Administrative Order No. 3

SECTION 1. Grant of Productivity Enhancement Incentive (PEI) to Employees in the Executive Branch. Employees in the Executive Branch, including those in government-owned or controlled corporations (GOCCs) and government financial institutions (GFIs), are authorized to be granted a one-time maximum amount of Ten Thousand Pesos (P10,000.00) each as PEI, subject to the following conditions: a. The employees were hired on a permanent, temporary, casual or contractual status, and are still in the service as of 30 November 2010; b. The employees have rendered for the year at least four (4) months of service as of 30 November 2010; c. Employees who have rendered less than four (4) months of service as of 30 November 2010, shall also be entitled to the PE on pro-rated basis, as follows: Length of Service Percentage of the PEI 3 months but less than 4 months 40% 2 months but less than 3 months 30% 1 month but less than 2 months 20% Less than 1 month 10% d. The employees should not have received any additional year-end benefit in FY 2010 over and above the benefit authorized under Republic Act (R.A.) No. 6686, as amended by R.A. No. 8441.

Funding Source of the PEI for Employees in the Executive Branch

SECTION 2. Funding Source of the PEI for Employees in the Executive Branch. Funds needed for the grant of the PEI to employees in the Executive Branch shall be charged against the following: a. For national government agencies (NGAs), the amount required shall be charged against: i. Savings from unreleased appropriations for NGAs under R.A. No. 9970, the FY 2010 General Appropriations Act (GAA), which shall be pooled and released by the Department of Budget and Management (DBM) to fund the PEI in the amount of Seven Thousand Pesos (P7,000.00) for each employee; and, ii. Savings in the respective agency allotments for the remaining Three Thousand Pesos (P3,000.00) for each employee. In the event that agency savings are insufficient to cover in full the remaining P3,000.00, partial grant thereof shall be made at uniform rate for all qualified employees. b. For GOCCs and GFIs, the amount required shall be charged against savings from the respective approved corporate operating budgets for FY 2010. A GOCC or GFI which does not have sufficient funds may grant the PEI at a lower but uniform rate for all qualified employees.

SECTION 3. PEI for Employees in the Legislative and Judicial Branches and Other Offices Vested with Fiscal Autonomy. Employees in the Senate, House of Representatives, the Judiciary, the Office of the Ombudsman, and Constitutional Offices vested with fiscal autonomy may likewise be granted a one-time PEI by their respective heads of office at rates not exceeding Ten Thousand Pesos (P10,000.00) each, chargeable against their respective available savings in allotments, subject to the conditions in Sub-sections 1a to 1d hereof.

PEI for Employees in LGUs

SECTION 4. PEI for Employees in LGUs. The grant of the one-time PEI to employees in LGUs, including those in barangay governments, shall be determined by the sanggunian depending on the LGU financial capability, subject to the Personal Services limitation in the LGU budgets under R.A. No. 7160, and to the conditions in Sub-sections 1a to 1d hereof, chargeable against the FY 2010 local government funds. In determining the amount of the PEI, the sanggunian shall exercise prudence and judicious use of government funds, and shall ensure that the expenditure thereof is reasonable and will not, in any way, adversely affect all delivery of services to the public.

Payment of the PEI

SECTION 5. Payment of the PEI. The payment of the PEI to all government employees shall be made not earlier than 15 December 2010.

Guidelines on the Grant of the PEI

SECTION 6. Guidelines on the Grant of the PEI. The DBM shall issue the necessary guidelines to implement this Administrative Order.

Effectivity

SECTION 7 . Effectivity. This Administrative Order shall take effect immediately. Done in the City of Manila this 25th day of November in the Year of Our Lord, Two Thousand and Ten. (Sgd.) BENIGNO S. AQUINO III By the President: (Sgd.) PAQUITO N. OCHOA, JR. Executive Secretary