COMPENSATION

PLAN IN THE
PHILIPPINE
GOVERNMENT
BY: GROUP 3 – COA GROUP
TOPICS TO BE DISCUSSED:
• The Declared Policy of the State on the Compensation Plan
• Benefits for Government Personnel
• Indicating its Legal Basis and the Salient Provisions

• ADD-ON TOPIC on the COA Circular No. 2009-006 dated September 15, 2019,
re: “Prescribing the Use of the Rules and Regulations on Settlement of Accounts”
THE DECLARED POLICY OF THE STATE ON THE
COMPENSATION PLAN

It is hereby declared the policy of the State to provide all government

personnel a just and equitable compensation in accordance with the principle of
equal pay for work of equal value. In pursuing this policy, the State shall ensure that:

❖Differences in pay shall be based upon substantive differences in duties,

responsibilities, accountabilities and qualification requirements of the positions
THE DECLARED POLICY OF THE STATE ON THE
COMPENSATION PLAN

❖The compensation for all civilian government personnel shall be standardized and
rationalized across all government agencies to create an enabling environment that
will promote social justice, integrity, efficiency, productivity, accountability and
excellence in the civil service

❖The compensation of all civilian personnel shall generally be competitive with those
in the private sector doing comparable work in order to attract, retain and
motivate a corps of competent and dedicated civil servants.
THE DECLARED POLICY OF THE STATE ON THE
COMPENSATION PLAN
❖A performance-based incentive scheme which integrates personnel and
organizational performance shall be established to reward exemplary civil servants
and well-performing organizations.

❖The compensation schemes shall take into consideration the financial capability of
the government and shall give due regard to the efficient allocation of funds for
personnel services, which shall be maintained at a realistic level in proportion to the
overall expenditure of government.
The Compensation Plan (CP) is an orderly scheme for determining rates of
compensation of government personnel. It was crafted to attract, motivate and
retain good and qualified people to accomplish the Philippine Government’s mission
and mandates, to encourage personal and career growth, and to reward good
performance and length of service. To achieve these goals, the CP has a mix of
compensation components which provide reasonable levels of compensation
packages within existing government resources, and are administered equitably
and fairly. These components are:
1. Basic Salaries including Step Increments;
2. Standard Allowances and Benefits;
3. Specific-Purpose Allowance and Benefits; and
4. Incentives.
BENEFITS FOR GOVERNMENT PERSONNEL
(LEGAL BASIS AND THE SALIENT PROVISIONS)

• Uniform/Clothing Allowance
• Mid-Year Bonus
• Year-End Bonus and Cash Gift
• Productivity Enhancement Incentive
• Performance-Based Bonus
• Collective Negotiation Agreement
• Loyalty Award
• Anniversary Bonus
 ADD-ON TOPIC

COA Circular No. 2009-006 dated September 15, 2019,

“Prescribing the Use of the Rules and Regulations on
Settlement of Accounts”
 Benefits for Government Personnel
(Legal Basis and the Salient Provisions)

Legal Basis : DBM Budget Circular No. 2018-1 dated March 8, 2018
Benefit Description : Uniform/Clothing Allowance - is granted to defray expenses for uniforms
or distinctive clothing which are the required appropriate attire for
employees in the regular performance of their work.
Coverage : • This Circular covers civilian government personnel occupying regular,
contractual, or casual positions; appointive or elective; rendering
services on full-time or part-time basis.
Exclusions : • Military personnel of the Armed Forces of the Philippines under
the Department of National Defense and uniformed personnel of the
Philippine National Police, Philippine Public Safety College, Bureau
of Fire Protection, and Bureau of Jail Management and Penology
under the Department of the Interior and Local Government,
Philippine Coast Guard under the Department of Transportation, and
the National Mapping and Resource Information Authority under the
Department of Environment and Natural Resources;
• Foreign service personnel of the Department of Foreign Affairs and
of other departments/agencies who are stationed abroad;
• Barangay officials and employees paid monthly honoraria; and
• Those hired without employer-employee relationships and funded
from non-Personnel Services appropriations/budgets
Guidelines for the : • Generally, the full rates of the U/CA for full-time and part-time service
Grant 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.
• 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.
• The U/CA may be granted in the following forms:
o In the form of uniforms procured though a bidding process
which may include uniform articles normally worn as part
thereof such as regulation caps, belts, etc., for incumbents of
positions like Special Police, Security Guard, etc.;
o In the form of textile materials and cash to cover
sewing/tailoring costs, as has been adopted by very large
departments; and
o 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
Amount : • for full-time service of government personnel, it shall not exceed
PhP6,000 per annum
• for part-time service, it shall be in direct proportion to the U/CA for
full-time service
Date of Grant : • Release of U/CA shall be done not earlier than the first working day of
every year.

