MANILA, Philippines - The Aquino administration is proposing a P2.006 trillion budget for fiscal year 2013, with social services still taking up the biggest portion of the budget.
A system of performance-based bonuses for top-performing government employees is also being introduced next year, according to Budget Secretary Florencio Abad.
Abad said the bonus can range from P5,000 to P35,000 per employee, depending on an employees’ performance. This would be on top of the productivity enhancement bonus or the year-end bonus.
“With this budget, we hope to strengthen also the accountability of public institutions and public servants to perform their mandates and, therefore, we continue to deepen performance budgeting and harmonize all performance-based management systems in government,” Abad told reporters.
“One innovation that we are going to introduce next year is a system of performance-based bonuses which can range from 5,000 to 35,000 pesos per employee on top of the productivity enhancement incentive of about 5,000 that they will be receiving,” he added.
This is to reward agencies and government employees who meet and surpass their performance targets.
Under the system, the different government agencies will be ranked according to how they performed. From these, employees would be also be ranked.
Indicators will be laid out and agencies have to achieve 90 percent of the target outputs to be included in the bonus system.
“The performance-based bonus will be based on performance. So the first cut is to evaluate… we will look at the bureaus that perform best, better, good, and poor; meaning, if you don’t achieve 90 percent of your target as measured by the major final outputs with their respective indicators, then you are not included in the bonus system," he said.
"Then the second cut is we evaluate, we force rank employees within the bureaus. So within the bureau, for example, there’s a best bureau, we will look at the employees who perform best, better, and good and then correspondingly provide the incentive according to how they perform. So this time around, this is really going to be performance-based."
Meantime, the Governance Commission for Government-owned and control corporations (GCG) will be coming up an incentive system for employees of the GOCCs.
“They’re actually in the process of preparing an incentive system for GOCC employees separate from national government agencies. But, in the meantime that they have not been able to put that together, they can also be covered by the government performance-based bonus system,” Abad said.
“What the GCG is doing is trying to streamline the incentive and bonus systems of the various [GOCCs]. If you recall the President’s SONA statement, for example, on the situation at LWUA and some other agencies where they really abused, you know, the use of government funds to grant themselves so many allowances and bonuses that actually had no legal basis,” he added.
“So the GCG now… has been reviewing those allowances and limiting them to what is authorized under an existing executive order. Well, basically you have three types of bonuses that [are] now granted to [GOCCs] so that would really be the continuing basis for the grant of bonuses and incentives. And as soon as GCG is able to put together their own incentive system, then that will be used as the framework as well as the legal basis for the grant."
The President on Tuesday met Abad, Executive Secretary Paquito Ochoa, Jr. and the GCG to discuss the request for authority to grant performance-based incentives to MWSS, Social Housing Finance Corporation, and TRANSCO.