EMPLOYEES of local government units will be receiving their mid-year bonus from the Department of Budget and Management starting May 15.
Budget Circular 2016-3 authorizes the release of mid-year bonus in line with Executive Order 201 series of 2016 or the Modified Salary Schedule for Civilian Government Personnel and Authorizing the Grant of Additional Benefits for both Civilian and Military and Uniformed Personnel.
Under the DBM guidelines, the LGU employees will receive their bonus tax-free following 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.
“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,” DBM Secretary Florencio Abad said in a press statement.
The mid-year bonus is equivalent to one month basic salary as of May 15 and will be granted to all positions for civilian personnel as well as military and uniformed personnel (MUP).
The grant of said bonus covers all civilian positions whether regular, casual, or contractual in nature, appointive or elective, full-time or part time, as well as MUP.
But to be entitled, an employee must have rendered at least a total or an aggregate of four 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.
Those with less than four months of service, or those that are no longer in the service as of May 15, are not entitled to the bonus.
For GOCCs, the governing board shall determine the grant of the bonus charged against approved corporate operating budgets. If funds are insufficient, they may grant at lower rates but at uniform percentage of the basic monthly salary as of May 15.
For LGUs, the council shall determine the grant of the bonus charged against, and subject to the Personnel Services limitation in the budget. They may also grant at lower rates but at uniform percentage of the basic monthly salary as of May 15, if funds are insufficient.
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.