DBM to LGUs: "Be prudent on bonuses"

CEBU, Philippines - Malacañang may have authorized the release of P10,000-bonus for government employees, but it stressed, through a circular from the budget department, prudence on the part of the local government units.

Named as the productivity enhancement incentive (PEI), its release has limitations and should not supercede the delivery of basic services, according to the guidelines contained in Budget Circular No. 2010-3 issued by the Department of Budget Management early this week.

This means that even if P10,000 is allowed Administrative Order No. 3 issued by President Benigno Aquino III last November 25, local governments who do not have the financial capacity should think twice in releasing it. Commission on Audit reports for local governments in the previous years had cited the release of bonuses in December despite the lack of funds.

“The amount of the PEI shall be determined by the respective sanggunian depending on the LGU financial capability. LGUs are, however, reminded to exercise prudence in the use of government funds for the purpose. The sanggunian shall ensure that the amount of the PEI and the corresponding expenditure are reasonable and will not, in any way, adversely affect the delivery of services to the public,” the DBM says.

Excluded in the benefit are those who were absent without approved leave as of November 30 this year, those found guilty of offenses or meted penalties in the fiscal year 2010, except when the penalty is mere reprimand and those hired without employer-employee relationships and paid from non-personal services appropriation.

Local government units should charge the PEI against the allocation on personal services, subject to the usual ceiling.

Aside from National Government workers, eligible for the bonus are local government personnel including contractual and casual employees who have worked with the government as of November 30.

The employee must have rendered at least four months of service during the year.

“Those who have rendered less than the total or aggregate of four months of service as of November 30, 2010, shall be entitled to the pro-rated PEI. The PEI of those on detail with another government agency shall be granted by the mother agency,” the DBM stated.

The Cebu City Budget Office has released the guidelines for the granting of the cash gift for all city hall employees.

Last month, the City Council approved the P1.3-billion Supplemental Budget No. 5 for the General Funds which included P50 million for personnel benefits.

Mayor Michael Rama intends it to give to the employees because they all worked hard to achieve his goals within his first 100 days in service and to inspire them to work even harder. (FREEMAN)