AN ACT INCREASING THE CASH GIFT TO FIVE THOUSAND PESOS (P5

Case Overview and Summary

Summary of Republic Act No. 8441

Christmas Bonus and Cash Gift for Government Employees
- Section 1 (amended Section 1 of RA 6686):
    - National government officials and employees who rendered at least 4 months of service from January 1 to October 31 and are employed as of October 31 shall receive:
        - One month basic salary as Christmas bonus
        - Additional cash gift of P5,000 (implemented over 3 years: P2,000 in 1997, P3,000 in 1998, P5,000 in 1999 and thereafter)

- Section 2 (amended Section 2 of RA 6686):
    - National government officials and employees who rendered less than 4 months of service from January 1 to October 31 and are employed as of October 31 shall be entitled solely to the following percentage of the 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 1 month: 10%

- Section 3 (amended Section 3 of RA 6686):
    - For 1997, the amount needed to implement this Act for national officials and employees, and barangay chairmen shall be taken from current year's appropriations for the Miscellaneous Personnel Benefits Fund and appropriation savings and reserves authorized under RA 8250 (General Appropriations Act for 1997).
    - For succeeding years, the amount shall be included in the annual General Appropriations Act.

- Section 4 (amended Section 4 of RA 6686):
    - Local government officials and employees may receive the same benefits as provided in Sections 1 and 2, chargeable against their respective local funds.
    - For 1997, local government units may realign their budgets to give priority to the funding requirements under this Act, and any deficiency may be booked as accounts payable to be paid on a first priority basis in succeeding years.

- Section 5 (amended Section 5 of RA 6686):
    - Barangay chairmen shall each receive a cash gift of P5,000, payable out of the funds provided for in Section 3, and implemented in accordance with Sections 1 and 2.

- Section 6 (amended Section 6 of RA 6686):
    - No official or employee shall receive Christmas bonus from any and all sources in excess of the one month basic salary and cash gift as provided under Sections 1 and 2.

- Section 7:
    - All laws, executive issuances, and rules and regulations inconsistent with any provisions of this Act are deemed amended, repealed, and modified accordingly.

- Section 8:
    - This Act shall take effect upon its approval (December 22, 1997).