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Monday, July 15, 2024

Marcos halts, orders review of performance bonus systems

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President Marcos suspended the Results-Based Performance Management System (RBPMS) and Performance-Based Incentive (PBI) System in government and ordered a review of the two to harmonize and streamline the cash bonus systems.

Executive Order No. 61 suspended Administrative Order No. 25 that established a unified RBPMS and EO No. 80 which introduced the PBI System, including the Productivity Enhancement Incentive (PEI) and the Performance-Based Bonus (PBB).

“The implementation of AO No. 25 (s. 2011) and EO No. 80 (s. 2012), and all other relevant issuances related thereto, is hereby suspended immediately pending review of the RBPMS and PBI System,” the EO read.

The President, in the order, noted these systems have become redundant and burdensome due to overlapping regulations and a lack of a review mechanism.

“It makes compliance burdensome, bureaucratic, laborious, and time-consuming for government agencies,” the Presidential Communications Office said.

“It is imperative to streamline, align and harmonize the RBPMS and PBI System with ease of doing business initiatives, and reform the government performance evaluation process and incentives system towards a more responsive, efficient, agile and competent bureaucracy,” the President said in EO No. 61.

A Technical Working Group (TWG) will be formed and chaired by the budget secretary and co-chaired by the executive secretary, with members including the finance and National Economic and Development Authority (NEDA) secretaries and the Anti-Red Tape Authority (ARTA) director general.

The TWG will integrate the new system with existing audit and quality management frameworks and report its findings within six months.

The TWG was also tasked to submit a transition plan for the grant of PBB for Fiscal Year 2023 within a period of three months from the effectivity of the order.

Editor’s Note: This is an updated article. Originally posted with the headline: “Marcos orders streamlining of results-based performance management”

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