Updated Guidelines on the Grant of the Year-End Bonus and Cash Gift 2023
The Philippine government issued Executive Order (EO) No. 201, s. 2016, introducing a compensation adjustment strategy to ensure the government’s compensation structure remains competitive with prevailing rates in the private sector. The purpose of this Circular is to consolidate and update the policy and procedural guidelines on the grant of the Year-End Bonus and Cash Gift for government personnel for FY 2016 and the years thereafter.
Compensation Adjustment Strategy
The compensation adjustment strategy under EO No. 201, s. 2016, includes an increase in basic salary for civilian personnel, new and increased allowances for military and uniformed personnel, the grant of a Mid-Year Bonus, and the enhancement of the existing Performance-Based Bonus. The EO also stipulates that the Year-End Bonus and Cash Gift be given in November of every year.
Guidelines and Eligibility for Year-End Bonus and Cash Gift
In line with the DBM Circular No. 2016-4, the Year-End Bonus equivalent to one (1) month basic pay as of October 31 and Cash Gift of PHP 5,000 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 PHP 5,000, as follows:
|Length of Service||Percentage of the Year-End Bonus and Cash Gift|
|4 Months but less than 5 months||50%|
|5 Months but less than 6 months||60%|
|6 Months but less than 7 months||70%|
|7 Months but less than 8 months||80%|
|8 Months but less than 9 months||90%|
|9 Months but less than 10 months||95%|
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, as follows:
|Length of Service||Percentage of 5,000||Corresponding Amount|
|3 months but less than 4 months||40%||PHP 2,000|
|2 months but less than 3 months||30%||PHP 1,500|
|1 month but less than 2 months||20%||PHP 1,000|
|Less than one month||10%||PHP 500|
The Circular covers all positions and personnel in the Executive, Legislative, and Judicial Branches, the Constitutional Commissions and other Constitutional Offices, state universities and colleges (SUCs), government-owned and controlled corporations (GOCCs), and local government units (LGUs), as well as military and uniformed personnel. However, certain positions and personnel are excluded from the coverage of this Circular.
Read: Guidelines on the Grant of Mid-Year Bonus
Benefits for Barangay Personnel
The updated rules also include barangay personnel, ensuring that they receive adequate compensation and benefits for their services. This extension of benefits to local officials and employees recognizes their valuable contributions to their communities.
The funds for the Year-End Bonus and Cash Gift will come from the respective budgets of national government agencies, government-owned and controlled corporations, and local government units.
The Updated Rules and Regulations on granting Year-End Bonuses and Cash Gifts play a key role in improving government personnel compensation. With salary and allowance adjustments and new benefits, the Guidelines on the Grant of the Year-End Bonus and Cash Gift make the compensation structure more competitive. The Circular also offers clear guidelines for distributing Year-End Bonuses and Cash Gifts, making sure that eligible employees receive their benefits promptly. Including barangay personnel highlights the government’s dedication to compensating all levels of public service fairly.
By enforcing Executive Order No. 201, s. 2016, and implementing the Guidelines on the Grant of the Year-End Bonus and Cash Gift, the government hopes to encourage current employees to stay and attract new talents to the public sector. Having a competitive compensation structure is crucial for retaining a skilled and dedicated workforce that serves the public’s best interests.
Furthermore, the updated Guidelines on the Grant of the Year-End Bonus and Cash Gift guarantee a just and balanced distribution of bonuses and cash gifts among qualified government personnel. Provisions for different situations, such as employees with less than four months of service or those who retired or left government service, ensure fairness among employees. This contributes to job satisfaction and helps retain employees.
In conclusion, the Updated Rules and Regulations on the Grant of the Year-End Bonus and Cash Gift for FY 2016 and Years Thereafter, as outlined in Executive Order No. 201, s. 2016, play a crucial role in enhancing the compensation structure of government personnel in the Philippines. By following the Guidelines on the Grant of the Year-End Bonus and Cash Gift and creating a more competitive environment, the government can attract and retain a talented and dedicated workforce that will serve the public’s best interests, ultimately contributing to the country’s overall development and progress.