Pursuant to the provision of Section 12(2), Chapter 3, Book V of Executive Order No. 292, otherwise known as Administrative Code of 1987 and Resolution No. 92-1560 dated October 15, 1992, the following amendment to the existing provision of the Omnibus Rules implementing Book V of Executive Order No. 292 and clarificatory guidelines thereon are hereby adopted and prescribed in order to have a uniform interpretation and application on the grant of loyalty award:

1. The grant of an award, monetary or otherwise, by any government agency to its employee/s, is subject to the establishment of a Department or Agency Employee Suggestion and Incentives Awards System and the subsequent approval of the said system by the Civil Service Commission;

2. A loyalty award shall be given to an employee of the government who has completed at least 10 years of continuous and satisfactory service to the particular Office granting the award;

3. The service award shall consist of a loyalty pin, as follows: 10 to 15 years - bronze pin; 20 to 25 years - silver pin; and 30, 35, and 40 years - gold pin; and cash gift which shall not be more than P100.00 per year of service, contingent on the availability of agency savings. Provided, however, that those who have received the award after the first 10 years shall, upon reaching the 15th year, receive only the cash gift equivalent to the five years additionally served;

Example: If a person reached 10 years of service in 1989 and received a cash gift of P1,000.00, he shall only receive P500.00 in 1994 when he reaches his 15th year of service.

4. A loyalty award is premised on continuous and satisfactory service.  An unsatisfactory rating or finding of guilt in any administrative case is sufficient ground for not granting the loyalty award; and,

5. The grant of loyalty award shall apply to all officials and employees in the national and local governments, including those in government owned and controlled corporations with original charters, state colleges and universities, judiciary and legislature.

This Memorandum Circular amends Section 7(e), Rule X of the Omnibus Rules Implementing Book V of Executive Order No. 292 and shall take effect after 15 days from its publication in the newspaper of general circulation.

Adopted: 15 Oct. 1992