One essential technique for raising government worker productivity in the Philippines is the Productivity Enhancement Incentive (PEI). Established by Executive Order 201, s. 2016, the PEI is given to eligible employees, improving their performance and, eventually, the public sector’s efficiency. This page will describe the goals of the PEI, include eligibility criteria for employees, and provide procedures for granting the grant.
The Goals and Objectives of the Incentive for Productivity Enhancement
The purpose of the PEI is to increase government employees’ productivity by giving them an extra financial incentive. This incentive is a component of a larger package of benefits and changes brought about by Executive Order 201, which also includes a mid-year bonus equal to one month’s basic salary and an upward adjustment to the bureaucracy’s wage schedule. By providing these incentives, the government hopes to draw and keep talent in the public sector, which would boost output and result in better services for the general population.
Guidelines on the Grant of the Productivity Enhancement Incentive
The P5,000 PEI is awarded to qualified government workers by December 15 of the current year, provided that they meet the following requirements:
- The employee must still be in service as of November 30 of the current year.
- The employee must have rendered at least a total or an aggregate of four (4) months of satisfactory service as of November 30 of the current year, including leaves of absence with pay.
Employees who have rendered less than four (4) months of service but are still in service as of November 30 of the current year are entitled to a pro-rated PEI, according to the following schedule:
| 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% |
Eligibility for the Productivity Enhancement Incentive
While the PEI covers most government employees, some individuals are excluded from receiving this benefit. Those not eligible for the PEI include:
- 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 a piece work basis
- Student workers and apprentices
- Individuals and groups of people whose services are engaged through job orders, contracts of service, or others similarly situated
Conclusion
The Productivity Enhancement Incentive is an important measure designed to improve the productivity of government employees in the Philippines. By offering this incentive, the government can ensure that talented individuals are attracted to and retained within the public sector, ultimately leading to better service delivery and improved efficiency. Understanding the guidelines and eligibility criteria for the PEI can help government employees make the most of this valuable benefit.
Source: Budget Circular No. 2017-4
