Budget Circular No. 2026-1

1.3 Section 89 of the General Provisions (GPs) under the FY 2026 General Appropriations Act (GAA) provides the rules in the grant of the CNA Incentive, to wit: "Sec. 89. Rules in the Grant of Collective Negotiation Agreement Incentive. Departments, bureaus, and offices of the National Government, including Constitutional Offices enjoying fiscal autonomy, and SUCs may grant Collective Negotiation Agreement (CNA) Incentive sourced from the allowable MODE allotments identified by the DBM, subject to the following: There is a valid CNA executed between the agency and the recognized employee organization which includes a provision on cost-cutting measures to be undertaken collectively by the agency and its personnel The one-time annual payment of CNA Incentive shall be made through a written resolution signed by agency representatives from both labor and management, and approved by the agency head; The CNA Incentive that may be granted shall be limited to the amount determined by the DBM; and The use ofMODE for the payment of CNA Incentive shall be subject to approval by the agency head and made only during the validity of appropriations. Any excess amounts therefrom after payment of the CNA Incentive shall revert to the General Fund. GOCCs and LGUs may likewise grant CNA Incentive to their respective personnel, subject to the policies, rules and regulations issued by the DBM." 2.0 Purpose This Circular is issued to provide the policy and procedural guidelines on the grant of the CNA Incentive for FY 2026. 3.0 Coverage This Circular covers the following civilian personnel occupying regular, contractual, or casual positions rendering services on a full-time or part-time basis in national government agencies (NGAs), including Constitutional Offices Page 2 of 21