DBM Released Guidelines on the Grant of Productivity Enhancement Incentive (PEI)

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Earlier today, the Department of Budget and Management (DBM) issued Budget Circular No. 2017-4 outlining the guidelines on the grant of Productivity Enhancement Incentive (PEI) to government personnel. The PEI of PhP 5,000 shall be given to government employees not earlier than December 15, 2017, provided that they are still in the service as of November 30, 2017 and that they have rendered at least a total of four (4) months of at least satisfactory service as of November 30, 2017.

The said Circular covers: (1) All positions of civilian personnel, whether regular, casual, or contractual in nature, appointive or elective, full-time or part-time, now existing or hereafter created in the Executive, Legislative, and Judicial Branches, the Constitutional Commissions and other Constitutional Offices, SUCs, GOCCs not covered by Republic Act (RA) No. 10149, s. 2011 which are under the jurisdiction of the Department of Budget and Management (DBM), and LWDs; (2) officials and employees of Local Government Units (LGUs); and (3) military personnel of the AFP and the DND, and uniformed personnel of the PNP, PPSC, BFP, and BJMP under the DILG, PCG under the DOTr, and the NAMRIA under the DENR.

guidelines on the grant of Productivity Enhancement Incentive (PEI)
(Image: Credit to DBM)

The PEI is among the benefits included in Executive Order 201, s. 2016. As mandated by EO 201, the PEI is meant to improve the productivity of government workers. The PEI is granted to government workers, alongside the upward adjustment of the salary schedule in the bureaucracy, and new benefits such as mid-year bonus equivalent to one month basic salary.

For the national Government agencies, an estimated amount of PhP 7.5 billion has been set aside in the 2017 Budget to finance the PEI grant of around 1.5 million workers across the national government.

Budget Circular No. 2017-4 can be accessed through the DBM website with the following link:

Guidelines on the Grant of Productivity Enhancement Incentive

( Excerpt)

  • 4.1 The Productivity Enhancement Incentive of P5,000 shall be given to personnel not earlier than December 15 of the current year, subject to the following conditions:
    • 4.1.1 The employees are still in the service as of November 30 of the current year; and
    • 4.1.2 The employees have rendered at least a total or an aggregate of four (4) months of at least satisfactory service
      as of November 30 of the current year, including leaves of absence with pay.
  • 4.2 Those who have rendered less than the total or aggregate of four (4) months of service but still in the service as of November 30 of the current year shall be entitled to pro-rated PEI, as follows:

Guidelines on the Grant of Productivity Enhancement Incentive

  • 4.3 The PEI of an employee on part-time basis shall be pro-rated corresponding to the services rendered. If employed on part-time basis with two (2) or more agencies, an employee shall be entitled to proportionate amounts corresponding to the services in each agency, provided that the total PEI shall not exceed the authorized amount.
  • 4.4 The PEI of an employee who transferred from one agency to another shall be granted by the new agency.
  • 4.5 The PEI of an employee on detail to another government agency shall be granted by the parent agency.
  • 4.6 A compulsory retiree, on service extension as of November 30 of the current year, may be granted the PEI, subject to the pertinent conditions and guidelines under this Circular.
  • 4.7 Personnel Charged With Administrative and/or Criminal Cases Personnel who were formally charged with administrative and/or criminal cases, which are still pending for resolution, shall be entitled to PEI until found guilty by final and executory judgment, provided that:
    • 4.7.1 Those found guilty shall not be entitled to PEI in the year of finality of the decision. The personnel shall return the PEI received for that year.
    • 4.7.2 If the penalty imposed is only a reprimand, the personnel
      concerned shall be entitled to the PEI.

 

Source: Department of Budget and Management (DBM)


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