QuestionsQuestions (EXECUTIVE ORDER No. 366)
EO 366 cites Sections 77 and 78 of the General Provisions of RA 9206 (General Appropriations Act of 2003, reenacted), the President’s residual reorganization powers under the Administrative Code of 1987, and Supreme Court rulings upholding the President’s authority to reorganize the Executive Branch.
EO 366 covers all Departments of the Executive Branch and their component units/bureaus, including attached or administratively supervised agencies, corporations, boards, task forces, councils, commissions, and other agencies. Constitutional Offices, the Legislature, Judiciary, and State Universities and Colleges (SUCs) may apply the parameters voluntarily.
To (1) focus government efforts and resources on vital/core services, and (2) improve the quality and efficiency of government services delivery by eliminating/minimizing overlaps and duplication and improving performance through rationalization of service delivery/support systems, organization structure, and staffing.
EO 366 requires focusing on fundamental government functions (creating the environment for development), transforming the bureaucracy for efficient delivery of core public services, and ensuring long-term sustainability of core services through resource mobilization and cost-effective public expenditure management.
The Plan must include disposition of functions/programs/projects/activities/units/agencies/staffing/personnel; core functions and services; specific policy direction shifts and phasing; functions/programs/projects to scale down/phase out/abolish (e.g., duplicative, not producing desired outcomes, redundant/outdated, or devolved); functions to receive more resources (e.g., core/frontline services, empowerment/investment enabling, livelihood/employment, and key outcome contributions); structural/organizational shift; staffing unit changes and organizational strengthening; resource allocation shift effects on budgets; and an internal/external communication plan.
It must be submitted to the Department of Budget and Management (DBM) for review, and then to the President for approval. If a Department Secretary fails to submit, DBM will submit to the President the areas for rationalization and improvement in the concerned department/agencies.
Except for newly created agencies, EO 366 prohibits the hiring of additional personnel (permanent/temporary/contractual/casual) and the renewal of contracts/appointments of employees hired on a contractual/casual/temporary basis during the plan preparation.
Personnel may (1) remain in government service if with permanent appointment attested by the CSC; temporary appointment attested by CSC may opt to remain but only with tenure up to the expiration of the appointment; or (2) avail of retirement/separation benefits as provided in the EO.
CSC places affected personnel in other agencies where additional personnel are required. The recipient agency position is co-terminus with the incumbent, and there shall be no diminution in pay except certain allowances that were tied to functions no longer part of the person’s new duties.
The employee is deemed separated/retired and must be paid applicable retirement/separation/unemployment benefits under existing laws, without the incentives provided in the EO.
EO 366 provides options including: (10.1) retirement gratuity under RA 1616 (as amended) plus GSIS premium refund (without the listed incentives); (10.2) retirement benefit under RA 660 or applicable benefits under RA 8291, plus incentives of 12 months basic salary per year (for <=20 years), 34 months basic salary per year starting from year 1 (for 21–30 years), or 1 month basic salary per year starting from year 1 (for 31 years and above), subject to the EO’s conditions; and (10.3) for those with three (3) years of service, separation gratuity under RA 6656 plus the incentive under 10.2, with minimum aggregate benefit of P50,000.
No affected employee who opted for retirement/separation shall receive less than an aggregate of Fifty Thousand Pesos (P50,000.00) as retirement/separation gratuity benefits from both the National Government and the GSIS.
They shall not be appointed or hired in any Executive Branch agency (including GOCCs/GFIs) except in educational institutions and hospitals within five (5) years. Constitutional Offices and the Judicial/Legislative branches may adopt the same policy.
For regular agencies, incentives are funded by the National Government. For GOCCs/GFIs, incentives come from their respective corporate funds; if funding is deficient for GOCCs not exempted from the Salary Standardization Law, the National Government may provide assistance.
DBM and CSC coordinate the implementation and are authorized to prepare an implementation timetable, including the phasing of activities and availment of the incentive package under Section 10.
EO 366 directs that any appeal shall be resolved following the pertinent provisions of RA 6656.
Under EO 366’s IRR authority, DBM issues guidelines on agency utilization of savings, but savings shall not be used for creation of new positions and hiring of additional personnel, whether on contractual, casual, consultancy, or job order basis.