Guidelines on the Grant of Uniform or Clothing Allowance to Government Employees

Introduction

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.

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

Below are relevant legal bases on the grant of uniform or clothing allowance to government employees:

Budget Circular No. 2024-1 — Updated Rules and Regulations on the Grant of the Uniform/Clothing Allowance (U/CA) to Civilian Government Personnel

Pertinent provision of the General Provisions of the current year’s General Appropriations Act (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)

Appropriation Ordinance for Local Government Units (LGUs)

Corporate Operating Budget for Government Owned and Controlled Corporations (GOCCs)

Whose government employee is entitled to Uniform or Clothing Allowance?

According to the latest guidelines, 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.

Whose government employee is NOT entitled to Uniform or Clothing Allowance?

The following government personnel are not entitled to the grant of uniform or clothing allowance 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

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.

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.

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, including those in LGUs and GOCCs.

Starting 2024, the uniform or clothing allowance may be granted at an amount not exceeding ₱7,000.00 per year.

In the future, the amount of uniform or clothing allowance may likewise increase subject to the approval of the President of the Philippines.

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, viz:

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 latest guidelines provide 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?]

Currently, 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 Department of Budget and Management (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)“

Similarly, 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

Starting 2024, a newly-hired employee may qualify for the grant of uniform or clothing allowance after rendering six (6) months of government service pursuant to Budget Circular No. 2024-1.

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 P7,000.00 per year is among the authorized de minimis benefits of government employees exempt from withholding tax pursuant to Revenue Regulation No. 004-2025.

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 while government-owned and controlled corporations (GOCCs) 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)

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.

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