PA 203 – Principles of Public Administration

Group 3 – COA Group
 Benefits for Government Personnel
(Legal Basis and the Salient Provisions)

Additional Provision : • 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.
• The U/CA of an employee on detail to another government agency
shall be borne by the mother agency
• An employee who transferred to another agency and was not 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.
• 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.
• 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 head.

Legal Basis : DBM Budget Circular No. 2017-2 dated May 8, 2017

With clarification per:

DBM Budget Circular No. 2019-4 dated July 5, 2019
Type of Bonus : Mid-Year Bonus – form part of the Total Compensation Framework
granted to those who have rendered at least four (4) months of satisfactory
service and are still in the service as of the same date.
Coverage : • All positions for civilian personnel, whether regular, casual, or
contractual in nature, appointive or elective, full-time or part-time,
now existing or hereafter created in the Executive, Legislative and
Judicial Branches, the Constitutional Commissions and other
Constitutional Offices, SUCs, and GOCCs covered by the
Compensation and Position Classification System (CPCS) under RA
No. 6758, as amended by Congress Joint Resolution No. 1, series of
1994, and No. 4, series of 2009, and in LGUs; and,
• Military personnel of the Armed Forces of the Philippines under the
Department of National Defense and uniformed personnel of the
Philippine National Police, Philippine Public Safety College, Bureau
of Fire Protection, and Bureau of Jail Management and Penology of
the Department of the Interior and Local Government; Philippine
Coast Guard of the Department of Transportation; and National
Mapping and Resource Information Authority of the Department of
Environment and Natural Resources.
Exclusions : • Government personnel from agencies, including GOCCs, that are
exempted from RA No. 6758, as amended, as expressly provided in
their respective enabling law or charter, and are actually implementing
their respective CPCS approved by the President of the Philippines
• Government personnel from GOCCs covered by the CPCS established
by the Governance Commission for GOCCs and approved by the
President of the Philippines pursuant to RA No. 10149; and
• Those hired without employer-employee relationships and funded
from non-Personnel Services appropriations/budgets

PA 203 – Principles of Public Administration

Group 3 – COA Group
 Benefits for Government Personnel
(Legal Basis and the Salient Provisions)

Condition for Grant : • Personnel has rendered at least a total or an aggregate of four (4)
months of service from July 1 of the immediately preceding year to
May 15 of the current year;
• Personnel remains to be in the government service as of May 15 of the
current year; and
• Personnel has obtained at least a satisfactory performance rating in the
immediately preceding rating period, or the applicable performance
appraisal period.
Amount : • Mid-Year Bonus equivalent to one (1) month basic pay as of May 15
Release of Bonus : • Not earlier than May 15 of the current year.
Additional Provision : • Those who have rendered a total or an aggregate of less than four (4)
months of service from July 1 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.
• The Mid-Year Bonus of personnel hired on part-time service in one or
more agencies shall be in direct proportion to the number of
hours/days of part-time services rendered.
• The Mid-Year Bonus of those on detail to another government agency
shall be paid by the parent agency, while those on secondment shall be
paid by the recipient agency.
• The Mid-Year Bonus of personnel who transferred from one agency to
another shall be paid by the new agency. compulsory retiree, whose
services have been extended, may be granted Mid-Year Bonus, subject
to the pertinent provisions of this Circular.
• Those who are formally charged administrative and/or criminal cases
which are still pending for resolution, shall be entitled to Mid-Year
Bonus until found guilty by final and executory judgment: Provided,
that:
o Those found guilty shall not be entitled to Mid-Year Bonus in
the year of finality of the decision. The personnel shall refund
the Mid-Year Bonus received for that year.
o If the penalty imposed is only a reprimand, the personnel
concerned shall be entitled to the Mid-Year Bonus

