CHECKLIST ON PERSONNEL INCENTIVES

General Objectives:
1. To ascertain compliance with relevant Laws, PPA Rules, and other pertinent regulations on Personnel Incentives.
2. To determine if Internal Controls are in place and ascertain if are functioning as intended.
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1. To determine accuracy and Uniform/Clothing Allowance UNIFORM/CLOTHING ALLOWANCE (U/CA)

timeliness on the grant of (U/CA) DBM Budget Circular (BC) No. 2018-1
personnel incentives
1. Secure the following 1. PPA Guidelines 1.0 Background Division 1. Is there a U/CA
documents: on U/CA (for Section 50 of the General Provisions of Manager/Hu incentive released for
 PPA Guidelines on the years Republic Act (R.A.) No. 10964 or the Fiscal man the year?
grant of U/CA (for the covered by Year (FY) 2018 General Appropriations Act Resources
yrs. covered by audit) audit) (GAA) provides that an amount not Services 2. Are all qualified
 Detailed Personnel 2. Detailed exceeding Six Thousand Pesos (P6,000) Division personnel granted
Personnel per annum is authorized for the payment of (HRMD, HO) U/CA incentive?
Inventory
Inventory U/CA of each qualified government
 Payroll of the U/CA employee, subject to the guidelines, rules Human 3. Is the amount and date
3. Payroll of the and regulations issued by the Department of Resource of U/CA in accordance
2. Identify in the detailed Budget and Management (DBM).
personnel inventory the U/CA Management with PPA Memo?
3. Coverage Officer,
following personnel: This Circular covers civilian government
a. Newly-Hired Administrativ
personnel occupying regular, contractual, or e Division,
Employee (only casual positions; appointive or elective;
after rendering six PMO
rendering services on full-time or part-time
(6) months of basis.
service, and if 4.0 Exclusions
expected to render The following are excluded from the
services for at least coverage of this Circular:
six (6) months for 4.4 Those hired without employer-
the rest of the year) employee relationships and funded
b. Transferred from non-Personnel Services
Employee (The appropriations/budgets, as follows:
grant of U/CA is 4.4.1 Consultants and experts hired
approved by for a limited period to perform
agency. Refer to 9.3 specific activities or services with
of DBM BC No. expected outputs;
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2018-1) 4.4.4 Those whose services are

c. Employee on Study engaged through job orders,
Leave or contracts of service, and others
Study/Training/Scho similarly situated.
larship Grant (If 6.0 Rates of the U/CA
employee rendered 6.1 For FY 2018, the U/CA for full-time
at least six (6) service of government personnel shall
months in service in not exceed P6,000 per annum. For
same year) each subsequent year, the U/CA shall
d. Retirees – (If not exceed the amount authorized
employee rendered under the pertinent general provision
at least six (6) in the annual GAA.
months in service in 6.2 The U/CA per annum for part-time
same year. ) service shall be in direct proportion to
the U/CA for full-time service. For
3. Verify if they qualify in example, the U/CA for part-time
the grant of U/CA in service in FY 2018 shall be computed
accordance with as follows:
Section 9.0. U/CA (Part-Time Service in FY 2018)
= (P6,000) (x hours of part-time
4. Check if there is PPA service/day) 8 hours of full-time service
Memorandum (sample 6.3 If funds in GOCC or LGU budgets are
year) on the grant of not sufficient to implement fully the
U/CA and take note of U/CA authorized for the fiscal year, the
the prescribed date for U/CA may be granted at lower but at
the release of incentive. uniform rates for all qualified
personnel.
5. Check in the Payroll 7.0 Forms and Other Details of the U/CA
U/CA if the amount 7.1 The U/CA may be granted in the
released was in following forms:
accordance with PPA 7.1.1 In the form of uniforms procured
Memorandum (sample though a bidding process which
year). may include uniform articles
normally worn as part thereof
6. Take note of deviations, such as regulation caps, belts,
if any. etc., for incumbents of positions
like Special Police, Security
Guard, etc.;
7.1.2 In the form of textile materials
and cash to cover
sewing/tailoring costs, as has
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been adopted by very large

