Cebu City Employees Face Charter Day Bonus Uncertainty Amid Budget Deficit
Cebu City government employees are likely to miss out on their customary Charter Day bonus this year, as the local administration confronts a significant budget shortfall and an absence of available savings. Mayor Nestor Archival made this sobering announcement during a press conference held on Monday, February 16, 2026, highlighting the severe fiscal constraints that are forcing the city to reconsider its traditional incentive practices.
Fiscal Limitations and Audit Risks
Archival emphasized that granting a cash bonus would be extremely challenging if the city fails to accumulate sufficient savings. He stressed that any decision must be made with careful consideration of the financial limitations to avoid triggering audit complications. "At this point, the final decision is here, and if we don't have savings, it's difficult to grant a bonus. If we push for it, it could result in an audit memo, suspension memo, and disallowances, and the money would just have to be returned anyway," Archival explained, underscoring the potential consequences of non-compliance with budgetary regulations.
The mayor revealed that the City Government operated at a deficit throughout the entire year of 2025, from January to December, leaving minimal flexibility to fund additional incentives without risking serious audit issues. He warned that approving bonuses without clear and legitimate funding sources could lead to audit suspensions or disallowances, which might ultimately require employees to repay any amounts received.
Historical Incentives Under Scrutiny
Archival also noted that employees who received incentives between 2023 and 2025 could be impacted if audit findings uncover deficiencies in documentation or funding compliance. This adds a layer of complexity to the current situation, as past practices are being reevaluated in light of ongoing financial assessments.
With no confirmed savings and a reported deficit, the administration is proceeding with extreme caution while awaiting the release of audit reports that will inform its next steps. City officials have yet to announce a definitive resolution, with Archival reiterating that any action must strictly adhere to budgetary regulations and audit standards to prevent future financial liabilities.
Alternative Incentive Under Consideration
As an alternative to a cash bonus, Archival said he is considering granting up to 10 days of leave credits to qualified employees. This proposal is being studied as a non-monetary incentive that would recognize employees' service without imposing additional strain on the city's finances. However, he emphasized that no final decision has been made, pending the outcome of thorough financial assessments and audit reviews.
Cebu City traditionally grants a Charter Day bonus to employees in celebration of its anniversary on February 24. This year, however, the possibility of a deficit-driven shortfall has cast a shadow of uncertainty over this customary incentive, leaving many employees anxious about their financial expectations.
