QuestionsQuestions (ADMINISTRATIVE ORDER NO. 161)
To enhance efficiency and effectiveness in the civil service by establishing a uniform standard system of incentive pay for government personnel, based on productivity and performance, ensuring fairness and equity.
All appointive officials and employees of national government, LGUs, GOCCs, and government financial institutions—including casual, temporary, and full-time contractual personnel whose employment is regular in nature—who obtained at least a satisfactory performance rating for the two semesters immediately preceding the year of release, and who contributed to office/agency productivity as determined by the agency head.
Officials and employees of government sequestered/foreclosed corporations that are covered by national labor laws implemented by the DOLE.
Based on individual productivity and performance, evaluated and determined by the heads of respective offices/agencies in accordance with policies and standards set by the Civil Service Commission.
No. The amount may vary per official/employee within an agency depending on individual performance appraisal, subject to the total cost limitation under Section 4.
It shall in no case exceed an aggregate total computed at an average of ₱2,000.00 per occupied/filled-up position as of end of CY 1994, for the agency in any one year.
DBM must set aside an Incentive Fund to be incorporated in the annual General Appropriations Act to cover requirements for the national government.
Their respective corporate funds, local funds, and project funds. They are authorized to appropriate annually an amount to cover the benefits.
DBM releases funds from the Incentive Fund direct to the concerned government office/agency. Agencies must submit, within the first quarter of the calendar year immediately following the two semesters during which the benefit was earned, a list of entitled officials and employees as basis for fund release.
Eligibility requires at least satisfactory performance for the two semesters immediately preceding the year when the incentive pay is released; computation and release are based on those prior two semesters.
It prohibits heads of agencies and other authorities from establishing or authorizing a separate productivity and performance incentive award or any similar form. It also revokes administrative issuances, memoranda, orders, or executive orders providing incentives under the cited Administrative Code provisions that are not inconsistent with the Order.
Sections 31, 35, and 36(2), Chapter 5, Subtitle I, Book V of the Administrative Code of 1987.
To ensure uniform compliance with the standard incentive pay system and prevent duplication or separate incentive schemes inconsistent with AO No. 161.
Anyone found violating mandates in the Order—including officials/employees and the COA Auditor-in-Charge who took part—shall be severely dealt with under applicable penal laws.
They must be referred to the Department of Budget and Management for proper study and recommendation to the Office of the President.
The Order takes effect on January 1, 1995 based on the performance evaluation of officials and employees for CY 1994.