Guidelines in grant of P10,000 incentive to gov’t workers out

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Saturday, December 17, 2011


THE Department of Budget and Management has issued the guidelines in the grant of the productivity enhancement incentive (PEI) to government employees pro-rated depending on the length of service but not more than P10,000.

Signed by DBM Secretary Florencio Abad, Budget Circular 2011-4 includes government employees occupying regular, casual or contractual positions; appointive or elective; rendering services on full-time or part-time basis; AFP and National Defense military personnel, uniformed personnel of the PNP, BFP and BJMP under the Department of the Interior and Local Government; Philippine Coast Guard and the National Mapping and Resource Information Authority; as well as local government employees, including those in the barangays.

“Excluded are those hired without employer-employee relationships and paid from non-personal services appropriations/budgets like consultants and experts hired to perform specific activities or services with expected outputs; laborers hired through job contracts, pakyaw and those paid on piecework basis; student-laborers and apprentices; and individuals or group whose services are engaged through job orders, contracts of service or others similarly situated,” stressed Item 4 of the Circular.

The grant of the PEI shall be subject to these conditions: the employees occupy regular, casual or contractual positions and are still in the service as of November 30, 2011; the employees have not received or will not receive any additional year-end benefit in 2011 over and above the year-end bonus and cash gift as authorized in Republic Act 6686, which authorizes the annual Christmas bonus to government officials and employees, as amended by RA 8441.

Employees who have rendered at least a total or an aggregate of four months of service this year, including leaves of absence with pay, shall be entitled to the full PEI amount, the DBM said.

Those who have worked less than four months are entitled to pro-rated PEI at 40 percent for those who rendered three months but less than four months of service; 30% for those who worked for two months but less than three months; 20% for one month to less than two months; and 10% for workers less than a month in public service.

“The grant of the one-time PEI for salaried LGU employees, including those in the barangays who are compensated through monthly honoraria, shall be determined by the sangguian, depending on the LGU financial capability."

The LGU shall exercise prudence in the use of local funds and in determining the PEI, the sanggunian shall ensure that this is reasonable and that the expenditure will not in any way adversely affect the delivery of services to the public, the DBM added. “The PEI shall be charged against the LGU funds for 2011 subject to the personal services limitation in LGU budgets under the Local Government Code.”

President Benigno Aquino III signed Administrative Order 24 early this month authorizing the PEI “as a reward for exceeding agency financial and operational performance targets and to motivate employee efforts towards higher productivity.” (CGC)

Published in the Sun.Star Bacolod newspaper on December 17, 2011.

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