1.0

Purpose/Objective

This Circular is issued to prescribe the rules and regulations on the grant of year-end bonus and cash gift authorized under Republic Act No. 6686 for all government personnel in the national government, government-owned and -controlled corporations, including government financial institutions, and local government units for FY 1995 and years thereafter.

2.0

Coverage

2.1 All government personnel, whether appointive or elective, under regular, temporary or casual status, and contractual personnel whose employment is in the nature of a regular employee, who are still in the service as of October 31 of each year and;

2.1.1 have rendered at least a total of four (4) months of service including leaves of absence with pay in the government from January 1 to October 31 of the same year;

2.1.2 are on approved leave without pay but have rendered at least a total of four (4) months of service from January 1 to October 31 of the same year, provided they are not yet dropped from the rolls; and

2.1.3 have rendered less than four (4) months of service from January 1 to October 31 of the same year.

2.2 All barangay chairmen, councilmen, secretaries and treasurers of barangays created pursuant to the Local Government Code, who are occupying such positions as of October 31 of each year regardless of the period of their tenure as of October 31 of the same year.

3.0

Exemption

The following government personnel shall not be entitled to the benefits authorized herein:

3.1 Those with pending cases as of October 31 of each year under the following instances:

3.1.1 When under preventive suspension, until exonerated;

3.1.2 When formally charged in administrative cases, i.e., their offices have found, after a preliminary investigation, that a prima facie case exists against them and the requisite written formal charge has been issued by the disciplining authority;

3.1.3 When they have cases pending before the Office of the Ombudsman, the Prosecutor ™s Office or of other administrative bodies which relate to acts or omissions in connection with their official duties or functions and where it has already been resolved by the Offices concerned that there exists prima facie cases; and

3.1.4 When there is pending criminal information filed against them in the Courts which relates to acts or omissions in connection with their official duties or functions.

3.2 Those who are absent without leave (AWOL) as of October 31 of each year.

3.3 Those who are formally charged in administrative cases and/or meted penalties as of October 31 of each year. Thereafter, they shall be entitled to year-end benefits unless subsequently formally charged and/or meted penalties for another offense. Accordingly, those with pending cases are only disqualified to receive the said benefits during the first year of the pendency of the cases.

3.4 Those who may have four (4) months or more of government service but are no longer in the service as of October 31 of each year due to retirement/resignation/separation/death or for whatever reasons.

4.0

Rules and Regulations

In addition to the rules and regulations provided in National Compensation Circular No. 66 dated September 12, 1991 and Local Budget Circular No. 51 dated September 30, 1991, the following shall be strictly observed:

4.1 The computation of the year-end bonus of government personnel covered under Item 2.1.1 and 2.1.2 hereof shall be based on their actual basic monthly salary/daily wage as of October 31 of each year exclusive of allowances and other forms of compensation usually paid in addition to the basic pay.

4.2 The computation of the year-end bonus of contractual personnel, shall be based on their monthly contractual rate as of October 31 which excludes all allowances and other forms of compensation usually paid in addition to the basic pay.

4.3 In the case of personnel who were granted the interest-free loan authorized under Administrative Order No. 195 the amount of said loan shall be deducted from the year-end bonus computed under 4.1 or 4.2 hereof and the cash gift.

4.4 Government personnel who were granted the interest-free loan authorized under AO No. 195 and the year-end benefits authorized herein but after the grant of such benefits have been found to be covered under 3.1 and 3.3 hereof shall be made to refund the same within six (6) months from the date of suspension through payroll deduction.

4.5 Government personnel covered under Item 2.1.3 hereof shall be entitled solely to the Cash Gift pro-rated as follows:

Length of Service

Amount    

  3 months but less than 4 months

P400.00

  2 months but less than 3 months

300.00

  1 month but less than 2 months

200.00

  Less than 1 month

100.00

 

4.6 Barangay Officials covered under Item 2.2 hereof shall be entitled only to cash gift otherwise known as Christmas Bonus of P1,000.00 each.

5.0

Funding

5.1 The amount needed to implement the year-end benefits herein provided for local officials and employees shall be charged against their respective local funds.

5.2 For the barangay officials, the amount needed forms part of the Internal Revenue Allotment released by the Regional Offices of the Department of Budget and Management directly to the Barangays.

6.0

Effectivity

Payment of the year-end benefits herein authorized shall be made not earlier than November 15 of each year.

Adopted: 2 Nov. 1995