departments; and
7.1.3 In cash form, for incumbents of
executive positions who may not
be required to wear the
prescribed uniforms, or for those
who will procure their individual
uniforms according to set
conditions.
8.0 Government Service Requirement
8.1 Generally, the full rates of the U/CA for
full-time and part-time service shall be
granted to those who are already in
government service and are to render
services for at least six (6) months in a
particular fiscal year, including leaves of
absence with pay.
8.2 The six (6)-month service requirement
shall not cover those who are required
to wear uniforms at all times in the
performance of their work such as
incumbents of positions of Security
Guard, Special Police, medical and
allied medical staff in hospitals, and
those in similar situations, as they have
to wear their uniforms at all times.
9.0 Grant of U/CA Due to Various Personnel
Actions/Engagements
9.1 Newly-Hired Employee
A newly-hired employee may qualify to
the grant of U/CA only after rendering
six (6) months of service, and if
expected to render services for at least
six (6) months for the rest of the year.
9.2 Employee on Detail
The U/CA of an employee on detail to
another government agency shall be
borne by the mother agency.
9.3 Transferred Employee
9.3.1 An employee who transferred to
another agency and was not
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granted U/CA by the former

agency shall be granted U/CA by
the new agency, subject to the
submission of a certification to
that effect.
9.3.2 An employee who transferred to
another agency within the year
but was earlier granted U/CA by
the previous agency shall no
longer be granted U/CA by the
new agency.
9.3.3 An employee who transferred to
another agency and is required
to wear uniforms at all times,
may be granted U/CA by the
new agency even if he/she was
granted U/CA by the former
agency, subject to the approval
of the new agency.
9.4 Employee on Study Leave or
Study/Training/Scholarship Grant
9.4.1 An employee on study leave or
on study/training/scholarship
grant locally or abroad shall be
entitled to the U/CA for the year
if he/she renders at least six (6)
months of service in the same
year, including leaves of
absence with pay, prior to and/or
after the study leave or
study/training/scholarship grant.
9.4.2 If an employee is on
study/training/scholarship grant
for the whole year, locally or
abroad, and is not required to
report for work, he/she is not
entitled to the U/CA.
12.0 Responsibilities of Agencies
Agencies shall be held responsible for the
proper implementation of the provisions of
this Circular.
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12.1 They shall issue internal guidelines on

the grant of the U/CA such as,
determination of the form of U/CA, and
selection of uniform/clothing designs.
12.2 They shall also issue internal
guidelines on: the prescribed uniform
or clothing for specific or special
employee groups; modified uniforms
as may be necessary due to religious
affiliations or creed, •physical
disabilities, or legitimate health
reasons; and monitor compliance with
set guidelines on wearing uniforms
and appropriate attire.
12.3 They shall be held liable for any grant
of U/CA not in accordance with the
provisions of this Circular without
prejudice, however, to the refund by
the employees concerned of any
excess or undue payments.

Note: Look for PPA Memorandum on the said

Incentives within the audit period.

Mid-Year Bonus GCG Memorandum Circular No. 2018-03

Interim Rules and Guidelines for the Grant of
1. Secure the following 1. PPA Mid-Year Bonus, Year-End Bonus, and Cash Division 1. Is there a Mid-Year
documents: Guidelines on Gift under Executive Order No. 36, s. 2017 for Manager/Hu Bonus released for the
 PPA Guidelines on the grant of FY 2018 and Years Thereafter. man year?
the grant of Mid-Year Mid-Year Resources
Bonus (for the yrs. Bonus (for the 1. Legal Bases - Executive Order (E.O.) No. 36, Services 2. Are all qualified
covered by audit) yrs. covered s. 2017 suspended the implementation of the Division personnel granted Mid-
by audit) Compensation and Position Classification (HRMD, HO) Year Bonus?
 List of IPCR rating in
System (CPCS) and the Index of
the immediately
2. Detailed Occupational Services (IOS) Framework for Human 3. Is the amount and date
preceding rating the GOCC Sector under E.O. No. 203, s.
Personnel Resource of Mid-Year Bonus in
period, or the 2016, pending the review of the same.
Inventory Management accordance with GCG
applicable Consequently, CPCS Implementing Circular Officer, Memo?
performance No. 2016-01 (3rd Issue) has also been Administrativ
3. List of
compulsory suspended. e Division, 4. Are there personnel
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appraisal period. retirees for PMO charged with

