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Guidelines on the Grant of the Performance-Based Bonus for Fiscal Year 2016


May 12, 2016

TO :

All Heads of Departments, Bureaus, Offices and Other Agencies of the National Government, including Constitutional Commissions, Congress, The Judiciary, Office of the Ombudsman, State Universities and Colleges, Government-Owned or-Controlled Corporations, Local Water Districts, and Local Government Units.

Guidelines on the Grant of the Performance-Based Bonus for Fiscal Year 2016 under Executive Order (EO) No. 80 and EO No. 201


1.1 Since its implementation in 2012, the Results-Based Performance Management System (RBPMS) has significantly contributed to the government’s goal of strengthening public accountability and ensuring the effective delivery of services to the Filipino people. The RBPMS represents a major governance reform that not only links budget with outcomes, but also puts premium on the improvement of the performance management and monitoring system in the government. Along with its incentive component — the Performance-Based Incentive System (PBIS) consisting of the Productivity Enhancement Incentive (PEI) and the Performance-Based Bonus (PBB) which were authorized under EO No. 80, s. 20121—the RBPMS has established a simplified but integrated scheme of rewarding exemplary performance in the government through the grant of performance-based bonuses.

1.2 Executive Order (EO) No. 201 s. 20162 provided that the compensation and position classification shall be revised or updated to strengthen the performance-based incentive system in recognition of government personnel who play a greater role and carry a heavier responsibility in attaining performance targets and delivering results.

1.3 EO No. 201 stipulated that the Inter-Agency Task Force on the Harmonization of National Government Performance Monitoring, Information and Reporting System created under Administrative Order No. 25 (s. 2011) shall prescribe the conditions on eligibility and procedures for the grant of the enhanced PBB, including the ranking system to recognize difference in levels of performance.


This Memorandum Circular is issued to prescribe the criteria and conditions for the grant of the PBB for FY 2016.


3.1 This Circular covers all Departments, Bureaus, Offices and Other Agencies of the National Government, including Constitutional Commissions, Congress, The Judiciary, Office of the Ombudsman, State Universities and Colleges (SUCs), Government-Owned or-Controlled Corporations (GOCCs), Local Water Districts (LWDs) and Local Government Units {LGUs).

3.2 The implementation of this circular shall be in close coordination with the following agencies

a. Department of Budget and Management (DBM) for the departments and their attached agencies;
b. Office of the President-Office of the Executive Secretary (OP-OES) and DBM for the Other Executive Offices, including the OP-attached agencies and GOCCs covered by DBM;
c. Commission on Higher Education (CHED) for the SUCs;
d. Governance Commission for GOCCs (GCG) for GOCCs covered by Republic Act No. 10149;
e. Local Water Utilities Administration (LWUA) for LWDs; and
f. Department of the Interior and Local Government (DILG) for LGUs.

3.3 All officials and employees of eligible departments/agencies holding regular plantilla positions; and contractual and casual personnel having an employer-employee relationship with the said agencies, and whose compensation are charged to the lump sum appropriation under Personnel Services, or those occupying positions in the DBM-approved contractual staffing pattern of the agencies concerned are covered by this Circular.


4.1 Each agency must satisfy the following conditions (see Annex 1 – Master List of Departments/Agencies):

a. Achieve agency performance targets under their respective Major Final Outputs (MFOs) under the Performance Informed Budget (PIB) of the FY 2016 GAA, and the targets for Support to Operations (STO) and General Administration and Support Services (GASS). Kindly use Form A for Department/Agency Performance Accomplishment (see Annex 2), and Form A1 for Details of Bureau/Office Performance Indicators and Accomplishments (see Annex 3);

a.1. For GOCCs under the coverage of DBM without budgetary support, the targets reflected under DBM Form No. 700 in their Corporate Operating Budgets shall be used as basis in assessing their performance and determining their eligibility for the PBB.
a.2. GOCCs covered by RA 10149 should achieve their weighted-average score targets as stated in their respective FY 2016 Performance Scorecards and comply with the requirements for the grant of the PBB to GOCC personnel pursuant to Executive Order No. 203 s. 2016 and the guidelines specified by GCG.
a.3. For LWDs, the MFOs and Performance Indicators (Pis) identified under Memorandum Circular No. 2014-02 dated 29 August 2014, as updated, shall be used as basis in assessing LWD performance and determining their eligibility for the PBB.

