2025 Guidelines on the Grant of Year End Bonus and Cash Gift to Government Officials and Employees
Legal Basis
Below are the existing and latest legal bases for the grant of year end bonus to government employees
General Provisions of the Current Year General Appropriations Act (GAA)
Appropriation Ordinance (AO) for Local Government Units (LGUs)
Corporate Operating Budget (COB) for Government Owned and Controlled Corporations (GOCCs)
Unless the DBM issues newer guidelines this year, the above shall be used to grant Year End Bonus and Cash Gift for FY 2025.
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 and cash gift.
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The following are likewise not entitled to the year end bonus and 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 year end bonus and 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.
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 and cash gift?
The year end bonus shall be given to 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.
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 pro-rated 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.
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.
When to pay the year end bonus?
Based on previous guidelines, the year end bonus and cash gift shall be given to entitled government personnel not earlier than November 15 of the current year.
However, this was amended by Item 6.1 of BC No. 2024-3 which states that the Year End Bonus and Cash Gift shall be given to entitled government personnel simultaneously with the first agency payroll for the month of November of the current year.
Is it allowed to release the year end bonus before November 15 of the current year?
Under BC No. 2016-4, the Year End Bonus and Cash Gift shall be paid not earlier than November 15. However, this was amended by Item 6.1 of BC No. 2024-3 which states that the Year End Bonus and Cash Gift shall be given to entitled government personnel simultaneously with the first agency payroll for the month of November of the current year.
Thus, if the first payroll of the agency is earlier than November 15, then the date of the 1st payroll shall be followed in paying the Year End Bonus and Cash Gift. Conversely, if the 1st payroll fall later than November 15, then such date shall be followed.
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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Question?
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job order employees change their status from JO to casual on Sept. are they entitled to receive the year end bonus?
To receive the Year End Bonus, the employee must have rendered at least 4 months of aggregate service from January 1 to October 31; otherwise, only a pro-rated amount of the Cash Gift may be received.