Guidelines on grant of CNA signing bonus

Prescribes rules for granting CNA signing bonuses as per PSLMC Resolution No. 1.
Aims to reward rank-and-file employees for promoting unity, cooperation, and partnership with management.
Encourages well-organized agencies protecting employees’ interests.

Applies to all rank-and-file government employees (permanent, temporary, contractual, casual, emergency, full or part-time).
Must have rendered minimum 6 months service including paid leaves in government agencies within one year before CNA signing/ratification.
Must still be employed in the same agency at the time of CNA signing.

Excludes high-level personnel engaged in policy-making, managerial functions, or confidential duties, and above division chiefs.
Contract workers without employee-employer status (consultants, experts, pakiao workers, student laborers, apprentices, etc.) not covered.
Local government positions ranked Assistant Department Head and above are exempted.

Rank-and-File Employees: employees at or below division chief rank.
Collective Negotiation Agreement (CNA): written agreement between employee organization and management on employment terms beyond the law.
Employee Organization: association of rank-and-file employees safeguarding rights and conditions.
Duly Registered Employee Organization: registered with DOLE and CSC under EO 180.
Duly Recognized Employee Organization: voluntarily recognized by DOLE through Bureau of Labor Relations.

Maximum bonus amount set at P5,000 per employee.
Requirement of duly registered and recognized employee organization.
CNA must be duly ratified/approved by both management and the employee organization.
Funding provisions based on agency type:
- GOCCs/GFIs/SUCs require board approval, inclusion in budgets, with dividend remittance maintained and no additional national government funds.
- Local Water Districts have funding limits related to operational revenues.
- NGAs to include appropriations in their annual budgets.
- LGUs require ordinance approval or budget allocations subject to personal services limits.

Agency heads decide bonus rates considering funds and priorities, not exceeding P5,000.
Once granted after CNA signing, bonus may be given again only every 3 years.
Annual CNAs trigger 3-year count from the last payment-date.
Employees transferred after receiving bonus retain no new bonus rights in 3-year period, except difference if eligible and with required tenure.
Distinct agencies created by law treated separately; bureaus without charters considered part of departments.
CNAs ratified before July 20, 1999, not covered.
Signing bonus is not part of CNA terms.
Insufficient funds allow pro-rated uniform reductions.

GOCCs/GFIs/SUCs fund from corporate/agency funds without reducing required dividend remittance.
NGAs fund from appropriations under the General Appropriations Act.
LGUs fund from local government funds.

Heads of agencies/local chief executives personally liable for improper bonus payments.
Obligations to refund excess payments and submit implementation reports to DBM or regional offices.

Cases not addressed referred to the Secretary of Budget and Management for resolution.

Circular effective starting January 1, 2001, following adoption on December 15, 2000 by Secretary Benjamin E. Diokno.