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Province of South Cotabato

Gov Tamayo Requests SP to Authorize Supplemental Budget, Hazard Pay

Koronadal City, South Cotabato – Governor Reynaldo S. Tamayo Jr requested the honorable members of the Sangguniang Panlalawigan of South Cotabato to authorize the CY 2020 General Fund Supplemental Budget No. 4 in the amount of P26,147,268.84.

In a letter dated December 17, 2020, the governor submitted for authorization the proposed supplemental budget to grant the Collective Negotiation Agreement (CNA) Incentive for 2020, COVID-19 Hazard Pay of the Barangay Health Workers (BHWs), among others, in pursuant to Section 321 of the 1991 Local Government Code.

According to Budget Circular No. 2019-5 dated November 7, 2019, Item 4 (h)(ii)(aa) of the Congress Joint Resolution No, 4, s. 2009 institutionalizes the grant of the CNA Incentive as a form of reward to motivate employee efforts toward higher productivity, to wit:

“(aa) the CNA Incentive may be granted to both management and rank-and-file employees of agencies with approved and successfully implemented CNAs in recognition of their efforts in accomplishing performance targets at lesser cost, in attaining more efficient and viable operations through cost-cutting measures and systems improvement xxx.”

The Circular covers the following civilian personnel occupying regular, contractual, or casual positions rendering services on full-time or part-time basis in national government agencies (NGAs), including Constitutional Offices enjoying fiscal autonomy, SUCs, GOCCs, LWDs, and LGUs, whether or not covered by Republic Act (RA) No. 6758:

3.1 Rank-and-file employees who are members of an employee’s organization accredited by the Civil Service Commission (CSC) as the sole and exclusive negotiating agent (hereinafter referred to as “negotiating agent”) in accordance with the rules and regulations issued by the Public Sector Labor Management Council (PSLMC);

3.2 Rank-and-file employees who are non-members of the CSC-accredited sole and exclusive negotiating agent but want to enjoy or accept benefits under the CNA, subject to payment of agency fee to the negotiating agent in accordance with PSLMC Resolution No. 1, s. 1993; and

3.3 Those who perform managerial functions.


4.2 Rate of the CNA Incentive

4.2.1 The rate of the CNA Incentive shall not be pre-determined in the CNA since it is subject to compliance with the conditions in Item 4.1 hereof and the availability of the allowable allotments.

4.2.2 The CNA Incentive may be given equally to all qualified employees under Item 3.0 hereof or ay varying rates in consideration of the employee’s or his/her office’s contribution to the accomplishment of performance targets, efficiency, productivity, or profitability, as determined by the agency head upon recommendation of the Employees’ Organization-Management Consultative Committee.

4.2.3 In all cases, the CNA Incentive shall not exceed P25,000.00 per qualified employee.

The governor added in his letter that considering the proximity of the yuletide season and in the spirit of Christmas, the CY 2020 General Fund Supplemental Budget No. 4 is “certified urgent.”

The breakdown of the proposed budget is as follows:

  • Provincial Governor’s Office (PGO) Terminal Leave Benefits: P70,268.84
  • PGO Other Personnel Benefits – CNA Incentive: P25,925,000.00
  • Regular Services – Municipal/Barangay Development Programs – Other MOE – COVID-19 Hazard Pay for Barangay Health Workers (BHWs): P89,000.00
  • Provincial Treasurer’s Office (PTO) Bank Charges: P63,000.00Total: P26,147,268.84

The Statement of Supplemental Appropriation CY 2020 was prepared by Provincial Budget Officer Luz Perpetua P. Fontanilla, CPA and signed by the governor himself.

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