1. Before, only certain Government Financial Institutions (GFIs) were authorized to celebrate and commemorate milestone anniversaries with the tradition of giving or granting Anniversary Bonus to their officials and employees. Meaning, not all government agencies receive this bonus.
2. However, in 1996, by virtue of Administrative Order No. 263, issued by then President Fidel V. Ramos, the Anniversary Bonus was authorized to be given to more government employees and no longer limited to certain GFI officials and employees. The Department of Budget and Management (DBM) issued National Budget Circular No. 452 in the same year to provide the guidelines on the grant of Anniversary Bonus to government employees.
3. In 1997, the grant of Anniversary Bonus was extended to local government units (LGUs) employees by virtue of Administrative Order No. 316. The grant of Anniversary Bonus to LGUs was implemented through Local Budget Circular No. 65 dated March 3, 1997.
4. The Anniversary Bonus (while agencies celebrate their anniversary every year) is given only during milestone years. Meaning, it is not given every anniversary celebration.
5. Annual payment of Anniversary Bonus which is not consistent with AO Nos. 263 and 361 is considered irregular expenses.
6. A milestone year refers to the 15th anniversary and to every fifth (5th) year thereafter.
7. The amount of Anniversary Bonus authorized to be granted is ₱3,000.00 per qualified government employee.
8. To be eligible to receive the Anniversary Bonus, the government employee must have rendered at least 1 year of service in the same agency as of the date of the milestone year; not on absence without leave as of the date of the milestone year for which the Anniversary Bonus is being paid; still in the service as of the date of the milestone year; and was not found guilty of any offense in connection with his/her work during the 5-year interval between milestone years, among other conditions.
9. The Anniversary Bonus is not taxable. Gifts given during major anniversary celebrations (in addition to gifts given during Christmas) not exceeding ₱5,000.00 per employee per year is considered de minimis benefits. De minimis benefits, being of relatively small value, is not considered as taxable compensation.
10. The rate of Anniversary Bonus is already almost three (3) decades old (27 years now) and remains at ₱3,000.00 per qualified employee this FY 2023.
Bonus Fact: (Sample agency that released anniversary bonus this 2023)
The Department of Education has released Anniversary Bonus of ₱3,000.00 to teachers and non-teaching employees pursuant to DepEd Order No. 11 series of 2023 re: Policy on the Grant of Anniversary Bonus in the Department of Education. According to the said Order:
“eligible DepEd personnel shall receive an anniversary bonus not exceeding Php 3,000.00, provided that they have rendered at least one (1) year of service in the Department as of the date of the milestone year.”
Do you have any question?
Please feel free to leave us a message below should you have any question. We are more than glad to discuss with you.
