Guidelines on the Grant of Service Recognition Incentive (SRI) to Government Employees

Guidelines on the Grant of Service Recognition Incentive (SRI) to Government Employees
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What is Service Recognition Incentive (SRI)?

The Service Recognition Incentive (SRI) is a one-time benefit being granted to qualified government personnel in recognition of their collective and invaluable contributions to the government continuing efforts in pursuing the objectives, commitments, targets, and deliverables of the government.

Legal Bases in Granting Service Recognition Incentive

The Senate and House of Representatives (Congress) Joint Resolution No. 4, s. 2009 authorizes the President of the Philippines, upon the recommendation of the Department of Budget and Management (DBM), to update the Compensation and Position Classification System for civilian personnel, Base Pay Schedule for military and uniformed personnel, and policies on and levels of allowances, benefits, and incentives applicable to all government personnel.

Therefore, in view of this authority, the President of the Philippines issued the following Administrative Orders to authorize the grant of Service Recognition Incentive (SRI) to qualified government personnel.

Accordingly, the DBM issued the following implementing guidelines for the grant of Service Recognition Incentive for the abovementioned Administrative Orders, viz:

  • Budget Circular No. 2020-6 — Guidelines on the Grant of the One-Time Service Recognition Incentive to Government Employees for FY 2020, dated December 22, 2020
  • Budget Circular No. 2021-4 — Guidelines on the Grant of Service Recognition Incentive to Government Employees for FY 2021, dated December 28, 2021
  • Budget Circular No. 2022-4 — Guidelines on the Grant of Service Recognition Incentive to Government Employees for FY 2022, dated December 20, 2022
  • Budget Circular No. 2023-2 — Guidelines on the Grant of Service Recognition Incentive to Government Employees for FY 2023, dated December 13, 2023
  • Budget Circular No. 2024-7 — Guidelines on the Grant of Service Recognition Incentive to Government Employees for FY 2024, dated December 16, 2024

Who may be entitled to the Service Recognition Incentive (SRI)?

Based on the above implementing guidelines, the following government personnel may be eligible to the Service Recognition Incentive:

  • Civilian personnel in national government agencies (NGAs), including those in SUCs and GOCCs, occupying regular, contractual or casual positions

  • Military personnel of the Armed Forces of the Philippines under the Department of National Defense;

  • Uniformed personnel of the PNP, PPSC, BFP, BJMP under the DILG, the Bureau of Corrections under the DOJ, the PCG under the DOTr, and the National Mapping and Resource Information Authority under the DENR;
  • Employees in the Legislative and Judicial Department and other offices vested with fiscal autonomy;

  • Employees in LGUs; and

  • Employees in LWDs.

Conditions on the Grant of Service Recognition Incentive

The following are the common conditions on the grant of Service Recognition Incentive to government employees, viz:

  • The personnel are still in government service as of November 30 of the current year;
  • The personnel have rendered at least a total or an aggregate of four (4) months of satisfactory service as of November 30 of the current year, inclusive of services rendered under any of the alternative work arrangements prescribed by the Civil Service Commission (CSC)

  • Those of have rendered less than a total or an aggregate of four (4) months of service as of November 30 of the current year shall be entitled to a pro-rated Service Recognition Incentive, as follow:

  • 40% of SRI — if length of service (LOS) is 3 months but less than 4 months
  • 30% of SRI — if LOS is 2 months but less than 3 months
  • 20% of SRI — if LOS is 1 month but less than 2 months
  • 10% of SRI — if LOS is less than 1 month
  • The employees have not received any additional year-end benefit for the current year over and above the benefits authorized under Republic Act (R.A) No. 6686, as amended by RA No. 8441;

  • The personnel have not been found guilty of any administrative or criminal cases by final and executory judgement during the current year. If the penalty imposed is only a reprimand, the personnel concerned shall be entitled to the Service Recognition Incentive.

  • The Service Recognition Incentive of employee on part-time basis shall be pro-rated corresponding to the services rendered.
  • If the employee is employed on a part-time basis with two (2) or more agencies, they shall be entitled to proportionate amounts corresponding to the services in each agency, provided that the total Service Recognition Incentive shall not exceed the authorized amount.

  • The Service Recognition Incentive of an employee who transferred from one agency to another shall be granted by the new agency.

  • The Service Recognition Incentive on detail to another government agency shall be granted by the parent agency.

  • A compulsory retiree, on service extension as of November 30 of the current year, may be granted the Service Recognition Incentive, subject to the pertinent conditions and guidelines under pertinent DBM Circular.

Funding Source of the Service Recognition Incentive for Employees in the Executive Department

Similar to other benefits of government employees, the authorized funding source for the grant of Service Recognition Incentive is important to be known to guide government agencies where they could get the funds to pay the SRI.

  • For NGAs, including SUCs, and military and uniformed personnel — the SRI shall be charged against the available released Personnel Service allotments of the respective agencies under the current General Appropriations Act (GAA).
    • In case of deficiency, the amount required may be charged against the Maintenance and Other Operating Expenses (MOOE) allotments of the concerned government agency, subject to the rules on modification in allotment under pertinent General Provision of the current GAA, and other pertinent budgeting, accounting, and auditing rules and regulations.
  • For GOCCs, the amount required for the SRI shall be charged against the approved Corporate Operating Budget (COBs) for the current year only.

  • Should the identified funding sources be insufficient to cover the full amount of the Service Recognition Incentive, a lower but uniform amount shall be granted to the qualified employees of the NGA or GOCC.

