Question & AnswerQ&A (Republic Act No. 8441)
The main purpose of Republic Act No. 8441 is to increase the cash gift given to officials and employees of the National Government, barangay chairmen, and local government officials to Five Thousand Pesos (P5,000), effective over a period of three years starting from 1997.
All officials and employees of the National Government who have rendered at least four months of service from January 1 to October 31 of each year and who are employed as of October 31 each year are entitled to receive the Christmas bonus and cash gift. Barangay chairmen and officials and employees of local government units are also entitled under similar provisions.
The Christmas bonus is equivalent to one month basic salary for eligible officials and employees.
The cash gift is phased in as follows: P2,000 for Christmas Year 1997; P3,000 for Christmas Year 1998; and P5,000 for Christmas Year 1999 and thereafter.
They are entitled only to a percentage of the cash gift depending on their length of service: 40% for 3 months but less than 4 months; 30% for 2 months but not less than 3 months; 20% for 1 month but not less than 2 months; and 10% for less than one month.
For CY 1997, the funds shall come from the appropriations for the Miscellaneous Personnel Benefit Fund and appropriation savings and reserves authorized under Republic Act No. 8250, the General Appropriations Act for 1997. For succeeding years, the amount shall be included in the annual General Appropriations Act.
Local government units may charge the benefits against their respective local funds. For 1997, they may realign their budgets to meet funding requirements and any deficiency can be booked as accounts payable to be paid on a first priority basis in succeeding years.
Barangay chairmen shall each receive a cash gift of Five Thousand Pesos (P5,000.00).
No official or employee shall receive a Christmas bonus from all sources exceeding one month basic salary plus the cash gift as provided under Sections 1 and 2 of this Act.
This Act took effect upon its approval on December 22, 1997.