Law Summary
Adoption and Components of the Performance-Based Incentive (PBI) System
- PBI system includes the Productivity Enhancement Incentive (PEI) and Performance-Based Bonus (PBB).
- PEI (Php 5,000) granted uniformly across government.
- PBB granted as a top-up bonus based on contribution to department targets and commitments.
- Eligibility criteria for PBB include achieving performance targets under Major Final Outputs (MFOs) and compliance with good governance conditions.
Governing Principles and Guidelines for the PBB System
- PBB uses ranking of units and individuals based on verifiable and credible performance indicators.
- Performance measurement pillars:
- Department’s Major Final Outputs.
- Commitments to the President under EO 43 priorities.
- Good governance conditions as determined by the Inter-Agency Task Force (IATF).
- Heads of departments and agencies have flexibility in tailoring PBB to their operational contexts.
- Transparency ensured through communication strategies and public disclosure via agency and RBPMS websites.
Ranking, Incentive Rates, and Distribution Scheme
- Department heads rank bureaus and delivery units following a normal distribution.
- PBB amount varies according to performance category (Best, Better, Good) and unit ranking.
- Sample rates for FY 2012:
- Best performers: Php 35,000 to Php 10,000 across categories.
- Better performers: Php 25,000 to Php 7,000.
- Good performers: Php 15,000 to Php 5,000.
- Units or individuals with below satisfactory ratings are excluded from receiving PBB.
Prohibition on Additional or Unapproved Incentives and Bonuses
- No new or increased allowances, incentives, or bonuses allowed other than those authorized under SSL III or this Executive Order.
- Existing government incentive schemes must be harmonized with the PBB system.
Funding Sources for the PBB
- Funds for PBB in departments, bureaus, agencies, and State Universities and Colleges charged to the Miscellaneous Personnel Benefits Fund (MPBF) in the General Appropriations Act.
- For Government-Owned and Controlled Corporations (GOCCs), PBB funded from corporate funds subject to board approval.
Coverage and Applicability
- Applies to all departments, agencies, SUCs, and GOCCs under the Department of Budget and Management (DBM).
- Encourages GOCCs under Governance Commission on GOCCs (GCG) jurisdiction to adopt these policies pending implementation of RA 10149.
- Legislative, Judicial branches, and constitutional offices with fiscal autonomy are encouraged to adopt the PBB system to avail its incentives.
Role and Functions of the Inter-Agency Task Force (IATF)
- IATF responsible for issuing implementing guidelines for the PBB.
- Assists agencies in identifying performance indicators and targets.
- Implements validation and verification of agency reports and accomplishments.
- May collaborate with other government entities for effective implementation.
- Commission on Higher Education (CHED) to issue supplementary guidelines for State Universities and Colleges.
Legal Provisions Concerning Validity and Effectivity
- Separability clause ensures that invalidity of any provision does not affect other provisions.
- Repeals or modifies inconsistent rules, regulations, or issuances with this Executive Order.
- The Order takes effect immediately upon publication in a newspaper of general circulation.