Govt releases P7.6B for employees' bonus, cash gifts

The government has released some P7.6 billion for the one-half of the year-end bonus and cash gifts of some of its one million employees. Budget secretary Joaquin Lagonera said the release was in time for the school opening on June. “As in the past years, the grant of these benefits is timed with the pre-opening of classes as [the] government’s way of assisting employees in paying tuition fees and other school requirements for their children," he said in a statement Tuesday. Lagonera said the fund is part of the government's first semester cash release program pursuant to General Provision No. 45 of the General Appropriations Act for Fiscal Year 2010. He said Budget Circular No. 2010-1, which spells out the guidelines for the grant of year-end bonus (YEB) and cash gift, has likewise been issued by his department. The circular allows local government units (LGUs), government financial institutions (GFIs) and government owned and/or controlled corporations (GOCCs) to “source the payment for these benefits from their respective local or corporate funds." He added that qualified elective or appointive barangay officials and employees are also entitled to one-half of the year-end bonus and cash gift which is based on their honorarium rates and subject to the Personal Services (PS) limitation of local government budgets. Under the Budget Circular, a government employee is entitled to a year-end bonus that is equivalent to one month of their salary and a P5,000 cash gift. Fifty percent of the yearend bonus and cash gifts is first given in May in time for the schools opening while the second half is given starting November 15 in time for the Christmas holidays. - KBK, GMANews.TV