[FULL GUIDE] — DBM and COA Guidelines on the Grant of Uniform or Clothing Allowance to Government Employees
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[This article is updated as of April 5, 2024 considering issuance of Budget Circular No. 2024-1]
Government employees, just like the employees working in the private sector, whether working in the national or local government units, are entitled to an annual uniform or clothing allowance.
This Guide is written to provide understanding on the grant of uniform or clothing allowance to government employees, which may be of help to government employees, public financial management (PFM) practitioners, researchers, and those who are planning to apply for a job in the Philippine government.
PFM practitioners is a collective term for government employees who belong to the finance sector of the government such as but not limited to government accountants, budget officers, treasurers, cashiers, state auditors, budget and financial analysts, etc.
In this Guide, we discuss the following concerns regarding the grant of uniform or clothing allowance, and to understand the nature of this allowance and what can government employees expect from their respective offices.
The Guide also includes frequently discussed concerns on the grant of the allowance, as discussed in our forums via our Facebook Page and Group.
The topics discussed in this Guide include, among others, the following:
+ What is Uniform or Clothing Allowace?
+ Whose government employee is entitled to the Uniform or Clothing Allowance?
+ What are the conditions that must be met first in order to receive the Uniform or Clothing Allowance?
+ Are newly-hired employees entitled to the Uniform or Clothing Allowance on their first year of government service?
+ How much is the Uniform or Clothing Allowance?
+ What does the Uniform or Clothing Allowance cover? Does it include shoes and other body ornaments?
+ When do government employees receive their Uniform or Clothing Allowance? [When do government agencies pay the Uniform or Clothing Allowance?]
+ Is the Uniform or Clothing Allowance given in the form of cash?
+ Is the Uniform or Clothing Allowance taxable?
+ What are the common observations (audit findings) committed by government agencies on granting the Uniform or Clothing Allowance.
If you are looking for the answers to these question, then this article can be of help to you.
What is Uniform or Clothing Allowance?
The uniform or clothing allowance is among the allowances (monetary benefits) of government employees authorized under existing laws rules and regulations as provided below.
The allowance is given every year to qualified government employees to defray expenses for the purchase of their prescribed uniform or office attire. The design, materials and mode of procurement of said uniform is different for each government agency.
We will discuss later in the article the three (3) ways in which the uniform or clothing allowance may be given.
Legal Bases on the Grant of Uniform or Clothing Allowance
In the government, it is the Department of Budget and Management (DBM) which sets the general guidelines or policies on the grant of monetary benefits to government employees, including the uniform or clothing allowance.
Hence, for this Guide, we used DBM Budget Circular No. 2018-1 Budget Circular No. 2024-1 (being the latest guidelines on the subject benefit) and other pertinent laws, rules and regulations pertaining to the grant of uniform or clothing allowance to government employees as references.
Legal bases we used in this Guide:
Budget Circular No. 2024-1 — Updated Rules and Regulations on the Grant of the Uniform/Clothing Allowance (U/CA) to Civilian Government PersonnelBudget Circular No. 2018 1— Rules and Regulations on the Grant of Uniform or Clothing Allowance to Civilian Government Personnel
Section 58 of the General Provisions of the 2024 General Appropriations Act (GAA). For previous years’ legal bases, kindly refer to the pertinent section of General Provisions of the previous years’ GAA.
Senate and House of Representatives Joint Resolution No. 4 — Joint Resolution Authorizing the President of the Philippines to Modify the Compensation and Position Classification System of Civilian Personnel and the Base Pay Schedule of Military and Uniformed Personnel in the Government and for Other Purposes (see Section 4.f.ii)
Republic Act (RA) 6758 —
*This portion of this Guide is regularly updated to include the latest guidelines on the grant of uniform or clothing allowance. Hence, we recommend that you regularly visit this Guide for the latest issuances/circular on the grant of uniform or clothing allowance.
Whose government employee is entitled to Uniform or Clothing Allowance?
According to DBM Budget Circular No. 2024-1, civilian government personnel occupying regular, contractual, or casual positions; appointive or elective; rendering services on full-time or part-time basis may be granted the annual uniform or clothing allowance.
