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SIXTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES
3437

5
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House Bill No.

Introduced by Representative Catalina "Baby" G. Leonen-Pizarro

Explanatory Note

On December 14, 1988 Congress enacted into law Republic Act No. 6686
entitled as “AN ACT AUTHORIZING ANNUAL CHRISTMAS BONUS TO NATIONAL
AND LOCAL GOVERNMENT OFFICIALS AND EMPLOYEES STARTING CY 1988.”

It provided for a Christmas bonus equivalent to one month basic salary
and additional cash gift of One Thousand Pesos for each government worker
who have rendered at least four months of service from January 1 to October
31 of the same year.

On December 22, 1997, almost a decade from passing the afore-cited
statute, Congress likewise legislated Republic Act 8441 entitled “AN ACT
INCREASING THE CASH GIFT TO FIVE THOUSAND PESOS ( P 5,000.00)
AMENDING FOR THE PURPOSE CERTAIN SECTIONS OF REPUBLIC ACT
NUMBERED SIX THOUSAND SIX HUNDRED EIGHTY-SIX, AND FOR OTHER
PURPOSES.”

It gradually increased the cash gift from One Thousand Pesos to Five
Thousand Pesos in staggered basis, Two Thousand Pesos for the Christmas
1997, Three Thousand Pesos for the Christmas year 1998, Five Thousand Pesos
for the Christmas 1999 and thereafter. Further, cash gift payments were
granted in accordance on length of service of each government worker based
on a graduated scale.

On June 17, 2009 the Senate and the House of Representatives
approved Joint Resolution No. 4 to wit:

“To authorize the President of the Philippines to modify the existing
Compensation and Position Classification System of civilian personnel and Base
Pay Schedule of military and uniformed personnel and to initially implement


the same effective July 1, 2009, and in the case of local government units
(LGUs) to take effect January 1, 2010.”

It increased the monthly basic pay of all government workers in
staggered basis within a period of four consecutive years.

Inasmuch as monthly basic salary of each public servant has been
augmented, a corresponding cash gift increase from P 5,000.00 to P 10,000.00
as Christmas bonus is wanting for every civil servant. It tends to recognize the
exemplary service of each servant, Christmas rejoicing and the idea that the
State truly cares for state workers down to the local government officials and
employees.

Estimated government personnel stands at around 1,300,000 including
the military and police . Around 800,000 employees from the 2nd and 3rd
levels belong to the professionals/technical group. While the rest from the 1st
level, co-terminous employees, casual, contractual and elective officials.

The Christmas bonus law was passed in 1988 under the incumbency of
the late and revered former President Corazon C. Aquino as her lasting gift to
the bureaucracy. Today, more than twenty five years since then, and after
some amendments in 1997, a revitalized Christmas bonus law is needed to
dynamically respond to the present times.

Passage of this bill is earnestly and immediately sought.

CATALINA "BAB i. INEN-PIZARRO


SIXTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES
3437

House Bill No.

Introduced by Representative Catalina "Baby" G. Leonen-Pizarro

AN ACT

AMENDING SECTIONS 1, 2, 3, 4, AND 5 OF REPUBLIC ACT 6686, AS AMENDED
BY REPUBLIC ACT NO. 8441, IMPOSING NEW PROVISIONS IN THE GRANT OF
CHRISTMAS BONUS TO GOVERNMENT OFFICIALS AND EMPLOYEES AND.
INCREASING THE CASH GIFT FROM FIVE THOUSAND PESOS (P 5,000.00) TO
TEN THOUSAND PESOS (P 10,000.00) STARTING CALENDAR YEAR TWO
THOUSAND FOURTEEN (2014) AND THEREAFTER, WITH AUTOMATIC
INCREASE OF FIVE THOUSAND PESOS (P 5,000.00) EVERY FIVE YEARS
THEREAFTER

Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress assembled:

Section1. Section 1 of Republic Act No. 6686 as amended is hereby
further amended to read as follows:

“Section. 1. All officials and employees of the National
Government who have rendered at least four months of service from January 1.
to October 31 each year and who are employed in the government service as
of October 31 of the same year shall each receive a Christmas bonus
equivalent to one month basic salary and additional cash gift of TEN
THOUSAND PESOS (P 10,000.00) STARTING THE CALENDAR YEAR TWO.
THOUSAND FOURTEEN (2014) AND THEREAFTER, PROVIDED THAT AN
AUTOMATIC INCREASE OF FIVE THOUSAND PESOS (P 5,000.00) BE GRANTED
EVERY FIVE (5) YEARS. ”

Section 2. Section 2 of the Republic Act No. 6686 as amended, is hereby
further amended to read as follows:


“Section 2. Officials and employees of the National
Government who have rendered less than four months of service from January
1 to October 31 of each year and who are employed in the government service
as of October 31 of the same year shall be entitled to the following percentage
of ONE MONTH BASIC SALARY AND CASH GIFT:

3 months but less than 4 months 40%
2 months but less than 3 months 30%
1 month but less than 2 months 20%
Less than one month 10%

Section 3. Section 3 of Republic Act No. 6686, as amended, is hereby
further amended to read as follows:

“Section 3. For CALENDAR YEAR 2014, the amount needed
to implement this Act for national officials and employees, and barangay
chairmen under Section 5 shall be taken from the 2014 appropriations for the
Miscellaneous Personnel Benefit Fund and appropriation savings and reserves
authorized BY THE GENERAL APPROPRIATIONS ACT FOR CALENDAR YEAR 2014.
For the succeeding years, the amount shall be included in the annual General
Appropriations Act.”

Section 4. Section 4 of Republic Act No. 6686, as amended, is hereby
further amended to read as follows:

“Section. 4 All officials and employees of local government
units may receive the same benefits as are provided under Section 1 and 2 of
this Act chargeable against their respective local funds. For CALENDAR YEAR
2014, local government units (municipalities, cities and provinces) may realign
their budget to give priority to the funding requirements under this Act and
any deficiency may be booked as accounts payables to be paid on a TOP
priority basis in succeeding years.”

Section 5. Section 5 of Republic Act No. 6686, as amended, is hereby
further amended to read as follows:

“Section 5. Barangay chairmen and councilmen shall each
receive one month honorarium and a cash gift of TEN THOUSAND PESOS (P
10,000.00) payable out of the funds provided for in Section 3 hereof, This shall
be implemented in accordance with Section 1 and 2 of this Act.”


Section 6. All laws, executive issuances and any rules and regulations
inconsistent with any of the provisions of this Act are hereby deemed
amended, repealed and modified accordingly.

Section 7. This Act shall take effect after fifteen (15) days from
publication in the Official Gazette or in two (2) national newspapers of general
circulation.

APPROVED.