Grant of Service Recognition Incentive to Employees in the Legislative and Judicial Departments and other Offices vested with Fiscal Autonomy

Employees of the Senate, House of Representatives, Judiciary, Office of the Ombudsman, and Constitutional Offices vested with fiscal autonomy may likewise be granted Service Recognition Incentive by their respective heads of office at a uniform rate not exceeding the prescribed SRI rate chargeable against the available PS allotment of their respective agencies subject to the conditions and guidelines set forth by the DBM.

Should the identified funding source be insufficient to cover the full amount of the Service Recognition Incentive, a lower but uniform amount shall be paid to all qualified employees of the concerned office.

Grant of Service Recognition Incentive to Local Government Units (LGUs) Employees

The grant of Service Recognition Incentive to employees in LGUs, including those in the barangays, shall be determined by their respective sanggunian depending on the LGU’s financial capability, at a uniform rate not exceeding the prescribed SRI rate during the current year, subject to the following conditions:

  • The Service Recognition Incentive shall be charged against the current year’s local government funds, subject to the PS limitation in LGU budgets pursuant to Sections 325(a) and 331(b) of RA No. 7160 or the “Local Government Code of 1991”, as amended.

  • The conditions on the grant of Service Recognition Incentive setforth under the current year’s implementing guidelines shall apply or adhered to.
  • Should the identified funding source be insufficient to cover the full amount of the Service Recognition Incentive, a lower but uniform amount shall be paid to all qualified employees of the LGU.

  • The amount required to pay the Service Recognition Incentive of LGU employees shall be chargeable against the available current year appropriations or surplus, upon the enactment by the local sanggunian of the corresponding supplemental budget for the purpose.

  • In case the LGU failed to enact a supplemental budget (SB) within the current year, it may enact an SB in the succeeding year, provided that the: (a) SB shall be charged against the LGU’s reverted and unused surplus for prior years, subject to compliance with pertinent provision of RA No. 7160, as amended, and other existing laws, rules and regulations; (b) prior year’s surplus is backed by cash; and (c) the annual for the succeeding year is already approved.
  • In the enactment of an SB, the LGU concerned shall be further guided by the following in the determination of PS limitation for the grant of the Service Recognition Incentive consistent with Sections 325(s) and 331(b) of RA No. 7160, as amended, and the existing local government budgeting rules and regulations: (a) SBs passed in the current year shall be subject to compliance with the PS limitation for the current year; and (b) SBs passed in the succeeding year shall be subject to compliance with the PS limitation for the subject year.

Grant of Service Recognition Incentive (SRI) to Employees in Local Water Districts (LWDs)

  • Local Water Districts may also grant the Service Recognition Incentive to their employees at a uniform rate to be determined by their Boards of Directors (BOD), which shall not exceed the prescribed SRI rate, chargeable against their respective BOD-approved current year Corporate Operating Budget only, subject to the conditions and guidelines setforth by the DBM under the current year Budget Circular for SRI.
  • Should the identified funding source be insufficient to cover the full amount of Service Recognition Incentive, a lower but uniform amount shall be paid to all qualified employees of the LWD concerned.

Service Recognition Incentive (SRI) for Employees in Agencies exempted from the coverage of RA No. 6758, as amended

  • NGAs and GOCCs exempted from the coverage of RA No. 6758, as amended, may also grant the Service Recognition Incentive to their employees at a uniform rate to be determined by their agency heads or governing boards, which shall not exceed the prescribed SRI rate for the current year, chargeable against the NGA’s available funds and the GOCCs current year COB, subject to the conditions and guidelines setforth by the DBM under the Budget Circular issued during the current year.
  • Should the identified funding source be insufficient to cover the full amount of the SRI, a lower but uniform amount shall be paid to all qualified government employees of the agency/GOCC concerned.

When to pay the Service Recognition Incentive (SRI)?

The payment of the Service Recognition Incentive to all qualified government employees shall not be earlier than December 15 of the current year.

How much is the Service Recognition Incentive (SRI) of Government Employees?

Hereunder are the rates of Service Recognition Incentive of government employees since Fiscal Year 2020:

  • P10,000.00 — for FY 2020
  • P10,000.00 — for FY 2021
  • P20,000.00 — for FY 2022
  • P20,000.00 — for FY 2023
  • P20,000.00 — for FY 2024
  • P20,000.00 — for FY 2025

Is the Service Recognition Incentive (SRI) taxable?

Yes, the Service Recognition Incentive of government employees is generally taxable, subject to the tax-exempt threshold set by the Bureau of Internal Revenue (BIR).

Reportorial Requirements

The government agencies identified in the Budget Circular implementing the grant of Service Recognition Incentive for the current year may be required by the DBM to submit annual report on the grant of SRI following the prescribed template.

Responsibilities of Agencies

Agencies shall be responsible for the proper implementation of the provisions of the Budget Circular issued by the DBM for the grant of SRI.

The responsible officers shall be held liable for any payment not in accordance with the provisions of the subject Budget Circular without prejudice to the refund by the employees concerned of any excess or unauthorized payments.

Resolution of Cases

All cases not covered in any of the Budget Circular or implementing guidelines on the grant of Service Recognition Incentive shall be referred to the DBM for resolution.

Questions?

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2 Comments on “Guidelines on the Grant of Service Recognition Incentive (SRI) to Government Employees”

  1. My husband died last May 23,2025.25 years died in service.Is he eligible still for SRI?Thank you.

    • Based on the previous years’ guidelines, employee must be in the service as of November 30 of the current year to be eligible to the SRI. So no, your husband is no longer eligible to the SRI.