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PIA Press Release
2010/11/27

PNoy grants productivity enhancement incentive to gov't workers

Manila (27 November) -- President Benigno Aquino III has authorized the granting of productivity enhancement incentives to government employees for Fiscal Year 2010.

President Aquino signed Administrative Order No. 3 on November 25, 2010, granting a one-time maximum amount of Ten Thousand Pesos (P10,000) each as Productivity Enhancement Incentive to the employees in the Executive Branch, including those in government-owned or controlled corporations (GOCCs) and government financial institutions (GFIs), subject to condition specified in the AO.

The full amount of P10,000 will be given to the employees who were uthired on a permanent, temporary, casual or contractual status, and are still in the service as of 30 November 2010; and to the employees who have rendered for the year at least four (4) months of service as of November 30, 2010.

Employees who have rendered less than four (4) months of service as of 30 November 2010, shall also be entitled to the PEI on pro-rated basis, as follows: those who rendered 3 months but less than 4 months will receive 40% of the PEI. Those who rendered 2 months service but less than 3 months will receive 30% of the PEI.

Meanwhile those who rendered 1 month of service but less than 2 months will receive 20%; while those who rendered less than one month of service will receive 10% of the PEI.

The President said that government employees deserve to be rewarded with the PEI in recognition of their collective participation in said fiscal and operational performance in FY 2010, and to motivate them towards sustained and improved productivity.

The President added that the economy has stabilized; investors' confidence, trust and faith in the Philippine Government have been restored; plans for the effective implementation of government programs such as on education, health, poverty alleviation, and job generation are pursued under the platform of good governance.

These accomplishments were achieved through the unwavering support, commitment, and collaborative efforts of all government employees from all sectors and levels of Philippine bureaucracy, the President said.

For national government agencies (NGAs), the amount required shall be charged against Savings from unreleased appropriations for NGAs under R.A. No. 9970, the FY 2010 General Appropriations Act (GAA), which shall be pooled and released by the Department of Budget and Management (DBM) to fund the PEI in the amount of Seven Thousand Pesos (P7,000.00) for each employee; and Savings in the respective agency allotments for the remaining Three Thousand Pesos (P3,000.00) for each employee.

In the event that agency savings are insufficient to cover in full the remaining P3,000.00, partial grant thereof shall be made at uniform rate for all qualified employees.

For GOCCs and GFIs, the amount required shall be charged against savings from the respective approved corporate operating budgets for FY 2010. A GOCC or GFI which does not have sufficient funds may grant the PEI at a lower but uniform rate for all qualified employees.

Employees in the Senate, House of Representatives, the Judiciary, the Office of the Ombudsman, and Constitutional Offices vested with fiscal autonomy may likewise be granted a one-time PEI by their respective heads of office at rates not exceeding Ten Thousand Pesos (P10,000.00) each, chargeable against their respective available savings in allotments, subject to the conditions earlier stated.

The grant of the one-time PEI to employees in LGUs, including those in barangay governments, shall be determined by the sanggunian depending on the LGU financial capability, subject to the Personal Services limitation in the LGU budgets under R.A. No. 7160, and to the conditions in Sub-sections 1a to 1d hereof, chargeable against the FY 2010 local government funds.

In determining the amount of the PEI, the sanggunian shall exercise prudence and judicious use of government funds, and shall ensure that the expenditure thereof is reasonable and will not, in any way, adversely affect all delivery of services to the public.

The payment of the Productivity Enhancement Incentive to all government employees shall be made not earlier than December 15, 2010. (PIA 8) [top]

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