The Department of Budget and Management (DBM) has officially released Budget Circular No. 2025-3 dated December 15, 2025, providing the full guidelines on the grant of the Service Recognition Incentive (SRI) for FY 2025. This one-time incentive recognizes the dedication and service of government employees across agencies, LGUs, and government corporations.
If you’re a government employee wondering whether you qualify, how much you may receive, and when it will be paid, this guide breaks it down clearly.
What Is the Service Recognition Incentive (SRI)?
The Service Recognition Incentive (SRI) is a one-time cash incentive of up to ₱20,000 authorized under Administrative Order No. 40, s. 2025. It is granted in recognition of government employees’ contributions to national development, particularly in advancing the Philippine Development Plan 2023–2028 and the President’s 8-Point Socioeconomic Agenda.
The amount is uniform within each agency and may be lower than ₱20,000 if funding sources are insufficient.
Who Is Covered by the FY 2025 SRI?
The circular covers a wide range of government personnel, including:
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Civilian employees in National Government Agencies (NGAs), SUCs, and GOCCs
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Military and uniformed personnel (AFP, PNP, BJMP, BFP, PCG, and others)
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Employees of the Legislative and Judicial branches and offices with fiscal autonomy
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Local Government Unit (LGU) employees, including barangay personnel
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Employees of Local Water Districts (LWDs)
Regular, contractual, and casual employees are included—as long as an employer-employee relationship exists.
Who Are Excluded?
The SRI does not apply to individuals without an employer-employee relationship, such as:
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Consultants and experts hired for specific outputs
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Job order and contract-of-service workers
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Pakyaw laborers and piece-rate workers
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Student workers and apprentices
If compensation does not come from Personnel Services (PS) funds, the individual is excluded.
Key Eligibility Requirements
To qualify for the full SRI, an employee must:
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Be in government service as of November 30, 2025
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Have rendered at least four (4) months of satisfactory service by that date
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Not have received additional year-end benefits beyond those authorized by law
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Have no final administrative or criminal conviction in FY 2025 (reprimand cases are still eligible)
Employees on part-time status, detail, or who transferred agencies are still eligible, subject to prorated computation and issuing agency rules.
Pro-Rated SRI for Shorter Service
Employees with less than four months of service may still receive a pro-rated SRI:
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3–<4 months: 40%
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2–<3 months: 30%
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1–<2 months: 20%
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Less than 1 month: 10%
This ensures fairness while recognizing shorter but meaningful service periods.
Funding Sources Explained
The SRI is funded differently depending on the type of agency:
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NGAs & SUCs: From available FY 2025 Personnel Services allotments
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GOCCs & LWDs: From approved Corporate Operating Budgets (COBs)
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Legislative & Judicial Offices: From available PS allotments
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LGUs: From local funds, subject to PS limitations and sanggunian approval
If funds are insufficient, agencies must grant a lower but uniform amount to all qualified employees.
Special Rules for LGUs
For LGU employees, the SRI amount depends on financial capability and requires local legislative action. LGUs may fund the SRI through:
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FY 2025 appropriations
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Approved supplemental budgets
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Prior years’ surplus (subject to legal conditions)
While LGUs are encouraged to release payment by December 31, 2025, they may extend processing into FY 2026 if budgeting rules require it.
When Will the SRI Be Paid?
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Earliest payment: December 15, 2025
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Latest payment (NGAs & GOCCs): December 31, 2025
Agencies are required to obligate and process payments within FY 2025, with limited flexibility for LGUs.
Reporting and Accountability
All agencies must submit an online SRI report to DBM by January 31, 2026. Agency heads and responsible officers are accountable for proper implementation, and unauthorized payments may be subject to refund and liability.
The FY 2025 Service Recognition Incentive underscores the government’s appreciation for public servants’ dedication and resilience. While the maximum amount is ₱20,000, what matters most is the consistent and fair recognition of service across all sectors of government.
If you’re eligible, coordinate with your HR or finance office to confirm your agency’s approved amount and payment schedule.