P10,000 more for government workers

Budget Secretary Florencio B. Abad

President Benigno Aquino III on Thursday announced that the national government would give P10,000 in additional holiday bonus to each of the 1.17 million civil servants, including those hired on temporary, casual or contractual basis.

The full amount will be given to employees who had rendered at least four months of service as of November 30.

“On top of the (13th month pay and the P5,000 cash gift), there is a P10,000 productivity enhancement incentive (PEI), which is due to be given by December 15,” Mr. Aquino said.

“So, both the 13th month and the cash gift are mandated by law and this is a new one, the P10,000 productivity enhancement incentive,” he added.

The Department of Budget and Management (DBM) placed at P27.82 billion the total amount to be disbursed by the government for half of the 13th month pay, cash gift and holiday bonus.

“Our improved expenditure and deficit management will allow the national government to authorize the grant of additional bonus to government personnel on top of what they regularly receive,” Budget Secretary Florencio B. Abad said.

Abad earlier said that the additional holiday bonus was apart from the regular yearend bonus—in the form of half of the 13th month pay and cash gift of P5,000—which was given to government employees from November 15 to November 30.

The first half of the 13th month pay was given from May to June.

The DBM had proposed to Mr. Aquino an additional holiday bonus of P10,000 to each 1.17 million government personnel in the form of a productivity enhancement incentive (PEI).

Abad said the national government decision to shoulder in full the P10,000 in PEI for each employee was proof of the country’s stable fiscal situation.

He said the past practice was for the national government to shoulder P7,000 and for agencies to draw up to P3,000 from their savings.

“Under this policy, there are agencies who cannot provide their P3,000 share in full or in part, to their employees due to insufficient savings. To be fair to all employees, we are proposing that the full P10,000 will be given to them through the national government,” Abad said.

He said this new policy would prevent agencies from scrimping to finance their PEI share at the expense of programs and projects.

Under an administrative order the President signed Thursday, employees in the executive branch, including those in government-owned and -controlled corporations (GOCCs) and government financial institutions (GFIs), will be granted a one-time PEI of P10,000 each.

For GOCCs and GFIs, the amount, whether in full or partial depending on their sufficiency of funds, will be charged against their savings.

The DBM said employees in the legislative and judicial branches and those in other offices with fiscal autonomy may be granted amounts not exceeding P10,000, and chargeable to their respective available savings.

It added that the grant of the PEI to employees in local government units (LGUs) may be determined by their respective governing councils depending on an LGU’s financial capability and subject to the personal services limitation in the Local Government Code.