 List of monthly basic the year Section 2 of E.O. No. 36 provides that Administrative and/or
salary as of May 15 GOCCs that adopted the Modified Salary Criminal cases granted
(for the yrs. covered 4. List of Schedule under E.O. No. 201, s. 2016, shall Mid-Year Bonus?
by audit) monthly basic be entitled to the allowances and benefits
 List of compulsory salary as of provided in Joint Resolution No. 4, s. 2009,
May 15 (for and E.O. No. 201, which includes the Mid-
retirees for the year
Year Bonus, Year-End Bonus, and Cash Gift
 Payroll of the Mid- the yrs.
(the Bonuses).
Year Bonus covered by
audit)
This Circular is being promulgated pursuant
2. Based on the Detailed to Section 2 of E.O. No. 36, which directed
Personnel Inventory 5. List of IPCR the GCG to issue guidelines for the grant of
identify personnel who rating in the the Bonuses.
rendered total or an immediately
aggregate of less than preceding 2. COVERAGE – This Circular shall apply to all
four (4) months of
rating period, Officers and Employees of GOCCs within the
service. (refer to GCG
or the coverage of R.A. No. 10149 . Considering
Memo Section 3.2)
applicable the suspension of E.O. No. 203, the grant of
 Newly hired Mid-Year Bonus for GOCCs who opted to
 Compulsory performance
appraisal maintain their current compensation
retirees framework without an authorized Mid-Year
period.
Bonus shall require a Presidential approval.
3. Identify personnel who
obtained below 6. Payroll of the
Further excluded from the coverage are
satisfactory IPCR Mid-Year
those individuals hired by GOCCs without
rating. Bonus
employer-employee relationships and/or
those whose compensation is not sourced
4. Counter check on from Personal Services
Payroll of the Mid-Year appropriations/budgets of their respective
Bonus the following: GOCCs, as follows:
 If the above a. Members of the Governing Board;
identified personnel b. Consultations and experts hired to
were not granted perform specific activities or services
Mid-Year Bonus. with expected outputs;
c. Laborer hired through job contracts
 Monthly basic salary (pakyaw) and those paid on piecework
as of May 15 basis;
d. Student laborers and apprentices; and
5. Check document from e. Individuals and groups of people whose
the bank if the date of services are engaged through job
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release is in orders, contracts of service, or others

accordance with GCG similarly situated.
Memorandum (sample 3. GRANT OF MID-YEAR BONUS –
year). 3.1 The Mid-Year Bonus, which is
equivalent to one (1) month basis pay
as of May 15, shall be given to the
6. Take note of the
qualified employee not earlier than May
deviation, If any?
15 of the current year.
3.2 It shall be granted to each employee
who has rendered at least a total or an
aggregate of four (4) months of service,
whether continuous or intermittent,
including leaves of absence with pay,
from July 01 of the immediately
preceding year and are still in the
service as of May 15 of the current year.
3.3 The employee has obtained at least a
satisfactory performance rating in the
immediately preceding rating period, or
the applicable performance appraisal
period. If there is a need for a shorter
period, it shall be at least ninety (90)
calendar days or three (3) months,
provided that the total or aggregate
service under item 3.2 hereof is
complied with.
3.4 Those employees who have rendered a
total or an aggregate of less than four
(4) months of service from July 01 of the
preceding year to May 15 of the current
year, and those who are no longer in the
service as of the latter date, shall not be
entitled to the Mid-Year Bonus.
3.7 The Mid-Year Bonus of personnel who
transferred from one agency to another
shall be granted by the new agency.
3.8 A compulsory retiree on service
extension may be granted the Mid-Year
Bonus, subject to the pertinent
guidelines herein.
5. FOR GOCC WITH PENDING
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AUTHORIZATION TO ADOPT E.O. NO. 36

