One of the most awaited year-end benefits for government employees aside from the Year-End Bonus is the Collective Negotiation Agreement (CNA) Incentive.
Authorized under Administrative Order No. 135, s. 2005 and institutionalized under Joint Resolution No. 4, s. 2009 as a form of reward to motivate employee efforts toward higher productivity, it is granted to agencies that successfully save from their MOOE through cost-cutting and systems improvement measures undertaken collectively by management and employees.
In this Benefits Guide for FY 2026, we break down everything you need to know based on the latest guidelines – who may be entitled, including rank-and-file members of a CSC-accredited employees’ organization, non-members who pay agency fees, and those performing managerial functions, the conditions for grant including a valid and subsisting CNA and submission of accountability reports, how much you can receive, and when it will be paid.
The incentive for FY 2025 shall not exceed P30,000.00 per qualified employee and shall be granted as a one-time benefit not earlier than December 15 but not later than December 31, and is generally taxable subject to de minimis rules.
For FY 2026, the same rate may apply unless a higher/lower amount is prescribed by the Department of Budget and Management (DBM).
Legal Basis
- Administrative Order No. 135, s. 2005 — authorizes the grant of the CNA Incentives to government employees and directs the Department of Budget and Management (DBM) to issue the necessary policy and procedural guidelines for its implementation.
- Senate and House of Representative (Congress) Joint Resolution No. 4, s. 2009 — institutionalizes the grant of the CNA Incentive as a form of reward to motivate employee efforts toward higher productivity.
- Section 82 of the General Provisions (GP) under the FY 2025 General Appropriations Act — provides the rules in the grant of the CNA Incentive.
- Budget Circular No. 2025-2 — Guidelines on the Grant of Collective Negotiation Agreement Incentives for FY 2025
Who may be entitled to the CNA Incentives
- Civilian personnel occupying regular, contractual, or casual positions rendering services on a full-time or part-time basis in national government agencies, including Constitutional Office enjoying fiscal autonomy, SUCs, GOCCs, LWDs, and LGUs, whether or not covered by RA No. 6758 dated August 21, 1989:
- Rank-and-file employees who are members of an employees’ organization accredited by the Civil Service Commission (CSC) as the sole and exclusive negotiating agent;
- Rank-and-file employees who are non-members of the negotiating agent who wish to enjoy or accept benefits under the CNA, subject to the payment of agency fees to the negotiating agenct; and
- Those who perform managerial functions.
Conditions for the Grant of the CNA Incentive
The grant of CNA incentives is subject to the following conditions, as summarized:
- There should be a valid and subsisting CNA executed between the representatives of the management and the employees’ organization;
- The grant of the CNA Incentive must be stipulated in the CNA or in supplements thereof;
- The agencies concerned shall accomplish the targets set in the guidelines for the grant of CNA incentives;
- The agencies concerned should have submitted to the DBM their accountability reports as of September 30, 2025; and
- The CNA Incentive shall be sourced solely from the available balances of allowable MOOE allotments after considering the FY 2025 requirements, provided that the same have become available as a result of cost-cutting and systems improvement measures undertaken collectively by the agency and its personnel. Such source of funds shall be limited to the following MOOE items:
- Communication Expenses;
- Repairs and Maintenance Expenses;
- Supplies and Materials Expenses;
- Transportation and Delivery Expenses;
- Traveling Expenses;
- Utility Expenses
- Utility Expenses;
- Printing and Publication Expenses;
- Advertising Expenses; and
- Subscription Expenses.
How much is the CNA Incentives for FY 2025
The CNA Incentive shall not exceed Thirty Thousand (P30,000.00) per qualified employee.
Payment of the CNA Incentive
The FY 2025 CNA Incentive is a one-time benefit which shall be granted not earlier than December 15, 2025 but not later than December 31, 2025.
Is the CNA Incentive taxable?
Yes, the CNA incentive is generally taxable but a portion of it may not be subject to tax following the rules on De Minimis Benefits.
Download the Guidelines on the Grant of CNA Incentive for FY 2025
Download Budget Circular No. 2025-2 — Guidelines on the Grant of Collective Negotiation Agreement (CNA) Incentives, here.
Question?
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