Title
Guidelines for LGU Anniversary Bonus Grant
Law
Dbm Local Budget Circular No. 65
Decision Date
Mar 3, 1997
This circular establishes guidelines for granting an Anniversary Bonus to local government personnel, stipulating eligibility criteria, funding sources, and conditions under which bonuses may be awarded or withheld based on employment status and milestone anniversaries.
A

Coverage

  • Applies to all local government personnel employed full-time or part-time.
  • Includes permanent, temporary, casual employees and contractual personnel considered regular employees.
  • Eligible personnel must have valid appointments in specific LGUs and be employed as of the milestone anniversary.

Exemptions

  • Employees under preventive suspension or formally charged with administrative cases until exoneration.
  • Employees with pending criminal or administrative cases related to official duties.
  • Employees penalized beyond reprimand in connection with work offenses within the last five years before the milestone.
  • Those absent without leave (AWOL) as of the milestone date.
  • Personnel no longer serving in the LGU at the time of the milestone or initial bonus payment.
  • Consultants, experts, student laborers, apprentices, contract laborers, mail contractors, and those paid by honoraria such as barangay officials.

Rules and Regulations

  • LGUs cover Provinces, Cities, Municipalities, and Barangays.
  • Founding year based on authentic documents or enabling laws.
  • Milestone counting starts from original founding or separate creation in case of splits.
  • For merged LGUs, milestone counting begins from the merger date.
  • Anniversary Bonus granted only on milestone years: 15th and every 5 years thereafter.
  • Employees must have rendered at least one-year service in the LGU at milestone date.
  • Initial 1997 grant only for the latest milestone; no retroactive payments.
  • Bonus payment capped at P3,000 per employee, subject to fund availability; lower rates allowed if uniformly applied.
  • No other bonuses or allowances related to LGU anniversaries permitted.

Funding Source

  • Anniversary Bonus funded solely from LGU funds.
  • Subject to budget limitations under RA 7160.

Responsibility of LGU Heads

  • Provincial Governors, City/Municipal Mayors, Barangay Chairmen held liable for non-compliance.
  • Personal liability for unauthorized bonus payments and obligation to recover excess payments.

Saving Clause

  • Uncovered cases to be submitted to the Secretary of Budget and Management for evaluation and resolution.

Effectivity

  • Circular effective immediately upon issuance on March 3, 1997.

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