Good News!

Are you excited for FY 2026? We do. We are very excited as much as you do especially when we think of the benefits that await us all.

In this post, we are going to give you a preview of the 26 benefits that await all government employees for 2026.

Preview: 26 Benefits of Government Officials and Employees in 2026

Below are the benefits we are excited about this year!

1. 3rd Tranche Salary Increase (EO 64, s. 2024)

[See Salary Schedule, effective January 1, 2026]

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2. Step Increment for Length of Service

Increase in salary step after every three (3) years in the same position.

3. Step Increment due to Meritorious Performance

Increase in salary step in recognition of outstanding or very satisfactory performance of an employee

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4. Overtime Credits/Pay

Premium on the overtime services of employee. This can be in the form of Compensatory Time-off (CTO) or overtime pay depending on the availability of funds.

5. Personnel Economic Relief Allowance (PERA)

₱2,000.00/month per employee.

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6. Representation Allowance and Transportation Allowance (RATA)

For certain government officials to cover expenses in the performance of their duties and functions.

7. Extraordinary and Miscellaneous Expenses (EME)

For certain government officials to cover discretionary expenses.

8. Special Counsel Allowance

For certain government lawyers.

9. Medical Allowance

P7,000.00/employee per year to cover medical expenses of government employees through an HMO or cash.

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10. Hazard Duty Pay

For certain government employees exposed to hazards in the workplace.

11. Night-Shift Differential

For government employees working from 6PM to 6AM.

12. Honoraria

For speakers, facilitators, etc. for procurement and special projects.

13. Uniform and Clothing Allowance (UCA)

P7,000.00/employee per year which may be in the form of ready-to-wear uniform, textiles/cloth or cash.

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14. Mid Year Bonus (MYB)

Equivalent to one (1) month basic salary as of May 15. Given to government employees not earlier than May 15 of the current year.

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15. Year End Bonus (YEB)

Equivalent to one (1) month basic salary as of October 31. Given simultaneously with the first payroll of the agency in November.

16. Cash Gift (CG)

P5,000.00/employee per year.

17. Productivity Enhancement Incentive (PEI)

P5,000.00/employee per year, subject to prior authority from the President of the Philippines due to Executive Order No. 61, s. 2024.

18. Service Recognition Incentive (SRI)

P20,000.00/employee, subject to the issuance of an Administrative Order by the President of the Philippines.

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19. Monetization of Leave Credits (MLC)

Employees may monetize their earned leave credits and it is not taxable.

20. Performance-Based Bonus (PBB)

Eligible employees may receive up to 65% of their monthly salary if their agency is eligible to the grant of PBB for a certain year.

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21. Terminal Leave Benefits (TLB)

Money value of earned leave credits when employee is separated from service due to resignation, retirement, etc.

22. Collective Negotiation Agreement Incentive (CNAI)

P30,000.00/employee, subject to availability of funds and compliance to conditions.

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23. Daily Travel Expenses (DTE)

Employees may claim up to P2,200.00 per day to cover official travel, depending on point of destination

24. Communication Expenses/Allowance

For certain government officials and employees.

25. Free Quarter Privilege

For certain government officials particularly those transferred or assigned to a new location.

26. Budget for Cultural or Athletic Activities

P1,500.00 per employee participant.

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Questions?

Regularly visit our website to learn more about these benefits. If you have any question about this post, kindly leave us a comment below and we will get back to you as soon as possible.