NEARLY 2 million government workers, including military and uniformed personnel, will receive their midyear bonus starting May 15, the Department of Budget and Management (DBM) announced on Friday.
P73.456 billion has been allocated for the midyear bonus.
Budget Secretary Rolando Toledo said that funds for the bonus were released at the start of the fiscal year to ensure it is given on time.
The midyear bonus is equivalent to one month of an employee’s basic salary.
It will be given to employees who have rendered at least four months of service from July 1 of the preceding year up to May 15 of the current year.
Eligible employees must still be in government service as of May 15 and have earned at least a satisfactory performance rating during the evaluation period.
In the case of local government employees, the release of the bonus will be subject to approval by local councils and to the conditions outlined in DBM Budget Circular 2017-2.
Toledo said President Ferdinand Marcos Jr. has always prioritized the welfare of government workers, and the early processing of the midyear bonus “is a recognition of their sacrifice, dedication and important role in delivering public service to every Filipino.” Among those receiving the midyear bonus are the 900,000 public school teachers and 100,000 nonteaching personnel of the Department of Education (DepEd).
In a statement, Education Secretary Sonny Angara said the early release of the midyear bonus is part of the government’s “commitment to prioritize the welfare of those who directly shape the future of our students.” “As we prepare for another school year, our goal is to ensure that there is sufficient support for our education workforce. When our teachers and staff are motivated and supported, our schools become better prepared for the learning of every Filipino child,” Angara said.
In a related development, the DepEd has signed a partnership with the Land Bank of the Philippines which would help around 1,000 teachers and nonteaching personnel who are struggling with garnished salaries.
Under the agreement, a loan assistance arrangement will be introduced that would allow LandBank to refinance existing loans of affected DepEd personnel currently tied to private lenders.
The initiative seeks to help employees recover a more manageable take-home pay while easing the burden caused by mounting debt obligations.
“Teachers who serve every day to uplift the future of our youth should not be drowning in debt. If we can help them recover and breathe again financially, it is our duty to do so,” Angara said.
As part of the agreement, DepEd approved the waiver of the 0.5-percent service fee on remittances, allowing LandBank to lower the annual interest rate for the loan assistance program from 7 percent to 6.5 percent.
The rate is significantly lower than that 3 percent charged by unaccredited lenders.
Affected personnel can once again receive the minimum P5,000 net take-home pay after previously receiving little to no salary due to heavy deductions and garnishment.
The total amount is estimated at P500 million.
“These are not add-ons, they’re part of building a more complete financial relationship with teachers who have been historically underserved by the formal banking system,” LandBank President Lynette Ortiz said.