Policy and purpose
- The Government is committed to promoting and stimulating increased agricultural production to attain national self-sufficiency.
- The Government undertakes special supervised credit programs to improve the productive capacity of farmers by providing financial and technical assistance without the need for real estate collateral.
- Banks and financial institutions are recognized as vital to implementing the Government’s supervised financing programs, with technical assistance and support from government agencies.
- The decree authorizes incentive remuneration to maximize the participation of government technicians in the effective and efficient implementation of these supervised credit programs.
Covered activities and participants
- Government technicians assigned to banks and financial institutions are covered when assigned for the purpose of providing technical assistance and support.
- The covered assignments are those that assist in carrying out the Government’s supervised credit programs for agricultural production.
- Incentives may come from banks and financial institutions and/or from the Government for the covered technicians.
Legal authority and governing rule
- Presidential Decree No. 409 authorizes government technicians assigned to qualified banks and financial institutions to receive incentive remuneration.
- The authorization applies notwithstanding the provisions of any law, decree, rule, regulation, or order to the contrary.
- The incentive regime is subject to rules and regulations jointly issued by the Department of Agriculture and Natural Resources and the Central Bank of the Philippines.
Types of incentives
- Government technicians are authorized to receive incentive allowances.
- Government technicians are authorized to receive bonuses.
- Government technicians are authorized to receive other appropriate forms of remuneration.
Retroactive coverage: Masagana 99 and others
- The retroactive effect covers incentive payments due government technicians who participated in the Masagana 99 Rice Program.
- The retroactive effect also covers incentive allowances and bonuses due for all other special financing programs of the Government.
Implementation requirements
- Department of Agriculture and Natural Resources and the Central Bank of the Philippines must jointly issue the rules and regulations governing the incentives.
- The authorization to receive incentives is implemented under those joint rules and regulations.