Home news Guidelines on Grant of Cash Gift and Year-end Bonus

Guidelines on Grant of Cash Gift and Year-end Bonus

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The Department of Budget and Management had announced that the year-end bonus of the government workers will be release after the ASEAN Summit.

While qualified government workers will receive the year-end bonus free from tax, other public sector employees will receive cash gift.Guidelines-on-Grant-of-Cash-Gift-and-Year-end-Bonus

To know more how an employee may qualify for the said grant and how it is computed, please read on this post.

Who are qualified government employees?

  • Civilian personnel, regardless of the position, whether contractual, casual, or regular, elective or appointive, part-time or full-time, created in the Judicial, Legislative, and Executive branches, SUCs, other Constitutional Offices, and GOCCs covered by the Compensation and Position Classification System under RA 6758.
  • Military personnel and uniformed personnel under the Department of National Defense and Philippine National Police, BJMP, BFP, Philippine Coast Guard, and National Mapping and Resource Information Authority.

Guidelines on the grant of cash gift and year-end bonus

The amount of the year-end bonus of an employee is equivalent to the basic monthly pay, while the cash gift is a fixed amount of Php5,000, and shall be release not earlier than November 15 of the year. To qualify for the grant, the government employee must meet the following conditions:

  • The employee has rendered service (at least four months) from January 1 to October 31 of the present year.
  • The personnel must be in the position and presently serving as of October 31 of the current year.

However, if the employee had rendered the required duration of service, but separated or retired from service prior to October 31, a prorated share of the year-end bonus and cash gift will be computed as follows:

Length of Service % of the cash Gift and Year-end Bonus
4 months but less than 5 months 50%
5 months but less than 6 months 60%
6 months but less than 7 months 70%
7 months but less than 8 months 80%
8 months but less than 9 months 90%
9 months but less than 10 months 95%

 

If the employee has rendered service less than four months from January 1 to October 31 of the present year, shall be entitled only to a prorated cash gift following the computation below:

Length of Service Percentage of Cash Gift Corresponding Amount
3 months but less than 4 months 40% Php2,000
2 months but less than 3 months 30% 1,500
1 month but less than 2 months 20% 1,000
Less than one month 10% 500

The Department of Budget and Management will release the SARO or the Special Allotment Release Order to the concerned agencies.

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