Eligibility for Mid-Year Bonus With Less Than 6 Months’ Service (Philippine context)

Short answer: Government: The rule isn’t “6 months.” It’s 4 months. If you’ve served an aggregate of at least four (4) months by May 15 and you’re still in service on that date—with at least a satisfactory performance rating—you’re generally eligible for the Mid-Year Bonus equal to one (1) month basic salary. If you have less than 4 months, you’re not eligible (no pro-rating). Private sector: A “mid-year bonus” is not mandated by law. Eligibility (including any “6-month” probation requirement or pro-rating) depends on your company’s policy/CBA or established practice.

What “Mid-Year Bonus” means in the Philippines

Government (national agencies, SUCs, LGUs, some GOCCs/GFIs): A statutory benefit commonly called the Mid-Year Bonus (MYB), released not earlier than May 15, typically one month basic pay as of May 15.
Private sector: “Mid-year bonus,” “14th month,” or similar mid-year payments are contractual/voluntary benefits. The only mandatory payment by law is the 13th-month pay (separate from any mid-year payment).

Government service: the exact rules

Core eligibility test

You’re entitled to the Mid-Year Bonus if all of the following are true:

Service length: You have rendered at least four (4) months of aggregate service from July 1 of the preceding year up to May 15 of the current year.
- “Aggregate” means the four months need not be continuous; periods can be added up across the window (e.g., transfers between agencies, breaks with pay).
Employment status on cut-off: You are still in government service on May 15.
Performance: You obtained at least a satisfactory performance rating for the immediately preceding rating period (or as your agency’s rules provide for new hires without a rating yet).

Less than 6 months? If you’ve hit 4+ months by May 15, you can qualify even if you haven’t reached six months. If you’re short of 4 months by May 15, you don’t qualify for the MYB.

Amount and timing

Amount: One (1) month basic salary as of May 15. It’s not pro-rated for those who qualify; you either meet the 4-month threshold or you don’t.
Release: Not earlier than May 15 (agencies normally pay on or shortly after that date).

What counts toward the 4 months?

Counts: Actual government service within the July 1–May 15 window; leaves with pay are typically counted as service.
Generally doesn’t count: Periods on leave without pay; days before July 1 of the preceding year or after May 15 of the current year.

Special situations (government)

New hires early in the year:
- Hired January 1 → by May 15 you typically have ≈4½ months → eligible (if still employed and rating requirement met).
- Hired February 1 → by May 15 you typically have ≈3½ months → not eligible this year.
Hired late in the prior year (e.g., December 1): Service from Dec→May counts within the July–May window; eligible if it totals ≥4 months.
Transfers between agencies: Service is aggregate across government; coordinate to avoid double-payments but entitlement is based on total service in the window.
On maternity/paternity leave: If with pay and you meet the time-in-service + May 15 in-service + performance requirements, you remain eligible.
Resigned/retired before May 15: Not eligible, even with 4+ months rendered. Separated after receiving the MYB? Overpayments (if any) may be subject to refund per agency rules.
Job Order/Contract-of-Service personnel: Typically not covered by the MYB (they’re not “government personnel” under the compensation system). They may receive separate gratuity if authorized by the President, but that is not the MYB.
LGUs: May grant the MYB subject to budget availability and the LGU’s personnel services (PS) expenditure limits.

Taxes (government)

The MYB forms part of the “13th-month and other benefits” exclusion under the Tax Code. The combined value of 13th month pay and other bonuses is tax-exempt up to ₱90,000; any excess is taxable. (Payroll will compute withholding.)

Private sector: how “mid-year bonus” works

No law requires a mid-year bonus

The Labor Code and DOLE rules do not mandate a mid-year bonus.
The only mandatory benefit of this kind is 13th-month pay, which is pro-rated based on actual basic salary earned within the calendar year (employees with at least one month of service qualify proportionally).

When a private mid-year bonus becomes due

A mid-year/14th-month bonus is due only if:

Your employment contract, company handbook/policy, or CBA promises it; or
It has ripened into a demandable company practice (consistently, deliberately, and unconditionally granted over time).

