Local Government Unit (LGU) employees, including Barangays, may also be granted with the ₱20,000.00 SRI, as authorized under AO No. 12, s. 2023, subject to the following guidelines/conditions:

1. The grant of SRI shall be determined by the LGU’s respective Sanggunian.

2. The grant of SRI is subject to the LGU’s financial capability.

3. Also, the grant of SRI in LGUs is subject to PS limitations under the Local Government Code of 1991 (RA 7160).

4. To be eligible to the SRI, LGU employees must comply with all the conditions provided under Section 2 of AO 12, s. 2023, as follows:

✅ The personnel are still in government service as of 30 November 2023;

✅ The personnel have rendered at least a total or an aggregate of four (4) months of satisfactory service as of 30 November 2023, inclusive of services rendered under any of the alternative work arrangements prescribed by the Civil Service Commission;

✅ Those who have rendered less than a total or an aggregate of four (4) months of satisfactory service as of 30 November 2023 shall be entitled to a pro-rated SRI.

✅ The employees have not received any additional year-end benefit in FY 2023 over and above the benefit authorized under Republic Act (RA) No. 6686, as amended by RA No. 8441.

1. The SRI shall be granted at a uniform rate not exceeding ₱20,000.00 chargeable against the LGU’s local government funds for FY 2023.

2. If the identified funding source is insufficient to cover the full amount of SRI, a lower but uniform amount of SRI shall be paid to all qualified employees of the LGU.

3. The amount required shall be chargeable against the available FY 2023 appropriations or surplus, upon the enactment by the local sanggunian of the corresponding supplemental budget (SB) for the purpose.

4. In case the LGU fails to enact an SB within FY 2023, the LGU concerned may enact an SB for FY 2024, provided that the: (i) SB shall be charged against the LGU’s reverted and unused surplus for prior years, subject to compliance with pertinent provisions of RA No. 7160, and other existing laws, rules and regulations; (ii) prior year’s surplus is backed by cash; and (iii) annual budget for FY 2024 is already approved.

5. The SRI shall be paid not earlier than December 15, 2023.

6. AO 12, s. 2023 is the legal basis for the grant of SRI for 2023. However, the DBM shall issue supplemental guidelines as maybe necessary.

7. As a general rule, the SRI is subject to tax.

Download the Full Copy of AO 12, s. 2023 – Authorizing the Grant of Service Recognition Incentive (SRI) to Government Employees for FY 2023

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