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📚 Legal Basis
Below are the existing legal bases for the grant of year end bonus to government employees:
Pertinent provision of the CY 2022 General Appropriations Act
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What is year end bonus?
Year End Bonus is a monetary benefit given to government employees entitled to it every November each year along with cash gift.
Who are entitled to year end bonus?
- 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 year end bonus?
Job order and contract of service workers in the government are not entitled to year end bonus.
Likewise, the following are not entitled to year end bonus:
- 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 year end bonus. 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 year end bonus of government employees?
The year end bonus of government employees is equivalent to their monthly basic salary as of October 31 of the current year. Provided they meet all the conditions setforth for the grant of the same.
What are the conditions for the grant of year end bonus?
The year end bonus 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?
Year End Bonus of employees who resigned or retired from government service during the current year
The year end bonus of employees who resigned or retired (separated) 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:
Year End Bonus 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
Those who have rendered a total or an aggregate of less than four (4) months of service from January 1 to October 31 of the current year and are still in government service as of October 31 of the same year, are not entitled to the year end bonus and shall be entitled solely to a pro-rated cash gift pursuant to Section 2 of RA No. 8441.
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Year End Bonus of part-time employees
The year end bonus 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.
Year End Bonus of employees in detail with another agency
The year end bonus 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.
Year End Bonus of employee who transferred to another agency
The Year-End Bonus of personnel transferred from one agency to another shall be paid by the new agency.
Year End Bonus of compulsory retiree whose services have been extended
A compulsory retiree, whose services have been extended, may be granted year end bonus, subject to the conditions setforth for the grant of year end bonus.
Year End Bonus 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 year end bonus until found guilty by final and executory judgment, provided that:
- Those found guilty shall not be entitled to year end bonus in the year of finality of the decision. The personnel shall refund the year end bonus received for that year.
- If the penalty imposed is only a reprimand, the personnel concerned shall be entitled to year end bonus.
Year End Bonus of barangay personnel
Elective, appointive and salaried barangay personnel may be entitled to year end bonus, subject to the same conditions stated in the subject circular.
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When to pay the year end bonus?
The year end bonus shall be given to entitled government personnel not earlier than November 15 of the current year.
Is the year bonus taxable?
Yes, the year end bonus is taxable in excess of the P90,000.00 non-taxable threshhold.
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A job order worker became a casual employee in September, is he entitled to year end bonus?
@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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Is an employee who is on sick leave in July of the current year entitled to year end bonus?
@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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Is it allowed to release the year end bonus before November 15 of the current year?
@rhomylsahagundacanay says: It is stated, "not earlier than November 15". So it can be released on 15 onwards. Kahit po nagfall siya sa Sunday, di po ibig sabihin nun na di na susundin [y]ung rule na "not earlier than November 15". You can release it the next working day. Or you can have the payroll received by the bank on 13, but will be credited on 16.
@danterevamonte says: Specific po ang guidelines na not earlier than 15th of November. No room for interpretation. It may be considered as irregular expenditure and issuance of Notice of Suspension agad ito.
@gomelclementegabuna says: Pwede po, but be ready with COA AOM and possible administrative cases filed against sa mga nag release at nag approve. This is because the law explicitly stated na not earlier than 15th of November…
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Year End Bonus of employee who is on study leave without pay from June to November of the current year
@luanxiemanapat says: Study leave without pay means the employee is on vacation leave (VL) without pay and VL without pay is considered as not actual service (june to november) pero meron pa syang January to May and that is 5 months. To summarize: 1) nay 5 months of service from January to October; 2) Satisfactory rating (check the IPCR); 3) Still in service (andyan pa rin naman ata sya). Kung complied ang 3 requirement na yan, sure entitled sya sa bonus.
Is the year end bonus of a retiree taxable?
@ranelvalmoriadiabordo says: Yes if kinakailangan talaga para mabalanse ang kanyang annual tax due against total tax withheld. Dahil November 15 binigay ang YEB, mas precise na ang estimation for annual tax due.
@albertpdelosreyes says: [Yes,] If it is in excess of 90,000 non taxable other benefits.
@roymacadangdang says: YEB is part of the 90k threshold , the excess will become part of taxable compensation.
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Year End Bonus of an employee who was suspended for 30 days without pay
@donbajarla says: Not all suspensions are the result of an administrative case. Preventive suspensions for example. You may have been suspended without pay, not because your are guilty but just to ensure that you have no influence on the case. That is why, pending the result of the admin case, you can still receive the YEB. However, if found guilty, you are to pay it back.
@marieltayomoraperido says: If suspended, that means the employee is found guilty of administrative case. Per BC 2016-4, if the employee is found guilty within the year, he is not entitled to YEB and CG.
@lanimaebenosasadia says: It depends po. Please refer to Budget Circular 2016-4 issued last April 28, 2016. It states that a government employee shall be entitled [to] a Year-end bonus equivalent to one (1) month basic pay if he/she has rendered at least a total or an aggregate of 4 months of service from January to October 31 of the current year and he/she remains to be in the gov't service as of Oct 31 of the same year.
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A job order worker became a regular employee in August of the current year, is he/entitled to year end bonus?
@gabotaf says: Kung August sya naging regular employee, that means 3 months na sya sa service as of October 31, then cash gift lang matatanggap nya on a pro-rata basis. Hindi po considered na government service ang services ng job order worker kasi wala pong employer-employee relationship.
@sienneterry says: In my opinion. Not allowed to receive year end bonus only pro rate sa cash gift though job order sya from jan to july since [job order workers] have no employer employee relationship and not considered as government service.
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When to pay the year end bonus of a retired employee: on the day of retirement or not earlier than November 15?
@bosedee says: "shall be granted within the month of retirement or separation" per Par 6.2 of said circular. The word "shall" is mandatory in nature, no excuses.
Year End Bonus of an employee who appointed in June of the current year but it was disapproved by the Civil Service Commission (CSC)
@vidanathanialacsonpimentel says: Yes as de facto officer the said employee is entitled to all salaries and benefits of the position, until the decision invalidating the appointment becomes final and executory chaka pa lang mag-stop ang entitlement nya.
@marjoriesunshine says: YES. Under the CSC rules, if the appointment was disapproved and when [the] case is still pending on appeal, the employee cannot be removed from the service until the decision is final on the appeal that was filed. In the given case, the case has no result yet and the employees services is not interrupted. Her services is still considered to be regular. Therefore, she is entitled for a bonus and the agency is obliged to pay the said claim.
@kevengalarozaopaon says: Pending the petition or MR will mean na employee pa rin sya and the CSC earlier decision na disapprove ang appointment nya cannot be implemented. Therefore, for the mean time he/she is entitled to all the salary and privileges of a regular employee.
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An employee was promoted before October 31 of the current year, what is the basis of his/her year end bonus?
@marilounavarro says: Monthy basic salary as of October 31 (xxx), so the bonus will be his new rate.
