Options Available to Personnel Affected by the Rationalization Program
- Affected personnel can remain in their mother agency if skills and positions are available.
- Redeployment to other agencies without salary reduction is allowed.
- Option to retire or separate from government service with applicable incentives.
Previous Computation of Incentives Under EO No. 637
- Incentives for personnel affected and opting for retirement/separation after 1 July 2007 were computed using monthly salary as of 30 June 2007.
- These computations were pursuant to RA No. 660 or RA No. 8291.
Need for Updating the Basis of Computation
- Government worker salaries have increased due to various Executive Orders and Congressional Resolutions between 2007 and 2011.
- The law acknowledges the need to improve computation of incentives to recognize service of affected personnel.
Revised Guidelines on Incentive Computation (Section 1)
- Incentives to be computed based on the actual monthly salary as of 31 December 2011.
- Incentive factors under EO No. 366 remain applicable.
- Only government service up to age 59 and a fraction of that age is counted towards computation.
- Terminal leave and retirement/separation benefits remain based on prevailing rules.
Availment of Incentives Under Approved Rationalization Plans (Section 2)
- Affected personnel from agencies with approved RP who chose to stay may avail retirement/separation/unemployment benefits within one month from the order's effectivity.
- Computation based on monthly salary as of 31 December 2011.
Incentives for Personnel Retired or Separated Prior to this Order (Section 3)
- Personnel who retired/separated from 1 July 2007 up to issuance of the order will have incentives based on their actual monthly salary at retirement.
- Agencies need to recompute incentives and validate with DBM.
- Subject to budgeting, accounting, and auditing regulations.
Suspension on Creation of New Regular Positions (Section 4)
- No new regular positions for five years for agencies with approved RP.
- Exceptions include:
- Positions under the "scrap and build" policy with no additional cost.
- Population-related roles such as policemen, teachers, medical positions.
- Mandated new functions that cannot be absorbed internally, as determined by DBM.
Funding Source for Incentives (Section 5)
- National Government to fund incentives for regular government agencies.
- GOCCs/GFIs to use their own corporate funds.
- National Government may assist GOCCs/GFIs facing funding shortages, except those exempt from the Salary Standardization Law.
Responsibility and Accountability (Section 6)
- Department Secretaries and equivalent heads are responsible for strict implementation.
- Officials authorizing violations bear responsibility for government expenses incurred due to non-compliance.
Repealing Clause (Section 7)
- All inconsistent issuances, rules, and regulations are repealed or modified accordingly.
Effectivity of the Order (Section 8)
- The order takes effect upon publication in the Official Gazette or newspaper of general circulation.