ABAD: PBB TO FOCUS ON MERIT, EMPLOYEE PRODUCTIVITY; PERFORMANCE-BASED PAY DISTINCT FROM CASH GIFT, PEI, 13TH MONTH BONUSES

http://www.dbm.gov.ph/?p=4927

ABAD: PBB TO FOCUS ON MERIT, EMPLOYEE PRODUCTIVITY; PERFORMANCE-BASED PAY DISTINCT FROM CASH GIFT, PEI, 13TH MONTH BONUSES
• Posted on November 19, 2012 by piudbm in News

Budget and Management Secretary Florencio B. Abad today clarified that the Performance-Based Bonus (PBB) system is different from the 13th month pay, year-end cash bonus, and Productivity Enhancement Incentive (PEI) for government employees, citing the unique, merit-based nature of the performance-based perks.

“The PBB is actually distinct from an employee’s year-end cash bonus, 13th month pay, and PEI. The purpose of the PBB is to ensure that our public servants receive due recognition for their efforts. An outstanding employee, for example, will receive a significantly higher PBB—on top of the other bonuses given to him—than a worker who merely fulfills the bare minimum of his duties,” Abad said.

Civil servants are entitled to receive 13th month pay—equivalent to their monthly salary—as well as a year-end cash gift of P5,000 and PEI worth P5,000.

Abad disputed claims, however, that all government employees are guaranteed to receive a performance-based bonuses.
“In contrast to the other bonuses, the PBB is certainly not an entitlement. Because the PBB system is a decisively merit-based scheme, employees who underperform or fail to meet their targets won’t actually receive anything. Why reward someone who works poorly or inefficiently?” he said.
The budget chief added that the PBB system was designed to address a longstanding problem in the Philippine bureaucracy, where the distribution of bonuses—and their corresponding amounts—was sometimes arbitrary or subject to biases.

“We’ve seen cases of employees receiving hefty perks with little justification. At the same time, many civil servants who turn out exceptional work don’t always get the recognition they deserve. This can be very demoralizing, especially if you’ve served the government for a long time and you do your best in every task.

“Under this Administration, however, the distribution of performance-based bonuses will be commanded solely by merit and the quality of an employee’s performance. The targets are actually measurable and strictly empirical, so that office higher-ups can preserve the objectivity of their assessments,” Abad said.

He also emphasized the reform value of the PBB system, especially in view of the Aquino administration’s commitment to provide better and more efficient public goods and services to Filipinos.

“Overall, we’re instituting the PBB scheme so that government workers will be encouraged to boost their efficiency and productivity. We’re showing them that exceptional performance in government will not go unrecognized. What this ultimately translates to are improved services to Filipinos, not to mention greater morale among public servants and visible, positive reform across the bureaucracy,” Abad said.

The PEI or productivity Enhancement incentives in 2010 was 10k as well in 2011. what happen to 2012? bkit naging 5 k nalang? tsk tsk.. heres the AO 24...

Administrative Order No. 24, s. 2011
MALACAÑAN PALACE

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

ADMINISTRATIVE ORDER NO. 24

AUTHORIZING THE GRANT OF PRODUCTIVITY ENHANCEMENT INCENTIVE TO GOVERNMENT EMPLOYEES FOR FISCAL YEAR 2011

WHEREAS, the current Administration in FY 2011 has kept fiscal deficit way below target by improving revenue collection, exercising prudent expenditure management, and promoting transparency and anti-corrupt practices in government transactions;

WHEREAS, the government has gained significant headway in channeling funds towards poverty alleviation, provision of quality education and health services, provision of decent and affordable housing, promotion of employment opportunities, improvement of infrastructure, and fostering peace and development;

WHEREAS, the government is implementing vigorously a Disbursement Acceleration Program to speed up the momentum of public spending and stave off an economic slowdown in the face of a weak global environment;

WHEREAS, these accomplishments are being achieved through the unwavering support, commitment, and collaborative efforts of all government employees from all sectors and levels of Philippine bureaucracy;

WHEREAS, item (4)(h)(ii) of the Senate and House of Representatives Joint Resolution No. 4, approved on 17 June 2009, provides for the grant of Productivity Enhancement Incentive (PEI) as a reward for exceeding agency financial and operational performance targets and to motivate employee efforts towards higher productivity; and

WHEREAS, item (4)(h)(ii)(bb) of the same Joint Resolution provides that the PEI may be authorized at the end of the year by the President of the Philippines for the Executive Branch and local government units (LGUs).

NOW, THEREFORE, I, BENIGNO S. AQUINO III, President of the Philippines, by virtue of the powers vested in me by the Constitution and existing laws, do hereby order:

SECTION 1. Grant of PEI to Employees in the Executive Branch. Civilian employees in national government agencies (NGAs) under the Executive Branch, including those in government-owned or -controlled corporations (GOCCs) and government financial institutions (GFIs) covered by Republic Act (RA) No. 6758, as amended, are authorized to be granted a one-time maximum amount of Ten Thousand Pesos (P10,000.00) each as PEI. The grant thereof is subject to the following conditions:

a) The employees occupy regular, casual or contractual positions, and are still in service as of 30 November 2011.

b) The employees have rendered at least four (4) months of service for the year to be entitled to the full amount of the PEI. Those who have rendered less than four (4) months of service shall be entitled to pro-rated PEI, as follows:

Length of Service

Percentage of the PEI

3 months but less than 4 months 40%
2 months but less than 3 months 30%
1 month but less than 2 months 20%
Less than 1 month 10%
c) The employees have not received any additional year-end benefit in FY 2011 over and above the benefit authorized under RA No. 6686, as amended by RA No. 8441.

