Updated Guidelines on Loyalty Cash Award (LCA)

Payment of Loyalty Cash Award is subject to the guidelines set under CSC Memorandum Circular No. 06, s. 2002, COA Circular No. 2013-003A dated September 18, 2013, DepEd Order No. 53, 2003 date June 24, 2003, and DepEd Memorandum No. 153 dated December 04, 2015, amended by DepEd Order No. 54, s. 2015 dated December 8, 2015, and to wit:

What is Loyalty Pay?

A loyalty pay is granted to all qualified permanent teaching and non-teaching personnel, who rendered ten (10) years of continuous and satisfactory service in the government.

An official or employee who incurred an aggregate of not more than fifty (50) days authorized vacation leave without pay within the 10-year period shall be considered as having rendered continuous service for purpose of granting the loyalty pay.

In the same way, an official or employee who incurred an aggregate of not more than twenty-five (25) days authorized vacation leave without pay within the 5-year period may qualify for the 5-year milestone loyalty award.

Continuous or satisfactory services in government for purposes of granting the said benefit shall include services in one or more government agencies without any gap.

Loyalty Cash Award (LCA) Rates

The following rates must be applied in granting the loyalty pay:

Years in ServiceAmount of Entitlement
10th yearPhp 10,000.00
15th yearPhp 5,000.00
20th year Php 5,000.00
25th year Php 5,000.00
30th year Php 5,000.00
35th year Php 5,000.00
40th year Php 5,000.00

How to Avail the Loyalty Pay?

To avail the loyalty pay, kindly submit the required documents to the Human Resource Management Office of your Division, the following:

  1. Photocopy of the original appointment paper as a permanent employee;
  2. Updated service record; and
  3. LBP Account No. (salary) and name of the school

Qualified personnel under the Schools Division Office Proper, Elementary Schools, and Senior High Schools shall be paid out of the agency savings, while qualified personnel under the Junior High Schools shall be sourced out of the school’s savings subject to usual budgeting, accounting, and auditing rules and regulations.

The following documents are required for proper and complete disbursement of the fund:

  • Signed and Approved Disbursement Vouchers (DV).
  • Signed and Approved General Payroll
  • Obligation Request and Status (ORS)
  • Master List of Qualified Personnel duly certified by the School Heads or Officers-ln Charge.
  • Aggregate Number of Leave of Absence without Pay (LAWOP) duty certified by the Schools Heads or Officers-ln-Charge and verified by the Head of the Personnel Unit

Reference: DepEd Quezon City Unnumbered Memorandum dated October 10, 2019

DepEd Order No. 54, s. 2015 – Increase of Payment of Loyalty Cash Gift


COA Circular No. 2013-003A

COA Circular No. 2013-003A

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