President Marcos has approved two year-end incentives aimed at recognizing the service of government workers, authorizing a Service Recognition Incentive (SRI) of up to P20,000 for qualified personnel and a one-time gratuity pay of up to P7,000 for Contract of Service (COS) and Job Order (JO) workers.

Under Administrative Order (AO) No. 40, signed on Dec. 11, the President granted a one-time SRI for 2025 to government employees across the Executive branch, including civilian personnel of national government agencies, state universities and colleges (SUCs), and government-owned or -controlled corporations (GOCCs), whether regular, contractual, or casual.

Military personnel of the Armed Forces of the Philippines (AFP) and uniformed personnel of the Philippine National Police (PNP), Bureau of Fire Protection (BFP), Bureau of Jail Management and Penology (BJMP), Bureau of Corrections (BuCor), Philippine Coast Guard (PCG), and the National Mapping and Resource Information Authority (Namria) are also covered by the incentive.

“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.

Payment of the SRI may be made not earlier than Dec. 15, with the amount depending on the availability of funds, but not exceeding P20,000 per qualified employee.

For national government agencies, SUCs, and uniformed services, the SRI will be charged against available 2025 Personnel Services (PS) funds under the General Appropriations Act, with Maintenance and Other Operating Expenses (MOOE) as a secondary source if needed.

GOCCs will source the incentive from their approved 2025 corporate operating budgets, while employees of constitutional offices with fiscal autonomy, including Congress, the Judiciary, and the Office of the Ombudsman, may receive the SRI subject to available PS funds.

Local government units (LGUs), including barangays, may also grant an SRI of up to P20,000, subject to the decision of their respective sanggunians and their financial capacity under the Local Government Code.

Qualified employees include those still in government service as of Nov. 30, 2025, who have rendered at least four months of service by that date, with those serving less than four months receiving a pro-rated amount.

In a separate order, Administrative Order No. 39, also signed on Dec. 11, President Marcos approved a one-time gratuity pay for COS and JO workers who often do not receive the bonuses and allowances granted to regular government employees.

Under the order, COS and JO personnel who have rendered at least four months of satisfactory service as of Dec. 15, and whose contracts remain in effect on that date, are entitled to a gratuity pay not exceeding P7,000.

“Granting a year-end Gratuity Pay to COS and JO workers is a well-deserved recognition of their hard work and valuable participation in the implementation of various programs, activities, and projects of the government,” the AO read.

Those with less than four months of service will receive the gratuity on a pro-rated basis, ranging from up to P6,000 for three months of service to up to P4,000 for less than two months.

The gratuity covers COS and JO workers in national government agencies, SUCs, GOCCs, and local water districts, and may also be released not earlier than Dec. 15.