Government workers are up for some good news as they are expected to receive their year-end bonus and cash gifts starting November 15.
In a press forum, Budget secretary Benjamin Diokno announced the good news. He was quoted by GMA News saying, “In the spirit of the upcoming Christmas season, government workers nationwide will receive their 14th pay or Christmas bonus and cash gift starting tomorrow, November 15.”
“The year-end bonus is equivalent to a full month’s salary, while the cash gift amounts to P5,000,” the Budget chief added.
“On top of these bonuses, government employees can also look forward to receiving their Productivity Enhancement Incentive, which will be released starting December 15,” Diokno shared.
According to the tax law, the bonus and other benefits are tax-free if they don’t exceed P90,000. This year, the government allocated a budget of P36.2 billion for the year-end bonus, and P7.3 billion for the cash gifts.
The release of the year-end bonus and incentives is according to the Budget Circular No. 2016-4, which mandates that the incentives be given not earlier than November 15 of the current year to qualified government personnel.
According to the Circular, employees who are eligible to receive the bonus and incentives are “ those in government service as of October 31 of the current year and with at least four months of service from January 1 to October 31.”
Those employees who “retired or separated from government service before October 31 of the same year and have rendered at least a total of an aggregate of four months of service from January 1” will still receive a prorated share of the bonus.