b. Satisfy 100% of the Good Governance Conditions set by the AO 25 Inter-Agency Task Force (IATF) for FY 2016; and

c. Use the CSC-approved Strategic Performance Management System (SPMS) in rating the performance of First and Second Level officials and employees of departments/agencies of the national and local government to include: those in GOCCs with original charters, those in State Universities and Colleges, and officials holding managerial and Director positions but are not Presidential appointees: and the Career Executive Service Performance Evaluation System (CESPES) in rating the performance of CES officials and incumbents of CES positions.

4.2 For LGUs, the conditions and criteria for eligibility to the FY 2016 PBB shall be issued separately by the AO 25 IATF and DILG.


5.1 The MFO indicators and targets in the FY 2016 PIB approved by Congress shall be the basis for assessing eligibility for the PBB.

5.2 In addition to the MFO indicators and STO targets in the FY 2016 PIB, departments/agencies shall also accomplish the following:

a. STO target identified in accordance with the priority of the Agency Head;
b. Establishment of a Quality Management System (QMS) for at least one core process certified by any international certifying body approved by the AO 25 IATF or ISO-aligned documentation of its QMS for one core process as evidenced by the presence of the following documents in the agency Transparency Seal:

b.1 Approved Quality Manual; and
b.2 Approved Procedures and Work Instructions Manual including Forms.

c. LWDs classified as A and B under the Revised Local Water District Manual on Categorization and Re-Categorization, s. 2011, should comply with the STO-QMS requirement in section 5.2b.

Else, LWDs classified as C and D, should adopt operating standards and corresponding reportorial requirements based on established business policies and practices in the water utilities sector as enunciated under the Commercial Practice System (CPS), as well as present their financial statements in accordance with the accounting principles under the New Government Accounting System (NGAS) as prescribed by the Commission on Audit (COA).

5.3 The GASS targets shall be as follows:

a. Budget Utilization Rate (BUR), which shall consist of:

a.1. Obligations BUR computed as obligations against all allotments available in FY 2016, including those released under the “GAA as a release document” policy; and
a. 2. Disbursement BUR which is measured by the ratio of total disbursement (cash and non-cash, excluding personnel services) to total obligations for maintenance and other operating expenses (MOOE) and capital outlays (CO) in FY 2016.

b. Compliance to Public Financial Management (PFM) reporting requirements of the COA and the DBM in accordance with the prescribed content and period of submission under existing laws, rules and regulations. This includes the following:

b. 1. Budget and Financial Accountability Reports (BFARs)

b.2. Report on Ageing of Cash Advances
b.3. COA Financial Reports (Statement of Financial Position; Statement of Financial Performance; Statement of Changes in Net Assets/Equity; Statement of Cash Flows; Statement of Comparison of Budget and Actual Amounts; and Notes to Financial Statements) [per COA Resolution No. 2014-003],

c. Adoption and use of the FY 2015 Agency Procurement Compliance and Performance Indicators (APCPI) System per Government Procurement Policy Board (GPPB) Resolution No. 10-2012 applicable to the main/ head/ central offices for APCPI {see Annex 4) that must meet the following requirements:

c.1. Submission of the 2015 APCPI results, complete with the following accomplished forms/annexes: (1) Annex A or the Self-Assessment Form; (2) Annex B or the Consolidated Procurement Monitoring Report; (3) Annex D or the Procurement Capacity Development Action Plan; and the Questionnaire. The APCPI Tool may be downloaded from the GPPB website using this link: htto://www.gpob.aov.Dh/aocDi/aocDi.html
c.2. The APCPI results must be submitted in electronic (Excel) format and printed (signed) copies on or before December 1, 2016, either electronically through monitorinaticbaDDb.aov.Dh or hand carried/mailed through the GPPB-TSO front desk.
c.3. The APCPI submissions through monitorina(a)aDDb.aov.ph must indicate: “2015 APCPI Initial Results of <Complete Name of Head Offjce / Agency> for PBB” in the subject line.
c.4. Timely submission of the APCPI and compliance with the prescribed format shall be mandatory.

