Grant of the Fiscal Year 2024 Productivity Enhancement Incentive (PEI)

 The Department of Budget and Management (DBM) has issued Circular Letter No. 2024-17 on December 4, 2024, detailing the grant of the Fiscal Year (FY) 2024 Productivity Enhancement Incentive (PEI) for government employees. This circular underscores the rationale, policies, and conditions for the release of the PEI as part of the government's incentive system aimed at enhancing public sector productivity and rewarding outstanding performance.

Grant of the Fiscal Year 2024 Productivity Enhancement Incentive (PEI)

Grant of the Fiscal Year 2024 Productivity Enhancement Incentive (PEI)

The grant of the PEI stems from the institutionalization of the Results-Based Performance Management System (RBPMS) under Administrative Order (AO) No. 25, s. 2011, which served as a framework for performance-based rewards. Subsequently, Executive Order (EO) No. 80, s. 2012, introduced the Performance-Based Incentive System (PBIS), which includes:

• The Performance-Based Bonus (PBB), and
• The Productivity Enhancement Incentive (PEI).

The PBIS was designed to motivate government agencies and employees to achieve performance targets and enhance accountability. However, the suspension of AO No. 25 and EO No. 80 in June 2024 paved the way for the formation of a Technical Working Group (TWG) to review and streamline government performance management and incentives under EO No. 61.

The PEI for FY 2024 is authorized under the approved Transition Plan of EO No. 61. Key provisions include:

• Eligibility and Amount: A uniform PEI rate of ₱5,000 will be granted to each qualified government employee.
• Release Date: The PEI will be payable no earlier than December 15, 2024.
• Funding Source: Appropriations for the PEI are categorized under Personnel Services items for comprehensive release through the General Appropriations Act and the Allotment Order.
• The conditions, policies, and guidelines for the grant of the PEI are prescribed under Budget Circular No. 2017-4, dated December 4, 2017.

The FY 2024 PEI reflects the government's commitment to recognizing the contributions of public sector workers in achieving performance targets. It aligns with the goals of fostering  productivity and efficiency within government institutions.

For further details, agencies are encouraged to refer to DBM Circular Letter No. 2024-17 for the complete guidelines on PEI implementation.