Legal Basis : DBM Budget Circular No. 2016-4 dated April 28, 2016
Type of Bonus : Year-End Bonus and Cash Gift - are intended as year-end premiums to
government personnel for satisfactory and dedicated service. The
liberalization of the grant thereof is authorized pursuant to the pertinent
general provision in the annual GAA.
Coverage : • All positions for civilian personnel whether regular, contractual, or
casual in nature, appointive or elective, full-time or part-time now
existing or hereafter created in the Executive, Legislative and Judicial
Branches, the Constitutional Commissions and other Constitutional
Offices, SUCs, and GOCCs covered by the Compensation and
Position Classification System (CPCS) under RA No. 6758, as
amended by Senate and House of Representatives Joint Resolutions
No. 1, series of 1994 and No. 4, series of 2009; and in LGUs; and

PA 203 – Principles of Public Administration

Group 3 – COA Group
 Benefits for Government Personnel
(Legal Basis and the Salient Provisions)

• Military personnel of the Armed Forces of the Philippines under the

Department of National Defense and uniformed personnel of the
Philippine National Police, Philippine Public Safety College, Bureau
of Fire Protection, and Bureau of Jail Management and Penology of
the Department of the Interior and Local Government; Philippine
Coast Guard of the Department of Transportation and
Communications; and National Mapping and Resource Information
Authority of the Department of Environment and Natural Resources.
Exclusions : • Government personnel from agencies, including GOCCs, that are
exempted from RA No. 6758, as amended, as expressly provided in
their respective enabling law or charter, and are actually implementing
their respective CPCS approved by the President of the Philippines
• Government personnel from GOCCs covered by the CPCS established
by the Governance Commission for GOCCs and approved by the
President of the Philippines pursuant to RA No. 10149; and
• Those hired without employer-employee relationships and funded
from non-Personnel Services appropriations/budgets
Condition for Grant : • Personnel has rendered at least a total or an aggregate of four (4)
months of service from January 1 to October 31 of the current year;
• Personnel remains to be in the government service as of October 31 of
the same year.
Amount : • Year-End Bonus equivalent to one (1) month basic pay as of October
31
• Cash Gift of PhP5,000.00

For Barangay Personnel

• As determined by the respective sanggunian, elective or appointive
barangay officials or employees who have rendered at least a total or
an aggregate of four (4) months of service from January 1 of the
current year and who are still in the service as of October 31 of the
same year, may be entitled to the Year-End Bonus equivalent to one
(1) month Honorarium received as of October 31 and Cash Gift of
P5,000.
Release of Bonus : • Not earlier than November 15 of the current year
Additional Provision : • Those who have rendered at least a total or an aggregate of four (4)
months of service from January 1 of the current year but who have
retired or separated from government service before October 31 of the
same year shall be granted within the month of retirement or
separation, a prorated share of the: a) Year-End Bonus based on the
monthly basic pay immediately preceding the date of retirement or
separation; and b) Cash Gift of P5,000
• Those who have rendered a total or an aggregate of less than four (4)
months of service from January 1 to October 31 of the current year and
are still in government service as of October 31 of the same year, shall
be entitled solely to a pro-rated Cash Gift
• The Year-End Bonus and Cash Gift of personnel hired on part-time
service in one or more agencies shall be in direct proportion to the
number of hours/days of part-time services rendered.

PA 203 – Principles of Public Administration

Group 3 – COA Group
 Benefits for Government Personnel
(Legal Basis and the Salient Provisions)

• The Year-End Bonus and Cash Gift of personnel on detail with

another government agency shall be paid by the parent agency, while
those on secondment shall be paid by the recipient agency.
• The Year-End Bonus and Cash Gift of personnel transferred from one
agency to another shall be paid by the new agency.
• A compulsory retiree, whose services have been extended, may be
granted Year-End Bonus and Cash Gift, subject to pertinent provisions
of this Circular.
• Those who are formally charged administrative and/or criminal cases
which are still pending for resolution, shall be entitled to Year-End
Bonus and Cash Gift until found guilty by final and executory
judgment, provided that:
o Those found guilty shall not be entitled to Year-End Bonus
and Cash Gift in the year of finality of the decision. The
personnel shall refund the Year-End Bonus and Cash Gift
received for that year
o If the penalty imposed is only a reprimand, the personnel
concerned shall be entitled to the Year-End Bonus and Cash
Gift.