– For GOCCs without approved applications
to adopt the Modified Salary Schedule
Structure under E.O. No. 36, the one (1)
month authorized basic pay shall be based
on their compensation framework as of time
of payout. Provided however, that qualified
employees shall be entitled to the
difference, if any, of the Mid-Year and Year-
End Bonuses, once the application to adopt
the Modified Salary Structure under E.O.
No. 36 has been approved by the GCG.
6. PERSONNEL CHARGED WITH
ADMINISTRATIVE AND/OR CRIMINAL
CASES –
6.1 Employees formally charged with
administrative and/or criminal cases
which are still pending resolution, shall
be entitled to the Bonuses until found
guilty by final and executory judgment,
provided that:
6.1.1 Those employees found guilty
shall be not entitled to the
Bonuses in the year the decision
became final and executory.
The personnel shall refund the
Bonuses received for that year.
6.1.2 If the penalty meted out is only a
reprimand, the employee
concerned shall be entitled to the
Bonuses.
7. FUNDING SOURCES – The funding for the
payment of the Bonuses shall be charged to
GOCCs to their respective approved
operating budgets (COBs). However, it
shall be prohibited to source the payment of
the said bonuses from the following:
(a) Loans;
(b) Subsidy from the National Government
for the GOCC’s operations, except for
the subsidy income or subsidy given by
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Department of Budget and Management

precisely for the payment of the Mid-
Year and Year-End Bonuses; and
(c) Sale of the GOCC’s asset(s) for the sole
purpose of paying the bonuses and is
otherwise not in the ordinary course of
business.

Year-End Bonus GCG Memorandum Circular No. 2018-03 Division 1. Is there a Year-End
Interim Rules and Guidelines for the Grant of Manager/Hu Bonus released for the
1. Secure the following 1. PPA Guidelines Mid-Year Bonus, Year-End Bonus, and Cash man year?
documents: on the grant of Gift under Executive Order No. 36, s. 2017 for Resources
 PPA Guidelines on Year-End & FY 2018 and Years Thereafter. Services 2. Are all qualified
the grant of Year-End Cash Gift Division personnel granted
& Cash Gift Bonus Bonus (for the 4. GRANT OF YEAR-END BONUS AND CASH (HRMD, HO) Year-End Bonus?
(for the yrs. covered yrs. covered by GIFT –
by audit) audit) 4.1 The Year-End Bonus, which is equivalent Human 3. Is the amount and date
to one (1) month basic pay as of October Resource of Year-End Bonus in
 List of monthly basic
2. Detailed 31, and Cash Gift of P5,000 shall be Management accordance with GCG
salary as of October given to the qualified employee not earlier Officer,
Personnel Memo?
31 (for the yrs. than November 15 of the current year, Administrativ
Inventory
covered by audit) subject to the following conditions: e Division, 4. Are there personnel
 List of compulsory 3. List of 4.1.1 It shall be granted to each PMO charged with
retirees for the year compulsory employee who has rendered at Administrative and/or
 Payroll of the Year- retirees for the least a total or an aggregate of four Criminal cases granted
End & Cash Gift year (4) months of service, whether Year-End Bonus?
Bonus continuous or intermittent, including
4. List of monthly leaves of absence with pay, from
2. Based on the Detailed basic salary as January 01 to October 31 of the
Personnel Inventory of October 31 current year.
identify personnel who (for the yrs. 4.1.2 The GOCC personnel remains to be in
rendered total or an covered by Percentag
aggregate of less than audit) Length of Service
e of the
four (4) months of Year-End
Bonus
service. (refer to GCG 6. Payroll of the At least 4 months but less than 5 months 50%
MC No. 2018-03, Year-End At least 5 months but less than 6 months 60%
Sections 4.1 & 4.2) Bonus At least 6 months but less than 7 months 70%
 Newly hired At least 7 months but less than 8 months 80%
 Compulsory 7. Bank credit of At least 8 months but less than 9 months 90%
retirees At least 9 months but less than 10 months 95%
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Incentives government service as of October

