Guidelines on grant of CNA signing bonus

The Circular cites Executive Order No. 180 (June 1, 1987) and Chapter 6, Title 1, Book V of Executive Order No. 292 (Administrative Code of 1987) as authorizing government employees to form and join employees’ organizations. It also relies on the Public Sector Labor-Management Council (PSLMC) created under these issuances, particularly PSLMC Resolution No. 1 dated July 20, 1999, which provides for the conditional grant of a CNA signing bonus.

It is granted as a reward to rank-and-file employees for their successful efforts in forging unity, cooperation, and organization within their ranks to protect and further their interests, while fostering alliance/partnership with management for a well-organized/operated agency.

All rank-and-file employees of the government (NGAs, GOCCs, GFIs, LGUs), whether permanent, temporary, contractual, casual, or emergency in nature, on full-time or part-time, who: (1) rendered at least a total of six (6) months service including leaves with pay within one year immediately preceding the date of signing/ratification of the respective agency’s CNA; and (2) are still employed in the same agency as of the CNA signing.

Exempt are: (1) high level government personnel whose functions are normally policy-making or managerial, or highly confidential, or higher than division chiefs; (2) those not hired as part of the regular workforce without an employee-employer relationship (e.g., consultants/experts, contract workers on piecework basis/pakiao, student laborers, apprentices, and others similarly situated); and (3) for LGUs, those occupying positions Assistant Department Head and above.

They refer to government employees with the rank of division chief and below.

The CNA signing bonus may be granted only if: (1) the government entity has a duly registered and recognized employee organization; and (2) the CNA has been duly ratified/approved by both management and the registered and recognized employee organization.

The rate may not exceed PHP 5,000 per personnel.

Not earlier than the date of signing of the CNA. After a new CNA is approved, the signing bonus may be granted again, but only once in three (3) years.

Counting of the three (3) years starts from the approval date of the CNA which was used as the basis for the payment of the last signing bonus.

They no longer get the bonus in the new agency within the three-year period following the grant in the old agency. Exception: if the bonus amount received in the old agency is lower than in the new agency, the employee may receive the difference, provided they rendered at least six (6) months of service in the new agency before the CNA signing there.

No. The Circular expressly states the signing bonus shall, in no way, be part of the terms and conditions of the CNAs.

They must include the CNA signing bonus funding requirement through appropriate resolutions/approvals by the Board of Directors (GOCCs/GFIs) or Board of Trustees (SUCs) and inclusion of a specific funding requirement in the corporate operating budget. Additionally: (1) the required 50% dividends to the National Treasury under RA 7656 shall not be reduced; (2) no additional funding shall come from the national government; and (3) for Local Water Districts, funding should be within 75% of revenue from operation net of required subsidy for loan amortization.

NGAs: require a specific appropriation item in the annual budget under the General Appropriations Act (GAA). Agencies must include the funding requirement in budget proposals. LGUs: require an Appropriation Ordinance from the local Sanggunian approving the grant and necessary funds, or inclusion in the annual or supplemental budget, subject to the personal services limitation under RA 7160.

The head/local chief executive is personally liable for any payment of the signing bonus not in accordance with the Circular. This is without prejudice to the employee’s refund of any excess payment. A report must be submitted to DBM (or DBM regional offices for LGUs) on implementation using the attached form.

No. All CNAs ratified before July 20, 1999 (the approval date of PSLMC Resolution No. 1, s. 1999) are not covered by the Circular.

If funds are not sufficient, government entities may grant a lesser amount at a uniform rate for all personnel.

An entity or frontline bureau created under a distinct enabling act or law and thus deemed an institution in its own right is treated as a separate and distinct agency. Offices/bureaus directly under a department level entity whose creation is not through a charter are considered part of the concerned department.

It took effect on January 1, 2001.

Cases not covered by the provisions shall be referred to the Secretary of Budget and Management for resolution.