ADMINISTRATIVE ORDER NO. 40

AUTHORIZING THE GRANT OF SERVICE RECOGNITION INCENTIVE TO GOVERNMENT EMPLOYEES FOR FISCAL YEAR 2025

WHEREAS, Section 4(h) of Congressional Joint Resolution (JR) No. 4 (s. 2009) authorizes the grant of: (i) incentives to reward an employee's loyalty to government service and contributions to the agency's continuing viable existence; (ii) incentives as reward for exceeding agency financial and operational performance targets to motivate employee efforts toward higher productivity; and (iii) other existing benefits to be categorized by the Department of Budget and Management (DBM) as incentives;

WHEREAS, Section 17(iv) of Congressional JR No. 4 authorizes the President, upon the recommendation of DBM, to update the Compensation and Position Classification System for civilian personnel, Base Pay Schedule for military and uniformed personnel, and policies on and levels of allowances, benefits, and incentives applicable to all government personnel;

WHEREAS, Section 5 of Presidential Decree No. 1597 provides that allowances, honoraria, and other fringe benefits which may be granted to government employees, whether payable by their respective offices or by other agencies of government, shall be subject to the approval of the President, upon the recommendation of DBM;

WHEREAS, Administrative Order (AO) Nos. 19 (s. 2019), 37 (s. 2020), 45 (s. 2021), 1 (s. 2022), 12 (s. 2023), and 27 (s. 2024) authorized the one-time grant of Service Recognition Incentive (SRI) to government employees for Fiscal Years (FYs) 2019, 2020, 2021, 2022, 2023, and 2024, respectively, in recognition of the hard work and commitment of government personnel to public service; and

WHEREAS, the Administration recognizes all government employees for their collective and invaluable contributions to the government's continuing efforts in pursuing the objectives, commitments, targets, and deliverables under the Philippine Development Plan 2023-2028 and the President's 8-Point Socioeconomic Agenda;

NOW, THEREFORE, I, FERDINAND R. MARCOS, JR., President of the Philippines, by virtue of the powers vested in me by the Constitution and existing laws, do hereby order:


Section 1. SRI for Employees in the Executive Department. This Order authorizes the grant of a one-time SRI at a uniform rate not exceeding P20,000.00 for each of the following personnel in the Executive branch:

a. Civilian personnel in national government agencies (NGAs), including those in state universities and colleges (SUCs) and government-owned or -controlled corporations (GOCCs), occupying regular, contractual or casual positions; and b. 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, the Bureau of Corrections under the Department of Justice, the Philippine Coast Guard under the Department of Transportation, and the National Mapping and Resource Information Authority under the Department of Environment and Natural Resources.

Section 2. Conditions on the Grant of the SRI. The grant of SRI shall be subject to the following conditions:

a. The civilian personnel are occupying regular, contractual or casual positions; b. The personnel are still in government service as of 30 November 2025;

c. The personnel have rendered at least a total or an aggregate of four (4) months of satisfactory service as of 30 November 2025, in accordance with the relevant rules and existing performance evaluation systems, inclusive of services rendered under any of the alternative work arrangements prescribed by the Civil Service Commission;

d. Those who have rendered less than a total or an aggregate of four (4) months of satisfactory service as of 30 November 2025 shall be eligible for a pro-rated SRI, as follows:






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