Budget Circular No. 2026-1

l OFFICIAL RELEASE 4 c9 Recoids Division F~ ~7NAWG, 7 REPUBLIC OF THE PHILIPPINES DEPARTMENT OF BUDGET AND MANAGEMENT GENERAL SOLANO STREET, SAN MIGUEL, MANILA BUDGET CIRCULAR No. 2026 - 1 November 4, 2026 TO Heads of Departments, Bureaus, Offices, and Agencies of the National Government, Including Constitutional Offices Enjoying Fiscal Autonomy; State Universities and Colleges (SUCs); Government-Owned or -Controlled Corporations (GOCCs); Local Water Districts (LWDs); Local Government Units (LGUs); and All Others Concerned SUBJECT : Guidelines on the Grant of the Collective Negotiation Agreement (CNA) Incentive for FY 2026 1.0 Background 1.1 Administrative Order (AO) No. 135, s. 20051 authorizes the grant of the CNA Incentive to government employees and directs the Department of Budget and Management (DBM) to issue the necessary policy and procedural guidelines for its implementation. 1.2 Item (4)(h)(ii)(aa) of the Congress Joint Resolution (JR) No. 4, s. 20092 institutionalizes the grant of the CNA Incentive as a form of reward to motivate employee efforts toward higher productivity, to wit: "(aa) Collective Negotiation Agreement (CNA) Incentive - This 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. " Authorizing the Grant of Collective Negotiation Agreement (CNA) Incentive to Employees in Government Agencies Joint Resolution Authorizing the President of the Philippines to Modify the Compensation and Position Classification System of Civilian Personnel and the Base Pay Schedule of Military and Uniformed Personnel in the Government, and for Other Purposes Page 1 of 21