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gov.ph Performance Based Bonus/ Incentive System Philippines : Official Gazette

Organization : The Official Gazette
Type of Facility : Performance Based Bonus/ Incentive System
Country: Philippines

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Website : https://www.gov.ph/

Performance Based Incentive System:

The Performance-Based Incentive System (PBIS) is a new system of incentives for government employees that is being introduced in FY 2012, per EO No. 80.{{1}} Under this new system, employees may receive two incentives: the Performance-Based Bonus (PBB) and the Productivity Enhancement Incentive (PEI).

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The PBB is a top-up bonus that is given to employees based on their performance and contributions to the accomplishment of their Department’s overall targets and commitments.{{2}} This will be on top of the PEI current annual incentive distributed to employees across the board. The amount available for PEI bonuses will depend on savings incurred by the national government.

Performance Based Bonus System:
The Performance-Based Bonus (PBB) system is a merit-based incentive program that recognizes and rewards exemplary performance in government. Launched by the Aquino administration in 2012, the PBB ultimately aims to improve the delivery of goods and services to all Filipinos, as well as institute a culture of excellence in public service across the bureaucracy.

The PBB, which is the new bonus introduced via the PBIS, will be given to employees based on their contribution to the accomplishment of their Department’s overall targets and commitments.

Under the PBB, units of Departments will be ranked according to their performance. The personnel within these units shall also be ranked. The ranking of units and personnel will be based on their actual performance at the end of the year, as measured by verifiable, observable, credible, and sustainable indicators of performance.

Difference Between PBIS and PBB:

The PBB or the Performance-Based Bonus is a component of the PBIS or the Performance-Based Incentive System. The PBB is a top-up bonus which will be given to employees based on their contribution to the achievement of their Department or Agency’s targets and commitments in FY 2012. The other component is the PEI, which is provided to employees across the board, regardless of their actual performance.

Difference Between PBB and the Bonuses Currently Given To National Government Employees:
The PBB is a new incentive given to government employees based on their performance. This is different from existing bonuses in government, which are given to employees across the board, regardless of their performance.

The PBB was introduced by the Aquino Administration to reward and encourage exemplary performance among public servants in national government. The PBB, as introduced in 2012, is on top of the following bonuses currently provided to government employees:
i. Mid-Year and Year-End Bonuses are the government equivalent of the 13th Month Pay of employees in the private sector. Like the 13th Month Pay, the total amount of the Mid-year and Year-end Bonuses are equivalent to their one month’s salary, depending on their rank and salary grade. The Mid-year and Year-end Bonuses are given no earlier than May 1 and November 15, respectively.

ii. The Cash Gift is an across-the-board bonus of P5,000 given to each employee of the national government. It is released in two tranches: at the middle and end of the year, together with the Mid-year and Year-end Bonuses.

iii. The Collective Negotiation Agreement (CNA) Bonus, meanwhile, is provided to employees of government agencies where there is an accredited employee’s union, and where the agency and the union have entered into a Collective Negotiation Agreement (CNA). The CNA Bonus is funded by savings from the agency’s maintenance expenditure items identified in their CAN. An agency can raise these savings through cost cutting and productivity measures—identified in their CNA.

iv. The PEI is an existing across-the-board bonus, given equally to government employees. Unlike the Mid-year and Year-End Bonuses and Cash Gifts, the amount given per employee is not fixed. Instead, the amount depends on the level of savings incurred and authorized by the national government to fund the PEI. Thus, the amount per employee has varied through the years.

How much will the PBB be?:
The amount will depend on the performance of each employee and the unit that he/she belongs to. This is to foster a culture of teamwork within each unit and within the department itself, especially if the latter has different kinds of outputs and services to deliver.

The Best Performer from the best-performing unit or “Best Bureau” will get a PBB of P35,000; the Better Performer from a “Better Bureau” will get P13,500; while the Good Performer from a “Good Bureau” will get P5,000. However, the minority of poor performers will get no PBB.

In other words, the PBIS provides the best rewards for the best people in the bureaucracy, amounting to a total of P40,000 with the PBB and PEI combined.

Under the PBIS, however, underperformers will not be left empty-handed: they will still receive the P5,000 across-the-board PEI.

FAQ : https://www.gov.ph/

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