3. Counter check on 31 of the same year.
Payroll of the Year-End 4.2 Those employees who have rendered at
Bonus the following: least a total or an aggregate of four (4)
 If the above months of service from January 01 of the
identified personnel current year but who have retired or
were not granted separated from government service
Year-End Bonus. before October 31 of the same year shall
 Pro-rated bonus for be granted within the month of retirement
those personnel or separation, a pro-rated share of the:
who rendered at (a) Year-End Bonus based on the
least four (4) months monthly basic pay immediately preceding
but less than ten the date of retirement or separation; and
(10) months (refer (b) Cash Gift of P5,000, as follows:
to GCG MC No.
2018-03, Section
4.2) 4.6 The Year-End Bonus and Cash Gift of
 Monthly basic salary personnel who transferred from one
as of October 31 of agency to another shall be granted by the
the same year new agency.
4.7 A compulsory retiree on service
4. Check document from extension may be granted the Year-End
the bank if the date of Bonus subject to the pertinent guidelines
release is in herein.
accordance with GCG
Memorandum (sample 6. PERSONNEL CHARGED WITH
ADMINISTRATIVE AND/OR CRIMINAL
year).
CASES –
6.1 Employees formally charged with
5. Take note of the administrative and/or criminal cases
deviation, if any. which are still pending resolution, shall
be entitled to the Bonuses until found
guilty by final and executory judgment,
provided that:
6.1.1 Those employees found guilty
shall be not entitled to the
Bonuses in the year the decision
became final and executory.
The personnel shall refund the
Bonuses received for that year.
6.1.2 If the penalty meted out is only a
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reprimand, the employee

concerned shall be entitled to the
Bonuses.
7. FUNDING SOURCES – The funding for the
payment of the Bonuses shall be charged to
GOCCs to their respective approved
operating budgets (COBs). However, it
shall be prohibited to source the payment of
the said bonuses from the following:
(a) Loans;
(b) Subsidy from the National Government
for the GOCC’s operations, except for
the subsidy income or subsidy given by
Department of Budget and Management
precisely for the payment of the Mid-
Year and Year-End Bonuses; and
(c) Sale of the GOCC’s asset(s) for the sole
purpose of paying the bonuses and is
otherwise not in the ordinary course of
business.

Cash Gift Bonus GCG Memorandum Circular No. 2018-03 Division 1. Is there a Cash Gift
Interim Rules and Guidelines for the Grant of Manager/Hu Bonus released for
1. Secure the following 1. PPA Guidelines Mid-Year Bonus, Year-End Bonus, and Cash man the year?
documents: on the grant of Gift under Executive Order No. 36, s. 2017 for Resources
 Payroll of the Cash Year-End & FY 2018 and Years Thereafter. Services 2. Are all qualified
Gift Bonus Cash Gift Division personnel granted
Bonus (for the 4. GRANT OF YEAR-END BONUS AND CASH (HRMD, HO) Cash Gift Bonus?
2. Based on the Detailed yrs. covered by GIFT –
Personnel Inventory audit) 4.1 The Year-End Bonus, which is equivalent Human 3. Is the amount and date
identify personnel who to one (1) month basic pay as of October Resource of Cash Gift Bonus in
rendered total or an 2. Detailed 31, and Cash Gift of P5,000 shall be Management accordance with GCG
aggregate of less than Personnel given to the qualified employee not earlier Officer, Memo?
four (4) months of Inventory than November 15 of the current year, Administrativ
service. (refer to GCG subject to the following conditions: e Division, 4. Are there personnel
MC No. 2018-03, 3. List of 4.1.1 It shall be granted to each PMO charged with
Sections 4.1 & 4.3) compulsory employee who has rendered at Administrative and/or
 Newly hired retirees for the least a total or an aggregate of four Criminal cases granted
 Compulsory year (4) months of service, whether Cash Gift Bonus?
retirees continuous or intermittent, including
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4. Payroll of the leaves of absence with pay, from

