The Davao City Council has given its crucial approval to a substantial year-end financial package for thousands of city government workers. On Monday, December 22, 2025, the 21st City Council passed on second reading Supplemental Budget No. 3 (SB3), amounting to a total of ₱187,324,000. This budget is specifically earmarked to provide holiday incentives for the city's personnel, ensuring they receive their bonuses before the year closes.
Breakdown of the Incentive Package
The approved budget allocates funds for two main types of year-end benefits. For regular or plantilla employees, a Service Recognition Incentive (SRI) of up to ₱20,000 will be granted. This follows the national guidelines set by Administrative Order No. 40 and Budget Circular No. 2025-3.
Meanwhile, job order and contract-of-service workers will receive a gratuity pay of ₱7,000, as per Administrative Order No. 39 and Local Budget Circular No. 2025-4. The combined allocation for these two incentive programs under the Office of the City Mayor reaches ₱137,312,000.
The gratuity pay for contractual workers is further detailed based on length of service in 2025:
- ₱6,000 for those who served at least three but less than four months.
- ₱5,000 for service lasting two to three months.
- ₱4,000 for those with less than two months of service.
Funding Sources and Expedited Approval
The massive supplemental budget was proposed by Councilor Danilo Dayanghirang, who chairs the Committee on Finance, Ways and Means, and Appropriations. The funds will be drawn from several sources:
- The General Fund Proper (₱182,992,000)
- Economic Enterprise market operations (₱4,074,000)
- The Davao City Recreational Center (₱70,000)
- Cemetery operations (₱188,000)
Councilor Dayanghirang explained to reporters that the process faced initial delays due to a late notice from Malacañang regarding the national guidelines. "We just received the memorandum circular, and there was already a declaration of holidays," he stated on Friday, December 19.
To ensure timely release, he issued instructions to work overtime. "My instruction, for the sake of the employees and upon the order of the mayor, is to release it on time," Dayanghirang emphasized. He contrasted this with the previous year, where the 2024 gratuity pay was released only in mid-year due to similar delays.
Release Before the New Year
The councilor assured that despite December 24 and 25 being holidays, December 26 is a regular working day. This schedule allows the city's accounting and treasury offices to process and release the incentives to employees before the New Year begins.
"These incentives will be released this month, so unlike last year, personnel will receive them before the year ends," Dayanghirang confirmed. The ordinance is scheduled for its third and final reading on Tuesday, December 23, 2025, paving the way for the immediate disbursement of the year-end bonuses to grateful city government workers.
