Mid year bonus is a Government incentive or grant given to their employees in the Philippines. Midyear bonuses are given based on the order of the Executive branch, via Executive Order no. 201, s. 2016 titled “Modifying the Salary Schedule for Civilian Government Personnel and Authorising the Grant of Additional Benefits for Both Civilian and Military and Uniformed Personnel” which was signed by the Chief Executive. Mid year bonus computation is important to know how much will be the mid year bonus and where to invest the money is important too. Bonuses are great, like the statutory 13th month pay. This extra income can be used for investing and not just used for spending and buying wants. Wants are optional things like cellphone or new tv. To be discussed at later part of this page are opportunities in growing your bonus or even your 13th month pay.


Mid year bonus are perks enjoyed by civil servants and government employees. The private sector employees may have a similar mid year bonus depending on their company policy, which means many companies do not give away mid year bonus. Government employees however need to be elegible for the mid year bonus. Mid year bonus is not fix rate, and is subject to computation.

Basis for Mid Year Bonus Computation Eligibility

  1. personnel has been employed at least a total or an aggregate of four months of service from July 1, 2017 to May 15, 2018;
  2. personnel is currently in the government service as of May 15, 2018;
  3. personnel has garnered good review and rating based on the performance appraisal period.

The bonus for 2018 (financial year) mid year bonus for government employees will come from the government agency-specific allocation for the payment of mid year bonus under the financial year 2018 general appropriations. To read more on the Budget Circular, click here.

Mid Year Bonus Computation

So how much is a mid year bonus given to government employees?The answer is, a mid year bonus is equal to one month of basic salary. It is based on the current base salary of the employee as of May 15, 2018 when eligible to receive. The computation is as simple as that. The employee will get 1 month worth of basic salary on top of their current salary. The amount may also get adjusted like the usual 13 month pay, wherein the final amount shall be subject to the accounting and auditing rules and regulations, and to appropriate readjustment when found applicable.

Where to Invest Mid Year Bonus

Employees whenever possible should invest their hard earned salary on known financial instruments that brings in passive income such as investments. Employees received monthly paycheck, and pay bills, allot budget for daily expenses, pay liabilities like loans, and spend on new hot shoes, bags, clothes, or gadget. If others can manage to save, it should be possible too for other employees. There is a saying “its not about how much you earn, but it is about how much you earn”. You mid year bonus is a perfect opportunity to invest and allow money to grow.

Passive income are great for cash flow improvement. Passive income is does not require much focus to maintain and allows it’s investor to make money while doing other work -like the usual day job. Build passive income best time to start is now. If money is left out at banks through savings account, the inflation rate will beat the weak interest earning of the savings account. Savings account interests are taxable, and is lower than the >1% savings account interest rate common on savings account. Shown below is a table from Bangko Sentral ng Pilipinas or the BSP, showing the progressing inflation rate increase. Therefore, saving money is not enough. Save money at banks for sufficient backup funds for emergency fund. Saving account still become handy, when the needed fund must be liquid, and can be siphoned out as cash when need arise. Liquidity characterise some investments. Real state will take time to sell off when a needed fund is needed.

Figure 1: Inflation Rate in the Philippines

Year  2013  2014  2015  2016  2017  2018
   Average              2.6              3.6              0.7              1.3              2.9            4.1
 January 3.4
 February 3.8
 March 4.3
 April 4.5
 May 4.6

Growing economy and increasing purchasing power of the employees brought by Tax Reform law passage can also be looked as a factor in inflation rate. Investing is perfect at the current economic environment in the Philippines. Mid year bonus as your starting investment is the best idea for your money. Spending on another Iphone or a television upgrade would not improve your financial status.

Invest your Mid Year Bonus or even your 13 Month Pay. Here are the list of ideas on where to Invest your bonus.

Pag-Ibig Mp2 Saving program

Pag-Ibig (HMDF) is a leader in home load and multi-purpose loans. Members are providing monthly contribution as mandated by statutory benefit by law, and matched by an employer. This is the usual Pag-Ibig fund we know. Do note, that Pag-Ibig is not just for loans. Pag-Ibig accepts other form of contribution which can be used for their high paying dividend generating savings program.

The saving program we are referring to is Pag-Ibig Mp2. For more information on Pag-Ibig Mp2, check out the Pag_Ibig Mp2 Review. The dividend rate is very promising, and earns more than saving account. Check the Pag-Ibig MP2 Dividend Rate For 2017.


Pag-Ibig Mp2 Review

Start your Own Business

You may start your own business with your bonus as an additional fund. Starting a startup business can be a challenge, but rich people are not employees. Rich people do business. Start your own business, and manage it correctly. Start business on areas/ industries with good demand and reachable customers. Presented below are sample business ideas a reviews.

Water Refilling Station Business Plan

Water Refilling Station Business Plan 2017

Room For Rent Business

room for rent in manila

Taxi Business

Taxi Business Philippines

Falcata Tree Business Plan


Duck Farm For Balut And Penoy Business


Bangus Or Milkfish Business Success Tips


Talyer Business


Invest on Stock Market

Blue chip stock in the Philippines are leading companies to invest at the Philippine stock market. Newbies beware, that stock market provides a greater degree of income from stock price appreciation, but also has greater volatility than mutual funds. Blue chips provide a better opportunity to learn and possibly earn from stock market investment.




By techno

Techno is an IT professional dedicated to providing proven reviews and insights to technology. With constant exposure to the latest innovations, technical interpretation is given in specific manner yet, also provides digestible exquisiteness of the topic in various fields in IT, Business, and Lifestyle.