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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
Being able to serve the country definitely has its perks. One of them is the privilege of receiving various bonuses, which prove to be very helpful, especially in this time of gift-giving and joyful celebrations.
As a reward for their commitment to serve the Filipino people, government employees in the Philippines receive the following bonuses pursuant to existing laws, rules, and regulations.
Cash Gift and Year-end Bonus
Section 1 of Republic Act (RA) No. 6686, as amended by RA No. 8441 which is an act authorizing annual Christmas Bonus to National and Local Government Officials and Employees Starting CY 1988 provides that all officials and employees of the National Government who have rendered at least four months of service from January 1 to October 31 of each year and who are employed in the government service as of October 31 of the same year shall receive a Christmas bonus equivalent to one month basic salary and additional cash gift of Five thousand pesos (PhP5,000.00).
In recent years, the Department of Budget and Management (DBM) has released various circulars to streamline the schedule of payment of the said benefits. This year, the DBM issued Budget Circular No. 2024-3, which provides that the Year-End Bonus equivalent to one (1) month basic pay as of October 31 and Cash Gift of PhP5,000 shall be given to entitled government personnel simultaneously with the first agency payroll for the month of November of the current year, subject to certain conditions.
Mid-Year Bonus
Budget Circular No. 2017-2 provides for the Rules and Regulations on the Grant of the Mid-Year Bonus for FY 2017 and Years Thereafter, pursuant to Executive Order (EO) No. 201 , s. 2016, entitled “Modifying the Salary Schedule for Civilian Government Personnel and Authorizing the Grant of Additional Benefits for Both Civilian and Military and Uniformed Personnel,” or the FY 2017 General Appropriations Act (GAA).
The said circular provides that the Mid-Year Bonus equivalent to one (1) month basic pay as of May 15 shall be given to entitled personnel not earlier than May 15 of the current year, subject to the following conditions:
5.1.1. Personnel has rendered at least a total or an aggregate of four (4) months of service from July 1 of the immediately preceding year to May 15 of the current year;
5.1.2. Personnel remains to be in the government service as of May 15 of the current year; and
5.1.3. Personnel has obtained at least a satisfactory performance rating in the immediately preceding rating period, or the applicable performance appraisal period. If there is a need for a shorter period, it shall be at least ninety (90) calendar days or three (3) months, provided that the total or aggregate service under Item 5.1.1. hereof is complied with.
Performance Based Bonus (PBB) and Productivity Enhancement Incentives (PEI)
Administrative Order (AO) No. 25, s. 2011 provides for the establishment of the Results-Based Performance Management System (RBPMS) across all agencies within the Executive Branch, which shall be used as basis for determining entitlement to performance-based allowances, incentives, or compensation of government personnel.
On the other hand through Executive Order (EO) No. 80, s. 2012, the Performance Based Incentive System (PBIS) was adopted, consisting of the (i) Performance-Based Bonus (PBB) and the (ii) PEI, to motivate higher performance and greater accountability in the public sector, as well as to ensure the accomplishment of key commitments and targets by the various agencies.
Service Recognition Incentives
AO No. 27 issued by President Ferdinand R. Marcos authorized the grant Service Recognition Incentive (SRI) to Government Employees for Fiscal Year 2024. The grant of SRI is the Administration’s way of recognizing all government employees for their collective and invaluable contributions to the government’s continuing efforts in pursuing the objectives, commitments, targets and deliverables under the Philippine Development Plan 2023-2028 and the President’s 8-Point Socioeconomic Agenda. The AO authorizes the grant of a one-time SRI at a uniform rate not exceeding PhP20,000.00 for each of the following personnel in the Executive branch.
Related Articles:
- Is Bonus a Demandable Right of an Employee? – ALBURO LAW
- Productivity Standards under the Labor Code – ALBURO ALBURO AND ASSOCIATES LAW OFFICES
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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 0917-5772207/ 09778050020.
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