📚 Legal Basis
Below are the existing legal bases for the grant of cash gift to government employees:
Pertinent provision of the CY 2022 General Appropriations Act
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What is cash gift?
Cash gift is a monetary benefit given to government employees entitled to it every November each year along with year end bonus.
Who are entitled to cash gift?
- All positions for civilian personnel whether regular, contractual, or casual in nature, appointive or elective, full-time or part-time, now existing or hereafter created in the Executive, Legislative and Judicial Branches, the Constitutional Commissions and other Constitutional Offices, SUCs, and GOCCs covered by the Compensation and Position Classification System (CPCS) under RA No. 6758, as amended by Senate and House of Representatives Joint Resolutions No. 1, series of 1994 and No. 4, series of 2009; and in LGUs; and
- Military personnel of the Armed Forces of the Philippines under the Department of National Defense and uniformed personnel of the Philippine National Police, Philippine Public Safety College, Bureau of Fire Protection, and Bureau of Jail Management and Penology of the Department of the Interior and Local Government; Philippine Coast Guard of the Department of Transportation and Communications; and National Mapping and Resource Information Authority of the Department of Environment and Natural Resources.
Are job order (JO) and contract of service (COS) workers entitled to cash gift?
Job order and contract of service workers in the government are not entitled to cash gift.
Likewise, the following are not entitled to cash gift:
- Government personnel from agencies, including GOCCs, that are exempted from RA No. 6758, as amended, as expressly provided in their respective enabling law or charter, and are actually implementing their respective CPCS approved by the President of the Philippines;
- Government personnel from GOCCs covered by the CPCS established by the Governance Commission for GOCCs and approved by the President of the Philippines pursuant to RA No. 10149;
Those hired without employer-employee relationships and funded from non-Personnel Services appropriations/budgets are likewise not entitled to cash gift. Said individuals may include, but not limited to, the following:
- Consultants and experts hired for a limited period to perform specific activities or services with expected outputs;
- Laborers hired through job contracts (pakyaw) and those paid on piecework basis; and
- Student laborers and apprentices.
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How much is the cash gift of government employees?
The cash gift of government employees is P5,000.00. Provided they meet all the conditions setforth for the grant of the same.
What are the conditions for the grant of cash gift?
The cash gift shall be given to entitled government personnel subject to the following conditions:
- Personnel has rendered at least a total or an aggregate of four (4) months of service from January 1 to October 31 of the current year; and
- Personnel remains to be in the government service as of October 31 of the same year.
How to compute the required four (4) months of service?
Cash gift of employees who resigned or retired from government service during the current year
The cash gift of employees who resigned or retired from government service before October 31 of the current year and have rendered at least four (4) months of aggregate government service from January 1 of the current year, shall be prorated as follows:
Cash gift of employees who are still in service before October 31 of the current year but have rendered less than four (4) months of government service
The cash gift of employees who have rendered a total or aggregate of less than four (4) months of government service from January 1 of the current year, but still in service as of October 31, shall be prorated as follows:
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Cash gift of part-time employees
The cash gift of personnel hired on part-time service in one or more agencies shall be in direct proportion to the number of hours/days of part-time services rendered.
Cash gift of employees in detail with another agency
The cash gift of personnel on detail with another government agency shall be paid by the parent agency, while those on secondment shall be paid by the recipient agency.
Cash gift of employee who transferred to another agency
The cash gift of personnel transferred from one agency to another shall be paid by the new agency.
Cash gift of compulsory retiree whose services have been extended
A compulsory retiree, whose services have been extended, may be granted cash gift, subject to the conditions setforth for the grant of cash gift.
Cash gift of employees with pending administrative and/or criminal case
Those who are formally charged administrative and/or criminal cases which are still pending for resolution, shall be entitled to cash gift until found guilty by final and executory judgment, provided that:
- Those found guilty shall not be entitled to cash gift in the year of finality of the decision. The personnel shall refund the Cash Gift received for that year.
- If the penalty imposed is only a reprimand, the personnel concerned shall be entitled to cash gift.
Cash gift of barangay personnel
Elective, appointive and salaried barangay personnel may be entitled to cash gift, subject to the same conditions stated in the subject circular.
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When to pay the cash gift?
The Cash Gift of P5,000 shall be given to entitled government personnel not earlier than November 15 of the current year.
Is the cash gift taxable?
Gifts given during Christmas and major anniversary celebrations not exceeding P5,000.00 per employee per year is among the authorized de minimis benefits of government employees which are exempt from income tax.
🙋♀️ Join Forums 🙋
A job order worker became a casual employee in September, is he entitled to cash gift?
@seventee says: Congratulations po dahil finally casual ka na. Makakatanggap ka na ng bonuses. Pero siguro sa case mo, prorated yung matatanggap mo na bonus pero ang mahalaga, casual ka na.
@joshuajohncarlos says: Pro-rated cash gift 1500 pesos only, you fall under 2 months but not less than 3 months. Sa YEB dont expect na makakatanggap ka. Frankly speaking.
@katkatatienzoruliao says: Yes, but only 30% of the cash gift (P5,000.00) as per Budget Circular 2016-4.
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Taxation: Is the cash gift considered de minimis benefits or it is part of the P90,000.00 non-taxable threshhold?
@samueldean says: De minimis benefit exempt from tax. Mid year bonus + year end bonus if more than 90k, excess of 90k taxable under other income in excess of 90k.
@noeldbautista says: P5,000 Cash Gift is considered de minimis benefit which is exempt from tax. Yung sosobra sa 5k yun palang yung papasok sa threshold na 90k.
@leoalvarezomamalin says: In our agency, gifts given during Christmas like Cash Gift not exceeding ₱5,000 per employee per annum are considered as De Minimis Benefits.
Is an employee who is on sick leave in July of the current year entitled to cash gift?
@marieltayomoraperido says: As long as the employee is still in service as of October 31 and have rendered an aggregate of 4 months from January 1 of the current year, he/she is entitled of the YEB equivalent to 1 month basic salary and cash gift of P5,000.00. (BC No. 2016-4)
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