The Circular provides the policy and procedural guidelines on the grant of the CNA incentive for FY 2025 pursuant to Administrative Order No. 135, s. 2005.
Administrative Order (AO) No. 135, s. 2005 authorizes the grant of the
CNA Incentive to government employees and directs the Department of
Budget and Management (DBM) to issue the necessary policy and
procedural guidelines for its implementation.
Item (4)(h)(ii)(aa) of the Congress Joint Resolution (JR) No. 4, s. 2009 institutionalizes the grant of the CNA Incentive as a form of reward to
motivate employee efforts toward higher productivity, to wit:
"(aa) Collective Negotiation Agreement (CNA) Incentive - 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 xxx."
Section 82 of the General Provisions (GPs) under the FY 2025 General
Appropriations Act (GAA) provides the rules in the grant of the CNA
Incentive, to wit:
"Sec. 82. Rules in the Grant of Collective Negotiation
Agreement Incentive. Departments, bureaus, and offices of the
National Government, including Constitutional Offices enjoying
fiscal autonomy, and SUCs may grant Collective Negotiation
Agreement (CNA) Incentive sourced from the allowable MOОЕ
allotments identified by the DBM, subject to the following:
(a) There is a valid CNA executed between the agency and
the recognized employee organization which includes a
provision on cost-cutting measures to be undertaken
collectively by the agency and its personnel;
(b) The one-time annual payment of CNA Incentive shall be
made through a written resolution signed by agency
representatives from both labor and management, and
approved by the agency head;
(c) The CNA Incentive that may be granted shall be limited
to the amount determined by the DBM; and
(d) The use of MOOE for the payment of CNA Incentive shall
be subject to approval by the agency head and made
only during the validity of appropriations. Any excess
amounts therefrom after payment of the CNA Incentive
shall revert to the General Fund.
GOCCs and LGUs may likewise grant CNA Incentive to their
respective personnel, subject to the policies, rules and
regulations issued by the DBM."
This Circular is issued to provide the policy and procedural guidelines on the
grant of the CNA Incentive for FY 2025, pursuant to the laws and executive
issuance stated in Item 1.0 hereof.
This Circular covers the following civilian personnel occupying regular,
contractual, or casual positions rendering services on a 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 dated August 21, 1989:
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 the rules and regulations issued
by the Public Sector Labor Management Council (PSLMC);
Rank-and-file employees who are non-members of the negotiating agent
who wish to enjoy or accept benefits under the CNA, subject to the
payment of agency fees to the negotiating agent in accordance with
PSLMC Resolution No. 1, s. 1993; and
Those who perform managerial functions.
Conditions for the Grant of the CNA Incentive
4.1.1 Existence of a CNA
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
Office, SUC, GOCC, LWD, or LGU.
In accordance with PSLMC Resolution No. 9, s. 2023, the
registration by the employees' organization of its CNA with
the CSC shall be a condition precedent for the grant of
the CNA Incentive. For this purpose, a Certificate of
Registration shall be secured from the CSC.
The grant of the CNA Incentive m
Асcomplishment of Targets
The NGAS, including Constitutional Offices enjoying fiscal
autonomy, SUCS, and GOCCs not covered by
RA No. 10149 dated June 6, 2011 should have
accomplished, by September 30, 2025, at least an average
of seventy-five percent (75%) of all the targets for all the
organizational outcomes/performance indicators under
their respective FY 2025 budget approved by Congress, or
the approved FY 2025 Corporate Operating Budget
(COB), whichever is applicable, with due regard to the
targets to be completed/reported by the end of the fourth
quarter of FY 2025.
GOCCS covered by RA No. 10149 should have
accomplished, by September 30, 2025, at least an average
of seventy-five percent (75%) of all the targets under their
respective Performance Scorecard, as agreed upon
between the Governance Commission for GOCCs (GCG)
and the GOCC pursuant to GCG Memorandum Circular
No. 2024-017 dated June 28, 2024.
LWDs should have a positive net balance in the average
net income for the period January 1 to September 30,
2025, to be validated by the Local Water Utilities
Administration.
LGUs should have accomplished, as of September 30,
2025, at least an average of seventy-five percent (75%) of
all the targets under their programs/projects/activities
approved in the LGU budget for FY 2025.
Submission of Accountability Reports
The NGAs, including Constitutional Offices enjoying fiscal
autonomy and SUCS, should have submitted to DBM their
respective accountability reports as of September 30, 2025
pursuant to Commission on Audit (COA)-DBM Joint Circular (JC)
No. 2014-1 dated July 2, 2014, as amended by COA-DBM JC
No. 2019-1 dated January 1, 2019.
Rate of the CNA Incentive
The rate of the CNA Incentive shall not be pre-determined in the
CNA since it is subject to compliance with the conditions in Item
4.1 hereof and the availability of the allowable allotments.
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' OrganizationManagement Consultative Committee (Committee, for brevity).
In all cases, the CNA Incentive shall not exceed Thirty
Thousand Pesos (P30,000) рer qualified employee.
Source: DBM
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