President Ferdinand R. Marcos Jr. has authorized the release of the 2025 Productivity Enhancement Incentive (PEI) at a uniform rate of PHP5,000 for each qualified government employee.

The Department of Budget and Management (DBM), through Circular Letter 2025-13 issued on Dec. 17, informed all heads of departments, bureaus, agencies, local water districts, local government units, state universities and colleges (SUCs), and government-owned or -controlled corporations (GOCCs) of the grant of 2025 PEI.

The incentive will be released not earlier than Dec. 15, 2025, in accordance with Budget Circular No. 2017-45.

Budget Circular No. 2017-45 sets guidelines for granting the PEI to eligible government workers, including civilian personnel, whether regular, casual, or contractual in nature, appointive or elective, full-time or part-time, as well as military and uniformed personnel.

The PEI forms part of the Performance-Based Incentive System (PBIS), which aims to boost productivity, accountability, and the achievement of agency targets.

Eligibility for performance-based allowances and bonuses under PBIS is determined through the Results-Based Performance Management System (RBPMS).

The implementation of PBIS and RBPMS was suspended following the issuance of Executive Order (EO) 61 in June 2024.

Subsequently, a Technical Working Group was formed to review and streamline the government’s performance management and incentive framework.

To promote productivity and encourage the achievement of performance targets, Marcos authorized the DBM to issue guidelines for the granting of 2025 PEI.

The PEI aligns with Congress Joint Resolution No. 4 issued in 2009, emphasizing a performance-based scheme that rewards exemplary civil servants and high-performing agencies.

The incentive is also part of the Total Compensation Framework and included in Personnel Services items for release through the General Appropriations Act for 2025, in accordance with National Budget Circular No. 595. (PNA)