Military personnel of the Armed Forces of the Philippines (AFP), Department of National Defense (DND), uniformed personnel of the Philippine National Police (PNP), Bureau of Fire Protection (BFP), and Bureau of Jail Management and Penology (BJMP) under the Department of the Interior and Local Government (DILG); Philippine Coast Guard (PCG); and National Mapping and Resource Information Authority (NAMRIA) are also entitled to the PEI in line with item ( of the Senate and House of Representatives Resolution No. 4 (s. 2009).

SECTION 2. Funding Source of the PEI for Employees in the Executive Branch. Funds needed for the grant of the PEI to employees in NGAs under the Executive Branch and in GOCCs and GFIs, shall be charged against the following:

a) For employees of NGAs, their PEI shall be charged against the amount appropriated for the purpose under the Miscellaneous Personnel Benefits Fund (MPBF) in RA No. 10147, the FY 2011 General Appropriation Act, as augmented by savings from unreleased appropriations under RA No. 10147.

b) For employees of GOCCs and GFIs, the amount required shall be charged against their respective approved corporate operating budgets for FY 2011. In case of insufficiency of funds, the PEI shall be granted at a lower but uniform percentage of the PEI rates.

SECTION 3. PEI for Employees in the Legislative and Judicial Branches, and Other Offices Vested with Fiscal Autonomy. Employees of the Senate, House of Representatives, the Judiciary, the Office of the Ombudsman, and Constitutional Offices vested with fiscal autonomy may likewise be granted a one-time PEI by their respective heads of office at rates not exceeding Ten Thousand Pesos (P10,000.00) each, chargeable against their respective available savings in allotments, subject to the conditions set in Section 1 (a), (b) and (c) hereof.

SECTION 4. PEI for Employees in LGUs. The grant of one-time PEI for salaried employees in LGUs, including those in barangay governments who are compensated through monthly honoraria, shall be determined by the respective sanggunian, depending on the LGU financial capability and subject to: (i) the Personal Services limitation in LGU budgets under RA No. 7160, and (ii) the conditions in Section 1 (a), (b) and (c) hereof, chargeable against the FY 2011 local government funds.

LGUs shall exercise prudence in the use of local funds. In determining the amount of the PEI, the sanggunian shall ensure that the same is reasonable and that the expenditure will not, in any way, adversely affect the delivery of services to the public.

SECTION 5. PEI for Employees in Agencies Exempted from the Coverage of RA No. 6758, as amended. Employees in NGAs, GOCCs, and GFIs exempted from the coverage of RA No. 6758, as amended, may also be entitled to the PEI at rates as may be determined by their governing boards or agency heads, but not exceeding Ten Thousand Pesos (P10,000.00) each, chargeable against their respective funds, in line with item (9) of the Senate and House of Representatives Joint Resolution No. 4 (s. 2009).

SECTION 6. Payment of PEI. Payment of the PEI to government employees shall not be made earlier than 08 December 2011.

SECTION 7. Guidelines on the Grant of the PEI. The Department of Budget and Management (DBM) shall issue the necessary guidelines to implement this Administrative Order.

SECTION 8. Repealing Clause. All issuances, orders, rules, and regulations or parts thereof which are inconsistent with the provisions of this Administrative Order are hereby revoked and/or modified accordingly.

SECTION 9. Separability. If any provision of this Administrative Order is declared invalid or unconstitutional, the other provisions unaffected shall remain valid and subsisting.

SECTION 10. Effectivity Clause. This Administrative Order shall take effect immediately.

DONE in the City of Manila this 1st of December in the Year of Our Lord, Two Thousand and Eleven.

(Sgd.) BENIGNO S. AQUINO III

By the President:

(Sgd.) PAQUITO N. OCHOA, JR.

Executive Secretary

Nalalapit na ang pagbibigay ng Performance Based Bonus (PBB) for 2012, sa lahat ng sangay ng ahensya ng Gobyerno. LandBank with its separate charter is governed by the policies approved by its governing body-the LandBank Board of Directors , kaya lang the authority to grant economic benefits like this (PBB) was divested from our governing landbank Board of Directors due to the issuance of this RA 10149 thats creates this Governance Commission for GOCCs or "GCG" which given a full blanket authority by the President in granting economics benefits to all exempted GOCCs and GFIs like us. Palagi talagang kulelat ang mga tulad nating GOCCs and GFIs pagdating sa issuance of law in granting benefits and its irony because we are the top contributory to the government coffers. diba? Hope and pray, GCG will come up a law similar to EO 80 (PBB) for all exempted GOCCs and GFIs bago matapos ang taon para happy naman NEW YEAR natin...

included b tayo sa PEI P10K? less 32% tax for KIM.

MC No. 201-03 dated Nov. 12, 2012, signed by Sec. Butch Abad, provides for the ‘Guidelines on Determining Eligibility & Ranking Bureaus, Delivery Units, & Individuals Based on Performance in Line with the Grant of the PBB for FY 2012.