PEI Bonus Guidelines: Who can Receive 5,000?

Budget Circular No. 2017-4 issued by the Department of Budget and Management (DBM) on December 4, 2017, provides guidelines for granting the Productivity Enhancement Incentive (PEI) to government employees starting from Fiscal Year (FY) 2017 and beyond under Executive Order (EO) No. 201, s. 2016 entitled, “Modifying the Salary Schedule for Civilian Government Personnel and Authorizing the
Grant of Additional Benefits for Civilian and Military and Uniformed Personnel,” as approved by the President on February 19, 2016.

Key points include:

1. Purpose: To implement the PEI as part of Executive Order No. 201, s. 2016, which aims to improve productivity among government personnel. A fixed amount of PHP 5,000 is given annually, not earlier than December 15.
2. Coverage:
   • Includes regular, casual, and contractual civilian personnel, military, and uniformed personnel from various branches of government, SUCs, GOCCs, and LGUs.
   • Excludes consultants, job-order workers, apprentices, and those without employee-employer relationships.
3. Grant Conditions:
   • Employees must be in service as of November 30 and have rendered at least four months of satisfactory service to qualify for the full PEI.
   • Those with less service are entitled to prorated amounts (20%-50%).
4. Special Cases:
   • Employees with pending administrative or criminal charges are eligible until proven guilty.
   • Retirees with service extensions are also eligible.
5. Implementation for GOCCs and LGUs:
   • PEI rates may vary but must not exceed PHP 5,000 and comply with respective fund limitations.
6. Funding Sources:
   • Agencies are to use existing appropriations, corporate operating budgets, or local funds, depending on the type of organization.
7. Payment Schedule:
   • PEI is to be disbursed no earlier than December 15 each year.
8. Agency Accountability:
   • Agencies are responsible for adhering to the guidelines, with penalties for improper payments.

The circular emphasizes proper fund allocation, compliance with legal provisions, and accountability in implementing the PEI.

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:
1. The employees are still in the service as of November 30 of the current year; and
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.
3. 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:

4. 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.
5. The PEI of an employee who transferred from one agency to another shall be granted by the new agency.
6. The PEI of an employee on detail to another government agency shall be granted by the parent agency.
7. 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.

For more specific details here is the PDF copy of Budget Circular No. 2017-4

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