MALACAÑAN PALACE
MANILABY THE PRESIDENT OF THE PHILIPPINES
EXECUTIVE ORDER No. 80
DIRECTING THE ADOPTION OF A PERFORMANCE-BASED INCENTIVE SYSTEM FOR GOVERNMENT EMPLOYEES
WHEREAS, there is a need to rationalize the current incentive system in government which is generally characterized by across-the-board bonuses that are given uniformly to all civil servants;
WHEREAS, there is a need to strengthen performance monitoring and appraisal systems based on existing systems like the Organizational Performance Indicator Framework (OPIF) which is being used by the Department of Budget and Management (DBM) to measure agency performance, the Strategic Performance Management System (SPMS) of the Civil Service Commission (CSC) which links individual performance to organizational performance, and the Results-Based Performance Monitoring System (RBPMS).
WHEREAS, service delivery by the bureaucracy can be improved by linking personnel incentives to the bureau or delivery unit’s performance and recognizing and rewarding exemplary performance in the public sector;
WHEREAS, there is a need to establish and implement a Performance-Based Incentive (PBI) System that will motivate higher performance and greater accountability in the public sector...
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Executive Orders
Directing The Adoption Of A Performance-Based Incentive System For Government Employees
Executive Order No. 80
Summary of Executive Order No. 80
Adoption of a Performance-Based Incentive (PBI) System
- A PBI system consisting of the Productivity Enhancement Incentive (PEI) and the Performance-Based Bonus (PBB) shall be adopted in the national government beginning Fiscal Year (FY) 2012. (Section 1)
- The PEI, in the amount of P5,000, shall be granted across-the-board, in accordance with the guidelines to be issued by DBM. (Section 1a)
- The PBB, which is a top-up bonus, shall be given to personnel of bureaus or delivery units based on: (Section 1b)
i. 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 Key Result Areas (KRAs) under EO 43; and
ii. Accomplishment of good governance conditions set by the Inter-Agency Task Force (IATF) created under AO 25.
Guidelines for the PBB
- The PBB shall be characterized as a system of ranking units and personnel within an organization according to their performance based on: (Section 2a)
i. Department's Major Final Outputs;
ii. Department's commitments to the President which are supportive of the priorities under EO 43; and
iii. Good governance conditions to be determined by IATF under AO 25.
- Flexibility shall be provided to the heads of departments and agencies to suit the PBB system to the nature of their operations and to drive peak performers. (Section 2b)
- There shall be appropriate communications strategy and publication of performance targets and accomplishments in the department and agency websites and the website for the RBPMS to ensure transparency and accountability. (Section 2c)
Performance Categories and Rates of Incentives
- The amount of the PBB shall be based on the performance of the departments, bureaus or delivery units, and of the individual employees. (Section 3)
- Department Secretaries or their duly designated officials shall rank the bureaus or delivery units, including attached agencies, according to their performance following a normal distribution. (Section 3)
- The PBB shall be distributed according to the following scheme for FY 2012: (Section 3)
Best Bureau: Best Performer - P35,000, Better Performer - P20,000, Good Performer - P10,000
Better Bureau: Best Performer - P25,000, Better Performer - P13,500, Good Performer - P7,000
Good Bureau: Best Performer - P15,000, Better Performer - P10,000, Good Performer - P5,000
- Bureaus and individuals who receive a Below Satisfactory performance rating will not be qualified for the PBB. (Section 3)
Prohibition against the Grant of New and Additional Increases
- The grant of allowances, incentives and bonuses other than those authorized under SSL III and any increase in the existing and authorized rates therefor, other than what is provided for in this EO, shall not be allowed. (Section 4)
- Government agencies, including Government–Owned or –Controlled Corporations (GOCCs), with existing authorized performance-based incentive or bonus systems shall harmonize the same with the PBB scheme. (Section 4)
Funding
- For departments, bureaus, and agencies, including State Universities and Colleges (SUCs), the necessary funds shall be charged against the Miscellaneous Personnel Benefits Fund (MPBF) in the General Appropriations Act (GAA). (Section 5a)
- For GOCCs, the funds required shall be charged against their respective corporate funds, subject to the approval of their respective governing boards in accordance with applicable laws. (Section 5b)
Coverage
- This EO shall cover all departments, agencies, SUCs, and GOCCs that remain under the jurisdiction of DBM. (Section 6)
Applicability to GOCCs under the Jurisdiction of GCG
- The Governance Commission on GOCCs (GCG) is encouraged to adopt the policies and principles contained in this EO and issue the necessary guidelines for GOCCs under its jurisdiction, pending the formal implementation of the Compensation and Position Classification System (CPCS) for GOCCS as mandated under RA 10149. (Section 7)
Applicability to the Legislative and Judicial Branches, and Other Offices vested with fiscal autonomy
- The Congress, Judiciary, Constitutional Commissions and the Office of the Ombudsman are encouraged to adopt the provisions of this EO to be eligible to the PBB. (Section 8)
Role of the IATF in the grant of the PBB
- The IATF under AO 25 shall formulate and issue the implementing guidelines for this EO, provide assistance to agencies in the identification of indicators and targets, and implement a validation system for agency reports and accomplishments. (Section 9)
- The IATF under AO 25 may enlist the assistance of other agencies in the implementation of the provisions of this EO. (Section 9)
- The Commission on Higher Education (CHED) shall issue additional implementing guidelines for SUCs. (Section 9)
Separability Clause
- If any provision of this EO is declared invalid, or unconstitutional, the other provisions not affected thereby shall remain valid and subsisting. (Section 10)
Repealing Clause
- All orders, rules, regulations, and issuances, or parts thereof, which are inconsistent with this EO, are hereby repealed, amended, or modified accordingly. (Section 11)
Effectivity
- This EO shall take effect immediately upon publication in a newspaper of general circulation. (Section 12)
Adoption of a Performance-Based Incentive (PBI) System
- A PBI system consisting of the Productivity Enhancement Incentive (PEI) and the Performance-Based Bonus (PBB) shall be adopted in the national government beginning Fiscal Year (FY) 2012. (Section 1)
- The PEI, in the amount of P5,000, shall be granted across-the-board, in accordance with the guidelines to be issued by DBM. (Section 1a)
- The PBB, which is a top-up bonus, shall be given to personnel of bureaus or delivery units based on: (Section 1b)
i. 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 Key Result Areas (KRAs) under EO 43; and
ii. Accomplishment of good governance conditions set by the Inter-Agency Task Force (IATF) created under AO 25.