However, the following government personnel are excluded from the grant of uniform or clothing allowance as authorized in the subject Circular due to certain reasons:
> Barangay officials and employees paid monthly honoraria (since they are not required to comply with dress codes or wear prescribed government uniforms)
> Foreign service personnel of the Department of Foreign Affairs and of other departments/agencies who are stationed abroad (since they are not required to wear uniforms and are sufficiently supported by a set of living allowance)
> Those hired without employer-employee relationships and funded from non-Personnel Services appropriations/budgets, such as the following:
> Consultants and experts hired for a limited period to perform specific activities or services with expected outputs;
> Laborers hired through job contracts (pakyaw) and those paid on piecework bases;
> Student laborers and apprentices; and
> Those whose services are engaged through job orders, contracts of service, and others similarly situated.
The guidelines for the uniform or clothing allowance of Military and Uniformed Personnel of the government is covered by separate rules and regulations.
General Service Requirements for the Grant of Uniform or Clothing Allowance
What is required number of government service before an employee may be entitled to the Uniform or Clothing Allowance?
As a general rule, the full rates of the uniform or clothing allowance for full-time and part-time service shall be granted to those who are already in the government service and are to render services for at least six (6) months in a particular fiscal year, including leaves of absence with pay.
Said provision of the guidelines pertains to employees who are already in the government, as opposed to newly-hired employees, and are to render services for at least six months in a particular year, that is, within January 1 to December 31 of the current year.
A new employee, hired during the fiscal year, may qualify to the grant of uniform or clothing allowance only after rendering six (6) months of service, and if he/she is expected to render services for at least six (6) months for the rest of the year.
However, the six (6)-month service requirement shall not cover those who are required to wear uniforms at all times in the performance of their work such as incumbents of positions of Security Guard, Special Police, medical and allied medical staff in hospitals, and those in similar situations, as they have to wear their uniforms at all times.
How much is the Uniform or Clothing Allowance of Government Personnel?
Pertinent provisions of the General Appropriations Act (GAA) provides for the amount of uniform or clothing allowance that may be granted to government personnel. Last year (2023), the amount was P6,000.00 per qualified employee.
Starting 2024, the uniform or clothing allowance may be granted at an amount not exceeding ₱7,000.00.
Section 58 of the General Provisions of the General Appropriations Act of FY 2024 provides:
Section 58. Uniform or Clothing Allowance.
An amount not exceeding Seven Thousand Pesos (₽7,000.00) per year is hereby authorized for the payment of uniform or clothing allowance to each qualified government employee, subject to B. C. No. 2018-1 dated March 8, 2018, and such other guidelines issued by the DBM.
General Provisions, 2024 GAA
In the future, the amount of uniform or clothing allowance may likewise increase subject to the approval of the President of the Philippines. We will inform you on this article or on our website of any increase/changes thereon.
Is the Uniform or Clothing Allowance given in the form of Cash?
There are three (3) ways in which the uniform or clothing allowance may be given to government employees.
As stated in Item 7.0 of Budget Circular No. 2024-1, the uniform or clothing allowance may be granted in the following forms:
1. In the form of uniforms procured through a bidding process which may include uniform articles normally worn as part of the uniform such as regulation caps, belts, etc. for incumbents of positions like Special Police, Security Guards, etc.
2. In the form of textile materials and cash to cover sewing/tailoring costs, as has been adopted by very large departments;
The said Circular provides that as far as practicable, the materials to be used for the uniforms of government employees shall be made of Philippine tropical fibers.
3. In cash form, for incumbents of executive positions who may not be required to wear the prescribed uniforms, or for those who will procure their individual uniforms according to set conditions.
Hence, depending on the policy set by the agency, the uniform or clothing allowance is not automatically given in cash form.
What does the Uniform or Clothing Allowance cover [does it include shoes and other body ornaments?]
No. The uniform or clothing allowance does not cover shoes.
According to the guidelines, shoes shall be on the personal accounts of government officials and employees, unless provided for by law.
Likewise, body ornaments, unless required as part or component of the uniform, are likewise not covered by the uniform or clothing allowance.
When to Pay the Uniform or Clothing Allowance [When do government employees receive their Uniform or Clothing Allowance?]
As of now, there are no guidelines that specifically provide for the exact date when to pay the uniform or clothing allowance of government employees.
Unlike other bonuses and allowances such as Mid Year Bonus, Year End Bonus, and Productivity Enhancement Incentive (PEI) which are paid not earlier than May 15, November 15, and December 15, respectively, there is no existing guidelines that provides for the exact date when to pay the uniform or clothing allowance.
