Updated: DBM already released the Budget Circular for the Guidelines on the Grant of the one-time Service Recognition Incentive for FY 2019. You can see it below.
Government employees, including personnel of the Philippine National Police (PNP), are expected to receive another cash incentive this year-end of 2019, a new law says.
The Chief Executive, President Duterte through Executive Secretary Medialdea, signed Administrative Order (AO) No. 19, series of 2019, that mandates the grant of Service Recognition Incentive (SRI), a one-time incentive that will amount to up to Ten thousand pesos (Php 10,000) applicable for 2019 year-end only, to all qualified government employees.
The AO cited Section (4)h) of JR No. 4, series of 2000, which authorizes the grant of:
- (a) incentives to reward an employee’s loyalty to government service and contributions to the agency’s continuing viable existence;
- (b) incentives as rewards for exceeding agency financial and operational performance targets to motivate employee efforts toward higher productivity: and
- (c) other existing benefits to be categorized by the DBM as incentives
The law also added that government employees deserve to be rewarded to recognize their collective and unceasing participation in and invaluable contribution to the Administration’s continuing efforts toward the establishment of streamlined government processes and more responsive delivery of public services.
What is Service Recognition Incentive or SRI?
The SRI is for Government Employees in the Executive Department. The AO authorizes the grant of a one-time Service Recognition Incentive (SRI) at a uniform amount not exceeding Ten Thousand Pesos (P10,000) for each of the following personnel in the Executive Department:
- 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
- Military personnel of the Armed Forces of the Philippines under the Department of National Defense, and uniformed personnel of the Philippine National Police, 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.
Who are entitled to receive SRI?
The AO set the following conditions for the grant of the SRI :
- a. The civilian personnel are occupying regular, contractual or casual positions;
- b. The personnel are still in the government service as of 30 November 2019;
- c. The personnel have rendered at least four (4) months of service as of 30 November 2019;
- d. Employees who have rendered less than four (4) months of service as of 30 November 2019 shall be entitled to a pro-rated share of the SRI, as follows:
- e. The employees have not received any additional year-end benefit in FY 2019 over and above the benefit authorized under Republic Act (RA) No. 6686, as amended by RA NO. 8441.
Note: The Republic Acts (RAs) mentioned above in the last sub-paragraph “e” refers to laws that govern the grant of year-end bonus and cash gift for government employees, so don’t mind that for now.
Who are NOT entitled to receive SRI?
According to the AO, those engaged without an employer-employee relationship and whose compensation are not funded from Personnel Services (PS) appropriations/budgets are excluded from the grant of the SRI such as:
a. Consultants and experts engaged for a limited period to perform specific activities or services with expected outputs;
b. Laborers engaged through job contracts (pakyaw) and those paid on piece work basis;
c. Student workers and apprentices; and
d. Individuals and groups of people whose services are engaged through job orders, contracts of service or others similarly situated.
Funding Source of SRI
For National Government Agencies (NGAs), including SUCs and military and uniformed personnel (including PNP), the amount required shall be charged against the:
- Miscellaneous Personnel Benefits Fund (MPBF) under the FY 2019 General Appropriations Act to fund a portion of the SRI in the amount of Seven Thousand Pesos (P7,000) for each employee; and
- Available released Personnel Service allotments of the respective agencies for the remaining Three Thousand Pesos (P3,000) for each employee.
- In the event that the available released PS allotments are insufficient to fully cover the remaining Three Thousand Pesos (P3,000) per employee, a lower but uniform amount shall be paid to all qualified employees of that agency.
When is the release date of SRI?
The AO said that the payment of the SRI to all qualified government employees shall not be earlier than 20 December 2019.
Meaning, government employees are expected to receive it from December 21 onwards.
I am pretty sure that it will be released not more than December 31, 2019 as the law requires that unused funds or budget shall be returned back to the National Treasury. Thus, agencies concerned are constrained to release this before December 31.
Meanwhile, the AO also provides that the DBM shall issue supplemental guidelines to implement this Order, as may be necessary.
What does it mean for PNP personnel?
PNP personnel could expect an assured Php 7,000 which will be drawn from MPBF, a budget under the office of the President.
For the remaining Php 3,000 that will be drawn from the Personnel Services (PS) Allotment of the PNP as provided in GAA 2019, I am not yet sure if the PNP can fully provide it.
This is considering that the PNP now has about 192,000 personnel. For each personnel to be given Php 3,000 taken from the PS allotment of PNP, it would require a budget of Php 576 Million or more than half a billion pesos.
But being an optimist won’t hurt. So, expect at least Php 7,000 up to Php 10,000 to be credited to your individual ATM account starting from December 21 and not more than December 31 of this year.
Important to note also, this Service Recognition Incentive is a one-time bonus that is good for 2019 only.
The scanned copy of Administrative Order no. 19 is available below:
*If you want to read the complete copy from the Official Gazette, click here. As it is already uploaded in the Official Gazette, which means that this is official
DBM Budget Circular 2019-6 Guidelines on the Grant SRI