PBB Update for FY 2022 As of February 10, 2024
In a long-awaited and exciting development, the Department of Budget and
Management (DBM) has officially unveiled the much-anticipated and updated
list of State Universities and
Colleges (SUCs), DepEd Regional Offices (ROs) and Schools
Division Offices (SDOs) and full or partial Special Allotment Release
Order (SARO) for the Performance-Based Bonus (PBB) 2022.
Educators and school personnel from across the country are rejoicing as they
eagerly await recognition and rewards for their dedication and exceptional
performance during the past year. With SARO now issued,
deserving beneficiaries can look forward to receiving their well-earned
bonuses, further motivating them to continue providing quality education and
shaping the future of the nation's learners.
As of this posting, the DBM has issued SAROs for the payment of the
2022 PBB to the following SUCs, ROs and SDOs:
SUCs
- Laguna State Polytechnic University
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photo taken from www.dbm.gov.ph |
Stay tuned for further updates on the release of the Performance-Based Bonus
(PBB) 2022 in other regions. There's more to come, so don't lose hope!
Introduction to the Performance-Based Incentive System (PBIS) for National Government Agencies and Employees
FREQUENTLY ASKED QUESTIONS
What is PBIS?
The Performance-Based Incentive System (PBIS) is a new system of incentives
for government employees that is being introduced in FY 2012, per EO No.
80.{{1}} Under this new system, employees may receive two incentives: the
Performance-Based Bonus (PBB) and the Productivity Enhancement Incentive
(PEI).
The PBB is a top-up bonus that is given to employees based on their
performance and contributions to the accomplishment of their Department’s
overall targets and commitments.{{2}} This will be on top of the PEI current
annual incentive distributed to employees across the board. The amount
available for PEI bonuses will depend on savings incurred by the national
government.
What is PBB?
The PBB, which is the new bonus introduced via the PBIS, will be given to
employees based on their contribution to the accomplishment of their
Department’s overall targets and commitments.
Under the PBB, units of Departments will be ranked according to their
performance. The personnel within these units shall also be ranked. The
ranking of units and personnel will be based on their actual performance at
the end of the year, as measured by verifiable, observable, credible, and
sustainable indicators of performance.
What is the difference between PBIS and PBB?
The PBB or the Performance-Based Bonus is a component of the PBIS or the
Performance-Based Incentive System. The PBB is a top-up bonus which will be
given to employees based on their contribution to the achievement of their
Department or Agency’s targets and commitments in FY 2012. The other component
is the PEI, which is provided to employees across the board, regardless of
their actual performance.
What is the difference between PBB and the bonuses currently given to national government employees?
The PBB is a new incentive given to government employees based on their
performance. This is different from existing bonuses in government, which are
given to employees across the board, regardless of their performance.
The PBB was introduced by the Aquino Administration to reward and encourage
exemplary performance among public servants in national government. The PBB,
as introduced in 2012, is on top of the following bonuses currently provided
to government employees:
i. Mid-Year and Year-End Bonuses are the government equivalent of the 13th
Month Pay of employees in the private sector. Like the 13th Month Pay, the
total amount of the Mid-year and Year-end Bonuses are equivalent to their one
month’s salary, depending on their rank and salary grade. The Mid-year and
Year-end Bonuses are given no earlier than May 1 and November 15,
respectively.
ii. The Cash Gift is an across-the-board bonus of P5,000 given to each
employee of the national government. It is released in two tranches: at the
middle and end of the year, together with the Mid-year and Year-end Bonuses.
iii. The Collective Negotiation Agreement (CNA) Bonus, meanwhile, is provided
to employees of government agencies where there is an accredited employee’s
union, and where the agency and the union have entered into a Collective
Negotiation Agreement (CNA).
The CNA Bonus is funded by savings from the agency’s maintenance expenditure
items identified in their CAN. An agency can raise these savings through cost
cutting and productivity measures—identified in their CNA.
iv. The PEI is an existing across-the-board bonus, given equally to government
employees. Unlike the Mid-year and Year-End Bonuses and Cash Gifts, the amount
given per employee is not fixed. Instead, the amount depends on the level of
savings incurred and authorized by the national government to fund the PEI.
Thus, the amount per employee has varied through the years.
1. Will our PEI be smaller in 2012?
Yes. In 2011, the PEI was P10,000. This year it is P5,000. But this does not
include other bonuses given throughout the year.
2. Does this mean that employees will get less this year than the amount given
in 2011?
Since the PBB will be given on top of the PEI, only the underperforming
minority will be getting less, while the majority of performing employees will
get the same amount as last year’s PEI. Employees who demonstrate exemplary
performance, on the other hand, will actually enjoy bigger bonuses.
Assuming, for example, that everyone achieves their respective targets, about
42.25 percent of employees will get a top-up PBB bonus of P5,000 in addition
to their PEI of P5,000. This adds up to P10,000, which is the same amount
received by employees in 2011.
Meanwhile, more than 50 percent of employees will receive bonuses higher than
P10,000, since the PBB for better performers ranges from P7,000 to P35,000.
This way, exceptional performers are given due recognition and reward,
encouraging the rest of the bureaucracy to follow suit and aim for exemplary
public service.
How much will the PBB be?
The amount will depend on the performance of each employee and the unit that
he/she belongs to. This is to foster a culture of teamwork within each unit
and within the department itself, especially if the latter has different kinds
of outputs and services to deliver.
The Best Performer from the best-performing unit or “Best Bureau” will get a
PBB of P35,000; the Better Performer from a “Better Bureau” will get P13,500;
while the Good Performer from a “Good Bureau” will get P5,000. However, the
minority of poor performers will get no PBB.
