FAQs — Grant of Year End Bonus and Cash Gift to Government Employees
What are the legal bases on the grant of Year End Bonus and Cash Gift to Government Employees?
The following are the legal bases on the grant of year end bonus and cash gift to government employees:
- Compensation Plan under RA 6758
- General Appropriations Act (see General Provisions)
- Appropriation Ordinance (local annual or supplemental budget of LGUs)
- Corporate Operating Budget (budget of GOCCs)
- Budget Circular No. 2016-4 — Updated Rules and Regulations on the Grant of Year End Bonus and Cash Gift for FY 2016 and Years Thereafter
- Budget Circular No. 2024-3 — Amending Section 6.1 of Budget Circular No. 2016-4 on the schedule of payment of Year End Bonus and Cash Gift
- Department Orders (agency internal guidelines)
- Other laws enacted for the gran thereof
Who are entitled to Year End Bonus and Cash Gift?
Subject to certain conditions, as discussed in this article, the following government employees may be entitled to Year End Bonus and cash gift, to wit:
- 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.
How much is the Year End Bonus and Cash Gift of Government Employees?
The annual Year End Bonus of government employees is equivalent to their one (1) month basic salary as of October 31 of the current year. On the other hand, the annual cash gift is equivalent to ₱5,000.00.
How to compute the Year End Bonus and Cash Gift of government employees?
The year end bonus of government employees is equivalent to their one (1) month basic salary as of October 31 of the current year, net of applicable tax. On the other hand, their cash gift is ₱5,000.00 which is not taxable.
When will the Year End Bonus and Cash Gift be given/paid to Government Employees?
Under Budget Circular No. 2016-4, the year end bonus and cash gift shall be given to eligible government employees not earlier than November 15 of the current year.
However, with the issuance of Budget Circular No. 2024-3, the year end bonus and cash gift may be given simultaneously with the 1st payroll of the agency. Hence, if the 1st payroll is paid earlier than November 15, the year end bonus and cash gift may already be given/paid as well.
For those who retired or separated from government service, their year end bonus and cash gift shall be given/paid within the month of retirement or separation.
Is it allowed to pay/give to government employees their year end bonus and cash gift earlier than November 15?
Pursuant to Budget Circular No. 2024-3, the year end bonus and cash gift of government employees may be paid simultaneously with the release or payment of their 1st payroll. Hence, if the 1st payroll of the government agency is paid earlier than November 15, the year end bonus and cash gift may be paid simultaneously with the 1st payroll as well.
What are the conditions to become eligible to Year End Bonus and Cash Gift?
The year end bonus and cash gift shall be given to government employees who have complied with 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;
- Personnel remains to be in the government service as of October 31 of the same year; and
- Personnel has not been found guilty on his/her administrative and/or criminal case/s.
[Related Forum: Is a mayor who is suspended from service entitled to year end bonus?]
Is a government employee who rendered less than four (4) months of service but still in government service as of October 31 entitled to both Year End Bonus and Cash Gift?
No, government employees 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, shall be entitled solely to a pro-rated Cash Gift pursuant to Section 2
of RA No. 8441. (See Section 6.3 of Budget Circular No. 2016-4)
What is the Year End Bonus and Cash Gift of Government Personnel who retired or separated from service before October 31?
If the 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 but is no longer in service as of October 31 of the current year due to retirement or separation (e.g., resignation), his/her year end bonus shall be given on pro-rata basis. (See Section 6.2 of BC No. 2016-4)
Is the year end bonus of government employees taxable?
In general, all compensation income is taxable unless exempted from tax. Hence, the year end bonus is taxable after considering the ₱250,000.00 and ₱90,000.00 non-taxable portion on the compensation income of the earner concerned.
Is the cash gift of government employees taxable?
No, the cash gift of government employees is not taxable. Being relatively small in value, the cash gift of government employees is among their de minimis benefits which are exempt from tax.
[Forum] Year End Bonus and Cash Gift for Casual Employees
[Posted in our Facebook Page on October 3, 2021]
Sender: Hello! From Job Order to Casual Employee. Makakatanggap kaya ako ng bonuses, like Cash Gift and 13th Month Pay? Na Casual ako nung September 1, 2021 po. Salamat!
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.
By Joshua John Carlos
Congratulations po dahil finally casual ka na. Makakatanggap ka na ng bonuses. Pero siguro sa case mo, pro rated yung matatanggap mo na bonus pero ang mahalaga, casual ka na.
