News Release

PBBM issues EO to streamline, harmonize results-based performance management, performance-based incentive systems

President Ferdinand R. Marcos Jr. has issued an executive order (EO) to streamline and harmonize the Results-Based Performance Management System (RBPMS) and Performance-Based Incentive (PBI) System in government.

Issued on June 3, EO No. 61 suspends the implementation of Administrative Order (AO) No. 25 (s. 2011) and EO No. 80 (s. 2012), and all other relevant issuances.

AO No. 25 (s. 2011) established a unified and integrated RBPMS across all departments and agencies within the Executive branch of government.

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 Palace said the RBPMS and PBI System have been duplicative and redundant with the internal and external performance audit and evaluation systems of the government, and lacked a review mechanism leading to the accumulation of rules, regulations, and issuances from the Inter-Agency Task Force (IATF) on the Harmonization of National Government Performance Monitoring, Information and Reporting Systems.

It makes compliance burdensome, bureaucratic, laborious and time consuming for government agencies.

“The implementation of AO No. 25 (s. 2011) and EO No. 80 (s. 2012), and all other relevant issuances related thereto, is hereby suspended immediately pending review of the RBPMS and PBI System,” stated the President’s EO 61 signed by Executive Secretary Lucas Bersamin.

“It is imperative to streamline, align and harmonize the RBPMS and PBI System with ease of doing business initiatives, and reform the government performance evaluation process and incentives system towards a more responsive, efficient, agile and competent bureaucracy,” the President’s order said.

Based on the President’s EO, a Technical Working Group (TWG) for the study and review of the RBPMS and PBI System will be constituted.

The TWG will be composed of the budget secretary as chair and the executive secretary as co-chair, while its members will be the secretaries of finance and the National Economic and Development Authority (NEDA) and the Anti Red-Tape Authority (ARTA)1 director general.

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).

It 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 months from the effectivity of the Order.

The TWG is also tasked to submit a transition plan for the grant of PBB for Fiscal Year 2023 within a period of three months from the effectivity of the order.

The Philippine Development Plan 2023-2028 and the Administration’s 8-Point Socioeconomic Agenda aim to institute good governance practices and improve bureaucratic efficiency. PND