However, we can find relevant information on this in other Circulars of the DBM. For instance, DBM Circular Letter No. 2016-9 (Submission of the Annual Budget Execution Plans), particularly Item No. 3.4 of Annex C, says:
“In preparing the Monthly Disbursement Program (MDP), the following assumptions and other factors shall be considered:
Seasonality (e.g., peak/slack periods) of activities and other factors that will tend to influence programming, to wit:
[Personnel Services] (PS) shall consider the timing on the grant of PS benefits, among others:
Uniform/Clothing Allowance – April (xxx)“
This guidelines is still followed up to this time.
In fact, in Circular Letter No. 2022-14 or the guidelines on the preparation of annual Budget Execution Documents (BEDs) for CY 2023, particularly BED No. 3 or the Monthly Disbursement Program (MDP), the Instructions on the preparation of BED 3 provides, to wit:
In preparing the MDP, the agency/OU shall consider and disclose by footnote the following assumptions and other factors:
Seasonality of activities and other factors that will tend to influence programming, to wit:
• Personnel Service (PS) shall consider the timing on the grant of PS benefits e.g., April program shall include
Clothing/Uniform Allowance (xxx),
Hence, for National Government agencies, since the cash for the payment of uniform or clothing allowance is programmed in April of each year, the same is usually released during the same month or later following the prescribed guidelines on uniform and clothing allowance.
For local government units (LGUs), they follow the provisions of their respective local budgets on the payment of uniform or clothing allowance considering the guidelines issued by the DBM on the grant of said allowance.
Guidelines on the Grant of Uniform or Clothing Allowance to New Employees
Are newly-hired employees entitled to receive the uniform or clothing during the year they were hired?
In the article below, we explained in detail whether newly-hired employees may receive their uniform or clothing allowance during the year they were hired.
Guidelines on the Grant of Uniform or Clothing Allowance to an Employee on Detail
Detail — temporary movement of an employee from one department or agency to another which does not involve a reduction in rank, status or salary.
Reference: Supreme Court e-Library
If the government employee is on detail to another government agency, his/her uniform or clothing allowance is borne by the mother agency.
Guidelines on the Grant of Uniform or Clothing Allowance to Transferred Employee
Transfer — is the movement of employee from one position to another which is of equivalent rank, level or salary without break in the service involving the issuance of an appointment.
Reference: Supreme Court e-Library
Below are important guides on the grant of uniform or clothing allowance to government employees who transferred to another government agency.
- If the employee who transferred was not granted by the former agency, the new agency shall grant the allowance, subject to submission of certification to that effect.
- Conversely, if the employee who transferred was granted by the former agency, the new agency shall no longer grant the same.
- On the other hand, if the employee who transferred was granted the uniform or clothing allowance by the former agency but is required to wear the uniform of the new agency at all times, he/she may be granted by the new agency subject to the approval by the agency head.
Guidelines on the Grant of Uniform or Clothing Allowance to an Employee on Study Leave / Study / Training / Scholarship Grant
Below are guides in granting uniform or clothing allowance to government employees who are on study leave / study / training / scholarship grant, whether locally or abroad:
- If the employee concerned renders at least six (6) months of service in the same year before and/or after the study/scholarship, he/she may be granted the uniform or clothing allowance.
- However, if the employee concerned is on study/scholarship for the whole year, and is not required to report for work, he/she is not entitled to the uniform or clothing allowance.
Is the Uniform or Clothing Allowance taxable?
The uniform and clothing allowance of government employees amounting to P6,000.00 per year is among the authorized de minimis benefits under Revenue Memorandum Circular No. 50-2018 which is exempt from withholding tax.
Unless the aforementioned Revenue Memorandum exempting the uniform or clothing allowance from withholding taxes is repealed or amended, only the ₱6,000.00 from the ₱7,000.00 uniform or clothing allowance is exempt from tax. Hence, the excess of ₱1,000.00 is subject to tax.
Authorized Fund Sources for the Payment of Uniform or Clothing Allowance
The sources of funds to pay the uniform or clothing allowance is different for the national and local government units (LGUs).
National government agencies including state universities and colleges (SUCs) charge the uniform or clothing allowance from their respective agency budget.
Government-owned and controlled corporations charged the uniform or clothing allowance from their corporate operating budgets.
On the other hand, LGUs charged the uniform or clothing allowance of their employees from their local budgets.
Guidelines on the Grant of Uniform or Clothing Allowance to Employees of Local Government Units (LGUs)
The above stated guides also apply to the grant of uniform or clothing allowance to employees of LGUs.
In addition, however, the grant of uniform or clothing allowance to employees of LGUs is subject to Personnel Services (PS) limitations or PS cap, pursuant of the Local Government Code of 1991, as briefly explained below.
