Guidelines on the grant of P25,000.00 CNA incentive for CY 2022
Legal Basis
The Department of Budget and Management issued Budget Circular No. 2022-3 to provide guidelines on the grant of collective negotiation agreement (CNA) incentive for CY 2022.
The other legal bases on the grant of CNA incentives are the following:
- Administrative Order No. 135, s. 2005 — Authorizing the Grant of Collective Negotiation Agreement Incentive to Employees in Government Agencies
- Senate and House of Representatives Joint Resolution No. 4, s. 2009 — 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
- Section 72 of the General Provisions of the FY 2022 General Appropriations Act (GAA)
Agencies covered by the CNA incentive guidelines
Budget Circular No. 2022-3 is applicable to the following government agencies:
- National Government Agencies (NGAs)
- State Universities and Colleges (SUCs)
- Constitutional Offices enjoying fiscal autonomy
- Government-owned and Controlled Corporations (GOCCs)
- Local Water Districts (LWDs)
- Local Government Units (LGUs)
Government employees covered by the CNA incentive guidelines
The following civilian personnel of the above-stated government agencies occupying regular, contractual, or casual positions rendering services on full-time or part-time basis may be granted CNA incentives:
a. Rank-and-file employees who are members of an employees’ organization accredited by the Civil Service Commission (CSC).
b. Rank-and-file employees who are non-members of the CSC-accredited sole and exclusive negotiating agent but want to enjoy or accept benefits under the CNA, subject to payment of agency fee to the negotiating agent in accordance with PSLMC Resolution No. 1, s. 1993.
c. Those who perform managerial functions.
Conditions on the grant of CNA incentives
The following are the conditions on the grant of CNA incentives, as stated in the subject budget circular:
a. There should be a valid and subsisting CNA executed between the representatives of the management and the employees’ organization accredited by the CSC wherein the grant of CNA incentive is expressly stipulated.
b. The CNA includes, among others, a provision on cost-cutting measures to be undertaken collectively by the agency and its personnel.
c. The one-time annual payment of CNA incentive shall be made through a written resolution signed by agency representatives from both labor and management, and approved by the agency head.
d. The CNA Incentive that may be granted shall be limited to the amount determined by the DBM.
e. The use of MOOE for the payment of CNA incentive shall be subject to approval by the agency head and made only during the validity of appropriations. Any excess amounts therefrom after payment of the CNA incentive shall revert to the General Fund.
f. Agencies concerned should have accomplished by September 30, 2022 the targets setforth under the subject budget circular.
g. Agencies concerned should have submitted to the DBM the required budget and financial accountability report as of September 30, 2022.
Rate of the CNA incentive
It is prohibited to pre-determine the amount of the incentive in the CNA since the grant of the same is subject to:
- the conditions setforth under the subject budger circular; and
- availability of the allowable allotments.
The CNA incentives may be given equally or at varying rates but not to exceed P25,000.00 per qualified employee.
Allowable MOOE allotments for the CNA incentive
The payment of CNA incentive shall be limited to the following MOOE items defined under the Government Accounting and Auditing Manual:
(a) Communication Expenses;
(b) Repairs and Maintenance;
(c) Supplies and Materials Expenses;
(d) Transportation and Delivery Expenses; (e) Traveling Expenses; and
(f) Utility Expenses.
When to pay the CNA incentive for CY 2022
The CNA Incentive for the year shall be a one-time benefit to be granted not earlier than December 15, 2022.
Accounting for the CNA incentive
The amount paid as CNA Incentive shall be recorded in the agency books as follows:
For NGAs — “Collective Negotiation Agreement Incentive — Civilian”
For LGUs — “Other Benefits”
For GOCCs and LWDs — “Collective Negotiation Agreement Incentive”
More details
The above is just a summary of the salient features of the Circular on the grant of CNA incentive for CY 2022.
To learn more about the other specific provisions of the subject Circular, you may download the Circular by clicking the link below.
Clarifications
Please leave a comment below should you have corrections or clarifications on the above summary.
Government Accountants, Budget Officers, Treasurers and Auditors’ Forum