Why PNP personnel only received P7,000 service recognition incentives

The release of the service recognition incentives (SRI) for the Philippine National Police (PNP) has triggered gripings among its personnel due to what they described as unexpected reduction from what they received in the past years.

From the usual P10,000 before, the 227,604 uniformed and non-uniformed personnel of the PNP only received on Jan. 4 a standard of P7,000.

And what further pissed them off, based on the complaints received by the Manila Bulletin, was that it was still subjected to 25 to 30 percent tax.

The grant of SRI was based on the implementation of the Joint Resolution 4 signed in June 2009 and was aimed at "rewarding an employee's loyalty to government service and contributions to the agency's continuing viable existence."

According to the statement released by the Department of Budget and Management (DBM), the grant of an SRI seeks to continuously incentivize government employees for their unwavering commitment and dedication in the performance of their duties and responsibilities towards quality and responsive delivery of public services, especially in the past three years amid the adverse effects of the Covid-19 pandemic that include rising inflation rate.

Based on the DBM guideline, the SRI in all government agencies should not exceed P20,000 and should be given not later than Dec. 20.

The rules also stated that those who have rendered less than a total or an aggregate four months of satisfactory service as of Nov. 30, 2022 have received a prorated share of SRI: 40 percent (3 months to less than 4 months), 30 percent (2 months to less than 3 months, 20 percent (1 month to less than 2 months 20%) and 10 percent (less than 1 month).

Why only P7,000?

PNP spokesperson Col. Jean Fajardo explained that the amount of the SRI depends on the available budget sourced from the General Appropriations Act (GAA), particularly on the Personnel Service Allotment.

"The budget for the SRI came from the GAA where the PNP also sourced out funds for salary and other MOOE (Maintenance and Other Operating Expenses). The PNP cannot give more than P7,000 because if we do so, the salary of our PNP and even the retirement pay of our retirees will be affected," Fajardo told the Manila Bulletin.

In a separate interview, PNP chief information officer Col. Redrico Maranan said PNP personnel received higher SRI in 2021 as the DBM released an additional fund for the PNP personnel to receive a total of P10,000 each.

"For 2022, the fund was sourced out (only) from the PNP unused fund," said Maranan.

Taxation explained

With the P10,000 SRI released to each PNP personnel since 2019, the incentive was apparently spared from the taxation.

But for 2022, Fajardo explained that it was clear in the guideline released by the DBM that the SRI will be subjected to 25 to 30 percent based on the Tax Reform for Acceleration and Inclusion (TRAIN).

Only low-ranking PNP personnel are spared from the TRAIN Law.

Fajardo said that from the rank of Patrolman to Police Chief Master Sergeant, the SRI is tax free.

The 25 percent tax kicks in for the ranks of Police Chief Master Sergeant to Police Captain while those with the rank of Police Major up to four-star general have to pay 30 percent tax.

"It is not the PNP which made the decision to subject it to tax, it is based on the TRAIN Law," said Fajardo.

Hugot Line

The complaints received by the Manila Bulletin usually cited comparison with the SRI received by personnel from other government agencies.

For teachers for instance which is under the Department of Education, they said the amount was up to P15,000 while those from the Armed Forces of the Philippines (AFP) received up to P20,000.

Fajardo explained that this is proof that the SRI is indeed dependent on the budget and the population of the government agency.

"They have been comparing the SRI for PNP with other government agencies, but as I said, it depends on the released fund of the government agency. Government agencies with higher funds but with lower personnel can afford to release more than P7,000," said Fajardo.

Another issue being raised by other policemen is that if there is a shortage of funds for the SRI, why is the PNP not using its other sources of funds like the payment for police clearance, License To Own and Possess Firearm (LTOPF), firearms registration and others?

Maranan explained that the PNP is governed by the strict budgeting and financial guidelines from the DBM.

"The Chief PNP does not have the sole discretion on the funds from these sources. In fact, we are even asking permission from the DBM on the use of these funds because there are guidelines that must be strictly followed," said Maranan.

"This is not like a sari-sari store or any ordinary budgeting or spending wherein anybody could just distribute whatever is saved or collected. We are in the government so there are rules that must be followed," he added.

Maranan explained that the funds coming from other PNP sources of funds like police clearances and firearms registration directly go to the PNP Trust Receipt Fund.

These funds, according to Maranan, are being used to finance scholarships for dependents of PNP personnel who are permanently disabled or killed in action, and to fund other priority projects of the PNP that were not funded by the GAA.

Maranan said there is a strict rule in the use of Trust Receipt Fund-- that it cannot be used to purchase PNP vehicles and even used as an augmentation fund for allowances of PNP personnel.

The AO

Maranan also explained that there was also a guideline issued as to where the SRI must be sourced out based on the Administrative Order issued by Malacanang.

First, the fund must come from the savings from the Personnel Services Allotment under the GAA.

The savings from the Personnel Services Allotment, according to Maranan, usually comes from the forfeited salary of PNP personnel, those who were dismissed from the service and those whose PNP service was terminated due to death or permanent disability.

Second, the fund must also come from the savings from the MOOE.

"Whatever is saved from both the Personnel Services Allotment and the MOOE are the only funds that can be used for SRI according to the Administrative Order. That is very clear," said Maranan.

"Hence, the available released allotment of PNP can only cover a uniform amount of P7,000 subject to tax for all PNP personnel," he added.

Miscommunication

Fajardo said the released fund for SRI for 2022 was clearly explained during the PNP command conference last year, through the Directorate for Comptrollership.

She, however, admitted that the explanation may have not been explained well for their personnel on the ground.

"We are calling on our field commanders to explain to their men as to where the fund for SRI came from and why it was only this amount compared in the past," said Fajardo.