By Seven Tee
Prorated Cash Gift, pero year end wala kasi hindi mo na meet yung 4 months […]
By Rye Pasion
[Forum] Is the new policy of DBM on the payment of year end bonus and cash gift which should be simultaneous to the payment of 1st payroll applicable/beneficial to all government employees?
[Posted in our Facebook Page on October 26, 2024]
Parang this will only cause chaos because we do not receive our salaries on the same day. Mauuna siempre mga naunang sumueldo di ba? Samantalang ang mga akinse kataposan, mas later sahod nila. Therefore mas late nila makukuha bonus nila
By Lilibeth L. Collado
Walang kwenta, nov 15 ang sahod, minsan delay pa…….kung madelay ang sahod edi delay din ang YEB, lalong napasama.
By Jazper Cruz
Parehas lang din. Hahahaha. Kinsenas sumasahod eh. Hindi rin early. Hahaha.
By Ivann Kirk Macalinao
[Forum] What is the schedule of payroll of government agencies, in view of the schedule of payment of Year End Bonus and Cash Gift per Budget Circular No. 2024-3?
[Posted in our Facebook Page on October 25, 2024]
Based on the forum we created on this topic, we found that there’s no standard schedule for government agencies in paying their payroll. Based on this poll, government agencies pay their payroll on these schedules:
- Weekly
- Monthly
- 15th and 30th of the month
- 10th and 25th of the month
- 10th and 22nd of the month
- 12th and 27th of the month
- 12th and 25th of the month
- 13th and 28th of the month
- 5th and 20th of the month
- 7th and and 22nd of the month
[Forum] Is an employee who is on sick leave without pay entitled to Year End Bonus?
[Posted in our Facebook Page on November 20, 2020]
Sender: Qualified pa po ba ako for Year End Bonus and Cash Gift even [if] im on sick leave without pay since July 2020? Then I ask one from our department na drinop na daw po ako sa payroll since nakaleave without pay na daw po ako.
Until December 2020 po ang sick leave without pay ko due to may sensitive pregnancy. Thank you po.
As long as the employee is still in service as of October 31 and have rendered an aggregate of 4 months from Jan 1 of the current year, he/she is entitled [to] the YEB equivalent to 1 month Basic Salary and Cash Gift of P5,000.00. (BC no. 2016-4)
By Mariel Tayomora-Perido
[Forum] What is the appropriate basis for the grant of Year-End Bonus and Cash Gift — Date of Appointment or Assumption?
[Posted in our Facebook Page on October 23, 2020]
Hello Gabotaf. Tanong lang po ako. Nahire po kasi ako sa isang government agency. Ang date of appointment ko po ay May 1, 2020 pero ang Assumption to Duty ko po ay September 2020.
Tanong ko po, magkakaroon ba ko ng 13th month pay this November 15? Matatanggap ko po ba ng buo ung 13th month pay or prorated? Saan po binabase ang 13th month pay, sa date po ba ng appointment or sa date of assumption? Gusto ko lang po maliwanagan. Maraming salamat po.
Date of assumption, and to receive the YEB (based on Oct 31 salary), dapat you’ve served for at least 4 months service during the year (pwede aggregate). If less than 4 months, Cash gift lang ang ma-receive pero prorated sya.
By Felicidad Violeta Patañe
Your appointment is not complete until you assume office, where you actually render service. So date of assumption [to duty is the appropriate basis].
By Attornato Jon
[Forum] Is it allowed to deduct tax from the year end bonus of a retired employee (no longer in service but has unpaid year end bonus)?
[Posted in our Facebook Page on November 20, 2020]
Employee A retired on August 12, 2020. Upon his retirement, his tax due equaled to his tax withheld. Come November, it was determined that he is qualified to receive Year-End Bonus and Cash Gift for FY 2020, thus increasing his tax due (as YEB is taxable Compensation). Questions: can the office withhold tax from his YEB? or let retired employee himself pay the difference before deadline next year.
[Yes], If it is in excess of 90,000 non taxable other benefits.
By Albert P. Delos Reyes
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.
By Ranel Valmoria Diabordo
YEB is part of the 90k threshold , the excess will become part of taxable compensation.
By Roy Macadangdang
Government Accountants, Budget Officers, Treasurers and Auditors’ Forum