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Performance-based incentive system for government employees now in place

Manila, Philippines – A PERFORMANCE schedule has been put in place to reward agencies of government as well as public servants who meet or surpass their performance expectation. Executive Order (EO) No. 80 signed by President Benigno S. Aquino III on July 20, 2012, provides for the implementation this year of a performance-based incentive system for the 1.1 million government employees – the Productivity Enhancement Initiative (PEI) and the Performance-Based Bonus (PBB).

In his 3rd State of the Nation Address on July 23, 2012, President Aquino said that “starting this year, we will implement a system in which bonuses are based on their agency’s abilities to meet their annual budgets. Employees now hold the keys to their advancement. We are doing this not only to boost morale and to show appreciation of our public servants. This is, above all, for the Filipino people, who expect sincere and efficient service, who expect that they will continue to be the sole Bosses of our workers in government.”

The PEI will be granted across-the-board, in accordance with guidelines issued by the Department of Budget and Management (DBM), while the PBB will be given to employees in accordance with their contribution to the accomplishment of their department’s overall budgets, measured by the achievement of the department’s performance and accomplishment of good governance conditions.

The scheme is expected to enhance performance monitoring and appraisal based on existing systems like the Organizational Performance Indicator Framework, used by the DBM to measure agency performance; the Strategic Performance Management System of the Civil Service Commission, linking individual performance to organizational performance; and the Results-Based Performance Monitoring System. Under the R2.006-trillion proposed national budget for 2013 submitted by the Executive department to Congress, about R10 billion is set aside for the performance-based incentive productivity bonus that will be given to deserving government employees.

We wish the Officials of the Philippine Government, led by President Benigno S. Aquino III and Vice President Jejomar C. Binay, Department of Budget and Management Secretary Florencio B. Abad, Civil Service Commission Chairman Francisco T. Duque, and Executive Secretary Paquito N. Ochoa Jr., all the best and success in their endeavors to promote transparency and good governance. CONGRATULATIONS AND MABUHAY!

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