QNA: Can LGUs grant CNA incentives to their employees?

Question:

Can Local Government Units (LGUs) grant CNA incentives to their employees?

Answer:

Yes, local government units (LGUs) can grant the Collective Negotiation Agreement (CNA) incentive to their employees, subject to the guidelines issued by the Department of Budget and Management (DBM). 

To grant CNA incentives, LGUs must comply with the conditions set by the DBM in the pertinent guidelines issued for the covering year, such as but not limited to the following:

• Existence of a Collective Negotiation Agreement (CNA)

• Accomplishments of certain targets

• Fund source must come only from allowable sources

• The grant must be approved by the Head of Agency, in the case of LGUs, the Local Chief Executive, covered by a Supplemental Budget authorized by the Sanggunian concerned.

• Payment shall be made only on the prescribed period

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