Law Summary
Coverage: Eligible Personnel
- Includes appointive, elective, regular, temporary, casual, and contractual personnel considered equivalent to regular employees.
- Must have served from January 1 to October 31 each year, still in service as of October 31.
- Includes:
- Those with at least four months aggregate service including paid leave.
- Those on approved leave without pay but with at least four months total service and not dropped from rolls.
- Personnel with less than four months service.
- Barangay officials (punong barangay, sangguniang barangay members, barangay secretaries, treasurers) holding office as of October 31, irrespective of tenure length.
Exemptions from Benefits
- Absent without leave (AWOL) as of October 31.
- No longer in service due to retirement, resignation, separation, death, or other reasons.
- Consultants, experts hired for limited periods, student laborers, apprentices, contract laborers (pakiao), mail contractors, and similar roles.
- Personnel found guilty of administrative or criminal cases related to official duties, except reprimand penalties do not disqualify benefit.
Benefits and Payment Structure
- Personnel with four months or more service receive a year-end bonus equal to actual basic monthly salary as of October 31 plus a ₱5,000 cash gift.
- Contractual personnel receive bonus based on monthly contractual rate (excluding 20% premium and allowances) plus ₱5,000 cash gift.
- Barangay officials receive only the ₱5,000 cash gift.
- Option for advance payment of one-half of benefits available from May 1 to May 31 for personnel with at least four months service from January 1 to April 30.
- Elective officials not entitled to advance payment in their last term year.
- Remaining half paid not earlier than November 15 and before November 30.
- Full payment for those not opting for advance payable not earlier than November 15.
Refund and Multiple Employment Rules
- Personnel who received advance payment but are no longer in service as of October 31 must refund the advance.
- Benefits drawn from mother agency for personnel on detail or project funds; no double benefits from multiple sources.
- Part-time employees receive pro-rata benefits based on actual salary; total benefits across agencies cannot exceed full benefit amount.
- Personnel transferring agencies receive benefits from new agency; if advance already paid by former agency, balance only is paid.
Proration for Service Less Than Four Months
- Cash gift prorated based on length of service less than four months:
- 3 to <4 months: 40%
- 2 to <3 months: 30%
- 1 to <2 months: 20%
- <1 month: 10%
Effect of Pending or Final Administrative and Criminal Cases
- Personnel with pending administrative or criminal cases continue to receive benefits until found guilty.
- Reinstatement of benefits and back pay for personnel later exonerated on appeal unless otherwise decided.
Funding Sources
- NGAs charge bonuses and gifts to approved GAA appropriations; deficiencies charged against agency savings.
- GOCCs and GFIs fund benefits from corporate funds.
- LGUs source benefits from local funds.
Responsibilities and Liabilities of Heads of Entities
- Heads of entities responsible and personally liable for unauthorized benefits granting.
- Officials or employees must refund any excess payments.
Restrictions on Additional Benefits
- Agencies prohibited from granting benefits beyond those authorized.
- Administrative authorizations granting inconsistent or additional benefits are null and void.
Repealing Clause and Resolution of Uncovered Cases
- Previous inconsistent circulars and issuances repealed or superseded.
- Cases not covered by this Circular to be submitted to the Secretary of Budget and Management for evaluation and resolution.
Payment Schedule
- Advance payment of one-half may occur from May 1 to May 31.
- Remaining balance payment to be made from November 15 to November 30 each year.
- Heads of entity to ensure compliance with payment timelines.