List of Bonuses for Government Employees in the Philippines: Three Benefits To Know

Jobstreet content team – updated on 06 December, 2022

Governments come and go, but a government job is forever. The private sector may offer higher salaries, especially for fresh graduates. But the public sector offers:

And more recently, it looks like flexible work arrangements and work-life balance are here to stay.

So it’s no surprise that some 138,671 Filipinos took the Civil Service Examination in August 2022. This is a lot less than the 200,000+ examinees of previous years. Clearly public service remains attractive work, not to mention it comes with an attractive list of bonuses for government employees in the Philippines.

Most importantly, there are plenty of jobs to fill. The government is the Philippines’ largest single employer, with some 1.7 million civil servants. In September 2022, JobstreetPH listed a total of 20,000 government jobs during our nationwide online career fair in partnership with the Civil Service Commission. Openings included guidance counselor, administrative aide, revenue officer, engineer, planning officer, medical officer, and nurse.

Watch: Primer for Fresh Grads: Why Select a Career in the Government

Of course, government jobs also offer the satisfaction of serving the country and making a difference. Here’s what government employees can look forward to every holiday season.

Guaranteed bonuses for government employees

It’s the five-letter synonym for joy, and for good reason. Just like their private sector counterparts, government employees count on the yearly windfall legally mandated by the Department of Budget and Management (DBM).

The Year-End Bonus

According to DBM Circular No. 2016-4 (rules and regulations pertaining to the distribution of bonuses and gifts), government employees are guaranteed a Year-End Bonus equal to one month's basic pay. This is given November 15 or later, to all government employees in service as of October 31. The employees should also have rendered at least a total or an aggregate of four months of service, from January 1 to October 31 of the current year.

The Mid-Year Bonus

There is also the Mid-Year Bonus equivalent to one month’s basic pay. This is given by May 15 – just in time for tuition payments – to all employees with satisfactory performance ratings and the same service qualifications as for the Year-End Bonus above. All this is mandated by DBM Circular No. 2017-2.

Even better: under the TRAIN law, these government employees’ bonuses are tax-free up to PhP90,000.

Also read: One-step preparation guide for the Civil Service* Exams *You need Civil Service Eligibility to apply for a government position – and with only 19% of examinees passing the last exam, there’s lots of opportunity. Be prepared!

Year-End + Mid-Year = 14 months pay in a year

In the Philippines, all employees of private companies are entitled to 13th month pay, to be received no later than December 24. This is guaranteed by PD 851.

The public sector is not covered by PD 851, so technically government employees are not entitled to 13th month pay. But with Year-End and Mid-Year Bonuses also mandated by law, government employees are effectively assured of 14 months’ pay.

This allows the government to be a bit more competitive with the private sector.

Extra incentive: Performance bonuses

Learning from the private sector, the government has also adapted the Performance Based Bonus (PBB) to provide a legal, transparent incentive for excellence.

Employees become eligible when their agency achieves a total target score in a given fiscal year. The score is based on four areas: performance, process improvement, financial results and public satisfaction.

With a perfect score, each employee’s performance bonus is 65% of their monthly basic salary. Lower scores receive a lower percentage: 61.75%, 58.5% and so on. Read the rates and guidelines here.

Like the Year-End and Mid-Year bonus, performance bonuses are tax-free up to PhP90,000. Unlike these, however, the PBB is typically released several months into the next calendar year, after performance data is validated and reviewed.

So if you’re ready to perform well and be rewarded, check this out: How to Apply for a Government Job: 5 Things to Remember

An extra bonus: the cash gift

This season is also when Santa Claus, in the form of the DBM, comes bearing gifts. A PhP5,000 Cash Gift, to be exact.

The amount of this Cash Gift has stayed the same since at least 2012, but it’s guaranteed. Similar to the Year-end Bonus, you must be a government employee in active service as of October 31 of that year, with at least 4 months of service from January 1 to October 31.

Do all government employees get bonuses?

So far it’s quite straightforward. But as always, there are exceptions to these rules.

Government employees formally charged with and found guilty of administrative and/or criminal cases forfeit all bonuses and the cash gift. In some cases, they have to refund these to the government. (Take note though, that until the case is decided, it’s business as usual.) After all, Santa Claus isn’t too fond of naughty kids.

More concerning is that only regular, “active service” government employees are entitled to receive the bonuses and the cash gift. Employees under contract of service (COS) or job order (JO) arrangements are not qualified. These include project consultants, trainors, etc., as well as employees contracted by private staffing companies to work at government agencies. They are not covered by civil service laws, because they are not technically employed by the government.

This sounds reasonable – until you remember how many workers in government agencies find themselves trapped for years in these insecure contractual arrangements.

The government has been trying to make up for this with one-time gratuity payments. But these must be signed yearly, and are not guaranteed. With the 2021 payment set at PhP5,000, they’re also far, far less than the one months’ pay that a regular employee would receive after just 4 months or more.

Got a Christmas bonus? Spread the cheer.

That said, we Filipinos can’t help but be happy at year’s end. Could be the cuddle weather, reunions, twinkling lights or the license to spoil our loved ones and ourselves. It’s all fueled by the extra cash in our pockets – a Christmnas tradition right up there withparolsand early morning mass.

So if you’re a government employee or know one, be sure you get the bonuses you’re entitled to – and channel that happiness into quality work and an attitude of service as you fulfill your duties to your respective departments.