Legal Basis : DBM Budget Circular No. 2017-4 dated December 4, 2017
Benefit Description : Productivity Enhancement Incentive - is an existing across-the-board
bonus, given equally to government employees for the purpose of
improving the government employees' productivity.
Coverage : • All positions of civilian personnel, whether regular, casual, or
contractual in nature, appointive or elective, full-time or part-time,
now existing or hereafter created in the Executive, Legislative, and
Judicial Branches, the Constitutional Commissions and other
Constitutional Offices, SUCs, GOCCs not covered by Republic Act
(RA) No. 10149, s. 2011 which are under the jurisdiction of the
Department of Budget and Management (DBM), and LWDs, and in
LGUs
• Military personnel of the Armed Forces of the Philippines and the
Department of National Defense; and uniformed personnel of the
Philippine National Police, Philippine Public Safety College, Bureau
of Fire Protection, and Bureau of Jail Management and Penology
under the Department of the Interior and Local Government;
Philippine Coast Guard under the Department of Transportation; and
National Mapping and Resource Information Authority under the
Department of Environment and Natural Resources.
Exclusions : • Excluded from the coverage of this Circular are those hired without
employee-employer relationships and funded from non-Personnel
Services appropriations/budgets,
Guidelines for the : • The employees are still in the service as of November 30 of the current
Grant year; and
• The employees have rendered at least a total or an aggregate of four
(4) months of at least satisfactory service as of November 30 of the
current year, including leaves of absence with pay.

PA 203 – Principles of Public Administration

Group 3 – COA Group
 Benefits for Government Personnel
(Legal Basis and the Salient Provisions)

Amount : • Five Thousand Pesos (PhP5,000.00)

Date of Grant : • Not earlier than December 15 of the current year
Additional Provision : • Those who have rendered less than the total or aggregate of four (4)
months of service but still in the service as of November 30 of the
current year shall be entitled to pro-rated PEI,
• The PEI of an employee on part-time basis shall be pro-rated
corresponding to the services rendered. If employed on part-time basis
with two (2) or more agencies, an employee shall be entitled to
proportionate amounts corresponding to the services in each agency,
provided that the total PEI shall not exceed the authorized amount.
• The PEI of an employee who transferred from one agency to another
shall be granted by the new agency.
• The PEI of an employee on detail to another government agency shall
be granted by the parent agency.
• 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.
• 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:
o Those found guilty shall not be entitled to PEI in the year of
finality of the decision. The personnel shall return the PEI
received for that year.
o If the penalty imposed is only a reprimand, the personnel
concerned shall be entitled to the PEI.

Legal Basis : DBM Memorandum Circular No. 2021-1 dated June 3, 2021

With supplemental guidelines per

DBM Memorandum Circular No. 2021-2 dated October 25, 2021
Benefit Description : Performance-Based Bonus - shall measure and evaluate the performance
of agencies with emphasis on the public’s satisfaction on the realization of
the agencies’ performance targets, quality of service delivery, efficiency in
the use of resources, and strengthened agency stewardship.
Coverage : • The FY 2021 PBB covers all departments, bureaus, offices, and other
agencies of the National Government, including Constitutional
Commissions, Other Executive Offices (OEOs), Congress, the
Judiciary, Office of the Ombudsman, State Universities and Colleges
(SUCs), Government-Owned or-Controlled Corporations (GOCCs),
Local Water Districts (LWDs), and Local Government Units (LGUs).
• The personnel of agencies holding regular, contractual, and casual
positions are covered by this Circular.
Exclusions : • Excluded from the coverage herein are individuals engaged without
employer-employee relationship and funded from non-Personnel
Services (PS) budget.
Guidelines for the : • To be eligible for the grant of the FY 2021 PBB, each agency must
Grant satisfy the criteria and conditions under the four dimensions of

