The Office of the President has officially declared a suspension of work across all government offices on two specific days surrounding the New Year 2026 holiday period.
Extended Holiday Break for Government Employees
Through Memorandum Circular No. 111, signed by Executive Secretary Ralph Recto, Malacañang Palace has ordered the suspension of work on Monday, December 29, 2025, and Friday, January 2, 2026. The directive aims to provide government staff with a longer, uninterrupted break to celebrate the New Year.
The circular explicitly states that the move is intended "to provide government employees full opportunity to celebrate New Year’s Day activities and to allow them to travel to and from different regions in the country." This is expected to ease holiday travel congestion and allow families more time together.
Exemptions and Private Sector Discretion
However, the suspension is not absolute. The order mandates that government agencies involved in delivering basic, vital, and health services, as well as those with preparedness and response duties, must continue their operations. This ensures that essential public services remain uninterrupted during the holiday period.
For the private sector, the circular does not impose a blanket rule. Malacañang has left it to the discretion of company and office heads to decide whether to adopt a similar work suspension on those dates for their employees.
Complete 2025-2026 Holiday Lineup
This announcement complements the previously declared holidays for the period. The Palace had earlier proclaimed:
- December 30, 2025 as a regular holiday for Rizal Day.
- December 31, 2025 as a special non-working holiday for the last day of the year.
- January 1, 2026 as a regular holiday for New Year’s Day.
With the new suspension days, government employees can expect a consecutive break from Saturday, December 28, 2025, through Sunday, January 4, 2026, requiring only two days of official work on December 30 and 31 in between.
P5,000 Productivity Bonus for Government Workers
In related positive news for public servants, the Department of Budget and Management (DBM) announced on December 18, 2025, the continued grant of the Productivity Enhancement Incentive (PEI) for Fiscal Year 2025.
Qualified personnel are set to receive P5,000 each. The beneficiaries include employees from:
- National government agencies
- State universities and colleges
- Government-owned or -controlled corporations under DBM
- Local government units and local water districts
- Military and uniformed personnel
The government has allocated a total of P9.24 billion to fund the PEI for 2025. The DBM clarified that the grant follows existing conditions, including service and performance requirements. Employees who have served for less than four months within the year may receive a pro-rated amount.
The DBM emphasized that the PEI, granted annually since 2016, serves as recognition of public service, helps maintain employee morale, and encourages better performance across the bureaucracy.
