Question & AnswerQ&A (DBM LOCAL BUDGET CIRCULAR NO. 51)
The year-end bonus covers all officials and employees of local government units employed on a regular, temporary, emergency, casual, or contractual basis, including Provincial Governors, City and Municipal Mayors, Vice-Governors, Vice-Mayors, and Sanggunian Members who have rendered at least four months of service from January 1 to October 31 and are still in service as of October 31 each year.
Officials or employees who have rendered less than four months but are still in service as of October 31 are entitled to a pro-rated cash gift ranging from P100 to P400 depending on the length of service, subject to availability of local funds.
Barangay chairmen of legally created barangays as of December 31, 1990, who occupy such position as of October 31 are entitled to a cash gift of P1,000 only regardless of their tenure period.
No, an official or employee under preventive suspension without pay is not entitled to the year-end benefits, but if exonerated, they may be paid the same.
No, those who are no longer in service as of October 31 due to retirement, resignation, separation, or other reasons are not entitled to the year-end benefits.
The year-end bonus is computed based on the actual basic monthly salary, daily wage, or contractual rate of the employee as of October 31, excluding allowances, hazard pay, and other compensations outside the basic salary.
The year-end benefits are subject to withholding tax but are not subject to GSIS, Medicare, or other similar deductions.
The local chief executive is personally liable for any payment of year-end benefits that is not in accordance with the Circular's provisions, and the employee concerned may be liable to refund any invalid payments received.
The payment of year-end benefits shall be made not earlier than November 15 of each year.