The Anniversary Bonus is a one-time cash benefit of up to ₱3,000 given to qualified government personnel when their agency or local government unit reaches a “milestone year” — the 15th founding anniversary and every 5th year after that.

The rules differ slightly depending on whether the employer is a national government agency (NGA), governed by Administrative Order No. 263 and DBM National Budget Circular No. 452, or a local government unit (LGU), governed by DBM Local Budget Circular No. 65.

What is the Anniversary Bonus

The Anniversary Bonus is a cash incentive granted to government officials and employees to commemorate the founding anniversary of the government entity where they work.

It was created by President Fidel V. Ramos through Administrative Order No. 263, s. 1996, and later detailed through two separate implementing issuances:

• DBM National Budget Circular No. 452 (May 20, 1996) — for national government agencies, bureaus, state colleges and universities, GOCCs, and government financial institutions

• DBM Local Budget Circular No. 65 (March 3, 1997) — for provinces, cities, municipalities, and barangays

Both versions share the same core concept: it is granted only during a “milestone year,” not annually like the Mid-Year or Year-End Bonus.

Who is Entitled to the Anniversary Bonus

For National Government Agencies (NGAs)

Under NBC No. 452, officials and employees are entitled to the Anniversary Bonus if:

• The agency has been in existence for at least 15 years and has not yet granted an Anniversary Bonus as of FY 1996 (the circular’s issuance year)

• The employee has rendered at least one year of service in the same entity as of the milestone date

NGA employees excluded from the benefit:

• Those on Absence Without Leave (AWOL) as of the milestone date

• Those no longer employed in the same government entity as of the milestone date

• Consultants, experts, student laborers, apprentices, project-based/piecework laborers, and other non-organic personnel

A special rule also applies to attached agencies: officials and employees of an entity attached to or placed directly under a department — but not created by its own charter — may be treated as organic personnel of the “mother” department for purposes of availing the bonus.

For Local Government Units (LGUs)

Under LBC No. 65, LGU personnel are entitled to the Anniversary Bonus if they are:

• Employed full-time or part-time, on permanent, temporary, casual, or regular-in-nature contractual status

• Appointed in a specific LGU and still employed there as of the milestone anniversary

• Have rendered at least one year of continuous service in that same LGU as of the milestone date

LGU personnel excluded from the benefit (a longer list than the NGA rules):

• Those under preventive suspension, until exonerated

• Those formally charged administratively with a prima facie case established against them (a mere reprimand does not disqualify)

• Those with pending Ombudsman, prosecutor, or court cases connected to their official duties

• Those found guilty of a work-related offense during the five-year interval between milestone years

• Those on AWOL as of the milestone date

• Those no longer in service at the LGU as of the milestone date or at the time of actual payment

• Consultants, experts, student laborers, apprentices, project-based/piecework laborers, and similar non-organic personnel

• Those paid on an honoraria basis, such as barangay officials

How Much is the Anniversary Bonus / How is it Computed?

The computation is the same for both NGAs and LGUs, but the funding treatment differs.

National Government Agencies

The amount shall not exceed ₱3,000 per employee

• If an agency already granted an Anniversary Bonus of less than ₱3,000 for its latest milestone year before AO 263 took effect, it may grant only the difference up to ₱3,000

• If the amount previously granted exceeds ₱3,000, the excess must be refunded

• Only the latest milestone year qualifies for the initial 1996 grant — no retroactive payment for missed milestones

Local Government Units

The amount shall not exceed ₱3,000 per employee, subject to availability of LGU funds

• If LGU funds are insufficient, a lower uniform rate may be granted instead, applied equally to all officials and employees

• No other bonus or allowance “of a similar nature” connected to the same anniversary may be granted on top of it

• As with NGAs, only the latest milestone year qualifies — no retroactive payment for past milestones

When is the Anniversary Bonus Released?

National Government Agencies

There is no fixed calendar date. Release depends on the agency’s own milestone anniversary date, and the following funding rule under NBC 452:

Local Government Units

Release also depends entirely on the LGU’s actual founding anniversary date, subject to:

• Certification of fund availability by the local budget officer, sourced strictly from the LGU’s own funds

• Compliance with the budgetary limitations under the Local Government Code (RA 7160)

• Approval/issuance by the local chief executive (Governor, Mayor, or Barangay Chairman)

Legal Basis

For National Government Agencies:

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

• DBM National Budget Circular No. 452 — Amplifying and Clarifying the Implementation of the Grant of Anniversary Bonus to Officials and Employees of Government Entities

For Local Government Units:

• DBM Local Budget Circular No. 65 — Guidelines on the Grant of Anniversary Bonus in the Local Government

Frequently Asked Questions

Is the Anniversary Bonus the same for national agencies and LGUs?

The core concept and ₱3,000 cap are the same, but eligibility exclusions, funding source, and release conditions differ, since NGAs follow NBC 452 while LGUs follow LBC 65.

Is the Anniversary Bonus given every year?

No, for both NGAs and LGUs. It is only granted during a milestone year — the 15th founding anniversary and every 5th year after.

Can job order (JO) or consultants receive the bonus?

No, under both NBC 452 and LBC 65, non-organic personnel such as consultants, experts, student laborers, apprentices, and piecework-paid workers are excluded.

Are barangay officials entitled to the Anniversary Bonus?

No. Under LBC 65, those paid on an honoraria basis, including barangay officials, are specifically excluded.

Can an employee receive the bonus twice for transferring agencies mid-milestone?

No. An employee who transfers to another government entity before the actual milestone payment loses eligibility from the former entity and must instead qualify under the new entity’s own milestone year.

Is there a fixed release date for Anniversary Bonus like the Mid-Year or Year-End Bonus?

No. Since the benefit is tied to a specific milestone anniversary date unique to each agency or LGU, there is no uniform nationwide release schedule.

Can the milestone year counting change if an agency or LGU is renamed or reorganized?

Generally no — counting continues from the original founding date unless the entity’s core functions substantially changed, or it was created through a separation, split, or merger.

Summary / Key Takeaways

• The Anniversary Bonus applies to both national government agencies and LGUs, but under two separate DBM issuances: NBC 452 for NGAs and LBC 65 for LGUs.

• Both cap the benefit at ₱3,000 per qualified employee and require at least one year of service as of the milestone date.

• It is granted only in a milestone year (15th anniversary and every 5th year after), with no retroactive payment for missed milestones in either case.

Eligibility Checker

Use the simple tool below to check if you are eligible to receive Anniversary Bonus this year.

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