Frequently Asked Questions (FAQs) on Collective Negotiation Agreement (CNA) Incentives

1. Are Job Order (JO) and Contract of Service (COS) workers entitled to CNA incentives?

No. JO and COS workers are not entitled to CNA incentives inasmuch as, among other reasons, to be entitled to the incentive, the grantee must be a rank-and-file employee of the government or the employee performs managerial functions.

Based on existing guidelines, JO and COS workers are not employees of the government but rather service providers to the government. Hence, since JO and COS workers are not classified as employees of the government, which preclude them from joining collective negotiation agreement, they are not entitled to CNA incentives.

2. Are the members of the Armed Forces of the Philippines (AFP) and the Philippine National Police (PNP) entitled to CNA incentives?

No. Pursuant to the IRR of EO 180, the members of the AFP and PNP are not allowed to form, join or assist in collective negotiation agreement (CNA). Consequently, as a condition for the grant of the CNA incentives, there must be a valid and subsisting Collective Negotiation Agreement between an employees’ organization and the Management. Thus, given this constraint, the members of the AFP and PNP are not entitled to the said incentives.

3. Are LGUs entitled to CNA incentives?

Yes. LGU employees may be granted CNA incentives, provided they meet the conditions and funds are available.

4. Are employees who died/retired during the year entitled to CNA Incentives?

It depends on the internal guidelines agreed upon by the Employees’ Organization-Management Consultative Committee.

Pursuant to Item 5.0 of Budget Circular No. 2018-5 dated November 14, 2018, an Employees’ Organization-Management Consultative Committee (Committee, for brevity) or a similar body composed of representatives from management and the negotiating agent shall determine if the agency is qualified for the grant of CNA Incentive based on compliance with the requirements under this Circular.

If qualified, the Committee shall review the agency’s financial records and submit recommendations on the internal guidelines to be followed in the grant of the CNA Incentive, such as: (i) the specific criteria for determining who are entitled; and (ii) the distribution of the amount available

5. How about newly-hired employees i.e., those hired during the current year, are they entitled to the CNA incentive?

Just like in No. 4 above, the entitlement of newly-hired employees depends on the internal guidelines/agreement between the employees’ organization and the management.