President Rodrigo Duterte has signed Administrative order 45 which authorized the grant of service recognition incentive to government employees for fiscal year 2021. The grant of service recognition incentive is a recognition of the hardwork, commitment, and dedication to public service of government employees as cited in the previous grants of service recognition incentive in 2019 and 2020.

The service recognition incentive to be granted to a government employee shall not exceed the amount of P10,000. However, there are conditions that have to be met.

Qualified Government Employees

 Employees in the Executive Department

A.1: Civilian Personnel in National Government Agencies (NGAs), including those in the State Universities and Colleges (SUCs) and government-owned and controlled corporation (GOCCs) occupying regular, contractual, or casual positions.

A.2: Personnel under the following:

• Military Personnel of the Armed Forces of the Philippines under the Department of National Defense.
• Philippine National Police
• Bureau of Fire Protection
• Bureau of Jail Management and Penology under the DILG
• Bureau of Corrections under the DOJ
• Philippine Coast Guard under the Department of Transportation
• National Mapping and Resource Information Authority under the Department of Environment and Natural Resources

Conditions on the Grant of the Service Recognition Incentive (SRI)

a. The civilian personnel are occupying a regular, contractual, or casual position.

b. The personnel are still in the government service as of November 30, 2021.

c. The personnel has rendered at least a total or an aggregate of four (4) months of Satisfactory service as of 30 November 2021, inclusive of services rendered under any of the alternative work arrangements prescribed by the Civil Service Commission.

d. Those who have rendered less than a total or an aggregate of 4 months of Satisfactory service as of November 30, 2021, shall be entitled to a pro-rated share of the SRI as follows:

Length of Service	Percentage of the Incentive
3 months but less than 4 months	40%
2 months but less than 3 months	30%
1 month but less than 2 months	20%
Less than 1 month	10%

e. The employees have not received any additional year-end benefit in FY 2021 over and above the benefit authorized under Republic Act (RA) No. 6686 as amended by RA No. 8441.

Who are EXCLUDED from the SRI

• Those engaged without employer-employee relationship and whose compensation is funded from non-personnel services (PS) appropriations/budget such as:

a. Consultants and experts engaged for a limited period to perform specific activities or services with expected outputs.

b. Laborers engaged through job contracts (pakyaw) and those paid on a piecework basis

c. Student workers and apprentices

d. Individuals and groups of people whose services are engaged through job orders, contracts of service, or others similarly situated.

Source of Funding for the SRI of Employees in the Executive Department

a. For NGAs, SUCs, and uniformed personnel the amount required shall be charged against the available released Personnel Services (PS) allotments of the respective agencies under RA No. 11518 or the FY 2021 General Appropriations Act (GAA).

In case of deficiency, the amount required may be charged against the Maintenance and other operating expenses allotment of the concerned government agency, subject to the rules on modification in allotments under Section 72 of the General Provisions of the FY 2021 GAA, and other pertinent budgeting, accounting and auditing rules and regulations.

b. For GOCCs, the amount required shall be charged against their respective approved corporate operating budgets (COBs) for FY 2021 only

c. Should the identified funding source prove insufficient to cover the maximum allowable rate of the SRI, a lower but uniform amount shall be paid to all qualified employees of the NGA or GOCC.

For Employees in the Legislative and Judicial Department 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 a one-time SRI by their respective heads of office at a uniform rate not exceeding 10,000 pesos each.

Source of Fund: the SRI will be chargeable against the available released allotment of their respective agencies, subject to the conditions on the grant for SRI as previously mentioned.

Should the funding source prove to be insufficient to cover the maximum allowable rate of the SRI, a lower but uniform amount shall be paid to all qualified employees of the concerned office.

SRI For Employees of the Local Government Units

• Grants of the one-time SRI to LGU employees including those in the barangays shall be determined by their respective sanggunian depending on the LGU’s financial capability. This is also subject to the PS limitation in the LGU budgets under RA No. 7190 or the “Local Government Code of 1991” and the conditions to grant of SRI previously mentioned.
• A uniform rate of not exceeding Ten Thousand Pesos shall be provided.

Source of Funds: Local Government Fund for Fiscal Year (FY) 2021.

Should the identified funding source prove to be insufficient to cover the maximum allowable rate of the SRI, a lower but uniform amount shall be paid to all qualified employees of the LGU.

• In determining the amount of the SRI, the sanggunian shall exercise prudence and judicious use of government funds. Ensuring that the expenditure is reasonable and will not, in any way, adversely affect the delivery of services to the public. 

For Employees of Local Water Districts (LWDs)

The LWD may also grant the SRI to their employees at a uniform rate to be determined by their Boards of Director (BOD), which shall not exceed Ten thousand pesos.

Source of Fund: BOD-approved FY 2021 COBs subject to the Conditions in the Grant of SRI previously mentioned here.

Should the identified funding source prove to be insufficient to cover the maximum allowable rate of the SRI, a lower but uniform amount shall be paid to all qualified employees of the LWD.

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 SRI to their employees at a uniform rate determined by their governing boards and agency heads which shall not exceed Ten thousand pesos.

Source of Funds: For NGA this will be chargeable to their available fund, for GOCCs this will be chargeable to their FY 2021 COB. Both are subject to the conditions on grant of SRI.

Should the identified funding source prove to be insufficient to cover the maximum allowable rate of the SRI, a lower but uniform amount shall be paid to all qualified employees of the concerned agency.