How do you rationalize a government incentive system characterized by across-the-board bonuses given in equal measure to all civil servants?
President Benigno Aquino found the answer in a performance-based incentive (PBI) that would combine the existing productivity enhancement incentive (PEI) and the new performance-based bonus (PBB).
The President issued on July 20 Executive Order No. 80 that awards incentives to employees based on the overall performance of their respective bureaus.
The PBI system will motivate “higher performance” and “greater accountability” in the public sector, Mr. Aquino said.
On top of the PEI, which amounts to P5,000, the PBB will be given to personnel of bureaus or units, depending on the merits.
The Salary Standardization Law (SSL) seeks the establishment of a PBI.
Under the PBB, units and personnel will be ranked according to their performance “as measured by verifiable, observable, credible and sustainable indicators,” according to the EO.
The performance will be based on the department’s major final outputs and commitments to the President and good governance conditions.
The amount of the PBB will be based on the performance of the departments, bureaus or delivery units and of the individual employees. Department secretaries will rank the bureaus or delivery units according to their performance.
Bureaus and individuals who receive a Below Satisfactory performance rating will be disqualified.
The EO prohibits the grant of allowances, incentives and bonuses other than those authorized under the Salary Standardization Law.
Government agencies, including government-owned and -controlled corporations, should harmonize existing performance-based incentive or bonus systems with the PBB scheme. TJ Burgonio