3. Counter check on Cash Gift January 01 to October 31 of the
Payroll of the Cash Gift Bonus current year.
Bonus if pro-rated 4.1.2 The GOCC personnel remains to
bonus were granted to be in government service as of
those personnel who October 31 of the same year.
rendered service for
less than four (4) 4.3 Those who have rendered a total or an
months. (refer to GCG aggregate of less than four (4) months of
MC No. 2018-03, service from January 1 to October 31 of
Section 4.3) the current year and are still in
government service as of October 31 of
4. Check document from the same year, shall be entitled solely to
the bank if the date of a pro-rated Cash Gift pursuant to Section
release is in 2 of R.A. No. 8441, as follows:
accordance with GCG
Percent
Memorandum (sample Length of Service age of
Corresponding
year). Amount
P5,000
At least 3 months
but less than 4 40% P 2,000.00
5. Take note of the months
deviation, if any. At least 2 months
but less than 3 30% 1,500.00
months
At least 1 month
but less than 2 20% 1,000.00
months
Less than on
10% 500.00
month

4.6 The Year-End Bonus and Cash Gift of

personnel who transferred from one agency
to another shall be granted by the new
agency.
4.7 A compulsory retiree on service extension
may be granted the Year-End Bonus subject
to the pertinent guidelines herein.

6. PERSONNEL CHARGED WITH

ADMINISTRATIVE AND/OR CRIMINAL
CASES –
6.1 Employees formally charged with
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administrative and/or criminal cases

which are still pending resolution, shall
be entitled to the Bonuses until found
guilty by final and executory judgment,
provided that:
6.1.1 Those employees found guilty
shall be not entitled to the
Bonuses in the year the decision
became final and executory.
The personnel shall refund the
Bonuses received for that year.
6.1.2 If the penalty meted out is only a
reprimand, the employee
concerned shall be entitled to the
Bonuses.
7. FUNDING SOURCES – The funding for the
payment of the Bonuses shall be charged to
GOCCs to their respective approved
operating budgets (COBs). However, it
shall be prohibited to source the payment of
the said bonuses from the following:
(a) Loans;
(b) Subsidy from the National Government
for the GOCC’s operations, except for
the subsidy income or subsidy given by
Department of Budget and Management
precisely for the payment of the Mid-
Year and Year-End Bonuses; and
(c) Sale of the GOCC’s asset(s) for the sole
purpose of paying the bonuses and is
otherwise not in the ordinary course of
business.

Productivity Enhancement DBM BUDGET CIRCULAR NO. 2017-4 -

Incentive (PEI) Guidelines on the Grant of the Productivity
1. PPA Guidelines Enhancement Incentive (PEI) to Government Division 1. Is there a PEI released
1. Secure Payroll of the on the grant of Employees for Fiscal Year (FY) and Years Manager/Hu for the year?
PEI PEI (for the yrs. Thereafter man
covered by 2. Coverage Resources 2. Are all qualified
2. Based on the Detailed audit) This Circular shall apply to the following Services personnel granted PEI?
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Personnel Inventory positions and personnel: Division

