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Government employees to receive 14th month pay equivalent to one-month basic salary next month

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BUDGET CIRCULAR NO. 2016 - 3
Rules and Regulations on the Grant of the Mid-Year Bonus
The DBM on Jan. 5 issued National Budget Circular No. 568 and Local Budget Circular No. 113 signed by Budget Secretary Benjamin E. Diokno to allow agencies to adjust compensation retroactively effective Jan. 1 under Executive Order No. 201 issued in 2016.

EO 201 is mandated the grant of a midyear bonus—the “14th-month pay” equivalent to one-month basic salary, not earlier than May 15 of every year.

Previously, the year-end bonus or “13th-month pay” was given in two tranches — the first in May ahead of the opening of classes, and the second in November before the Christmas holiday season.


Covered by Budget Circular No. 2016-3 are all positions for civilian personnel, whether regular, casual, or contractual in nature, appointive or elective, full-time or part-time.

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.

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.

Also included are military personnel of the Armed Forces of the Philippines under the Department of National Defense and uniformed personnel of the Philippine National Police, Philippine Public Safety College, Bureau of Fire Protection, and Bureau of Jail Management and Penology of the Department of Interior and Local Government.

Uniformed personnel of the Philippine Coast Guard and National Mapping and Resource Information Authority will also receive additional bonuses.

An employee must have rendered at least a total or an aggregate of four months of service from July 1, 2016 to May 15, 2017 to get a bonus.


They must also have obtained at least a satisfactory performance rating in the immediately preceding period, and must still be in active service as of May 15.


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