DBM okays release of state workers' mid-year bonus

THE government employees will receive their mid-year bonus starting next month after the Department of Budget and Management (DBM) issued the guidelines.

Budget Secretary Florencio Abad said the administration has earmarked P31 billion for the mid-year bonus as mandated under Executive Order 201.

"Eight in every 10 civilian personnel will receive their mid-year bonus in full, or tax-free under Republic Act 10653, which provides that gross benefits such as the 13th month pay and other benefits not exceeding P82,000 shall be tax exempt," Abad said.

"These means the majority of civilian personnel will take home their mid-year bonus in full. They are the 970,943 civilian employees belonging to Salary Grades 1 to 16," he added.

Executive Order 201 approved by President Benigno Aquino III on February 19 provides that a mid-year bonus equivalent to one month basic salary as of May 15 shall be granted to all positions for civilian personnel as well as military and uniformed personnel (MUP).

Budget Circular 2016-3 provides the rules and regulations on the grant of said bonus to all civilian positions whether regular, casual, or contractual in nature, appointive or elective, full-time or part time, as well as MUP. The bonus shall be given not earlier than May 15, 2016.

Funding requirement for regular personnel of national government agencies shall be charged against MPBF based on the number of filled positions in the Government Manpower Information System as of April 30, 2016. The requirement for casuals and contractual personnel shall be charged against the agency lump sum appropriation from which the salaries of these employees are drawn.

To be entitled, an employee must have rendered at least a total or an aggregate of 4 months of service from July 1, 2015 to May 15, 2016, obtained at least a satisfactory performance rating in the immediately preceding period, and should still be in the service as of May 15, DBM said.

"Those with less than four months of service, or those that are no longer in the service as of May 15, shall not be entitled to the bonus," it said.

For government-owned and controlled corporations (GOCCs), the governing board shall determine the grant of the bonus charged against approved corporate operating budgets, the Budget chief said. If funds are insufficient, they may grant at lower rates but at uniform percentage of the basic monthly salary as of May 15.

For local government units (LGUs), the Sanggunian shall determine the grant of the bonus charged against, and subject to the Personnel Services limitation in, LGU budgets. They may also grant at lower rates but at uniform percentage of the basic monthly salary as of May 15, if funds are insufficient. (SDR/Sunnex)

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