Government personnel who meet the service requirements will receive a Year-End Bonus equivalent to one (1) month’s basic salary as of October 31, 2026, plus a ₱5,000 Cash Gift, released together with each agency’s first payroll for November 2026.
These benefits remain governed by DBM Budget Circular (BC) No. 2016-4, as amended by BC No. 2024-3, and apply across national government agencies, SUCs, GOCCs, and LGUs — unless DBM issues new guidelines before the release date.
What is the Year-End Bonus and Cash Gift?
The Year-End Bonus and Cash Gift are annual monetary benefits granted to qualified government personnel under Republic Act (RA) No. 6686, as amended by RA No. 8441. The Year-End Bonus is equivalent to one month’s basic salary, while the Cash Gift is a fixed amount of ₱5,000 — both released together every November.
Is the Year End Bonus the same as the 13th Month Pay?
No. Government personnel are not covered by Presidential Decree No. 851, the law that created 13th month pay for private-sector rank-and-file employees. The Year-End Bonus, granted under RA 6686/8441, functions as the government’s equivalent — on top of the separate Cash Gift.
Who Is Entitled to the Year-End Bonus and Cash Gift?
Civilian personnel
All positions, whether regular, contractual, or casual; appointive or elective; full-time or part-time — 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, and in LGUs.
Military and uniformed personnel
AFP personnel under the DND; uniformed personnel of the PNP, PPSC, BFP, and BJMP under the DILG; the Philippine Coast Guard under the DOTr; and NAMRIA under the DENR.
Elective, appointive, and salaried barangay personnel
Elective, appointive, and salaried barangay personnel are also entitled, subject to the same conditions below.
Who are NOT Entitled to the Year-End Bonus and Cash Gift?
• Job Order (JO) and Contract of Service (COS) workers;
• Personnel of agencies/GOCCs expressly exempted from RA 6758, implementing their own approved CPCS;
• GOCC personnel under the CPCS established by the Governance Commission for GOCCs (GCG) per RA 10149; and
• Individuals with no employer-employee relationship funded from non-Personnel Services budgets — consultants/experts for specific outputs, pakyaw laborers, student laborers, and apprentices.
What are the Conditions for the Grant of Year End Bonus and Cash Gift?
1. Rendered at least four (4) months of aggregate service from January 1 to October 31, 2026; and
2. Remains in government service as of October 31, 2026.
Compulsory retiree
A compulsory retiree whose service has been extended may still be granted the benefit, subject to the same conditions.
Personnel with a pending administrative or criminal case
Personnel with a pending administrative or criminal case remain entitled until a final and executory judgment; if found guilty in the year the decision becomes final, they lose entitlement for that year and must refund what they received. A penalty of reprimand alone does not affect entitlement.
How Much Is the Year End Bonus and Cash Gift, and How Is It Computed?
Year End Bonus
• Year-End Bonus: one (1) month’s basic salary as of October 31, 2026
Cash Gift
• Cash Gift: ₱5,000
Since the third tranche of the SSL salary adjustment under EO No. 64, s. 2024 took effect this year, most civilian personnel’s basic pay — and therefore this year’s Year-End Bonus — will reflect the higher 2026 salary rates.
Check the Equivalent amount of your Year End Bonus here: NGA | LGUs
Separated from Service before October 31
Resigned or retired before October 31, 2026 (with ≥4 months aggregate service from January 1) — pro-rated as follows:
| Aggregate Length of Service | % of Year-End Bonus and Cash Gift |
|---|---|
| 4 months to less than 5 months | 50% |
| 5 months to less than 6 months | 60% |
| 6 months to less than 7 months | 70% |
| 7 months to less than 8 months | 80% |
| 8 months to less than 9 months | 90% |
| 9 months to less than 10 months | 95% |
| 10 months or more | 100% |
Still in service as of October 31, 2026, but with less than 4 months of aggregate service
Still in service as of October 31, 2026, but with less than 4 months of aggregate service — not entitled to the Year-End Bonus; entitled solely to a pro-rated Cash Gift under Section 2, RA No. 8441.
Part-time personnel
Part-time personnel — Year-End Bonus in direct proportion to the hours/days of part-time service rendered.
When will the Year End Bonus and Cash Gift for 2026 be Released?
Originally “not earlier than November 15” under BC No. 2016-4. BC No. 2024-3 (October 22, 2024) amended this: the benefits are now released simultaneously with each agency’s first payroll for November.
• First November payroll before Nov. 15 → released on that earlier date.
• First November payroll after Nov. 15 → that later date applies instead.
So the exact FY 2026 release date will vary slightly by agency. The rule applies uniformly across NGAs, SUCs, GOCCs, and LGUs.
Detail/secondment/transfer
Detail/secondment/transfer: personnel on detail are paid by their parent (mother) agency; those on secondment, by the recipient agency; those transferred during the year, by their new agency.
Legal Basis
• Republic Act No. 6686 (December 14, 1988), as amended by RA No. 8441 (December 22, 1997)
• DBM Budget Circular No. 2016-4 (April 28, 2016) — Updated Rules and Regulations on the Grant of the Year-End Bonus and Cash Gift for FY 2016 and Years Thereafter
• DBM Budget Circular No. 2024-3 (October 22, 2024) — Amending Section 6.1 of BC No. 2016-4 on Payment of the Year-End Bonus and Cash Gift
• Executive Order No. 201, s. 2016
• General Provisions of the FY 2026 General Appropriations Act (Republic Act No. 12314)
• Appropriation Ordinance (AO) for LGUs; Corporate Operating Budget (COB) for covered GOCCs
Unless DBM issues new guidelines before November 2026, the above remains the governing basis for the FY 2026 Year-End Bonus and Cash Gift.
Frequently Asked Questions
Is the Year-End Bonus taxable?
Yes. Combined with other bonuses/benefits received in the year, it’s tax-exempt only up to ₱90,000 under the TRAIN Law (RA No. 10963). Any excess is subject to withholding tax.
Are JO and COS workers entitled?
No — they have no employer-employee relationship with the hiring agency.
I resigned or retired mid-year — do I still get it?
Yes, if you rendered at least 4 months of aggregate service from January 1 to your separation date before October 31, 2026. It’s pro-rated per the table above.
Can our agency release it before November 15?
Yes — under BC No. 2024-3, release now follows each agency’s own first November payroll, whether that falls before or after the 15th.
I have a pending administrative case — will I still get it?
Yes, until a final and executory judgment. If found guilty in the year of finality, you lose entitlement for that year and must refund any amount received. A reprimand alone doesn’t affect entitlement.
Summary: Key Takeaways
• Year-End Bonus = 1 month’s basic salary as of Oct. 31, 2026; Cash Gift = ₱5,000
• Requires ≥4 months aggregate service (Jan 1–Oct 31) and active service as of Oct. 31, 2026
• Released with each agency’s first November 2026 payroll (BC No. 2024-3)
• JO/COS workers are not covered
• Taxable only above a combined ₱90,000 with other bonuses (TRAIN Law)
• Governed by RA 6686/8441 and BC No. 2016-4, as amended by BC No. 2024-3 — unless DBM issues newer guidance this year
Related Posts
• Guidelines on the Grant of Mid-Year Bonus to Government Employees
• 3rd Tranche Salary Increase of Government Employees for 2026 (EO 64, s. 2024)
• Benefits of Job Order (JO) and Contract of Service (COS) Workers in the Government
• More Bonuses for Government Employees for the 4th Quarter of the Year
• FY 2024 Performance-Based Bonus (PBB) Guide
Disclaimer: This post is published for educational purposes only. It should not be used as reference for any government transaction.