identify personnel who 2. Detailed 2.1 All positions of civilian personnel, (HRMD, HO) 3. Is the amount and date
rendered total or an Personnel whether regular, casual, or contractual of PEI in accordance
aggregate of less than Inventory in nature, appointive or elective, full- Human with Budget Circular
four (4) months of time or part-time, now existing or Resource No. 2017-4?
service. (refer to 3. List of hereafter created in the Executive, Management
Budget Circular No. compulsory Legislative, and Judicial Branches, the Officer, 4. Are there personnel
2017-4, Sections 4.1) retirees for the Constitutional Commissions and other Administrativ charged with
 Newly hired year Constitutional Offices, SUCs, GOCCs e Division, Administrative and/or
 Compulsory not covered by Republic Act (RA) No. PMO Criminal cases who
retirees 4. Payroll of the 10149, s. 2011 which are under the were granted PEI?
PEI jurisdiction of the Department of
3. Counter check on 5. Bank credit of Budget and Management (DBM), and
Payroll of the PEI if pro- Incentives LWDs; and in LGUs.
rated bonus were 4.0 Guidelines on the Grant of the Productivity
granted to those Enhancement Incentive
personnel who 4.1 The productivity Enhancement Incentive of
rendered service for P5,000 shall be given to personnel not
less than four (4) earlier than December 15 of the current
months as of November year, subject to the following conditions:
30 (refer to Budget 4.1.1 The employees are still in the
Circular No. 2017-4, service as of November 30 of the
Sections 4.2) current year; and;
4.1.2 The employees have rendered at
4. Check document from least a total or an aggregate of four
the bank if the date of (4) months of at least satisfactory
service as of November 30 of the
release is not earlier
current year, including leaves of
than December 15. absence with pay.
4.2 Those who have rendered less than the
5. Take note of the total or aggregate of four (4) months of
deviation, if any. service but still in the service as of
November 30 of the current year shall be
entitled to pro-rated PEI, as follows:

Length of Service Percentage

of the PEI

3 months to less than 4 months 50%

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2 months to less than 3 months 40%

2 month to less than 1 month 30%

Less than a month 20%

4.6 A compulsory retiree, on service extension

as of November 30 of the current year,
may be granted the PEI, subject to the
pertinent conditions and guidelines under
this Circular.
4.7 Personnel Charged With Administrative
and/or Criminal Cases.
Personnel who were formally charged with
administrative and/or criminal cases, which
are still pending for resolution, shall be
entitled to PEI until found guilty by final
and executory judgment provided that:
9.0 When to Pay the PEI
Payment of the PEI shall be made not
earlier than December 15 of the current
year.

Collective Negotiation Administrative Order No. 135, s. 2005 -

Agreement (CNA) Authorizing the grant of collective negotiation
agreement (CNA) incentive to employees in Division 1. Is there a CNA
1. Secure the following 1. PPA Guidelines Government Agencies Manager/Hu released for the year?
documents: on CNA (for the man
 PPA Guidelines on years covered SEC. 1. Grant of Incentive – The grant of the Resources 2. Is the amount and date
grant of CNA (for the by audit) Collective Negotiation Agreement (CNA) Services of CNA in accordance
yrs. covered by audit) 2. Detailed incentive to national government agencies Division with DBM Budget
 Payroll of the CNA Personnel (NGAs), local government units (LGUs), state (HRMD, HO) Circular No. 2020-5?
 List of PANTALAN Inventory universities and colleges (SUCs), government-
owned or controlled corporations (GOCCs), and Human
members
3. List of government financial institutions (GFIs), if Resource
PANTALAN provided in their respective CNAs and Managemen
2. Compare detailed
members supplements hereto executed between the t Officer,
personnel inventory
management and employees organizations Administrati
with the list of
4. Payroll of the accredited by the Civil Service Commission, is ve Division,
PANTALAN member
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and identify non- CNA hereby authorized. PMO

members. Furthermore, the grant of the CNA incentive
pursuant to CNAs entered into on our after the
3. Based on the issued effectivity of PSLMC Resolution No. 4, series of
guidelines of PPA, 2002, and PSLMC Resolution No. 2, series of
validate from the payroll 2003, and strict compliant therewith, is
the following: confirmed.
 Proportionate share SEC. 2. Limitation – The CNA incentive shall be
was granted granted only to rank-and-file employees. The
 Authorized deduction existing CNA incentive shall be rationalized to
was applied simplify its administration and to preclude
duplication with incentives granted through the
4. Take note of deviations, Program on Awards and Incentives for Service
if any. Excellence (PRAISE)
SEC. 5 Release of Incentive - The CNA
Incentive may be paid every year that savings
are generated during the life of the CNA.
SEC. 6 Implementation - The Department of
Budget and Management shall issue the policy
and procedural guidelines to implement this
Administrative Order.

