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Guidelines on the Grant of the Productivity Enhancement Incentive

Guidelines on the Grant of the Productivity Enhancement Incentive

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:

  • The employees are still in the service as of November 30 of the current year; and
  • 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.

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:

Length of Service Percentage of the PEI
3 months to less than 4 months 50%
2 months to less than 3 months 40%
1 month to less than 2 months 30%
Less than 1 month 20%

What is productivity enhancement incentive?

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.

Who are eligible for PEI?

Excluded from the coverage of this Circular are those hired without employee-employer relationships and funded from non-Personnel Services appropriations/budgets, as follows:

  • Consultants and experts hired for a limited period to perform specific activities or services with expected outputs;
  • Laborers hired through job contracts (pakyaw) and those paid on piece work basis;
  • Student workers and apprentices; and
  • Individuals and groups of people whose services are engaged through job orders, contracts of service, or others similarly situated.

Section 6 of Executive Order (EO) No. 201

Beginning FY 2016, the Productivity Enhancement Incentive shall be given not earlier than December 15 of every year to all qualified government employees at Five Thousand Pesos (P5,000) each for the purpose of improving the government employees’ productivity.

Sources: Budget Circular No. 2017 -4

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