Coverage of the Incentive Pay
- Applicable to all appointive officials and employees of national, local governments, government-owned or controlled corporations (GOCCs), and government financial institutions.
- Includes casual, temporary, and full-time contractual employees treated like regular personnel.
- Eligibility requires at least a satisfactory performance rating for the two semesters preceding payment.
- Must demonstrate contribution to productivity as determined by agency heads.
- Excludes officials and employees of sequestered or foreclosed corporations under labor laws administered by the Department of Labor and Employment.
Basis and Computation of Incentive
- Incentive pay depends on individual productivity and performance as evaluated by agency heads.
- Evaluations must align with Civil Service Commission policies and standards.
- Amounts vary by individual performance appraisal within each agency.
Limit on Total Cost of Incentive Pay
- Total incentives for any agency cannot exceed an average of P2,000.00 per filled position as of end CY 1994.
- This cap applies to national agencies, GOCCs, government financial institutions, and local government units.
Funding Sources
- The Department of Budget and Management (DBM) shall create an Incentive Fund included in the General Appropriations Act for national government requirements.
- GOCCs, government financial institutions, and local government units shall fund incentives from their own funds.
- These entities are authorized to appropriate necessary amounts annually.
Procedures for Fund Release
- DBM releases funds directly to the concerned government office or agency.
- Agencies must submit the list of officials and employees entitled to benefits within the first quarter following the period earned.
Prohibition against Separate Incentive Awards
- Heads of agencies, GOCCs, government financial institutions, and local government units are prohibited from authorizing separate productivity or performance incentives.
- Prior grants or orders inconsistent with this standard system are revoked.
Enforcement and Penalties
- Strict compliance with this Order is required.
- Violations by officials, employees, or auditors will be dealt with under applicable penal laws.
Handling of Uncovered Cases
- Cases not addressed in the Order shall be referred to the DBM.
- DBM will study and recommend action to the Office of the President.
Implementation Directives
- DBM is tasked to issue circulars to facilitate implementation.
- The Order takes effect on January 1, 1995, based on performance evaluations for CY 1994.