Scope of the Productivity Enhancement Incentive (PEI)
- Applies to employees in the Executive Branch, including government-owned or controlled corporations (GOCCs) and government financial institutions (GFIs).
- Also applicable to employees in the Legislative and Judicial branches, Office of the Ombudsman, Constitutional Offices with fiscal autonomy, and local government units (LGUs), including barangay governments.
Eligibility Criteria for PEI
- Employees must be on permanent, temporary, casual or contractual status.
- Must be actively employed as of November 30, 2010.
- Must have rendered at least four months of service in 2010; those with less than four months receive pro-rated incentives.
- Eligible employees should not have received additional year-end benefits beyond those authorized under R.A. No. 6686, as amended by R.A. No. 8441.
Computation of PEI for Employees with Less than Four Months of Service
- 3 months but less than 4 months: 40% of PEI.
- 2 months but less than 3 months: 30% of PEI.
- 1 month but less than 2 months: 20% of PEI.
- Less than 1 month: 10% of PEI.
Amounts Authorized
- Maximum PEI amount: Ten Thousand Pesos (₱10,000) one-time payment per employee.
- NGAs are authorized to fund ₱7,000 from pooled savings of unreleased appropriations and ₱3,000 from agency savings, with pro-ration if funds are insufficient.
- GOCCs and GFIs are to use savings from their approved corporate operating budgets and may grant a lower amount if funds are inadequate.
Funding Source and Disbursement for Executive Branch Employees
- NGAs’ funds for PEI come from unreleased appropriations under the 2010 General Appropriations Act and their internal savings.
- GOCCs and GFIs must use their respective corporate operating savings.
- Inadequate funds require proportionate distribution among qualified employees.
PEI for Legislative, Judicial, and Constitutional Offices
- Granting of PEI is at the discretion of heads of these offices.
- The amount must not exceed ₱10,000.
- Funds come from available savings in their respective allotments.
- Conditions on eligibility and service length mirror those of Executive Branch employees.
PEI for Local Government Units (LGUs), Including Barangay Governments
- Grant determined by the local sanggunian based on LGU financial capability and budget limitations under R.A. No. 7160.
- Must comply with the same eligibility conditions as executive employees.
- Expenditure should be prudent and must not negatively affect public service delivery.
- Funded from FY 2010 local government funds.
Timing of PEI Payment
- Payments to all government employees shall not occur earlier than December 15, 2010.
Implementation and Administration
- The Department of Budget and Management (DBM) is tasked to issue necessary guidelines to ensure proper implementation.
Effectivity
- The order took effect immediately upon signing by the President.