Section 42. Year-End Bonus and Cash Gift. —

The year-end bonus equivalent to one (1) month basic salary and additional cash gift of Five Thousand Pesos (P5,000) provided under R.A. No. 6686, as amended by R.A. No. 8441, shall be granted to all national government officials and employees, whether under regular, temporary, casual or contractual status, on full-time or part-time basis, who have rendered at least a total of four (4) months of service including leaves of absence with pay from January 1 to October 31 of each year, and who are still in the service as of October 31 of the same year.

One half (1/2) of said year-end bonus and cash gift may be paid not earlier than May 1 if at least a total of four (4) months of service have been rendered regardless of whether they will still be in the service as of October 31 of the same year. A proportionate share of the remaining balance of the year-end bonus and cash gift shall be granted prior to retirement/separation before October 31.

Local Government personnel are likewise entitled to year-end bonus and cash gift chargeable against local funds: PROVIDED, That barangay officials are only entitled to cash gift.

The grant of the year-end bonus and/or cash gift is subject to the rules and regulations issued by the DBM.