days.
These deadlines help ensure that the reform process remains on schedule and transparent.
What EO 107 Signals for the Future of Public Service in the Philippines
Building a Modern, Responsive Security Sector
EO 107 is more than a salary adjustment—it is an investment in the country's ability to maintain peace, respond to crises, and uphold public welfare. It reinforces the idea that those who protect the nation should also receive sustained, structured support.
For millions of Filipinos, including families abroad who closely follow domestic developments, this reform is a reassuring sign that the government is both aware of and responsive to the needs of its uniformed workforce.
A Move Toward Long-Term Professionalization
Beyond the immediate benefits, EO 107 contributes to the long-term professionalization of the MUP sector. A clear pay schedule, improved allowances, and a structured pension review framework all elevate the landscape of public service.
In a world where security demands are rapidly changing—from disaster resilience to maritime protection—this level of planning positions the Philippines for a stronger, more adaptive future.
A Strong Step Toward Sustainable Support for MUP
EO 107 marks a thoughtful and strategic commitment to improving the welfare, readiness, and long-term security of Military and Uniformed Personnel. With its structured salary increases, significant allowance adjustment, and comprehensive pension system review, the order lays down a multi-year vision that strengthens the backbone of national safety.
For Filipinos everywhere, this reform moves the country closer to a more secure and well-supported society—one where those who serve are given the recognition and resources they deserve.