Question & AnswerQ&A (DBM LOCAL BUDGET CIRCULAR NO. 65)
The purpose is to prescribe the rules and regulations on the grant of Anniversary Bonus in local government units, authorized under Administrative Order No. 316, consistent with the standardized compensation in government under R.A. No. 6958 and pursuant to Administrative Order No. 42.
All local government personnel employed on a full-time or part-time basis whether permanent, temporary, or casual, and contractual personnel employed by valid appointment in a specific LGU and continuously employed as of the milestone anniversary date are covered.
Exemptions include personnel under preventive suspension or formally charged in administrative cases with penalties more severe than reprimand; cases pending with Ombudsman or courts related to official duties with prima facie cases; personnel found guilty of offenses related to work during the five-year interval; those AWOL; no longer in service as of milestone date or initial payment; consultants, student laborers, apprentices, laborers of contracted projects; and those paid on honoraria basis.
Milestone years refer to the 15th anniversary and every fifth year thereafter of the founding of the LGU.
It is based on authentic documents showing establishment or on the enabling act or law creating such localities.
No, the initial grant of Anniversary Bonus is only for the latest milestone year; there shall be no retroactive payment for past milestone years.
The payment shall not exceed P3,000 per employee, provided the employee has rendered at least one year of service in the LGU as of the milestone year.
Yes, if funds are insufficient, the LGU may grant the bonus at a lower uniform rate applied to all officials and employees.
Yes, the head of LGUs such as Provincial Governor or City/Municipal Mayor/Barangay Chairman are responsible and personally liable for any payments not in accordance with the Circular, including refund of any excess payment.
No, no other bonuses or allowances of similar nature related to the LGU anniversary shall be granted.