The List of Agencies Complying with the APCPI requirement shall be posted in the GPPB website (www.aDDb.aov.Dh).

d. Submission of the Annual Procurement Plan (APP) for CY 2016 based on the agency approved budget to the GPPB and its Technical Support Office (TSO) within one month from the issuance of this Circular.

d.1. APPs must be approved by the Head of the Procuring Entity and submitted within one month from the issuance of this Circular using the prescribed format under GPPB Circular No. 07-2015. A scanned copy of the APP may be sent to GPPB-TSO’s email: monitorina(a)aDDb.aov.ph.

d.2. The APP submissions through monitorina(d)aDDb.aov.ph must indicate: “APP for CY 2016 of <complete name of head office/agency> <Regions ______to ______, if applicable> for PBB” in the subject line.

d.3. Timely submission of the APP, as well as compliance with the prescribed format is a must.

The List of Agencies complying with the APP submission requirement shall be posted in the GPPB website (www.aDDb.aov.Dh).

5.4 In case a department/agency is assessed to have deficiencies in meeting its performance commitments, the Department Secretary or Head of Agency may request for re-evaluation of their compliance status and submit the justification/s to warrant a reconsideration of the initial assessment results. For the purpose of re-evaluation, justifiable reasons are factors that are considered outside of the control of the agency.

5.5. As a transition to a new administration, the submission of FY 2016 performance targets and accomplishments on Priority Programs/Projects agreed with the President under the five (5) KRAs of EO No. 43; on commitments of the Department Secretary/Head of Agency approved by the President/Office of the Cabinet Secretary as reflected in the OP Planning Tool; and on Ease of Doing Business set by the National Competitive Council (NCC), shall be suspended for FY 2016 PBB only.


6.1 For FY 2016, the IATF set three good governance conditions based on the performance drivers of the Results-based Performance Management System (RBPMS):

a. Maintain/Update the Agency Transparency Seal;
b. Maintain/Update the PhilGEPS posting; and
c. Maintain/Update the Citizen’s or Service Charter or its equivalent;

6.2 Agency Transparency Seal page should be accessible by clicking on the TS logo on the Home page. Agency Transparency Seal should contain the following documents:

a. Agency’s mandates and functions, names of its officials with their position and designation, and contact information;
b. DBM-approved budget and corresponding targets for FY 2016;
c. Budget and Financial Accountability Reports;

c. 1. ForNGAs/SUCs

c.1.1 FY 2013 to FY 2016 FAR No. 1: SAAOBDB c.1.2 FY 2013 to FY 2016 Summary Report on Disbursements c.1.3 FY 2013 to FY 2016 BAR No.1 – Quarterly Physical Report of Operations/Physical Plan
c.2. For GOCCs and LWDs
c.2.1 FY 2013 to FY 2016 Annual Report

d. FY 2016 Major Programs and Projects categorized in accordance with the Five Key Result Areas under EO No 43;
e. The program/project beneficiaries as identified in the applicable special provisions. If this portion is not applicable, agencies should indicate not applicable (NA);
f. Status of implementation, evaluation and/or assessment reports;
g. FY 2016 APP;
h. QMS ISO Certification for at least one core process by any international certifying body approved by the IATF or ISO-aligned QMS documents (“as applicable as stated in section 5.2); and
i. System of Ranking Delivery Units, to be posted in the agency Transparency Seal and disseminated to employees not later than October 30, 2016.

(See Annex 5 – Guideline on Transparency Seal)

6.3 Assessment of agency compliance with the GGCs and other PBB requirements shall be conducted starting October 1, 2016.

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Mark Anthony Llego

Mark Anthony Llego, from the Philippines, has significantly influenced the teaching profession by enabling thousands of teachers nationwide to access essential information and exchange ideas. His contributions have enhanced their instructional and supervisory abilities. Moreover, his articles on teaching have reached international audiences and have been featured on highly regarded educational websites in the United States.

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