Guidelines for the PBB
- The PBB shall be characterized as a system of ranking units and personnel within an organization according to their performance based on: (Section 2a)
i. Department's Major Final Outputs;
ii. Department's commitments to the President which are supportive of the priorities under EO 43; and
iii. Good governance conditions to be determined by IATF under AO 25.
- Flexibility shall be provided to the heads of departments and agencies to suit the PBB system to the nature of their operations and to drive peak performers. (Section 2b)
- There shall be appropriate communications strategy and publication of performance targets and accomplishments in the department and agency websites and the website for the RBPMS to ensure transparency and accountability. (Section 2c)
Performance Categories and Rates of Incentives
- The amount of the PBB shall be based on the performance of the departments, bureaus or delivery units, and of the individual employees. (Section 3)
- Department Secretaries or their duly designated officials shall rank the bureaus or delivery units, including attached agencies, according to their performance following a normal distribution. (Section 3)
- The PBB shall be distributed according to the following scheme for FY 2012: (Section 3)
Best Bureau: Best Performer - P35,000, Better Performer - P20,000, Good Performer - P10,000
Better Bureau: Best Performer - P25,000, Better Performer - P13,500, Good Performer - P7,000
Good Bureau: Best Performer - P15,000, Better Performer - P10,000, Good Performer - P5,000
- Bureaus and individuals who receive a Below Satisfactory performance rating will not be qualified for the PBB. (Section 3)
Prohibition against the Grant of New and Additional Increases
- The grant of allowances, incentives and bonuses other than those authorized under SSL III and any increase in the existing and authorized rates therefor, other than what is provided for in this EO, shall not be allowed. (Section 4)
- Government agencies, including Government–Owned or –Controlled Corporations (GOCCs), with existing authorized performance-based incentive or bonus systems shall harmonize the same with the PBB scheme. (Section 4)
Funding
- For departments, bureaus, and agencies, including State Universities and Colleges (SUCs), the necessary funds shall be charged against the Miscellaneous Personnel Benefits Fund (MPBF) in the General Appropriations Act (GAA). (Section 5a)
- For GOCCs, the funds required shall be charged against their respective corporate funds, subject to the approval of their respective governing boards in accordance with applicable laws. (Section 5b)
Coverage
- This EO shall cover all departments, agencies, SUCs, and GOCCs that remain under the jurisdiction of DBM. (Section 6)
Applicability to GOCCs under the Jurisdiction of GCG
- The Governance Commission on GOCCs (GCG) is encouraged to adopt the policies and principles contained in this EO and issue the necessary guidelines for GOCCs under its jurisdiction, pending the formal implementation of the Compensation and Position Classification System (CPCS) for GOCCS as mandated under RA 10149. (Section 7)
Applicability to the Legislative and Judicial Branches, and Other Offices vested with fiscal autonomy
- The Congress, Judiciary, Constitutional Commissions and the Office of the Ombudsman are encouraged to adopt the provisions of this EO to be eligible to the PBB. (Section 8)
Role of the IATF in the grant of the PBB
- The IATF under AO 25 shall formulate and issue the implementing guidelines for this EO, provide assistance to agencies in the identification of indicators and targets, and implement a validation system for agency reports and accomplishments. (Section 9)
- The IATF under AO 25 may enlist the assistance of other agencies in the implementation of the provisions of this EO. (Section 9)
- The Commission on Higher Education (CHED) shall issue additional implementing guidelines for SUCs. (Section 9)
Separability Clause
- If any provision of this EO is declared invalid, or unconstitutional, the other provisions not affected thereby shall remain valid and subsisting. (Section 10)
Repealing Clause
- All orders, rules, regulations, and issuances, or parts thereof, which are inconsistent with this EO, are hereby repealed, amended, or modified accordingly. (Section 11)
Effectivity
- This EO shall take effect immediately upon publication in a newspaper of general circulation. (Section 12)