PEI and PBB: Government Incentives That Cannot Be Easily Removed

The recent issuance of Executive Order (EO) No. 61, s. 2024, which temporarily suspended the current Performance-Based Incentive (PBI) System, has prompted questions among government personnel regarding the continuity of two key benefits: the Productivity Enhancement Incentive (PEI) and the Performance-Based Bonus (PBB). While the EO seeks to harmonize and streamline performance evaluation and incentive structures across government agencies, it has also raised concerns about whether these incentives may be withdrawn or put on hold.

However, available clarifications from government officials and recent administrative developments show that both PEI and PBB remain intact as incentives that cannot be removed without lawful replacement or policy transition, and that their release continues to undergo proper administrative processes.

PEI is an Established Incentive and Cannot Be Arbitrarily Suspended

The Productivity Enhancement Incentive has also been the subject of public concern, particularly after the issuance of EO No. 61. Many employees initially feared that the suspension of the PBI System might automatically halt the release of PEI for the upcoming cycles.

However, developments show otherwise:

1. PEI 2025 is Under Active Processing

The Department of Budget and Management (DBM) has formally submitted its request to the Office of the President for the grant and release of PEI for 2025. This confirms that PEI remains part of the government’s compensation framework and is proceeding through established approval channels.

2. PEI Is Not Fully Suspended

Updates from the DepEd Division of Masbate indicate that the PEI has not been entirely suspended as they already announced its release to their division. Instead, transitional mechanisms have been instituted to ensure that eligible government employees continue to receive their benefits while the national incentive system undergoes harmonization. This reflects the government’s obligation to uphold existing entitlements unless a legally compliant replacement is introduced.

PBB 2023 Remains Unaffected

Sir Benjo Basas, Chairman of the Teachers' Dignity Coalition (TDC), emphasized that EO No. 61 was issued only in 2024. As a result, it does not cover or affect the release of the PBB for Fiscal Year 2023.

Basas reiterated a fundamental principle in public personnel administration:

“Hindi naman po pwedeng alisin lang basta ang isang benepisyo o incentive para sa mga empleyado ng gobyerno na walang pamalit.”

This means that government incentives such as the PBB cannot simply be removed without a corresponding replacement or a lawful mechanism ensuring continuity of employee benefits. Accordingly, the existing rules governing PBB 2023 remain in force, and its evaluation and release process continues unaffected by the new EO.