Starting May 15, government employees will receive a midyear bonus.
Budget Secretary Benjamin E. Diokno told the Inquirer that the government had allocated a total of P32 billion—P26 billion for civilian personnel and P6 billion for members of the Armed Forces—for the midyear bonus.
In Budget Circular No. 2017-2 issued on May 8, Diokno said the midyear bonus—equivalent to one-month basic pay—would be given to personnel not earlier than May 15.
He said the government and military personnel entitled to the bonus were:
Those who rendered at least a total or an aggregate of four months of service from July 1 last year to May 15.
Those in government service as of May 15.
Those who obtained at least a satisfactory performance rating in the immediately preceding rating period, or the applicable performance appraisal period.
Employees in government corporations, as well as agencies exempted from the Salary Standardization Law, or Republic Act No. 6758, are not covered by the circular as they have a separate Compensation and Position Classification System.
The grant of a midyear bonus or “14th-month pay,” equivalent to one month basic salary, is mandated by Executive Order (EO) No. 201 that President Aquino signed last year.
Previously, the yearend bonus or “13th-month pay” was given in two tranches—the first in May ahead of school opening and the second in November.
EO 201 raised the salaries of civilian personnel and granted military and uniformed personnel new and increased allowances.
In January, Diokno issued National Budget Circular No. 568 and Local Budget Circular No. 113 allowing agencies to adjust compensation retroactively effective Jan. 1, the mandated second installment of government personnel’s salary increase under EO 201.
The EO mandated compensation adjustments in four annual installments starting last year until 2019.