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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
Executive Order No. 61 (s. 2024) suspended the implementation of Administrative Order No. 25 (s. 2011) establishing a Results-Based Performance Management System (RBPMS) and Executive Order No. 80 (s. 2013) adopting a Performance-Based Incentive (PBI) System and all relevant issuances related thereto pending review of the systems.
In June 2024, President Ferdinand R. Marcos Jr., issued Executive Order No. 61 suspending the implementation of Administrative Order No. 25 (s. 2011) and Executive Order No. 80 (s. 2013)
Administrative Order No. 25 (s. 2011) established a unified and integrated RBPMS across all departments and agencies within the Executive branch of Government, and for such purpose, established the Inter-Agency Task Force (IATF) on the Harmonization of National Government Performance Monitoring, Information and Reporting Systems.
On the other hand, Executive Order (EO) No. 80 (s. 2012), as amended by EO No. 201 (s. 2016), adopted a PBI System, consisting of Productivity Enhancement Incentive (PEI) and the Performance-Based Bonus (PBB), to motivate higher performance and exact greater accountability in the public sector and ensure accomplishment of government commitments and targets.
The President ordered a review of the RBPMS and PBI System after finding them duplicative and redundant with the government’s internal and external performance audit and evaluation systems.
EO No. 61 noted that these systems lacked a review mechanism leading to the accumulation of rules, regulations, and issuances from the IATF, making compliance burdensome, bureaucratic, laborious, and time consuming for government agencies. Furthermore, it is imperative to streamline, align, and harmonize the RBPMS and PBI System with ease of doing business initiative, and reform the government performance evaluation process and incentives system towards a more responsive, efficient, agile, and competent bureaucracy.
A Technical Working Group (TWG) was formed to study and review the RBPMS and PBI System with the goal of streamlining, overhauling, improving, and simplifying government performance management and incentive systems. The TWG is chaired by the Secretary of the Department of Budget and Management (DBM), with the Executive Secretary of the Office of the President serving as Co-Chair. Members include the Secretaries of the Department of Finance (DOF) and the National Economic and Development Authority (NEDA), as well as the Director General of the Anti-Red Tape Authority (ARTA).
In the review of the RMPMS and PBI System, the TWG shall be guided by the following principles:
- The new government performance management and incentives systems shall be aligned with ease of doing business initiatives, the Philippine Development Plan, the Socioeconomic Agenda of the Administration, and international standards and best practices;
- The TWG shall adopt standards similar to, and at par with, the Quality Management Systems by the International Organization for Standardization, tailored specifically for the public sector, and if appropriate, only for government agencies and instrumentalities providing frontline services;
- The new government performance management and incentives systems shall take into consideration the unique nature, needs and requirements of agencies and instrumentalities, and come up with appropriate tiers, groupings or categorizations of agencies and instrumentalities, as may be deemed appropriate; and
- The TWG shall integrate, streamline and align the new government performance management system with the government internal audit program and activities pursuant to RA No. 3456, as amended by RA No. 4177, or the “Internal Auditing Act of 1962,” and government quality management systems under AO No. 161 (s. 2006) and EO No. 605 (s. 2007).
The TWG shall submit a comprehensive report on its findings together with its recommendations to the Office of the President, through the Office of the Executive Secretary, within a period of not more than six (6) months from the effectivity of this Order. The TWG shall also submit a transition plan for the grant of PBB for Fiscal Year 2023 within a period of three (3) months from the effectivity of this Order.
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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 0917-5772207/ 09778050020.
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