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Administrative Orders

Authorizing The Grant Of Productivity Enhancement Incentive To Government Employees For Fiscal Year 2011

Administrative Order No. 24

MALACAÑAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

ADMINISTRATIVE ORDER NO. 24

AUTHORIZING THE GRANT OF PRODUCTIVITY ENHANCEMENT INCENTIVE TO GOVERNMENT EMPLOYEES FOR FISCAL YEAR 2011

WHEREAS, the current Administration in FY 2011 has kept fiscal deficit way below target by improving revenue collection, exercising prudent expenditure management, and promoting transparency and anti-corrupt practices in government transactions;

WHEREAS, the government has gained significant headway in channeling funds towards poverty alleviation, provision of quality education and health services, provision of decent and affordable housing, promotion of employment opportunities, improvement of infrastructure, and fostering peace and development;

WHEREAS, the government is implementing vigorously a Disbursement Acceleration Program to speed up the momentum of public spending and stave off an economic slowdown in the face of a weak global environment;

WHEREAS, these accomplishments are being achieved through the unwavering support, commitment, and collaborative efforts of all government employees from all sectors and levels of Philippine bureaucracy;

WHEREAS, item (4)(h)(ii) of the Senate and House of Representatives Joint Resolution No. 4, approved on 17 June 2009, provides...

Summary of Administrative Order No. 24

Authorizing the Grant of Productivity Enhancement Incentive to Government Employees for Fiscal Year 2011

I. Grant of Productivity Enhancement Incentive (PEI) to Employees in the Executive Branch (Section 1)
- Civilian employees in national government agencies (NGAs), government-owned or -controlled corporations (GOCCs), and government financial institutions (GFIs) covered by Republic Act (RA) No. 6758, as amended, are authorized to be granted a one-time maximum amount of Ten Thousand Pesos (P10,000.00) each as PEI.
- Conditions for eligibility:
    a. The employees occupy regular, casual or contractual positions, and are still in service as of 30 November 2011. (Section 1a)
    b. The employees have rendered at least four (4) months of service for the year to be entitled to the full amount of the PEI; pro-rated amounts are provided for those with less than four months of service. (Section 1b)
    c. The employees have not received any additional year-end benefit in FY 2011 over and above the benefit authorized under RA No. 6686, as amended by RA No. 8441. (Section 1c)
- Military personnel of the Armed Forces of the Philippines (AFP), Department of National Defense (DND), uniformed personnel of the Philippine National Police (PNP), Bureau of Fire Protection (BFP), Bureau of Jail Management and Penology (BJMP), Philippine Coast Guard (PCG), and National Mapping and Resource Information Authority (NAMRIA) are also entitled to the PEI. (Section 1)

II. Funding Source of the PEI for Employees in the Executive Branch (Section 2)
    a. For employees of NGAs, their PEI shall be charged against the amount appropriated for the purpose under the Miscellaneous Personnel Benefits Fund (MPBF) in RA No. 10147, the FY 2011 General Appropriation Act, as augmented by savings from unreleased appropriations under RA No. 10147. (Section 2a)
    b. For employees of GOCCs and GFIs, the amount required shall be charged against their respective approved corporate operating budgets for FY 2011; in case of insufficiency of funds, the PEI shall be granted at a lower but uniform percentage of the PEI rates. (Section 2b)

III. PEI for Employees in the Legislative and Judicial Branches, and Other Offices Vested with Fiscal Autonomy (Section 3)
- Employees of 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 set in Section 1 (a), (b) and (c).

IV. PEI for Employees in Local Government Units (LGUs) (Section 4)
- The grant of one-time PEI for salaried employees in LGUs, including those in barangay governments who are compensated through monthly honoraria, shall be determined by the respective sanggunian, depending on the LGU financial capability and subject to:
    i. the Personal Services limitation in LGU budgets under RA No. 7160, and
    ii. the conditions in Section 1 (a), (b) and (c), chargeable against the FY 2011 local government funds.
- LGUs shall exercise prudence in the use of local funds, and the sanggunian shall ensure that the amount of the PEI is reasonable and will not adversely affect the delivery of services to the public.

V. PEI for Employees in Agencies Exempted from the Coverage of RA No. 6758, as amended (Section 5)
- Employees in NGAs, GOCCs, and GFIs exempted from the coverage of RA No. 6758, as amended, may also be entitled to the PEI at rates as may be determined by their governing boards or agency heads, but not exceeding Ten Thousand Pesos (P10,000.00) each, chargeable against their respective funds.

VI. Payment of PEI (Section 6)
- Payment of the PEI to government employees shall not be made earlier than 08 December 2011.

VII. Guidelines on the Grant of the PEI (Section 7)
- The Department of Budget and Management (DBM) shall issue the necessary guidelines to implement this Administrative Order.

VIII. Repealing Clause (Section 8)
- All issuances, orders, rules, and regulations or parts thereof which are inconsistent with the provisions of this Administrative Order are hereby revoked and/or modified accordingly.

IX. Separability (Section 9)
- If any provision of this Administrative Order is declared invalid or unconstitutional, the other provisions unaffected shall remain valid and subsisting.

X. Effectivity Clause (Section 10)
- This Administrative Order shall take effect immediately.

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