PA 203 – Principles of Public Administration

Group 3 – COA Group
 Benefits for Government Personnel
(Legal Basis and the Salient Provisions)

accountability: Performance Results, Process Results, Financial

Results, and Citizen/Client Satisfaction Results and attain a total score
of at least 70 points based on the PBB Scoring System
o Performance Results refer to the accomplishment of the
Congress-approved performance targets under the
Performance-Informed Budgeting (PIB) of the FY 2021
General Appropriations Act (GAA). This physical target is an
existing eligibility criterion for SUCs and is only reinstated in
the case of the national government agencies (NGAs).
o Process Results refer to the achievements in ease of doing
business/ease of transaction with the agency as a result of
streamlining, standardization, digitization, and related
improvements in the delivery of services. This is an existing
criterion for NGAs and the GOCCs covered by the DBM.
o Financial Results refer to the actual spending of the agency’s
budget allotment vis-a-vis the realization of the committed
programs and projects based on the FY 2021 GAA. The
Disbursements BUR as well is a prevailing common target of
all agencies.
o Citizen/Client Satisfaction Results refer to the achievements in
satisfying the quality expectations of the transacting public.
Amount : • Total score is 100 points = 65% of the monthly basic salary
• Total score is 95 points = 61.75% of the monthly basic salary
• Total score is 90 points = 58.5% of the monthly basic salary
• Total score is 85 points = 55.25% of the monthly basic salary
• Total score is 80 points = 52% of the monthly basic salary
• Total score is 75 points = 48.75% of the monthly basic salary
• Total score is 70 points = 45.5% of the monthly basic salary
Note: Monthly Basic Salary of an individual is as of December 31, 2021
Date of Grant : • To be given in FY 2022 upon favorable assessment of the respective
oversight agencies
Additional Provision : • Personnel in detail to another government agency for six (6) months or
more shall be included in the recipient agency that rated his/her
performance. The payment of the PBB shall come from the mother
agency
• Personnel who transferred from one government agency to another
agency shall be included by the agency where he/she served the
longest. If equal months were served for each agency, he/she will be
included in the recipient agency.
• Officials and employees who transferred from government agencies
that are non-participating in the implementation of the PBB shall be
rated by the agency where he/she served the longest; the
official/employee shall be eligible for the grant of the PBB on a pro-
rata basis corresponding to the actual length of service to the
participating implementing agency
• An official or employee who has rendered a minimum of nine (9)
months of service during the fiscal year and with at least a Very
Satisfactory rating may be eligible for the full grant of the PBB.

PA 203 – Principles of Public Administration

Group 3 – COA Group
 Benefits for Government Personnel
(Legal Basis and the Salient Provisions)

• An official or employee who rendered less than nine (9) months but a
minimum of three (3) months of service and with at least a Very
Satisfactory rating shall be eligible for the grant of the PBB on a pro-
rata basis corresponding to the actual length of service rendered
• An employee who is on vacation or sick leave, with or without pay, for
the entire year is not eligible for the grant of the PBB.
• Personnel found guilty of administrative and/or criminal cases by final
and executory judgment in FY 2021 shall not be entitled to the PBB. If
the penalty meted out is only a reprimand, such penalty shall not cause
the disqualification to the PBB.
• Officials and employees who failed to submit the 2020 SALN as
prescribed in the rules provided under CSC Memorandum Circular No.
3 s. 2015; or those who are responsible for the non-compliance with
the establishment and conduct of the review and compliance procedure
of SALN, shall not be entitled to the FY 2021 PBB.
• Officials and employees who failed to liquidate all cash advances
received in FY 2021 within the reglementary period, as prescribed in
COA Circular 97-002 dated February 10, 1997, and reiterated in COA
Circular 2009-002 dated May 18, 2009, shall not be entitled to the FY
2021 PBB.

