Coverage of Benefits
- Applies to all government personnel: appointive, elective, regular, temporary, casual, and contractual with regular nature
- Must be in service as of October 31 each year and have rendered service between Jan-April 30 or July-Oct 31
- Includes personnel with at least four months of service including paid leave
- Includes those on approved leave without pay with at least four months service and not dropped from rolls
- Includes personnel with less than four months service
- Includes barangay officials (chairmen, councilmen, secretaries, treasurers) holding positions as of October 31 regardless of tenure length
Exemptions from Benefits
- Personnel under preventive suspension until exoneration
- Those formally charged with administrative cases after preliminary investigation with prima facie evidence
- Personnel with pending cases before Ombudsman, Prosecutor’s Office, or administrative bodies where prima facie cases exist
- Personnel with pending criminal information related to official duties
- Those formally charged and meted penalties disqualify only for the first year; reprimands exempt
- Personnel absent without leave (AWOL)
- Those no longer in service due to retirement, resignation, separation, death
- Consultants, experts, student laborers, apprentices, laborers on contracts, mail contractors, paid piecework workers, and similar not part of organic manpower
Benefits and Computation
- Personnel with at least four months service receive a bonus equivalent to actual basic monthly salary/daily wage as of October 31, excluding allowances and other compensation, plus a P1,000 cash gift
- Contractual personnel receive bonus equivalent to monthly contractual rate excluding 20% premium and allowances, plus P1,000 cash gift
- Option for advance payment of half the benefits between May 15 and May 31; remaining balance paid between November 15 and 30
- Personnel who do not opt for advance payment receive full benefits in November
- Personnel detailed full-time or part-time to other agencies get benefits from their mother agency or salary source; no multiple benefit sources allowed
- Part-time employees receive benefits proportionate to basic salary and pro-rated cash gift
- Personnel transferred to other agencies receive benefits from the new agency
- Personnel with less than four months service entitled to pro-rated cash gift based on length of service:
- 3 to <4 months: P400
- 2 to <3 months: P300
- 1 to <2 months: P200
- Less than 1 month: P100
- Barangay officials receive only a P1,000 cash gift (Christmas Bonus)
Refund and Recovery of Benefits
- Personnel who received advances but are no longer in service by October 31 must refund via deductions from due benefits
- Personnel later found covered by disqualifications must refund benefits if allowed to continue receiving salary
- Refund can be deducted upon reinstatement if applicable
- Refund can be deducted from monetized accumulated leave credits or via payroll upon agency transfer
- In case of death, retirement, resignation, or separation, refund deducted from due benefits
Funding Sources
- National government agencies charge appropriations from the General Appropriations Act
- Government-owned/control corporations and financial institutions use their corporate funds
- Local government units use respective local funds
- Barangays fund benefits from Internal Revenue Allotment released by Department of Budget and Management
Responsibilities of Agency Heads
- Agency heads personally liable for unauthorized grant of loans or benefits in violation of the Circular
- Responsible for refunding any excess payments by officials or employees
Prohibition on Additional Benefits
- No additional benefits beyond those authorized under this Circular
- Any inconsistent administrative authorizations are void and unenforceable
Repealing Clause
- Circular supersedes or repeals prior inconsistent guidelines or issuances
Resolution of Cases
- Issues not covered by this Circular to be submitted to the Secretary of Budget and Management for evaluation and resolution
Payment Schedule
- Payments to be made not earlier than May 15 but not later than May 31 for advance payments
- Remaining benefits or full amounts to be paid not earlier than November 15 but not later than November 30 annually