Marcos suspends 2 bonus programs, proposed improved system

Author: Julie M. Aurelio – 5 minutes ago

MANILA, Philippines – President Ferdinand Marcos Jr. ordered two performance appraisal programs to be reviewed and amended due to duplication with existing mechanisms – which could impact bonuses awarded to government workers.

Order No. 61 suspended the implementation of the Results-Based Performance Management System and the Results-Based Motivation System, which are essentially bonus systems.

This will likely impact performance appraisal programs known as productivity incentives, a general bonus of P5,000 awarded before December 15 of each year, and a performance-based bonus that can amount to up to two months of a public servant’s basic salary. Both are covered by a performance-based incentive system.

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EO 61 of June 3 concluded that both the performance-based incentive system and the performance-based performance management system were “duplicative and redundant” with internal and external audit and evaluation systems and lacked a review mechanism.

To review and streamline the bonus, the President established a Technical Working Group (TWG) consisting of the Secretary of the Budget as Chair and the Executive Secretary as Co-Chair, the Secretary of Finance, the Secretary of Socio-Economic Planning and the Director-General of Anti-Red Tape Authority as members.

Transition plan

The TWG will make recommendations to the President within six months and create a transition plan to award government employees a new performance-based bonus over the next three months.

The new bonus system will “integrate, streamline and align the government’s new performance management system” with other programs and systems, in line with applicable laws and regulations.

“The government’s new performance management systems and incentives will be aligned with business initiatives for ease of doing business, the Philippine Development Plan, the administration’s socio-economic agenda, and international standards and best practices,” EO 61 reads.