Legal Basis : DBM Budget Circular No. 2021-3 dated November 17, 2021
Benefit Description : Collective Negotiation Agreement - -This may be granted to both
management and rank-and-file employees of agencies with approved and
successfully implemented CNAs in recognition of their efforts in
accomplishing performance targets at lesser cost, in attaining more
efficient and viable operations through cost-cutting measures and systems
improvement
Coverage : • This Circular covers the following civilian personnel occupying
regular, contractual, or casual positions rendering services on full-time
or part-time basis in national government agencies (NGAs), including
Constitutional Offices enjoying fiscal autonomy, SUCs, GOCCs,
LWDs, and LGUs, whether or not covered by Republic Act (RA) No.
6758
o Rank-and-file employees who are members of an employees'
organization accredited by the Civil Service Commission
(CSC) as the sole and exclusive negotiating agent (hereinafter
referred to as "negotiating agent") in accordance with rules and
regulations issued by the Public Sector Labor Management
Council (PSLMC);
o Rank-and-file employees who are non-members of the CSC-
accredited sole and exclusive negotiating agent but want to
enjoy or accept benefit under the CNA, subject to payment of
agency fee to the negotiating agent in accordance with
PSLMC Resolution No. I5, s. 1993; and
o Those who perform managerial functions
Exclusions : • All other individuals not included in Section 3.0 of DBM Budget
Circular No. 2021-3

PA 203 – Principles of Public Administration

Group 3 – COA Group
 Benefits for Government Personnel
(Legal Basis and the Salient Provisions)

Guidelines for the : • Existence of a CNA

Grant o There should be a valid and subsisting CNA executed between
the representatives of the management and the employees'
organization accredited by the CSC as the sole and exclusive
negotiating agent for the purpose of collective negotiations
with the management of a department, line bureau, attached
agency. Constitutional Offices, sue, GOCC, LWD, or LGU.
o The grant of the CNA Incentive must be stipulated in the CNA
or in supplements thereof
• Accomplishment of Targets
o The NGAs, including Constitutional Offices enjoying fiscal
autonomy, SUCs, and GOCCs not covered by RA No. 10149,
s. 2011 should have accomplished, by September 30, 2021, at
least an average of 70% of all the targets for all the
organizational outcomes/ performance indicators under their
respective FY 2021 budget approved by Congress, or the
approved FY 2021 Corporate Operating Budget (COB),
whichever is applicable.
o GOCCs covered by RA No. 10149 should have accomplished,
by September 30, 2021, at least an average of 70% of all the
targets under their respective Performance Scorecard, as
agreed upon between the Governance Commission for GOCCs
(GCG) and the GOCC pursuant to GG Memorandum Circular
No. 2017-027 dated June 30, 2017.
o LWDs should have a positive net balance in the average net
income for the period January 1 to September 30, 2021, to be
validated by the Local Water Utilities Administration.
o LGUs should have accomplished, as of September 30, 2021, at
least an average of 70% of all the targets under their
programs/activities/projects approved in the LGU budget for
FY 2021.
• Submission of Accountability Reports
o The NGAs, including Constitutional Offices enjoying fiscal
autonomy and SUCs, should have submitted to DBM their
respective accountability reports as of September 30, 2021
pursuant to Commission on Audit (COA)-DBM Joint Circular
No. 2014-1 dated July 2, 2014, as amended by COA-DBM JC
No. 2019-1 dated January 1, 2019.
Amount : • CNA Incentive shall not exceed P25,000 per qualified employee.
• The rate of the CNA Incentive shall not be pre-determined in the CNA
since it is subject to compliance with the conditions and the
availability of the allowable allotments.
Date of Grant : • CNA Incentive for the year shall be a one-time benefit to be granted
not earlier than December 15, 2021.
Additional Provision : • It cannot be given immediately upon signing and ratification of the
CNA as this will transform the CNA Incentive into a CNA Signing
Bonus which the Supreme Court, in the case of Social Security System
vs. COA, has prohibited for not being a truly reasonable compensation.

PA 203 – Principles of Public Administration

Group 3 – COA Group
 Benefits for Government Personnel
(Legal Basis and the Salient Provisions)

• The CNA Incentive for the year shall be granted only during the
validity of appropriations from which the available MOOE allotments
shall be sourced.
• The amount paid as CNA Incentive shall be recorded in the agency
books under the account code "Collective Negotiation Agreement
Incentive-Civilian," "Other Benefits," and "Collective Negotiation
Agreement Incentive" for NGAs, LGUs, GOCCs, and LWDs,
respectively.
• Agencies are advised that additional funds can no longer be provided
during the remainder of the current year for those program, projects,
and activities covered by the MOOE allotments which are to be
modified to fund the CNA Incentive.

