Covered Personnel
- Civilian personnel in regular, contractual or casual positions, whether appointive or elective, full-time or part-time, with an employer-employee relationship, and whose compensation is charged against Personnel Services appropriations.
- Military personnel of the Armed Forces of the Philippines and uniformed personnel from Philippine National Police, Bureau of Fire Protection, Bureau of Jail Management and Penology, Philippine Coast Guard, and National Mapping and Resource Information Authority.
Excluded Individuals
- Those hired without an employer-employee relationship and paid from non-Personnel Services appropriations.
- Includes consultants, experts hired for specific tasks, laborers on job contracts or piecework basis, student laborers, apprentices, and others paid through job orders, contracts of services, or similar arrangements.
Conditions for Granting PEI at One-Month Basic Salary
- NGAs (including SUCs) and GOCCs not under RA No. 10149 must meet:
- At least 90% achievement of FY 2014 targets under at least two performance indicators in at least one Major Final Output (MFO).
- Compliance with Transparency Seal posting requirements (Section 91, FY 2014 GAA).
- Compliance with posting or publication of Citizen’s Charter as required by the Anti-Red Tape Act of 2007.
- GOCCs under RA No. 10149 must also meet specific performance targets based on governance commission guidelines.
- LWDs must have a positive net balance based on average net income for the prior 12 months.
- LGUs must comply with Good Financial Housekeeping requirements under the FY 2014 Seal of Good Local Governance.
- Agencies that fail to meet these conditions may only grant the PHP 5,000 fixed amount.
Validation of Agency Compliance
- Performance outputs are validated by Department of Budget and Management (DBM), Governance Commission for GOCCs (GCG), or Commission on Higher Education (CHED) depending on the agency.
- Transparency Seal posting is validated by DBM.
- Citizen’s Charter compliance is validated by the CSC.
- LWUA oversees validation for LWDs.
- DILG validates compliance for LGUs with Good Financial Housekeeping.
Employee Eligibility Requirements
- Must have rendered at least four months aggregate service as of May 31, 2015, including paid leave.
- Must still be actively serving as of May 31, 2015.
- Must have obtained a satisfactory performance rating.
- Employees not meeting these criteria by May 31, 2015 may qualify upon later completion within FY 2015.
- Employees with less than four months service or unsatisfactory ratings are disqualified.
Specific Guidelines on PEI Payment
- PEI for part-time employees is pro-rated based on service rendered.
- Employees working part-time in multiple agencies receive proportionate amounts, not exceeding the authorized PEI.
- Transferred employees receive PEI from their new agency; those on detail receive PEI from mother agency.
- Compulsory retirees on service extension as of May 31, 2015, may be granted PEI.
- Personnel charged and penalized administratively or criminally in FY 2015 are disqualified; those who later become guilty must refund the PEI.
- Reprimands do not disqualify entitlement.
Applicability to Legislative, Judicial Branches, and Fiscal Autonomous Offices
- Heads of Senate, House of Representatives, Supreme Court, Ombudsman, CSC, COA, and COMELEC may grant PEI up to one month basic salary.
- Such grants are subject to respective budgeting and accounting laws.
Funding Sources
- Executive branch and SUCs: funds released by DBM from Miscellaneous Personnel Benefits Fund (MPBF) in FY 2015 GAA.
- Congress, Judiciary, CSC, COA, COMELEC, and OMB: funds from MPBF subject to their guidelines.
- GOCCs, GFIs, and LWDs: from their approved corporate budget; insufficient funds allow proportionate grants.
- LGUs: from LGU funds subject to personnel service limitations under Local Government Code; insufficient funds allow proportionate grants.
Timing of Payment
- Payment to commence not earlier than June 1, 2015.
Resolution of Issues
- Disputes or issues not covered in the Order to be referred to DBM for final decision.
- DBM may issue additional implementation guidelines as needed.
Agency Heads’ Responsibilities and Liabilities
- Agency heads are responsible for proper implementation.
- They may be held administratively, civilly, or criminally liable for non-compliance.
- Unauthorized or excess payments must be refunded by employees.
Separability and Repeal
- Invalidity of any provision does not affect validity of other provisions.
- Any inconsistent orders, regulations, or proclamations are repealed or modified accordingly.
Effectivity
- Order takes effect immediately upon publication in a newspaper of general circulation.