P31-B For performance bonus to boost public service

By on May 17, 2015


MANILA — Department of Budget and Management (DBM) Secretary Florencio “Butch” Abad hailed the signing of Executive Order (E.O.) 181 by President Benigno S. Aquino III, saying that the approval of the Performance Enhancement Incentive (PEI) for government employees is part of the administration’s drive to strengthen public service within the Philippine bureaucracy.

A total of P30.6 billion has been set aside for the PEI, which will be distributed no earlier than June 1, 2015. The release of the performance perks will be charged against the Miscellaneous Personnel Benefits Fund under the 2015 General Appropriations Act (GAA).

“Our civil servants are behind every measure that has fueled greater economic growth and governance reform in the country. President Aquino signed this EO precisely because he understands that good performance must be recognized and encouraged, especially among our government employees,” Abad said.

“More important, though, is the PEI’s value as a driver of professional excellence. In signing E.O. 181, President Aquino has signaled the government’s readiness to build a culture of competitiveness in the Philippine bureaucracy. We’re matching sound practices already followed by the private sector. This way, public service can step up further, and we can deliver better goods and services to our citizens,” Department of Budget and Management (DBM) Secretary Florencio “Butch” Abad said.

The bonus will cover all civilian personnel occupying regular, contractual, and casual positions, or those who have employee-employer relationships with their respective agencies. It will also cover all military personnel of the Armed Forces of the Philippines and the Department of National Defense.

The bonus will also be given to uniformed personnel of the Philippine National Police, Bureau of Fire Protection, and Bureau of Jail Management and Penology under the Department of the Interior and Local Government, the Philippine Coast Guard, and the National Mapping and Resource Information Authority.

Besides benefiting qualified personnel in all government departments and agencies, the one-time grant of the PEI will also go towards Congress, the Judiciary, Commission on Audit, Commission on Elections, and the Office of the Ombudsman. Government-owned or –controlled corporations will likewise be covered, as well as Local Water Districts, Government Financial Institutions, and Local Government Units.

The PEI will be equivalent to an employee’s one-month salary, but only if an agency or department fulfills a number of requirements. Departments and agencies should have achieved 90 percent of their 2014 targets, specifically with respect to at least two performance indicators for at least one Major Final Output. Agencies should also have posted the Transparency Seal and their respective Citizen’s Charter on their websites.

GOCCs are likewise required to have reached 90 percent of their 2014 targets under at least two performance indicators for at least one Major Final Output under “Operations.” The respective posting and publication of the Transparency and Citizen’s Charter will also be required.

Local Water Districts, on the other hand, should have a positive net balance in the average net income for the 12 months of operations prior to May 31, 2014. Meanwhile, LGUs should comply with the requirements laid out under the Good Financial Housekeeping component of the FY 2014 Seal of Good Local Governance.

If an agency cannot fulfill any of these requirements, its employees will receive a fixed amount of only P5,000 as their PEI.

However, the PEI will not cover individuals hired by the government without an employer-employee relationship. This includes consultants, laborers hired through job contracts, job orders, or contracts of service, and student laborers and apprentices.

“The conditional nature of the PEI should encourage our agencies to make good on their targets. If you give proper incentives for work done well, you’re also bound to get the results you need. That’s exactly what the PEI is designed to do,” Abad said.