Law Summary
Coverage and Eligibility
- Applies to all officials and employees of the National Government regardless of employment status (regular, temporary, casual, contractual).
- Eligibility requires rendering at least four months of service as of October 31, 1987.
Year-End Bonus Provision
- Eligible employees shall receive a year-end bonus equivalent to one month’s basic salary.
Cash Gift Provision
- In addition to the year-end bonus, all eligible employees shall receive a cash gift amounting to ₱1,000.
Extension to Local Government Units
- Local government units (LGUs) may provide similar benefits to their officials and employees.
- Benefits are subject to availability of local funds.
Application to Government-Owned and Controlled Corporations (GOCCs)
- GOCCs may extend the same benefits to their officials and employees charged against their corporate funds.
- GOCCs not receiving national government subsidies may grant benefits consistent with those given for the year ended December 1986.
- Granting of benefits for non-subsidized GOCCs requires approval by the President after review and recommendation by the Department of Budget and Management.
Adjustment for Existing Bonuses
- Employees already receiving Christmas or year-end bonuses shall receive only the additional amount necessary to equal the benefits specified in this order.
Exclusion Clause
- Employees receiving Christmas or year-end bonuses equal to or greater than the amounts under this order are not entitled to additional benefits.
Funding Source
- Year-end bonuses and cash gifts for national government employees shall be charged against the Government Employees Amelioration Fund authorized under the General Appropriations Act.
- Any funding deficiency shall be covered by the personal services savings of the National Government.
Implementing Authority
- The Department of Budget and Management is authorized to issue the implementing circular to carry out the provisions of this executive order.
Effectivity
- This executive order takes effect immediately upon issuance on November 12, 1987.