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    Government workers to receive 14th month pay, cash bonus starting November 15

    MANILA, Philippines – Government workers are in for an early treat as they are set to receive 14th month pay and year-end end bonus starting November 15.
    Government workers to receive 14th month pay, cash bonus starting November 15

    The Department of Budget and Management (DBM) made the announcement today, November 14 during a press meeting. Budget Secretary Benjamin Diokno confirmed that all qualified government employees will receive their year-end bonus tax-free, which is equivalent to a month's basic salary, and a bonus of P5,000-cash gift.

    He also clarified that following the tax reform law, the year-end pay will only be tax-free only if it “does not exceed P90,000.”

    Diokno even shared that qualified employees can expect the productivity enhancement incentive to be released on December 15.

    The Budget secretary was pleased to announce that the government agreed to allot a total of P36.2 billion for bonus and P7.3 billion for the cash gifts.

    According to DBM’s Budget Circular No. 2016-4, only those government employees who qualify will receive the year-end bonus cash gift.

    The following qualifications are required for government workers to avail of the year end bonus:

    • Personnel has rendered at least a total or an aggregate of 4 months from January 1 to October 31 of the current year.
    • Personnel remains to be in government service as of October 31 of the same year.
    • Personnel has obtained at least a satisfactory performance rating in the applicable performance appraisal period.

    Qualified government employees are the following:

    • Those occupying civilian positions, whether regular, contractual, or casual in nature, elective, full-time, or part-time in the executive, legislative, and judicial branches, constitutional commissions and offices, state universities and colleges, and government owned and controlled corporations
    • Officials and employees of various local government units
    • Military and uniformed personnel under the Department of National Defense, Philippine National Police, Philippine Public Safety College, Bureau of Fire Protection, Bureau of Jail Management and Penology, Philippine Coast Guard, and National Mapping and Resource Information Authority

    Those employees who have rendered service of at least a total or an aggregate of four (4) months of service from January 1 of the current year but who have retired or separated from government service before October 31 of the same year shall still receive a prorated bonus and cash gift.

    Below is the computation for for prorated share for the year-end bonus and cash gift:

    Length of Service Percentage of the Year-End Bonus and Cash Gift
    4 months but less than 5 months 50%
    5 months but less than 6 months 60%
    6 months but less than 7 months 70%
    7 months but less than 8 months 80%
    8 months but less than 9 months 90%
    9 months but less than 10 months 95%

    Prorated computation for the P5,000 cash gift:

    Length of Service Percentage of P5,000 Corresponding Amount
    3 months but less than 4 months 40% P2,000
    2 months but less than 3 months 30% P1,500
    1 month but less than 2 months 20% P1,000
    Less than one month 10% P500

    — Sally, The Summit Express

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