Malacañang Approves 2025 Service Recognition Incentive for Government Employees

The national government has authorized the release of the Service Recognition Incentive (SRI) for Fiscal Year 2025 following the issuance of Administrative Order No. 40, signed by President Ferdinand R. Marcos Jr.

The incentive is intended to recognize the dedication, service, and performance of government employees, while ensuring that its release remains within existing budgetary and administrative rules.

This article explains, in simple terms, who is qualified, how much may be received, and when the SRI may be paid, based strictly on the provisions of the administrative order.

What Is the Service Recognition Incentive (SRI)?

The Service Recognition Incentive (SRI) is a one-time cash incentive granted to qualified government employees as recognition for their contributions during the year.

For Fiscal Year 2025, the SRI shall not exceed ₱20,000 per qualified employee, subject to the availability of funds and compliance with the conditions set by the government.

Who Is Covered by the 2025 SRI?

The SRI covers personnel in the Executive Branch, including:

• Civilian personnel in National Government Agencies (NGAs)
• Employees of State Universities and Colleges (SUCs)
• Personnel in Government-Owned or Controlled Corporations (GOCCs)
• Employees holding regular, contractual, or casual positions
• Uniformed personnel such as those from the AFP, PNP, BFP, BJMP, Philippine Coast Guard, and other uniformed services under the Executive Branch

Basic Requirements to Qualify

To be eligible for the 2025 SRI, an employee must meet all of the following conditions:

1. Must be occupying a regular, contractual, or casual position
2. Must still be in government service as of 30 November 2025
3. Must have rendered at least four (4) months of service during FY 2025
4. Must have satisfactory service, based on performance evaluation systems or applicable assessment mechanisms
5. Must not have received any additional year-end benefit for FY 2025 beyond what is authorized under Republic Act No. 6686, as amended

Pro-Rated SRI for Shorter Service

Employees who rendered less than four months of service as of 30 November 2025 may still be entitled to a pro-rated SRI, as follows:

• 3 months but less than 4 months – 40% of the SRI
• 2 months but less than 3 months – 30% of the SRI
• 1 month but less than 2 months – 20% of the SRI
• Less than 1 month – 10% of the SRI

Who Is Not Qualified to Receive the SRI?

The Administrative Order specifically excludes the following from the grant of the SRI:

• Consultants and experts engaged for a limited period to perform specific activities or services with expected outputs
• Laborers engaged through job contracts (pakyaw) and those paid on a piecework basis
• Student workers and apprentices
• Individuals or groups of people whose services are engaged through job orders, contracts of service, or other similarly situated arrangements

How Much Is the SRI?

• The maximum SRI amount is ₱20,000
• The final amount may be lower, depending on the availability of funds
• If funding is insufficient, agencies may grant a lower but uniform amount to all qualified employees

No employee may receive more than ₱20,000.

Special Provisions for Other Offices

Judiciary, Constitutional Commissions, and Offices with Fiscal Autonomy

Employees of these offices may also receive the SRI, subject to the same conditions. The incentive shall be charged against their respective approved budgets.

Local Government Units (LGUs)

• LGU employees, including those in barangays, may be granted a one-time SRI
• The amount shall not exceed ₱20,000
• Granting of the SRI depends on the LGU’s financial capability, approval of the sanggunian, and compliance with budgetary rules

Local Water Districts (LWDs)

• The SRI may be granted by the Board of Directors
• The amount shall not exceed ₱20,000, subject to available corporate funds

GOCCs Exempted from RA No. 6758

• The SRI shall not exceed ₱20,000
• The total amount granted shall not exceed 50% of the GOCC’s available income

When Will the SRI Be Paid?

The administrative order provides that the payment of the SRI shall not be made earlier than 15 December 2025.

The actual release date will depend on the issuance of internal guidelines by agencies and the completion of payroll and funding processes.

Important Reminder for Employees

The SRI is not automatically released. Agencies must still comply with funding availability, budget utilization rules, and implementing guidelines from the Department of Budget and Management (DBM).

Employees are advised to coordinate with their human resource or administrative offices for official announcements regarding the amount and release schedule.

This explainer is based on Administrative Order No. 40, which took effect upon its publication in the Official Gazette or a newspaper of general circulation.