DBM BUDGET-CIRCULAR-NO.-2020-5
Guidelines on the Grant of Collective Negotiation
Agreement (CNA) Incentive for FY 2020

3.1 Rank-and-file employees who are

members of an employee’s organization
accredited by the Civil Service
Commission (CSC) as the sole and
exclusive negotiating agent (hereinafter
referred to as "negotiating agent") in
accordance with the rules and regulations
issued by the Public Sector Labor
Management Council (PSLMC);

3.2 Rank-and-file employees who are non-

members of the CSC-accredited sole and
exclusive negotiating agent but want to
enjoy or accept benefits under the CNA,
subject to payment of agency fee to the
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negotiating agent in accordance with

PSLMC Resolution No. 1, s, 1993; and;

3.3. Those who perform managerial functions.

4.2 Rate of the CNA Incentive

4.2.2 The CNA Incentive may be given

equally to all qualified employees
under Item 3.0 hereof or at varying
rates in consideration of the
employee's or his/her office's
contribution to the accomplishment of
performance targets, efficiency,
productivity, or profitability, as
determined by the agency head upon
recommendation of the Employees
Organization-Management
Consultative Committee.

4.2.3 In all cases, the CNA Incentive shall

not exceed P25,000 per qualified
employee.

4.4 Payment of the CNA Incentives

4.4.1 The CNA Incentive for the year shall
be a one-time benefit to be granted
not earlier than December 15, 2020.

PPA Memorandum Order No. 23-2019

Authorizing the Payment of the CNA Incentive
for CY 2019 to all Qualified PPA Personnel, Both
Management and Rank-and-File Employees,
Prescribing the Guidelines for the
Implementation Thereof

SEC 1 Coverage
The CNA Incentive is based on the actual
and authorized amount of savings which
are the result of cost-cutting measures
implemented by the PPA management
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and its rank-and-file permanent

employees.

SEC 3. Other Conditions

3.2 Pursuant to Section 2 and 3, Article XIII

(Compliance with Check-off and other
Requirements) of the 6th Collective
Negotiation Agreement (CNA) CY 2017-
2020; the Public Sector Labor-
Management Council Resolution No. 01-
1993; and letter from the PANTALAN
National Executive President dated
December 10, 2019, the following shall be
deducted by PPA from the payment of CY
2019 CNA Cash Incentive to be remitted to
PANTALAN, as follows:

3.2.1 Members - Php 1,000.00 (2% of the

CY 2019 CNA Incentive as
Assessment Fee and Mortuary
Assistance per PANTALAN national
Council Resolution No. 001-2019;
3.2.2 Non-members - Php 4,338.79 (2%
plus the equivalent of the amount
actually collected from the members
as Mortuary contributions for
deceased members and other fees
per PSLMC Resolution No. 01, s.
1993 and PSLMC Resolution No. 2,
s. 2004)

The Controllership Department is hereby

directed to release the necessary funds to all
PPA Responsibility Center for the payment of
CY 2019 CNA Cash Incentive to all qualified
PPA employees in Head Office and PMOs not
earlier than December 15, 2019.
Prepared by: Reviewed by: Issue date:

RAYMOND A. MAGALONG
JEANETTE MARIA S. DE LEON
Internal Auditor III
Internal Auditing Assistant
Recommending Approval: Approved by:

CARMENEZ B. CRUZ MA. VICTORIA S. SOLLANO VENICIUS V. VILLASENOR

Internal Auditor V Internal Auditor V Department Manager
Management Audit Division Operations Audit Division Internal Audit Department