To: Undersecretaries
Assistant Secretaries
Bureau/Cultural Agency Directors
Directors of Services/Centers and Heads of Units
Regional Directors
Schools Superintendents
Vocational School Superintendents/Administrators
All Others Concerned

Pursuant to Section 7(e), Rule X of the Civil Service Law and Rules which provide for the grant of cash loyalty awards to employees who have rendered at least ten (10) years of continuous and satisfactory service in the government, the following implementing rules and regulations applicable to DECS are hereby prescribed:

1. Schedule of Awards
   The Loyalty awards shall be paid in accordance with the following schedule:

   Tenure (cumulative no. of years)	Annual Rate Per quintuple years (Pesos)	Year of Entitlement
   10	200	10th year
   15 and next quintuples	200	15th year and every 5 years hence

   Those who have received their award for the first ten (10) years shall upon reaching their 15th or every fifth year anniversary thereafter, receive only the cash equivalent to the preceding five years served.

2. Qualification Requirements
   All DECS employees who have completed at least ten (10) years of service in the government shall be entitled to receive the loyalty awards subject to the following:
   2.1 That employment has been continuous and performance has been consistently satisfactory throughout the duration for which the loyalty award is computed;
   2.2 That continuous service includes employment on permanent, temporary, casual or contractual status or a combination thereof; provided that employment on temporary, casual or contractual status in other government agencies which are not yet recorded and credited by the DECS personnel records are duly supported by the following:
   1. Authentication/Certification/Accreditation of appointment by the Civil Service Commission pursuant to CSC-GSIS-DBM Circular No. 1-89, series of 1989; and
   2. Service Record duly signed by the agency personnel officer.

   2.3 That eligibility to the award shall mean the completion up to the date of employment anniversary of the tenth year, or the next five years thereafter.

3. Implementation Procedure
   3.1 Initial Implementation
   All employees who qualify to receive cash loyalty awards as of the effectivity of this Department Order shall be duly paid in accordance with the Schedule of Awards indicated in Item I hereof.
   3.2 Generation of Savings and Contingency
   It shall be the responsibility of each regional director to generate savings to fund their respective loyalty cash award requirements in order to ensure that all the employees in his region, including the teachers, shall equitably benefit from this award. It is suggested that in the event funds are not sufficient to pay all beneficiaries, a system of staggered or prioritized scheduling of payment shall be established by the Regional Director against future savings.
   3.3 Subsequent Continuing Implementation
   Thereafter, all employees shall be paid loyalty awards on the day after their tenth year or ensuing fifth year anniversaries in accordance with the Schedule of Awards indicated in Item I hereof.
   3.4 Updating of Personnel Records
   The respective Personnel Officers of each Office shall provide assistance to employees who wish to have their casual, temporary or contractual services in government accredited by the Civil Service Commission, as basis for qualifying for the loyalty award.
4. All awards shall be paid out of savings in the department’s authorized appropriations, subject to pertinent budgetary, accounting and auditing rules and regulations.
   4.1 It is understood that any payment made to any employee under this Order which is subsequently disallowed in audit shall be subject to appropriate reimbursement by the recipient employee accordingly.
5. Effectivity
   This Department Order shall take effect immediately.

Reference: None
Allotment: 1-2-3—(M.O. 1-87)

To be indicated in the Perpetual Index under the following subjects:
ALLOWANCE
AWARDS
BUREAUS AND OFFICES
EMPLOYEES
RULES AND REGULATIONS
TEACHERS