The province and city of Iloilo will appeal to the Department of Budget and Management (DBM) to allow a retroactive adjustment on the salaries of local government units (LGUs) from January this year.

Iloilo City Mayor Jerry P. Treñas said in a press conference on Monday that he would meet with the local finance committee to see if funds could permit the adjustment.

“We will look for funds,” he said.

In a separate interview, Governor Arthur Defensor Jr. said the province is also preparing for the adjustment.

The province needs PHP56 million for the retroactive adjustment.

“Based on our accounting office, we can have a source. We need a supplemental budget. We will comply. We will be submitting Supplemental Budget No. 2 as soon as possible,” Defensor said.

Defensor said the budget circular released by the DBM stated that the adjustment will take effect only upon the enactment of the ordinance.

“We need to lobby so that it can be retroactive. I will make representations with the League of Provinces [of the Philippines] president on the things that we want. And we want to go to the DBM,” he added.

The effectivity clause of Local Budget Circular No. 160 released by the DBM showed that the “implementation by the LGU of the first tranche of the updated salary schedule shall be effective not earlier than Aug. 2, 2024, pursuant to Section 325(g) of Republic Act No. 7160 (Local Government Code), which states that salary increases or adjustments shall, in no case, be made retroactive.” (PNA)