The Department of Budget and Management (DBM) has authorized the grant of a one-time Collective Negotiation Agreement (CNA) incentive of up to PHP30,000 for qualified government employees in 2026.
Under Budget Circular 2026-1 signed by DBM Secretary Kim Robert De Leon on Nov. 4, the incentive may be paid from Dec. 15 to 31, subject to agency performance, compliance with eligibility requirements, and the availability of allowable funds.
The DBM clarified that the PHP30,000 ceiling is not an automatic entitlement, as the actual amount will depend on their agency’s performance and available savings.
The incentive recognizes the collective efforts of government employees and management in improving public service delivery, increasing productivity, and generating savings through cost-cutting measures and systems improvements.
The circular covers qualified civilian personnel holding regular, contractual, or casual positions, whether full-time or part-time, in national government agencies (NGAs), constitutional offices enjoying fiscal autonomy, state universities and colleges (SUCs), government-owned or -controlled corporations (GOCCs), local water districts (LWDs), and local government units (LGUs).
Eligible employees include rank-and-file employees belonging to Civil Service Commission or CSC-accredited negotiating organizations, non-members who comply with applicable agency-fee requirements, and officials and employees performing managerial functions.
To qualify, agencies must have a valid and subsisting CNA registered with the CSC, with provisions covering the incentive and jointly undertaken cost-cutting measures.
The DBM required agencies to demonstrate measurable performance before granting the incentive.
“NGAs, SUCs, and GOCCs must generally have accomplished at least 75 percent of their applicable performance targets as of Sept. 30, 2026, subject to the assessment requirements prescribed for each agency category,” it said.
The DBM said LGUs must also meet the 75 percent performance threshold and have obligated at least 75 percent of their FY 2026 appropriation for the 20 percent Development Fund.
LWDs, meanwhile, must have a positive net balance in their average net income from January to September this year.
Personnel who have rendered at least 10 months of service as of Oct. 31, 2026 may receive 100 percent of their agency’s approved CNA Incentive, while those with shorter service periods may receive proportionate amounts.
The agency head will determine the final distribution upon the recommendation of the Employees’ Organization – Management Consultative Committee.
The DBM emphasized that the CNA Incentive must be funded through allowable savings generated from cost-cutting and systems improvement measures jointly undertaken by agency management and employees.
It also prohibited agencies from using funds intended for goods and services to be delivered to or used by their clients to finance the incentive.
“The following shall, in no case, be used as fund sources of the CNA Incentive: … Released allotments intended for acquisition of goods and services to be distributed/delivered to, or to be used by agency clients,” the circular read.
The guidelines also prohibit the use of balances from discontinued or abandoned programs, as well as unauthorized modifications or augmentations of eligible funding sources.
Agency heads and accountable officers will be held responsible for compliance, with unauthorized payments potentially resulting in administrative, civil, or criminal liability, as applicable.
To ensure transparency and accountability, agencies are required to submit a consolidated report on the grant of the 2026 CNA Incentive to the DBM not later than Jan. 31, 2027.
The Circular implements Administrative Order 135 and Congress Joint Resolution 4 issued in 2005 and 2009, responsively, which recognize the CNA Incentive as a reward for collective efforts to improve government productivity, cost efficiency, and public service delivery.*PNA
[sibwp_form id=1]