Gov’t workers to receive year-end bonus, cash gift starting Nov 15 – In the spirit of the upcoming Christmas season, government workers nationwide will receive their 14th-month pay (Christmas bonus) and cash gift starting November 15. The year-end bonus is equivalent to a full month’s salary, while the cash-gift amounts to 5,000 pesos.
The release of the year-end bonus and cash gift is pursuant to Budget Circular No. 2016-4, which mandates that the said incentives be given not earlier than November 15 of the current year to qualified personnel satisfying the following conditions:
1. Those still in government service as of October 31 of the current year and with at least a total of four (4) months of service from January 1 to October 31 of the current year; or
2. Those who have retired or separated from government service before October 31 of the same year and have rendered at least a total or an aggregate of four (4) months of service from January 1 of the current year, shall be granted pro-rated year-end bonus and cash gift, within the month of retirement or separation.
The 13th-month pay and other benefits, including productivity incentives and Christmas bonuses, are exempted from tax if they do not exceed P90,000, according to Republic Act 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) law,
In 2018, the Department of Budget and Management has allocated a total of PhP 29.7 Billion for the year-end bonus of civilian personnel, and another PhP 6.5 Billion for the year-end bonus of military and uniformed personnel (MUP).
Meanwhile, PhP 5.6 Billion and PhP 1.7 Billion have been allocated for the 5,000 peso cash gift of civilian personnel and MUPs, respectively.
On top of these bonuses, government employees can also look forward to receiving their Productivity Enhancement Incentive, which will be released starting December 15.
The Year-End Bonus equivalent to one (1) month basic pay as of October 31 and Cash Gift of P5,000 shall be given to entitled government personnel not earlier than November 15 of the current year, subject to the following conditions:
Personnel has rendered at least a total or an aggregate of four (4) months of service from January 1 to October 31 of the current year; and
Personnel remains to be in the government service as of October 31 of the same year.
Those who have rendered at least a total or an aggregate of four (4) months of service from January 1 of the current year but who have retired or separated from government service before October 31 of the same year shall be granted within the month of retirement or separation, a prorated share of the: a) Year-End Bonus based on the monthly basic pay immediately preceding the date of retirement or separation; and b) Cash Gift of P5,000, as follows:
Those who have rendered a total or an aggregate of less than four (4) months of service from January 1 to October 31 of the current year and are still in government service as of October 31 of the same year, shall be entitled solely to a pro-rated Cash Gift pursuant to Section 2 of RA No. 8441.
The Year-End Bonus and Cash Gift of personnel transferred from one agency to another shall be paid by the new agency.
A compulsory retiree, whose services have been extended, may be granted Year-End Bonus and Cash Gift, subject to pertinent provisions of this Circular.
Those who are formally charged administrative and/or criminal cases which are still pending for resolution shall be entitled to Year-End Bonus and Cash Gift until found guilty by final and executory judgment, provided that those found guilty shall not be entitled to Year-End Bonus and Cash Gift in the year of the finality of the decision. The personnel shall refund the Year-End Bonus and Cash Gift received for that year.
Gov’t workers to receive year-end bonus and cash gift starting Nov 15 – Updated: November 12, 2020
Source: DBM Circular No. 2016-4
Read more: DepEd News
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