Performance-based incentives eyed for government agencies

MANILA, Philippines – The Aquino administration is introducing next year a rewards system for government agencies that will surpass their commitments in line with the government’s social contract, Budget and Management Secretary Florencio Abad said last week.

The so-called performance-based incentive (PBI) system seeks to replace the current bonus system, which some agencies tend to abuse.

During a forum last week titled Dialogue on Bottom-up Budgeting and Private Sector Participation in the Budget Process organized by the National Competitiveness Council, Abad said that in the past, some government agencies provided their employees with bonuses that are not usually given.

Abad noted that one agency even had a “SONA (Statement of the Nation Address) bonus.”

Abad said it is necessary to introduce a new system to recognize exemplary performance of employees.

“One such innovation we’re introducing next year is a performance-based incentive system, which rewards a performance bonus for teams in the bureaucracy who meet or even surpass their outcomes and commitments in line with Aquino social contract. In fact, today is the deadline for agencies to submit their performance targets, subject to our review, to qualify for the bonus. With this in place, we hope to institute a system of performance contracts next year, to which every Cabinet member will be required to sign with the President,” Abad said.

The system, embodied in Executive Order 80 released in July, said the incentives system seeks to strengthen performance monitoring and appraisal systems in the civil service.

The PBI system will consist of the productivity enhancement incentive (PEI) and the performance-based bonus (PBB).

According to the EO, the PEI in the amount of P5,000 shall be granted across-the-board, in accordance with the guidelines shall to be issued by the Department of Budget and Management (DBM).

“The PBB, which is a top-up bonus, shall be given to personnel of bureaus or delivery units in accordance with their contribution to the accomplishment of their department’s overall targets and commitments,” the EO said.

The DBM is set to release the guidelines for the new system in the coming months, Abad said.