President Ferdinand R. Marcos Jr. has approved the release of the 2025 Productivity Enhancement Incentive at a uniform rate of ₱5,000 for every qualified government employee.
The Department of Budget and Management announced the approval through Circular Letter 2025-13 issued on December 17.
The circular was sent to heads of departments, bureaus, agencies, local government units, state universities and colleges, government-owned or -controlled corporations, and local water districts.
The incentive may be released starting December 15, 2025, in line with existing budget guidelines.
The PEI covers eligible civilian personnel, whether regular, casual, or contractual, as well as appointive or elective officials, full-time or part-time workers, and military and uniformed personnel.
The grant forms part of the Performance-Based Incentive System, which seeks to improve productivity, accountability, and the achievement of agency targets.
Eligibility for performance-based incentives is determined under the Results-Based Performance Management System.
Implementation of both systems was suspended following the issuance of Executive Order No. 61 in June 2024.
A technical working group was later created to review and streamline the government’s incentive and performance framework.
The 2025 PEI is funded under the General Appropriations Act and aligns with the government’s total compensation and performance-based reward policies.
