Law Summary
Scope and Coverage
- Applies to all officials and employees of national government agencies.
- Includes permanent, temporary, emergency, and contractual personnel with regular employment status.
- Covers appointive and elective positions.
- Extends to state universities and colleges, government-owned/controlled corporations (GOCCs), government financial institutions (GFIs), and local government units (LGUs).
Advance Payment Rules for Year-end Bonus and Cash Gift
- Eligible recipients: elective and appointive officials/employees.
- Conditions: At least 4 months of service (including paid leave) from January 1 to April 30 of the year.
- Payment: One-half of total year-end bonus and cash gift.
- Timing: Not earlier than May 1 and not later than May 31 each year.
- Eligibility regardless if still in service as of October 31.
Pro-rated Share of Remaining Cash Gift Balance
- Applicable to personnel retiring or separating after having rendered more than 4 months of service in the year.
- Pro-rated cash gift based on monthly gradation exceeding 4 months:
- May: 0%
- June: 20%
- July: 40%
- August: 60%
- September: 80%
- October: 100%
- Corresponding amounts tied to percentages, i.e., full P2,500 at October.
- Payment to be made within the month of retirement or separation.
Application Threshold
- Benefits apply only to services from January 1, 2003, onward.
Funding and Budget Sources
- For NGAs: Charged against approved agency appropriations; deficiencies covered by available savings.
- For GOCCs and GFIs: Charged to respective corporate funds.
- For LGUs: Charged to local funds.
Administrative Provisions
- Cases not covered are to be submitted to the Secretary of Budget and Management for resolution.
- Previous circulars or issuances inconsistent with this circular are rescinded or superseded.
- Effective date: January 1, 2003.