Government employees across multiple branches and sectors are set to receive a one-time service recognition incentive of as much as P20,000 next year following approval by President Ferdinand Marcos Jr., according to a newly issued administrative order.
Signed on December 11, Administrative Order No. 40 allows the release of the incentive beginning December 15 and applies to personnel in the executive branch, including civilian staff of national government agencies, state universities and colleges, and government-owned or -controlled corporations, regardless of whether they hold regular, contractual, or casual appointments.
Uniformed services are also covered under the directive. These include personnel from the Armed Forces of the Philippines, the Philippine National Police, the Philippine Public Safety College, the Bureau of Fire Protection, and the Bureau of Jail Management and Penology under the Department of the Interior and Local Government. The order likewise extends to uniformed members of the Bureau of Corrections under the Department of Justice, the Philippine Coast Guard under the Department of Transportation, and the National Mapping and Resource Information Authority under the Department of Environment and Natural Resources.
“The administration recognizes all government employees for their collective and invaluable contributions to the government’s continuing efforts in pursuing the objectives, commitments, targets, and deliverables under the Philippine Development Plan 2023–2028 and the President’s 8-Point Socioeconomic Agenda,” the order stated.
Funding for the incentive will vary by institution. For national government agencies, state universities and colleges, and military and uniformed services, the amount will be drawn from available personnel services funds under the 2025 General Appropriations Act. Agencies with insufficient personnel services funds may tap their maintenance and other operating expenses, subject to existing budgetary regulations.
Government-owned or -controlled corporations will source the incentive from their approved corporate operating budgets for 2025. Employees of fiscally autonomous bodies—including the Senate, the House of Representatives, the judiciary, the Office of the Ombudsman, and other constitutional offices—may also receive an incentive of up to P20,000, depending on fund availability.
Local government units, down to the barangay level, are authorized to grant a similar incentive not exceeding the prescribed cap, subject to approval by their respective legislative councils and compliance with personnel services limits under the Local Government Code. Local water district personnel may also be given an incentive at a uniform rate based on their approved corporate operating budgets.
The order allows agencies that cannot shoulder the full amount to provide the benefit at a lower but uniform rate. Eligibility is limited to employees who have not received any additional year-end benefit in fiscal year 2025 beyond those already allowed by law.
