GOOD NEWS! DepEd Confirms Release of PEI Amid Transition Rules

The Productivity Enhancement Incentive (PEI) for government employees remains a point of public inquiry following the issuance of Executive Order (EO) No. 61, s. 2024, which temporarily suspended the government’s existing Performance-Based Incentive (PBI) System. While the EO aimed to streamline and harmonize performance evaluation and incentive structures, many employees feared that such suspension might result in the non-release of PEI for the current cycle.

However, recent developments—particularly from the Department of Education (DepEd) Division of Masbate—show that the PEI is not fully suspended, and transitional mechanisms remain in place to ensure that eligible employees continue to receive their benefits.

DepEd Masbate: PEI Not Suspended—Benefit Already Released

Confirming that PEI distribution continues in practice, the DepEd Division of Masbate has announced the successful crediting of incentives to eligible personnel. This demonstrates that the suspension under EO 61 does not equate to withholding financial benefits from employees.

The Disbursing Section of DepEd Masbate posted the following announcement:

Hello mga Ka DepEd🥰
Nakapag withdraw na ba?
O ubos na? Kasi may kasunod pa...😂😁🥰😍
Di kagaya nya na ako ay ipaasa😁😆😂
CREDITED na po ang 2025 Productivity Enhancement Incentive (PEI)
God Bless and enjoy your weekend everyone🥰

Implications for Government Employees

The release of the 2025 PEI in Masbate confirms several important points:

1. PEI is NOT suspended.

Despite EO 61, government employees are still entitled to receive the incentive for FY 2025.

2. Agencies are following DBM transition guidelines.

The ongoing releases indicate that funding and guidance for PEI distribution remain intact.

3. Employees can expect continued issuance.

Other divisions and agencies are likely to follow once their funds are processed.

What is the Productivity Enhancement Incentive (PEI)?

The PEI is an annual incentive granted to qualified government employees as recognition of their collective contribution to the improvement of agency performance and service delivery. Instituted through several budget circulars and reinforced by the General Appropriations Act (GAA), the PEI is traditionally released at the end of each fiscal year.

It forms part of the broader Performance-Based Incentive (PBI) System, which includes both the Performance-Based Bonus (PBB) and the PEI. Historically, the PEI has served as a fixed benefit, often amounting to ₱5,000, granted across agencies subject to available budget and compliance with program requirements.