Arroyo gives eight percent hike in state salaries

Philippine President Gloria Macapagal Arroyo said on Tuesday she ordered an 8 percent average rise in state workers' salaries, even though Congress has yet to pass the government's 2006 budget.
Arroyo, who imposed emergency rule on Friday to counter what she said was a plot by the opposition, communist groups and some soldiers to oust her, said military and other uniformed personnel were included in the monthly pay hike of 1,000 pesos ($19.30).
Unrest in the military has simmered as soldiers complain of low pay, poor equipment and training, and corruption among senior officials. Ordinary Filipinos are also feeling the pinch of inflation around 7 percent and a hike in the sales tax rate earlier this month to 12 percent from 10 percent.
The salary increase, retroactive to January, was the first for state workers since July 2001, although there have been occasional hikes in cost-of-living allowances.
Budget Under-secretary Laura Pascua told Reuters the March budget deficit "could take a hit" when the government releases the salary hikes amounting to 13.7 billion pesos a month.
The government had programmed an 8 percent hike in state salaries in its 2006 budget. The budget bill is still pending in Congress, with lawmakers distracted by emergency rule and various inquiries into allegations that Arroyo diverted government money to fund her campaign in the 2004 elections.
In an earlier report, the Philippine government said on Tuesday it may lift emergency rule within days, but prosecutors filed rebellion charges against a lawmaker and a soldier as fears lingered of an attempt to oust President Gloria Macapagal Arroyo.
A string of petitions seeking to halt the state of emergency stumbled in the Supreme Court. The justices put off a hearing on whether Arroyo, who survived an attempt to impeach her last year over allegations of vote-rigging and graft, has said the situation is under control. But security officials said threats remained.
A Marine colonel was removed on Tuesday for leading a weekend protest by about 100 of the elite soldiers at a Manila base over the replacement of their commander in connection with the plot.
On Monday night, the army moved 500 special forces soldiers to the main base in Manila to guard against what commanders said was the possibility of unauthorised troop movements. Rumours were rife of persistent unrest in the ranks of the Marines.