Marcos suspends two bonus programs, simplified system proposed

By: Julie M. Aurelio – 4 hours ago

President Ferdinand Marcos Jr. —INQUIRER.net file photo/Ryan Leagogo

MANILA, Philippines — President Ferdinand Marcos Jr. has ordered the review and revision of two performance appraisal systems due to overlaps with existing mechanisms, a move that could affect bonus payments to government employees.

Executive Order No. 61 suspended the implementation of the Results-Based Performance Management System and the Performance-Based Incentive System, which are de facto bonus systems.

Those likely to be affected are the performance evaluation programs called Productivity Enhancement Incentive, a general bonus of P5,000 paid out before December 15 every year, and the Performance-Based Bonus, which can amount to up to two months’ salary of a government employee. Both fall under the Performance-Based Incentive System.

READ: Public school teachers criticise performance bonus introduced by the palace

EO 61 of 3 June states that both the performance-based incentive system and the results-based performance management system are “duplicative and redundant” because they have internal and external audit and evaluation systems and lack a review mechanism.

To review and rationalise the premiums, the President has set up a Technical Working Group (TWG) comprising the Budget Secretary as Chairman and the Executive Secretary as Co-Chairman and whose members include the Finance Secretary, the Socio-Economic Planning Secretary and the Director General of the Anti-Red Tape Authority.

Transition plan

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

The new bonus system will “integrate, streamline and align” the new government performance management system as required by existing laws and regulations.

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