EO No. 80: Performance-Based Incentives for Gov't

The order adopts a PBI approach anchored on existing performance systems, including Organizational Performance Indicator Framework (OPIF) used by DBM, the Strategic Performance Management System (SPMS) used by CSC, and the Results-Based Performance Monitoring System (RBPMS).
The order is framed as implementation aligned with Executive Order No. 43 (s. 2011), which lays down five (5) Key Result Areas (KRAs).
The order is aligned with Philippine Development Plan (PDP) 2011-2016 commitments under the five (5) KRAs (Section 1).
The order cites Administrative Order (AO) No. 25 (s. 2011) for a unified and integrated RBPMS across departments and agencies in the Executive Branch, using a common performance scorecard and an information system used to determine entitlement to performance-based allowances, incentives, or compensation.
The order relies on the framework of Senate and House of Representatives Joint Resolution No. 4 (s. 2009) (“Salary Standardization Law (SSL) III”) establishing a PBI scheme aligning personnel efforts to organizational performance.
The order is supported by authority referenced under Presidential Decree (PD) No. 985, PD No. 1597, and Republic Act (RA) No. 6758 as amended by Senate and House Joint Resolution Nos. 1 and 4.
The order creates implementation support through Inter-Agency Task Force (IATF) created under AO 25 (Sections 1 and 11).

The order establishes that the current incentive system in government—characterized by across-the-board bonuses uniformly given to all civil servants—must be rationalized.
The order requires strengthening performance monitoring and appraisal systems to link incentives to measurable performance outcomes.
The order links incentives to the performance of bureaus or delivery units and to recognition and reward for exemplary performance in the public sector (WHEREAS clauses).
The order sets the PBI system to ensure accomplishment of commitments and targets under the five (5) Key Result Areas (KRAs) under EO 43.
The order is designed to motivate higher performance and greater accountability in the public sector through alignment of incentives with performance metrics (Section 1 and Section 2).

A Performance-Based Incentive (PBI) system consisting of Productivity Enhancement Incentive (PEI) and Performance-Based Bonus (PBB) is adopted for the national government beginning Fiscal Year (FY) 2012 (Section 1).
The PEI amount is PHP 5,000 and is granted continually across-the-board, in accordance with guidelines to be issued by DBM (Section 1).
The PBB is a top-up bonus given to personnel of bureaus or delivery units according to contribution to accomplishment of departmental overall targets and commitments (Section 1).
PBB entitlement is subject to two performance criteria:
- Achievement by the departments of performance targets under their respective Major Final Outputs (MFOs) and Priority Program/Project commitments as agreed with the President under the 5 KRAs under EO 43 (Section 1); and
- Accomplishment of good governance conditions set by the Inter-Agency Task Force (IATF) created under AO 25 (Section 1).

The PBB is characterized as a system of ranking units and personnel according to performance measured by verifiable, observable, credible, and sustainable indicators of performance (Section 2).
The ranking indicators are based on three pillars:
- Departments’ Major Final Outputs;
- Departments’ commitments to the President supportive of priorities under EO 43; and
- Good governance conditions determined by the IATF under AO 25 (Section 2).
Heads of departments and agencies must have flexibility to tailor the PBB system to the nature of operations by determining:
- The appropriate delivery units to be rewarded; and
- The performance indicators to be used (Section 2).
A communications and publication strategy is required to ensure transparency and accountability, including publication of performance targets and accomplishments in:
- Department and agency websites; and
- The website for the RBPMS (Section 2).

The PBB amount is based on the performance of departments, bureaus or delivery units, and individual employees (Section 3).
Department Secretaries or their duly designated officials must rank bureaus or delivery units, including attached agencies, according to performance following a normal distribution (Section 3).
For FY 2012, the PBB is distributed using the following scheme (Section 3):
- Best Performer
  - Best Bureau: 35,000
  - Better Bureau: 25,000
  - Good Bureau: 15,000
- Better Performer
  - Best Bureau: 20,000
  - Better Bureau: 13,500
  - Good Bureau: 10,000
- Good Performer
  - Best Bureau: 10,000
  - Better Bureau: 7,000
  - Good Bureau: 5,000
Personnel and bureaus receiving a Below Satisfactory performance rating are not qualified for the PBB (Section 3).
Revision of the distribution in succeeding years is permitted only if approved by the President upon recommendation of the IATF (Section 3).

Government agencies must not grant allowances, incentives, and bonuses other than those authorized under SSL III.
Government agencies must not increase the existing and authorized rates for allowances, incentives, and bonuses other than what is provided in the EO (Section 5).
Agencies with existing performance-based incentive or bonus systems must harmonize those systems with the PBB scheme, including GOCCs with existing authorized systems (Section 5).
The EO covers all departments, agencies, SUCs, and GOCCs that remain under the jurisdiction of DBM (Section 7).

Funding for the PBB for covered employees must be charged to:
- The Miscellaneous Personnel Benefits Fund (MPBF) in the General Appropriations Act (GAA) for departments, bureaus, and agencies, including SUCs (Section 6); and
- The respective corporate funds of GOCCs, subject to approval of their respective governing boards in accordance with applicable laws (Section 6).
The IATF under AO 25 must formulate and issue implementing guidelines for the EO and must provide assistance to agencies in:
- Identification of indicators and targets; and
- Implementing a validation system for agency reports and accomplishments (Section 11).
The IATF under AO 25 may enlist assistance of other agencies for implementation (Section 11).
The Commission on Higher Education (CHED) must issue additional implementing guidelines for SUCs (Section 11).
The Governance Commission on GOCCs (GCG) is encouraged to adopt the EO’s policies and principles and issue necessary guidelines for GOCCs under its jurisdiction, pending formal implementation of the Compensation and Position Classification System (CPCS) for GOCCs mandated under RA 10149 (Section 8).
The Congress, Judiciary, Constitutional Commissions, and the Office of the Ombudsman are encouraged to adopt the EO provisions to be eligible for the PBB (Section 9).

If any provision of the EO is declared invalid or unconstitutional, the remaining provisions must remain valid and subsisting (Section 12).
All orders, rules, regulations, issuances, or parts inconsistent with the EO are repealed, amended, or modified accordingly (Section 13).