THE Department of Budget and Management (DBM) has published a circular permitting government workers to receive their year-end bonus and cash gift in as early as the first payroll in November 2024.
According to a statement released on Saturday, Budget Secretary Amenah Pangandaman issued Budget Circular 2024-3, which changed the existing rules governing the distribution of the year-end bonus and cash gift.
Circular 2024-3 modifies Section 6.1 of DBM Circular 2016-4, which states that the year-end bonus and cash gift must be distributed to eligible government officials no sooner than November 15 of the current year.
According to the most recent circular, qualified government employees will get a year-end bonus equal to one month’s basic salary as of October 31 and a cash gift of P5,000 at the same time as the first agency payment for November of the current year.
“On the first payroll of November, government workers will receive their year-end bonus and cash gift. Instead of the existing policy that the payment of these benefits shall not be earlier than Nov. 15 of the year, the qualified personnel shall be granted their respective year-end bonus and cash gift simultaneously with the first agency payroll for November,” Pangandaman stated.
“We are trying to address here previous delays that had affected employee satisfaction,” she remarked.
The change was issued in response to the observation that “government personnel continues to experience delays in receiving bonuses and cash gifts, affecting their morale, motivation, and level of job satisfaction.”
According to the DBM circular, optimizing each agency’s payroll procedure will reduce both internal and external sources of benefit payment delays.
Furthermore, the Budget Department stated that a simplified strategy will improve production and efficiency, making sure the year-end bonus and cash gift are distributed on time.
“Our new release schedule for the cash gift and year-end bonus is a simple and important way to recognize the hard work of our government employees. We want to ensure that they will receive their bonus on time so they will have a happy Christmas and that they will work harder on their jobs,” Pangandaman explained.
The DBM Circular 2024-3 applies to all national government entities, notably constitutional offices, state universities and colleges (SUCs), government-owned or controlled corporations (GOCCs), and local government units (LGUs).
The recent circular from the DBM orders government entities to make the necessary changes to their payroll processes to avoid future delays.
The DBM stated that the decision is part of broader efforts to improve government efficiency, openness, and welfare of workers under President Ferdinand “Bongbong” Marcos Jr.’s administration.
“By resolving these delays, the administration of President Bongbong Marcos shows that we are not only taking care of our employees’ welfare — we are also sending a clear message of efficiency and good governance,” says Pangandaman.
The most current circular takes effect immediately and overrides any earlier rules inconsistent with the new standards, according to the DBM.