Anniversary Bonus of Government Employees

What is Anniversary Bonus?

Anniversary Bonus is one of the bonuses given to government employees as part of their total compensation. It is given on the occassion of milestone year of the government agency where they are currently employed.

Granting Anniversary Bonus to government employees aims to improve and enhance employee morale consistent with Executive Order No. 292 or the Administrative Code of 1987.

Who may be entitled to Anniversary Bonus?

All government personnel whether employed on full-time or regular, part-time basis or under permanent, temporary or casual status, and contractual personnel whose employment is in the nature of a regular employee, who have been appointed as such in a specific government entity by virtue of a valid appointment and continue to be employed in the same government entity as of the occasion of its milestone anniversary, shall be entitled to anniversary bonus.

Conditions on the Grant of Anniversary Bonus

• The anniversary bonus shall be granted only during milestone years. A milestone year refers to the 15th anniversary and to every fifth (5th) year thereafter.

• Government personnel who have been found guilty of any offense in connection with their work during the five-year interval between milestone years, shall not be entitled to the immediately succeeding anniversary bonus.

• To be entitled to the Anniversary Bonus, the employee must have rendered at least one (1) year of service in the same agency as of the date of the milestone year.

• The employee must not be on absence without leave (AWOL) as of the date of the milestone year for which the Anniversary Bonus is being paid.

• The employee must still be in service in the same government entity as of date of the milestone year.

How to count a milestone year for purposes of granting Anniversary Bonus?

The counting of milestone years shall start from the year the government entity was created regardless of whether it was subsequently renamed/reorganized provided that its original primary functions have not substantially changed. Otherwise, the counting shall start from the date the functions were substantially changed.

In case of merger government entities, the counting of the milestone year shall start from the date they were merged.

How much is the Anniverary Bonus of Government Employees

The amount of Anniversary Bonus which may be given to government personnel shall not exceed ₱3,000.00 per employee, per milestone year.

In case of insufficiency of funds, the Anniversary Bonus may be given at a rate lower than ₱3,000.00, provided that the lower amount is uniformly applied to all employees.

When is the Anniversary Bonus given/paid?

The Anniversary Bonus is given/paid to government employees on the milestone year (anniversary) of the agency concerned.

Legal Basis and Guidelines on Granting Anniversary Bonus

Hereunder are the existing legal basis and guidelines on the grant of Anniversary Bonus to goverment employees:

Administrative Order No. 263, (s. 1996) — Authorizing the Grant of Anniversary Bonus to Officials and Employees of Government Entities

National Budget Circular No. 452 (s. 1996) — Amplifying and Clarifying the Implementation of the Grant of Annuversary Bonus to Officials and Employees of Government Entities

Local Budget Circular No. 65 (s. 1997) — Guidelines on the Grant of Anniversary Bonus in Local Government

Department Order (or Internal Guidelines) of the Agency on Granting Anniversary Bonus to their employees

Did you know?

Annual payment of Anniversary Bonus is considered irregular expenditure and should be disallowed in audit according to the Commission on Audit (COA)

Question?

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