GRANT OF YEAR-END BONUS TO LOCAL GOVERNMENT OFFICIALS AND EMPLOYEES FOR CALENDAR YEAR 1991 AND FOR SUCCEEDING YEARS

GRANT OF YEAR-END BONUS TO LOCAL GOVERNMENT OFFICIALS AND EMPLOYEES FOR CALENDAR YEAR 1991 AND FOR SUCCEEDING YEARS

1.0
Purpose

1.1 This Circular is issued in compliance with Republic Act
No. 6686 authorizing local government units to grant year-end bonus
equivalent to one (1) month basic salary and a cash gift of P1,000 to
local officials and employees subject to availability of local funds.
In the case of a Sanggunian member whose local government unit has not
yet implemented the Salary Standardization Law and who is paid on per
diem basis, the year-end bonus shall be equivalent to the total per
diems he is entitled to during the four (4) paid sessions allowed for
one (1) month.

1.2 Where available local funds are limited,
the year-end bonus and the cash gift that may be paid by a local
government unit may be less than one month basic salary and the P1,000
cash gift granted to national government employees; provided, however,
that payment of the benefit shall be based on a fixed uniform percentage
such that no official or employee shall receive a percentage year-end
benefit higher than that of any other official or employee in the same
local government unit.

2.0
Coverage

2.1 All officials and employees of local government units
employed on a regular, temporary, emergency, casual or contractual
basis, including Provincial Governors, City and Municipal Mayors,
Vice-Governors, Vice-Mayors and Sanggunian Members of the provinces,
sub-provinces, cities and municipalities who have rendered at least four
(4) months of service including leaves of absence with pay in the
government, from January 1 to October 31 of each year and who are still
in the service as of October 31 of the same year.

2.2 An
official/employee of a local government unit who is still in the service
as of October 31 but has rendered less than four (4) months of service
shall be entitled solely to the following pro-rated cash gift subject to
the availability of local funds.

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

2.3 All barangay chairmen of legally created barangays as of
December 31, 1990, who are occupying such position as of October 31,
1991 and as of October 31 of every year thereafter, shall each be paid a
cash gift only of P1,000. This shall apply to all regardless of the
period of their tenure as of October 31. The term “legally created
barangay” refers to a barangay created per Sections 82 and 83 of BP No.
337 (Local Government Code).

3.0

Exemption

3.1 An official or employee under preventive suspension
without pay is not entitled to these year-end benefits. However, when
exonerated he may be paid the same.

3.2 An official or
employee who may have four (4) months or more of government service in
1991 but is no longer in the service as of October 31, 1991, and for
similar periods every year thereafter, due to
retirement/resignation/separation or for whatever reason shall not be
entitled to year-end benefits referred to herein.

3.3 An
employee who is absent without official leave (AWOL) as of October 31,
1991 and every year thereafter, shall not be entitled to benefits
granted herein.

4.0

Rules and Regulations

4.1 The “year-end bonus and cash gift” herein granted shall
hereinafter be referred to as “year-end benefits,” and the amount herein
authorized shall be considered the maximum. Payment of year-end
benefits other than that authorized under this Circular shall be
considered illegal disbursement of public funds.

4.2 For
purposes of this Circular, “basic salary” shall refer to the basic
salary as standardized pursuant to R.A. 6758, plus transition allowance,
if any, as defined under Section 4.1 of the Joint Commission on Local
Government Personnel Administration Circular No. 36.

4.3 An
employee who is on full-time or part-time detail with another government
agency or special project may receive his year-end bonus from his home
office or in the case of personnel paid from project funds, from the
same source where he draws his basic salary. No one shall receive the
year-end benefits from more than one source. Committee or project
honoraria shall not be considered in computing the bonus provided
herein.

4.4 Officials and employees who are employed on a
part-time basis are entitled to the year-end benefits corresponding to
the basic salary he is actually receiving and a pro-rata share of the
P1,000 cash gift.

4.5 Any official or employee who is on
approved leave of absence without pay but has rendered a total of four
(4) months service in the government, excluding such leave without pay
within the period from January 1, 1991 to October 31, 1991 and for
similar periods every year thereafter, may be entitled to these year-end
benefits.

4.6 Computation of the year-end benefits shall be
based on the actual basic monthly salary/daily wage/contractual rate of
the employee as of October 31 exclusive of allowances, hazard pay and
other forms of compensation usually paid outside of basic salary.

4.7 The year-end benefits of an employee who transferred from one
agency to another, whose total service in the government, whether
national or local, as of October 31 entitles him to the year-end
benefits may be paid by his new office. Service previously rendered in a
government agency before October 31 shall be considered government
service for purposes of this Circular.

4.8 The year-end
benefits herein authorized shall be subject to withholding tax but not
subject to GSIS, Medicare and other similar deductions.

4.9
All payments made pursuant to this Circular shall be subject to the
usual accounting and auditing rules and regulations.

5.0
Priority of Payment

5.1 Local Government units which have not yet implemented the
Salary Standardization Law shall pay the year-end benefits on the basis
of the existing approved salary rates of the LGU employees concerned.

5.2 Said year-end benefits shall be subject to adjustment upon the
implementation of the new rates under the Salary Standardization Law.

6.0

Funding Source

6.1 The amount needed to implement the year-end benefits
herein provided for local government officials and employees shall be
charged against their respective local funds. Local government units
(provinces, cities and municipalities) may realign their budgets
including savings from completed projects funded out of NALGU funds to
give priority to the funding requirements under this Act and any
deficiency may be booked as accounts payable to be paid on a first
priority basis in succeeding years.

7.0
Responsibility of Local Chief Executives

7.1 The local chief executive shall be held personally liable
for any payment of the year-end benefits not in accordance with the
provisions of this Circular without prejudice, however, to the liability
of the employee concerned to refund any invalid payment received by
him.

8.0
Saving Clause

Cases not covered by this Circular including provisions which
require further clarification prior to implementation shall be referred
to the Department of Budget and Management for resolution.

9.0
Repealing Clause

Local Budget Circular No. 49 is hereby repealed.

10.0
Effectivity

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

Adopted: 30 Sept. 1991

(Sgd.) GUILLERMO N. CARAGUE

Secretary