“Less than 6 months” in private firms Many employers tie eligibility to regularization (often at 6 months) or require being employed on the payout date. Others pro-rate based on months served. All of that is lawful so long as it aligns with the policy/CBA and there’s no unlawful discrimination or diminution of benefits.

What to check (private sector)

Exact policy language/CBA clause: Look for eligibility (e.g., “regular employees only”), pro-rating, cut-off dates, and “in-service on payout” conditions.
Practice vs. reservation clauses: If the company always paid everyone mid-year for years without conditions, it may be a benefit by practice. But if policies clearly said “discretionary” or “management may modify,” practice may not attach.
Separation before payout: Many policies forfeit mid-year bonus if you resign or are terminated before the release date—unless the policy/CBA says otherwise.
Taxes: Private mid-year bonus also falls under the ₱90,000 tax-exempt cap for 13th month & other benefits (excess taxable).

Practical decision tree

Are you in government service?
- Yes → Did you render ≥4 months from July 1 (prior year) to May 15 (current) and are you still employed on May 15 with at least satisfactory performance?
  - Yes → Eligible for one month basic pay as of May 15 (no pro-rate).
  - No → Not eligible for the MYB this year.
Are you in the private sector?
- Check your contract/CBA/company policy.
  - If it grants a mid-year bonus: follow the policy conditions (e.g., 6-month tenure, regular status, in-service on payout, pro-rating).
  - If silent: there’s no statutory right to a mid-year bonus (but you still get 13th-month pay by December, pro-rated).

Worked examples

Government

Hired January 5; in service on May 15 → ~4 months-plus → Eligible (assuming satisfactory performance).
Hired February 10; in service on May 15 → ~3 months-plus → Not eligible this year.
Hired December 1 (prior year); in service on May 15 → ~5.5 months within window → Eligible.
On paid maternity leave spanning May 15 with 4+ months total service → Eligible.

Private sector

Policy says “regular employees only; payable June 30; pro-rated for partial-year service.”
- Hired March 1; regularized September 1 → Not eligible in June (not yet regular), but may get pro-rated year-end bonus if policy provides.
CBA grants mid-year bonus to all employees with 3+ months’ service as of June 30 → Hired April 15 → Eligible (pro-rated) if the CBA so states.

Common pitfalls & tips

Confusing 6 months with 4 months (government). The controlling threshold is four months, not six.
Forgetting the May 15 in-service rule (government). Resigning before May 15 disqualifies you even with 4+ months.
Assuming pro-rating (government). The MYB is not pro-rated; you must meet the threshold.
Private policies vary. Always read the exact clause; don’t rely on what other companies do.
Taxes. Track the ₱90,000 cap for combined 13th-month & other benefits to anticipate withholding.

Legal bases & keywords to know (for your HR/legal memo)

Government: Mid-Year Bonus rules issued by the Department of Budget and Management (DBM) (applicable from FY 2017 and after); Salary Standardization/Compensation System issuances; local budget limitations for LGUs.
Private sector: PD 851 (13th-Month Pay) and DOLE rules; Labor Code provisions on probationary employment/regularization and non-diminution of benefits; contract/CBA principles; jurisprudence on company practice.
Tax: NIRC Sec. 32(B)(7)(e) as amended (TRAIN Law) — ₱90,000 exclusion cap for 13th-month and other benefits.

Bottom line

If you’re a government employee with <6 data-preserve-html-node="true" months but ≥4 months of service by May 15 (and you’re in service that day with satisfactory performance): you qualify for the Mid-Year Bonus (one month basic pay).
If you’re in the private sector, any “mid-year bonus” depends on what your contract/CBA/company policy or practice says; a 6-month requirement is allowed if that’s the rule. Your 13th-month pay remains mandatory and pro-rated regardless.

If you want, tell me your hire date, sector (gov’t/private), and any policy language you have—I’ll map it to a yes/no eligibility call and compute the likely amount (and tax) based on your salary.