Law Summary
Eligibility for Loyalty Award
- Awarded to government employees who have completed a minimum of 10 years of continuous and satisfactory service with the specific government office.
Composition and Value of Loyalty Award
- Consists of a loyalty pin and a cash gift.
- Loyalty pins are categorized based on years of service:
- Bronze pin for 10 to 15 years
- Silver pin for 20 to 25 years
- Gold pin for 30, 35, and 40 years
- Cash gift is capped at Php 100.00 per year of service and depends on the agency’s available savings.
- Subsequent awards after the initial 10 years consist of cash gifts reflecting additional years only, not the full amount of the new total years served. Example provided clarifies this point.
Conditions Affecting the Grant of Award
- Continuous and satisfactory service is mandatory.
- An unsatisfactory performance rating or an administrative case conviction disqualifies the employee from receiving the loyalty award.
Coverage or Scope of Application
- The loyalty award program applies universally to officials and employees across national and local governments.
- Inclusive of government-owned and controlled corporations with original charters, state colleges and universities, judiciary, and legislature.
Legal Effect and Implementation
- This amendment modifies Section 7(e), Rule X of the Omnibus Rules Implementing Book V of Executive Order No. 292.
- The memorandum circular took effect 15 days after publication in a newspaper of general circulation.
- Ensures uniform interpretation and consistent application of loyalty awards nationwide.