Malacañang suspends Performance Enhancement Incentive (PEI) for FY 2025

Malacañang suspends Performance Enhancement Incentive (PEI) for FY 2025


The Teachers Dignity Coalition (TDC) provided an update from the Department of Budget and Management (DBM) regarding the Performance Enhancement Incentive (PEI) for Fiscal Year (FY) 2025.

According to the DBM, the implementation of the Performance Enhancement Incentive (PEI) is currently on hold under the existing Executive Order (EO) No. 61 (s. 2024). EO 61, issued in June 2024, temporarily suspends several incentives, including the PBB and PBI Systems (which encompass the PEI), to allow for a comprehensive review of the current Results-Based Performance Management System (RBPMS) and Performance-Based Incentive (PBI) System.

Despite the suspension, the DBM has submitted a formal request to the Office of the President (OP) seeking permission to still grant the FY 2025 PEI to eligible government employees.

"Re: PEI. Suspended ito under EO 61, but the DBM has submitted a request to the OP for authority to grant the FY 2025 PEI. Still waiting for OP approval." - Benjo Basas, National Chairman, TDC

If the Office of the President approves the DBM's request, the agency will promptly release the necessary guidelines and regulations, such as a Budget Circular, to formally carry out the incentive.

This Budget Circular will outline the schedule and process for distributing the P5,000 PEI to government workers, based on previously established qualifications (usually released no earlier than December 15 of the current year).

Executive Order No. 61 aims to create a more efficient and simplified system for government performance management and incentives. It addresses the complexity, bureaucracy, and lengthy procedures currently associated with the RBPMS and PBI System. The PEI, typically worth P5,000, is a vital component of the total compensation for government employees, acknowledging their role in improving public service.

READ: Latest update on the grant of Service Recognition Incentive (SRI) for FY 2025


Stay informed by monitoring official announcements from the Office of the President and the Department of Budget and Management regarding the status of the FY 2025 PEI.

For additional information, please refer to the official statements and circulars issued by the DBM concerning Executive Order No. 61 and the Performance Enhancement Incentive.



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