7 Conditions to Comply to Legally Receive up to ₱30,000.00 CNA Incentive in December 2024

The Department of Budget and Management (DBM) has released the guidelines on the grant of Collective Negotiation Agreement Incentive (CNAI) for FY 2024 which sets the policies, procedures and conditions to comply in order to receive up to ₱30,000.00 CNA incentive in December 2024.

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In this article we give you the seven (7) conditions set in Budget Circular No. 2024-4 to be eligible and legally receive up to ₱30,000.00 worth of CNA incentive.

Condition 1: Existence of a CNA

In order to legally grant the CNA incentive, there should be a valid and subsisting CNA executed between the representatives of the management and the employees’ organization accredited by the CSC as the sole and exclusive negotiating agent for the purpose of collective negotiations with the management of a department, line bureau, attached agency, Constitutional Office, SUC, GOCC, LWD, or LGU. (Item 4.1.1.a of BC No. 2024-4)

Condition 2: Expressed Provision

The grant of the CNA Incentive must be stipulated (or expressed) in the Collective Negotiation Agreement (CNA) or in supplements thereof. (Item 4.1.1.b of BC No. 2024-4)

Condition 3: Accomplishment of Target

The accomplishment of targets as provided in Item No. 4.1.2.a to 4.1.2.d of BC No. 2024-4 shall be complied with in order to grant the CNA incentive.

Condition 4: Submission of Accountability Reports

The NGAs, including Constitutional Offices enjoying fiscal autonomy and SUCs, should have submitted to DBM their respective accountability reports as of September 30, 2024 in order to grant the CNA incentive. (Item No. 4.1.3 of BC No. 2024-4)

Condition 5: Allowable Funding Source

For NGAs, including Constitutional Offices and SUCs, the payment of CNA incentive shall be sourced solely from the allowable funding sources under the Maintenance and Other Operating Expenses (MOOE) as provided in Item 4.3 of BC No. 2024-4, viz:

(a) Communication Expenses;
(b) Repairs and Maintenance Expenses;
(c) Suppiies and Materials Expenses;
(d) Transportation and Deiivery Expenses;
(e) Traveling Expenses;
(f) Utility Expenses;
(g) Printing and Publication Expenses;
(h) Advertising Expenses; and
(i) Subscription Expenses

Provided further that the FY 2024 requirements have been considered and the same have become available as a result of cost-cutting and systems improvement measures undertaken collectively by the agency and its personnel, as identified in their respective CNAs and supplements thereof. (Item No. 4.3.1 of BC No. 2024-4)

For GOCCs, the CNA Incentive shall be sourced solely from the total MOOE level under their respective DBM-approved Corporate Operating Budget (COB) for FY 2024 provided that the conditions set in Item No. 4.3.4 of BC No. 2024-4, as applicable are also complied with.

For Local Water Districts (LWDs) , the CNA Incentive shall be sourced solely from the allowable MOOE allotments in FY 2024, as enumerated in Item 4.3.1 of BC No. 2024-4 under their Board of Directors-approved COBs, provided they have a positive net balance in the average net income for the period January 1 to September 30, 2024, to be validated by the Local Water Utilities Administration. (Item No. 4.3.5 and 4.1.2.c of BC No. 2024-4)

For local government units (LGUs), the CNA Incentive shall be sourced solely from lhe allowable MOOE allotments in FY 2024, as enumerated in Item 4.3.1 of BC No. 2024-4, under their respective approved LGU budgets.

Condition 6: Period and manner of payment

The FY 2024 CNA Incentive is a one-time benefit which shall be granted not earlier than December 15, 2024 but not later than
December 31, 2024. It cannot be given immediately upon signing and ratification of the CNA as this will transform the CNA Incentive into a CNA Signing Bonus which the Supreme Court, in the case of Social Security System vs. COA, has prohibited for not being a truly reasonable compensation. (Item No. 4.4.1 and 4.4.2 of BC No. 2024-4)

Condition 7: Approval by the Agency Head

The payment of the CNA Incentive shall be subject to the approval by the Agency head and made only during the validity of appropriations. (Item No. 5.1.3 of BC No. 2024-4)

To learn more about the grant of CNA incentive for FY 2024, download the guidelines here.