Legal Basis : CSC Memorandum Circular No. 06 s. 2002

Benefit Description : Loyalty Award – This was formulated to recognized the continuous and
satisfactory service rendered in the government by officials and employees
for a period of ten (10) years.
Coverage : • Granted to all officials and employees, in the national and local
governments, including those in the state colleges and universities and
government -owned and -controlled corporations with original charter,
who rendered ten (10) years of continuous and satisfactory service in
the government.
Exclusions : • Government employees who did not meet the guidelines for the grant
of loyalty award
Guidelines for the : • The particular agency where the employee or official completed the
Grant ten (10) years of continuous and satisfactory service shall grant the
award.
• An official or employee who incurred an aggregate of not more than
50 days authorized vacation leave without pay within the 10-year
period shall be considered as having rendered continuous service for
purposes of granting the loyalty award.
• In the same way, an official or employee who incurred an aggregate of
not more than twenty-five (25) days authorized vacation leave without
pay within the 5-year period may qualify for the 5-year milestone
loyalty award
Amount : • A cash gift which shall not be less than PhP500.00 but not more than
PhP1,000.00 for every year of service shall be given to qualified
officials or employees plus the loyalty memorabilia/souvenir
Date of Grant : • The payment of the loyalty award is preferably on the employee’s
loyalty year
Additional Provision : • Effective January 1, 2002, continuous and satisfactory services in
government for purposes of granting loyalty award shall include
services in one or more government agencies without any gap.
• Services rendered in other government agencies prior to January 1,
2002 shall not be considered for purposes of granting the loyalty
award.
• The awardee shall receive a loyalty memorabilia/souvenir as follows:
o 10 and 15 years = bronze service pin

PA 203 – Principles of Public Administration

Group 3 – COA Group
 Benefits for Government Personnel
(Legal Basis and the Salient Provisions)

o 20 and 25 years = silver service ring

o 30, 35 and 40 years = gold service medallion
or other memorabilia/souvenir as may be provided in the agency
PRAISE.

Legal Basis : DBM National Budget Circular No. 452 dated May 20, 1996
Benefit Description : Anniversary Bonus – are granted on the occasion of milestone years of
government agencies to directly improve and enhance employee morale
Coverage : • All government personnel whether employed on a full-time or regular,
part-time basis or under permanent, temporary or casual status, and
contractual personnel whose employment is in the nature of a regular
employee, who have been appointed as such in a specific government
entity by virtue of a valid appointment and continue to be employed in
the same government entity as of the occasion of its milestone
anniversary, shall be entitled to the anniversary bonus.
Exclusions : • Those who are on absence without leave (AWOL) as of the date of the
milestone year for which the Anniversary Bonus is being paid;
• Those who are no longer in the service in the same government entity
as of the date of the milestone year.
• Those who are not hired as part of the organic manpower of
government entities but as consultants or experts for a limited period
to perform specific activities or services with expected outputs; student
laborers; apprentices; laborers of contracted projects: mail contractors,
including those paid by piecework basis: and others similarly situated.
Guidelines for the : • Officials and employees may be granted Anniversary Bonus only if the
Grant government entity where they are employed has been in existence for
at least fifteen (15) years and has not yet granted any Anniversary
Bonus as of FY 1996, and have rendered at least one (1) year service
in the same government entity as of the date of the milestone year
Amount : • PhP3,000.00 per official and employee every milestone year
Date of Grant : • On the milestone anniversary of the agency
Additional Provision : • The counting of milestone years shall start from the year the
government entity was created regardless of whether it was
subsequently renamed/reorganized provided that its original primary
functions have not substantially changed. Otherwise, the counting shall
start from the date the functions were substantially changed.
• The counting of the milestone years of merged government entities
shall start from the date they were merged.
• The initial grant of Anniversary Bonus in 1996 shall be for the latest
milestone only, regardless of whether the government entity has
existed for 30,35, 50, or 60 or more years. There shall be no
retroactive payment of milestone years
• Officials and employees in government entities attached to or are
placed directly under a department/department level government entity
and whose creation is not through charter may be considered as
organic personnel of the mother department for purposes of availment
of the Anniversary Bonus due the officials and employees of the
department.

