Grant of FY 2026 Mid-Year Bonus for Government Employees

For FY 2026, the Mid-Year Bonus is still equivalent to one month basic salary/basic pay. Under the FY 2026 GAA General Provisions, it is granted to National Government personnel, whether regular, temporary, casual, or contractual, and whether full-time or part-time, provided they meet the service and performance conditions. The same section also says GOCC personnel covered by the CPCS and LGU personnel are likewise entitled, chargeable against their respective corporate or local funds.

Eligibility requirements

Under DBM Budget Circular No. 2017-2, an employee must meet all of these conditions:

• have rendered at least a total or aggregate of four months of service from July 1 of the immediately preceding year to May 15 of the current year;
• still be in government service as of May 15 of the current year; and
• have obtained at least a satisfactory performance rating in the immediately preceding rating period, or the applicable appraisal period. If a shorter appraisal period is used, it must still cover at least 90 calendar days / 3 months, while the total service requirement must still be met.

So for FY 2026, the relevant service window is July 1, 2025 to May 15, 2026. This follows directly from the “preceding year to May 15 of the current year” rule.

When it may be released

The Mid-Year Bonus is payable not earlier than May 15 of the current year. That timing is explicit in B.C. No. 2017-2.

Who is not entitled

Employees are not entitled if they rendered less than four months of aggregate service within the prescribed period, or if they are no longer in the service as of May 15.

Special cases

For part-time personnel, the bonus is paid in direct proportion to the number of hours or days of part-time service rendered. Personnel on detail are paid by their parent agency, while those on secondment are paid by the recipient agency. Personnel who transferred from one agency to another are paid by the new agency. A compulsory retiree whose service was extended may still be granted the bonus, subject to the circular’s conditions.

For personnel with pending administrative or criminal cases, they may still receive the Mid-Year Bonus until found guilty by final and executory judgment. If found guilty, they are not entitled in the year the decision becomes final and must refund the bonus received for that year. If the penalty is only reprimand, they remain entitled.

Coverage

DBM’s 2025 official reminder, which cites the same governing circular, states that coverage includes civilian personnel across the Executive, Legislative, and Judicial branches, Constitutional Commissions and other Constitutional Offices, SUCs, GOCCs covered by the compensation system, and LGUs. It also says the benefit covers qualified military and uniformed personnel. That press release is not the legal basis by itself, but it is useful confirmation that DBM continues to implement the bonus under B.C. No. 2017-2.

Funding / source of funds

B.C. No. 2017-2 says that for succeeding years, the amounts for the Mid-Year Bonus are to be included in agency budgets and released subject to applicable budgeting rules. For covered GOCCs, funding comes from their approved corporate operating budgets, and they may not resort to borrowings for this purpose. For LGUs, it is chargeable against local government funds, subject to personnel services limitations under the Local Government Code.

The FY 2026 GAA General Provisions likewise state that GOCC and LGU personnel’s Mid-Year Bonus is chargeable against their respective corporate and local funds.

Most important practical takeaway for FY 2026

Unless DBM issues a newer 2026-specific circular before payout, the rule set for FY 2026 appears to be:

• Amount: 1 month basic salary/basic pay
• Earliest release: May 15, 2026
• Service requirement: at least 4 months aggregate service from July 1, 2025 to May 15, 2026
• Still employed on: May 15, 2026
• Performance: at least satisfactory in the applicable prior appraisal period.