Question & AnswerQ&A (EXECUTIVE ORDER No. 366)
The Executive Order covers all Departments of the Executive Branch and their component units/bureaus, including corporations, boards, task forces, councils, commissions, and other agencies attached to or under administrative supervision of a Department. Constitutional Offices, Legislature, Judiciary, and State Universities and Colleges may voluntarily apply the parameters.
All Department Secretaries are directed to lead the strategic review of the operations and organizations of their respective Departments and attached agencies.
The key objectives are focusing government efforts on vital/core services, improving the quality and efficiency of government service delivery, eliminating overlaps and duplication, and improving agency performance through rationalization of service delivery, support systems, organization structure, and staffing.
Each Department Secretary must prepare a Rationalization Plan for the entire Department, including attached agencies and GOCCs, outlining core functions, policy shifts, programs to be phased out or expanded, organizational and staffing changes, resource allocation shifts, and communication plans.
The Plan must identify core functions and programs, functions to be phased out (e.g., duplicative, outdated, or devolved functions), and areas where resources will be increased, such as frontline services and initiatives that promote social and economic empowerment.
Affected personnel may choose to remain in government service if they have a permanent appointment or temporary appointment (with certain limitations), or they may opt to retire or be separated from service with benefits and incentives provided under the Order.
They may avail retirement gratuity under RA 1616, retirement benefits under RA 660 or RA 8291, along with additional incentives such as multiple months of salary per year of service, separation gratuity under RA 6656 for those with three years of service, and benefits totaling no less than ₱50,000, subject to certain caps.
Yes. Except for newly created agencies, hiring of additional personnel or renewal of contracts of temporary, casual, or contractual employees is prohibited during the preparation of the Rationalization Plan.
No. They are prohibited from being rehired or appointed in any Executive Branch agency, including GOCCs/GFIs, for five years except in educational institutions and hospitals. Constitutional Offices and other branches may adopt similar policies.
The DBM reviews Rationalization Plans to ensure consistency, coordinates implementation with the CSC, prepares timetables for the program, and issues guidelines including the mechanism for utilization of savings. The CSC assists in placement of personnel and implements hiring policies.
If a Rationalization Plan is not submitted, the Department of Budget and Management will submit to the President the areas for rationalization and improvement identified in the concerned department or agencies.
For every employee who opts for voluntary retirement or separation, a funded position shall be offered for abolition, and the number of abolished positions shall not be less than those of personnel who availed of the benefits unless otherwise approved by the DBM.
In addition to retirement/separation benefits, affected personnel are entitled to refund of Pag-IBIG contributions if members, and commutation of unused vacation and sick leave credits pursuant to existing rules.