What is PS Limitation for LGUs?
PS limitation or PS cap for LGUs means that LGUs cannot exceed the threshold/rate provided under the Local Government Code of 1991 for the payment of LGU personnel services such as salaries, bonuses, allowances, etc.
According to Sections 325 (a) and 331 (b) of the Local Government Code of 1991 (RA No. 7160):
Section 325(a) — The total appropriations, whether annual or supplemental, for personal services of a local government unit for one (1) fiscal year shall not exceed forty-five percent (45%) in the case of first to third class provinces, cities and municipalities, and fifty-five percent (55%) in the case of the fourth class or lower, of the total annual income from regular sources realized in the next preceding fiscal year.
Reference: Local Budget Circular No. 145, s. 2022 re: Guidelines on the Implementation of Personnel Services Limitation on Local Government Budgets (xxx)
Guidelines on the Grant of Uniform or Clothing Allowance to Teaching and Non-Teaching Personnel of the Department of Education (DepEd)
While the DBM issues Circulars pertaining to the grant of uniform or clothing allowance, the national government agencies, including LGUs, are not precluded from issuing their own internal guidelines to further provide further policies on the grant of said allowance.
In the case of the Department of Education for example, it issues Department Order to provide its teaching and non-teaching personnel the guidelines on the grant of uniform or clothing allowance in the Department.
In 2021, the Department issued DepEd Memorandum No. 016 or the Guidelines on the New DepEd National Uniform for Teaching and Non-Teaching Personnel.
Just the same, the Memorandum is based on the general guidelines on the grant of uniform or clothing allowance as provided in BC No. 2018-1.
The only difference is that the Memorandum specifies how the uniform or clothing allowance is given, the design of the uniform itself, among other things.
Common mistakes (audit findings) in the Grant of Uniform or Clothing Allowance [as cited by the Commission on Audit in its Audit Reports available online]
Despite the guidelines provided by the DBM and the internal guidelines provided by the different departments and agencies, as well as the LGUs, government offices, including their officials and employees still commit mistakes in granting the uniform or clothing allowance.
Here, we collated the common mistakes made by government agencies or their officials and/or employees in granting the uniform or clothing allowance:
Audit Finding No. 1 — Improper recording of uniform or clothing allowance in the books of accounts.
In an audit report issued by the Commission on Audit (COA), an LGU reported the uniform or clothing allowance under the Repairs and Maintenance Expenses — Buildings and Other Structures since the uniforms were given to their job order workers.
It was not stated in the said audit report the context of the grant, but we learned earlier in this article that job order workers, since they do not have employee-employer relationship, are not entitled to uniform or clothing allowance.
Nevertheless, if indeed they are entitled to uniform or clothing allowance, the grant should have been recorded under the Uniform and Clothing Allowance account.
Audit Finding No. 2 — Incorrect charging of Uniform or Clothing Allowance
In an audit report issued by COA, another LGU charged the grant of uniform or clothing allowance under “Other Supply Expenses” which is under its appropriations for Maintenance and Other Operating Expenses instead of its appropriations for Personnel Services.
Also, we learned earlier in this article that the uniform or clothing allowance of LGU personnel shall be charged against the LGU appropriation for Personnel Services subject to PS limitation.
Hence, charging the uniform or clothing allowance to other appropriations is not allowed.
Audit Finding No. 3 — Irregularities in the procurement of uniforms and disbursement of funds
Earlier in this article, we said that there are three (3) ways in which the uniform or clothing allowance may be given; one of which is the procurement of the uniform through a bidding process.
In 2012, the COA issued a Notice of Disallowance to a certain agency since it did not follow a number of rules and regulations under the Government Procurement Act (RA 9184).
The subject case is lengthy but it is worth noting that the COA has the authority to issue Notice of Disallowance for disbursements that were found to be irregular.
Learn more audit findings on the grant of uniform or clothing allowance
In this article, you will learn some more audit findings on the grant of uniform or clothing allowance such as the following:
- Excessive and unauthorized grant of uniform or clothing allowance;
- Granting uniform or clothing allowance to individuals who are not authorized or eligible to receive the allowance;
- Unequal grant of uniform or clothing allowance in LGU;
- Etc.
Let’s Discuss Further
Do you have any question on this Guide? Please let us know in the comments section below.
While we wrote this article based on available references that we have and online, we highly recommend that you do your own study and research of the guidelines.
And if in doubt, it is best to directly consult the appropriate government agency for your concern
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