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Performance–based bonuses for gov't employees to be instituted in 2013

September 3, 2012 1:48pm

Outstanding government employees will receive performance-based bonuses (PBB) should their respective departments reach their targets, Budget Secretary Butch Abad said Thursday.

“We’re introducing next year a performance-based incentive system which rewards a performance bonus [to] teams in the bureaucracy who meet or even surpass their outcomes and commitments in line with the Aquino Social Contract,” he explained.

The deadline for agencies to submit their performance targets, subject to the department's review to see if they qualify for the bonus, passed last week.

Abad added that the government hopes to institute a mechanism based on performance contracts that would be signed by the President and all the cabinet members.

To be eligible, departments should obtain at least 90 percent of Major Final Output (MFO) and Priority Program targets imposed by the Key Result Areas specified in Executive Order No. 43, and achieve good governance conditions set by the inter-agency task force created by Administrative Order No. 25.

The PBB will range from P5,000 to P35,000, depending on individual and collective performance.

The budget for the program will be sourced from the Miscellaneous Personnel Benefits Fund while government-owned and controlled corporations will obtain it from their corporate funds. — BM, GMA News
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