7/29/2019 Performance Based Bonus

1/1

The Government is adopting a policy on performance-based incentives to reward exemplary performance.1

Php17,255.00*Exclusive of allowances

JUAN DELA CRUZGovernment employee, SG 10

PRESIDENTIAL COMMUNICATIONS DEVELOPMENT AND STRATEGIC PLANNING OFFICE | GOV.PH

PBB

1/2 CashGift

1/2 CashGift

P2,500

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sept

Oct

Nov

Dec

Mid-yearBonus

End-yearBonus

Releaseto vary

per agency

Sample

Computation:

P2,500

P8,627.50

Up to P35,000

P5,000

SALARY

MONTHLYGROSSSALARY

As of July 2012, the 4th tranche of what ispopularly known as the Salary StandardizationLaw III (SSL) has been implemented.3

P8,627.50

EO 80, directing the adoption of a performance-based incentive system for

government employees

An executive issuance issued yearly authorizes the release of the PEI.

RA 6758,signed into law in 1989, resolved previous distortions in the governmentcompensation system by, among other things, upgrading the salary of government workers

in tranches. Wage increases brought about by SSL III are a direct result of the

implementation of this l aw.

PEI

PRODUCTIVITY ENHANCEMENTINCENTIVE (PEI)

CASH GIFT

MID- AND END-YEAR BONUSES

PERFORMANCE-BASED BONUS (PBB)On top of other bonuses, govt employees can qualify

for the PBB. It is part of the Performance-BasedIncentives System, a breakthrough program launched

by the Aquino administration in 2012 to rewardexemplary public service.

*Amount dependent on Executive Order issued yearly

*Amount fixed at P5,000.00

*13th month pay

How can our department qualify for the PBB?

Achieve at least 90% of set targets 1

Meet all 4 Good Governance requirements set by the

Inter-Agency Task Force created by AO2542

3Submit compliance reports on or before the deadline.

Why change the current incentive system?

To make it more fair. Under the current incentivessystem, bonuses are given uniformly to all civil servants

regardless whether they do their job well or not.

Under the new incentives system, bonuses will beallocated in a way that is more fair. Good work willbe encouraged, and bad work will be discouraged.

Good work leads to better services for our people andencourages a culture of merit.

Administrative Order 25, s. 2011, Creating an inter-agency task

force on the harmonization of National Government performancemonitoring, information and reporting systems

PRIORITY PROGRAM TARGETSDetermined by Key Result Areas,

approved by the President andbased on his Platform.

MAJOR FINAL OUTPUTS (MFOs)Based on services and goods an

agency should deliver. Approved byCongress.

The incentive rates vary and will be based on 2 factors: an employees performance and the performance of his or her agency.

Funding

Employee performance appraisal

BestTop 10%

BestTop 10%

BetterNext 25%

BetterNext 25%

GoodUp to 65%

GoodUp to 65%

Poor

P35,000

P25,000

P15,000

P20,000

P13,500

P10,000

P10,000

P7,000

P5,000

The PBB shall be sourced from the Miscellaneous Personnel Benefits Fund (MPBF).

Best Performer

in a Best Bureau

Best

Better

Good

Php35,000.00

Juan dela Cruz

Bureau/Unit ranking

MPBF: Yearly agency budget for personnel benefits of government officials and employees, includingcompensation adjustments under the Salary Standardization Law.

Employees rated poor inin the annual Performance

Appraisal System

Poor