MANILA, Philippines - The Palace on Friday released the executive order for the adoption of a performance-based incentive system for government employees. Depending on their performance, workers can receive incentives of up to P35,000.
Under EO no. 80 signed by President Aquino only July 20, the performance-based incentive system, which consists of productivity enhancement incentive (PEI) and performance-based bonus (PBB), will be adopted this year.
In his State of the Nation Address on Monday, Aquino said, "Starting this year, we will implement a system in which bonuses are based on their agency’s abilities to meet their annual targets. Employees now hold the keys to their own advancement."
The EO emphasizes the need to rationalize the current system where civil servants are given across-the-board bonuses, as well as strengthen government agencies' performance monitoring and appraisal systems.
"There is a need to establish and implement a Performance-Based Incentive system that will motivate higher performance and greater accountability in the public sector and ensure the accomplishment of commitments and targets under the 5 Key Result Areas laid down in Executive Order No. 43 (s. 2011) and the Philippine Development Plan 2011-2016," it said.
A P5,000 PEI will be granted across-the-board, in accordance to guidelines issued by the Department of Budget and Management (DBM).
However, the PBB, a top-up bonus, will be given to employees in accordance with their contribution to the accomplishment of their department’s overall targets. This is measured by the achievement of the department's performance targets and accomplishment of good governance conditions.
The PBB will be based on the performance of departments, bureaus and units and the employees, and ranges from P35,000 for the best performer at the best bureau to P5,000 for the good performer at a good bureau.
Bureaus and individuals who get below satisfactory ratings will be not get any PBB.
The EO does not allow the grant of any new allowances, incentives and bonuses, other than those authorized under the Salary Standardization Law III; and any increase in the existing and authorized rates,
Government agencies, including government-owned or controlled corporations (GOCCs), with existing authorized performance-based incentives should harmonize their system with the PBB.
The EO only covers departments, agencies, SUCs, and GOCCs that remain under the DBM. However, companies under Governance Commission on GOCCs, Congress, the judiciary and other offices with fiscal autonomy, are "encouraged" to adopt the provisions of the EO to be eligible for PBB.
The EO will take effect immediately after its publication in a newspaper.
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