The surge in pensions may weaken the country’s push to buy modern military assets to strengthen its deterrence
3-MIN READ3-MIN ListenSam BeltranPublished: 3:01pm, 27 Aug 2026The Philippines’ push for military modernisation is being squeezed by a ballooning pension bill for its troops as fears mount over its ability to finance newer ships, aircraft and other defence assets.The Department of National Defence has proposed spending 142.95 billion pesos (US$2.3 billion) on military and uniformed personnel (MUP) pensions in 2027, out of a total proposed defence budget of 324.6 billion pesos.
The planned pension budget is 7 per cent higher than the 133.91 billion pesos allocated in the 2026 General Appropriations Act amid increasing calls for Manila to relook the pension system.
While civilian workers typically contribute a part of their salaries to state fund systems, military and uniformed personnel are not required to make pension contributions, which are drawn from the national budget.
Proposals to legislate reforms to the pension system for the armed forces have long languished in Congress, with lawmakers warning that it is unsustainable.
The debate comes as the Philippines faces growing pressure from the US to spend more on its military.
