State employees, execs to get additional bonus

Deputy presidential spokesperson Abigail Valte. INQUIRER FILE PHOTO

MANILA, Philippines – A merrier Christmas awaits state employees and officials this year.

Malacañang announced Friday the grant of yet another bonus for employees of the national government on top of the traditional Christmas bonus and 13th month pay. The government is giving away a new “performance-based bonus” or PBB.

This will be given to employees and officials on the basis of a merit-based formula for rewards ranging from P5,000 to P35,000, depending on their productivity, said Palace spokesperson Abigail Valte at a news briefing.

The Palace hopes that the PBB would be released during the Christmas season. “I will consult with other agencies about their target[date for release of] the PBB. It’s like Pinoy Big Brother, isn’t it?”

State officials and employees receive their 13th month pay in two tranches—on May 15 and November 15.

Employees in the private sector also receive the mandated 13th month bonus (not subject to tax for amounts P30,000 and below) but other companies also give additional Christmas bonuses that are subject to tax.

Meanwhile, the Productivity Enhancement Incentive(PEI)—pegged across the board at P10,000 in 2011—is due to be credited to payroll next month, said Valte.

Valte explained that the national government, prior to the Aquino presidency,  funded only P7,000 of the PEI, with the remaining P3,000 shouldered by various government offices from their savings.

“What happened in the past—at least in the case of 2010—was that agencies which had no savings couldn’t provide for their component [of the PEI]. In 2011, what the national government did was to give out the entire P10,000. So everyone received the same amount apart from the 13th month bonus,” said Valte.

The PBB was mandated by Mr. Aquino under Executive Order No. 80 issued in July this year to “rationalize the current incentive system in government which is generally characterized by across-the-board bonuses that are given uniformly to all civil servants.”

The EO calls for a “common set performance scorecard” and rates personnel “in accordance with their contribution to the accomplishments of their department’s overall targets and commitments.” The PBB scheme has three performance categories: “best,” “better” and “good.”