In other words, the PBIS provides the best rewards for the best people in the
bureaucracy, amounting to a total of P40,000 with the PBB and PEI combined.
Under the PBIS, however, underperformers will not be left empty-handed: they
will still receive the P5,000 across-the-board PEI.
Will government employees get less as a result of PBIS?
PBIS-covered government employees will still receive their Year-End and
Mid-Year Bonuses, Cash Gifts, and CNA Bonuses. These bonuses are separate from
the PBIS and are therefore unaffected by an employee’s performance.
For the PEI and PBB—which now fall under PBIS starting 2012—most government
employees will receive the same or even much more that what they used to
receive under the PEI in the previous years. We place this at 57 percent based
on the approved distribution of the PBB, on the assumption that the agency
meets the minimum performance standard. Only the minority of underperformers
will get less: a PEI of 5,000, which will be given across-the-board.
Is it fair for government employees who will get less than what they used to get?
For the longest time, good performers in government received little to no
recognition for their hard work. Majority of them receive as much in bonuses
as their coworkers who underperform or do not take responsibility for their
tasks.
Through the PBIS, the Aquino administration seeks to foster a culture of
fairness and excellence in the bureaucracy, where good work is duly
recognized, while poor output goes unrewarded.
Is the PBB just a new name for an additional “Christmas Bonus” for government employees?
No. The PBB is not a holiday or Christmas Bonus. Instead, the PBB is based on
an agency and employee’s actual performance. It is therefore a reward for good
performance, not a gift or entitlement.
Because an agency and its employees are going to be assessed based on their
actual performance from January 1 to December 31, 2012, distributing the PBB
will start in January of next year. However, agencies that have met at least
90 percent of their performance targets by November 30, 2012 (see Section C)
may have their actual performance evaluated earlier. This will allow for the
possible release of their employees’ PBB by end-December 2012.
Why do we need the PBB when we already have all these other bonuses?
Under the status quo, bonuses are given uniformly to all civil servants,
regardless of their performance. In some cases, this incentive system has even
been abused. To remedy this, the Aquino administration sought to introduce a
new system that will focus on service delivery and reward the best in the
bureaucracy through incentives that correspond with the performance of
employees and their offices.
In other words, having definite rewards for exemplary work can inspire public
servants to perform better. This can even motivate their co-workers in their
own units to perform well, too. Altogether, such a system is designed to
encourage improved performance and better accountability, in line with
ensuring the accomplishment of the Administration’s priority development
agenda.
More importantly, however, the PBB seeks to transform the management of agency
and employee performance to foster a culture of accountable public service, as
well as produce concrete and visible improvements in the delivery of public
goods and services. The ultimate aim of the PBB—besides instituting a genuine
meritocracy in Philippine government—is to serve the Filipino public more
effectively and efficiently.
How will the PBI be funded?
For national agencies, both the PEI and the PBB shall be sourced from the
Miscellaneous Personnel Benefits Fund (MPBF). For GOCCs, their PBB shall be
sourced from their corporate funds.
How will the PBIS be implemented?
The PBIS will be implemented in annual phases. FY 2012 is the pilot
implementation year of the PBIS. What we intend to do in FY 2012 is to lay
down the pre-conditions for a successful PBIS, such as setting clear and
reasonable performance indicators and targets with the Departments. This
allows the government to make a credible PBB system as well as a reasonably
good validation system.
The AO25 Task Force will support Departments during the pilot implementation
year, especially with respect to laying down targets based on the President’s
priorities.
FY 2013 shall be the Harmonization Phase, during which the Results-Based
Performance Management System (RBPMS; see Section D) will be put in place,
together with a Strategic Performance Management System (SPMS) prescribed by
the Civil Service Commission. Thus, the guidelines on the PBB shall be updated
to reflect, harmonize, and implement the two systems. Departments will then be
expected to submit an improved set of performance targets and indicators.
In FY 2014, we can already expect the alignment of the Department targets with
its smallest operational units. In addition to the FY 2013 good governance
conditions, two or three more conditions should be met. A gradual increase
from the FY 2013 bonus is likewise expected.
In FY 2015, the PBB should have reached the Institutionalization Phase. The
system will be fully developed by this time, so that there is full alignment
of Department targets with individual targets. In addition to the FY 2014 good
governance conditions, two or three more conditions should be met. A gradual
increase from the FY 2014 bonus is also expected.
When will the PBB be given out to employees?
The PBB will be given to employees only after their departments and agencies
have 1.) accomplished all PBIS eligibility criteria, 2.) met their performance
targets, and 3.) submitted all their accomplishment reports to the AO25 Task
Force before the deadline (see Section C).
The final deadline for such accomplishment reports will be in the first week
of January 2013. However, agencies that have met their performance targets by
November 30, 2012 (see Section C) may be have their actual performance
evaluated sooner, so that the government can facilitate the possible release
of their employees’ PBB within December 2012.
Will all employees get their PBB by the end of 2012?
No. Only employees belonging to agencies that have met their performance
targets by November 30, 2012 (see Section C) can have their actual performance
evaluated to facilitate the possible release of their employees’ PBB within
December 2012.
However, if agencies do not meet this early deadline for the submission of
accomplishment reports, then their final deadline will be in the first week of
January 2013.
Do agency heads have the authority to redistribute the PBB equally to their employees?
No. The PBB shall be given based on the performance ranking of delivery units
and the individuals within these units. Agency heads are not allowed to
diverge from the objective system of performance ranking under the PBIS.
Otherwise, they defeat the very purpose of the PBIS.
Reference:DBM, FAQ Article officialgazette.gov.ph
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