Policy, purpose, and Christmas intent
- The order declares it to be government policy to improve the economic welfare of government employees.
- It recognizes the important contribution of government officials and employees in providing quality service.
- It is intended to brighten the Christmas spirit by granting (1) a year-end bonus and (2) an additional cash gift to covered government personnel.
Who receives benefits and service requirement
- Section 1 covers “all officials and employees of Local Government Units” who, as of October 31, 1986, have rendered at least four months of service.
- Section 2 covers officials and employees of both the National Government and Local Government Units who are covered under Section 1.
- The benefits are tied to government officials and employees under the coverage of Sections 1 and 2.
Year-end bonus amount and basic salary equivalence
- Section 1 grants a year-end bonus equivalent to one month basic salary to covered LGU officials and employees.
- The entitlement under Section 1 applies only to those who meet the service condition as of October 31, 1986.
Additional cash gift amount
- Section 2 grants an additional Cash Gift of PHP 1,000 to covered officials and employees of the National Government and Local Government Units under Section 1.
Interaction with existing Christmas/year-end bonuses
- Section 3 provides that officials and employees already receiving Christmas or year-end bonus (or their equivalent) shall receive only the additional amount necessary to bring their Christmas/year-end/equivalent bonuses up to the amounts required under Sections 1 and 2.
- Section 4 provides that officials and employees already receiving Christmas or year-end bonus (or their equivalent) equal to or more than the amounts provided under Sections 1 and 2 are no longer entitled to the amounts granted under this Executive Order.
Funding and implementing authority
- Section 5 requires that funds for both National and Local Government employees be taken from the Salary Adjustment Fund and from such other appropriations as the Ministry of Budget and Management may determine.
- Section 6 directs the Ministry of Budget and Management to issue the implementing circular to carry out the Executive Order.
Effectivity and execution date
- The order is signed in the City of Manila on November 26, 1986, by Corazon C. Aquino.
- Executive Secretary Joker P. Arroyo affixes the presidential by-order attestation.