PA 203 – Principles of Public Administration

Group 3 – COA Group
 Benefits for Government Personnel
(Legal Basis and the Salient Provisions)

COA Circular No. 2009-006 dated September 15, 2009

Prescribing the use of the Rules and Regulations on Settlement of Accounts

Settlement of accounts is the process of determining the balance of the account of an accountable
officer, through an audit and examination thereof.

The settlement of accounts shall be evidenced by an appropriate marking in the documents audited
as prescribed by the Commission. If no balance in the account is found or the transaction is allowed in
audit, the audited documents shall indicate “Allowed in Audit”. Otherwise, a Notice of Suspension, Notice
of Disallowance or Notice of Charge shall be issued and the documents marked accordingly, with amount
suspended/disallowed/charged indicated therein.

1. The audit and examination of transactions pertaining to an account shall be done in accordance
with laws, rules, regulations and standards to determine whether these transactions may be allowed,
suspended, disallowed or charged in audit.

2. The Auditor shall issue an AOM for observations relating to financial/operational deficiencies such
as accounting, internal control or property management which do not involve pecuniary loss.

An AOM may also be issued for documentary or other information requirements to enable the
auditor to make a decision in audit.

The AOM shall be replied to by the agency officials concerned within fifteen (15) calendar days
from receipt thereof.

If the agency officials fail to reply within the period specified, the audit observation on
financial/operational deficiencies shall be deemed accepted and shall be included in the Audit
Report.

In case of failure to submit or insufficiency of the required documents or information needed to

reach an audit decision, an NS/ND/NC may be issued by the Auditor, as warranted, after a re-
evaluation of available documents/information.
3. The Auditor shall issue a Notice of Suspension for transactions of doubtful
legality/propriety/regularity which may result in pecuniary loss of the government, and which will
be disallowed in audit if not satisfactorily explained or validly justified by the parties concerned

A NS should be settled within ninety (90) calendar days from receipt of the NS; otherwise the
transaction covered by it shall be disallowed/charged after the Auditor shall have satisfied himself
that such action is appropriate and the Auditor shall issue the corresponding ND/NC

4. The Auditor shall issue a Notice of Disallowance for transactions which are irregular, unnecessary,
excessive and extravagant as defined in COA Circular No. 2012-003 dated October 29, 2012
“Updated Guidelines for the Prevention and Disallowance of Irregular, Unnecessary, Excessive,
Extravagant and Unconscionable Expenditures” as well as other COA issuances

The ND shall be settled within six (6) months from receipt of the ND by the persons liable

PA 203 – Principles of Public Administration

Group 3 – COA Group
 Benefits for Government Personnel
(Legal Basis and the Salient Provisions)

Only disallowed salaries and personal benefits, allowances or emoluments may be allowed to be
settled by installments.

5. The Auditor shall issue the Notice of Charge, if the amount assessed/appraised, billed, or collected
is less than what is due the government, the difference shall be a proper audit charge.

The audit charge shall be settled within six (6) months from receipt of the NC

6. Settlement of NS/ND/NC

A NS shall be settled by the submission of justification/explanation and/or documentation required

under an NS and after the Auditor becomes satisfied that the transaction is regular/legal/proper and
that no loss was suffered by the government.

A ND/NC shall be settled by payment of the amount disallowed or by such other applicable mode
of extinguishment of obligation as provided by law. Settlement of ND/NC may also result from a
decision of the Director, Commission Proper, Supreme Court lifting the disallowance or charge.

7. Period to Appeal

Any person aggrieved by a disallowance or charge may within six (6) months from receipt of the
notice, appeal in writing as prescribed in these Rules.

A disallowance or charge not appealed within the period prescribed shall become final and
executory.

The filing by the aggrieved party of an appeal will suspend the running of the prescribed period
and will resume upon receipt of a decision from the Director or the Commission Proper.

8. Appeal to the Supreme Court

The party aggrieved by any decision, order, or ruling of the Commission Proper may within thirty
(30) days from his receipt of a copy thereof, appeal on certiorari to the Supreme Court in the
manner provided by law and Rules of Court

PA 203 – Principles of Public Administration

Group 3 – COA Group