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REVENUE MEMORANDUM CIRCULAR NO. 63-2020 issued on June 23, 2020 publishes the Guidelines on the Grant of the Performance-Based Bonus (PBB) for Fiscal Year 2020 under Executive Order (EO) No. 80, s. 2012 and EO No. 201, s. 2016.

All personnel of government agencies holding regular, contractual and casual positions are covered by the guidelines. Excluded from the coverage are individuals engaged without employeremployee relationship and funded from non-Personnel Services (PS) budget. To be eligible for the grant of PBB, each agency must satisfy the following conditions:

A. Good Governance Conditions (GGCs). Departments/agencies shall satisfy 100% of GGCs for FY 2020 as provided in Section 4.0 of the guidelines, to wit:
i. Maintain/Update the agency Transparency Seal
ii. Update the PhiIGEPS posting of all invitations to bids and awarded contracts for transactions above Php 1 Million from January 1 to December 31, 2020, including Early Procurement of FY 2021 Non-Common Use Supplies and Equipment (Non-CSE) items
iii. Set-up most current and updated Citizen’s or Service Charter reflecting the agency’s improved and streamlined/re-engineered system and procedure for all its government services to citizens, businesses and government agencies
B. Performance Targets of Agencies. Departments/agencies shall satisfy FY 2020 performance targets relative to the streamlining and process improvement of the agency’s critical services, including digitization, development of online systems, and/or contactless transactions, based on the provisions stated in Section 5.2 of the guidelines. Departments/agencies should also embed feedback mechanisms and citizen/client satisfaction measurement in their process improvement efforts.

Another performance target is the initial Certification/Recertification of the agency’s Quality Management System (QMS) covering at least one (1) critical frontline service or core process as mandated under its existing pertinent laws. For frontline agencies, it is expected that the core agency process pertains to an agency process most demanded by the citizens and businesses, and targeted for improvements.

Frontline agencies shall endeavor that their frontline processes are standardized, including those implemented at the Regional, Satellite, and Extension Offices.
The common GASS Targets and other cross-cutting requirements that must be complied with by departments/agencies are specified in the guidelines.

To reinforce fairness in the assessment of the performance of each delivery unit under operations with those under support services, departments/agencies should also declare non-frontline services provided to units/employees performed by the latter delivery units.

The rating of the performance of the First and Second Level officials and employees of departments/agencies in NGAs, GOCCs, and LGUs, including managerial or director positions, but are not Presidential appointees, shall be consistent with the CSC-approved Strategic Performance Management System (SPMS). For the CES officers and incumbents to CES positions, the rating of their performance shall be based on the guidelines issued by the CES Board (CESB).

Employees belonging to the First, Second and Third Levels should receive a rating of at least “Satisfactory” based on the agency’s CSC-approved SPMS or the requirement prescribed by the CESB.

An official or employee who has rendered less than nine (9) months but a minimum of three (3) months of service with at least Satisfactory rating shall be eligible for the grant of the PBB on a pro-rata basis corresponding to the actual length of service rendered, as follows:

8 months but less than 9 months 90%
7 months but less than 8 months 80%
6 months but less than 7 months 70%
5 months but less than 6 months 60%
4 months but less than 5 months 50%
3 months but less than 4 months 40%

The following are the valid reasons for an employee who may not meet the nine-month actual service requirement to be considered for PBB on a pro-rata basis:
a. Being a newly hired-employee;
b. Retirement;
c. Resignation;
d. Rehabilitation Leave;
e. Maternity Leave and/or Paternity Leave;
f. Vacation or Sick Leave with or without pay;
g. Scholarship/Study Leave; and
h. Sabbatical Leave
The following personnel are not eligible to the grant of the FY 2020 PBB:
a. An employee who is on vacation or sick leave, with or without pay, for the entire year;
b. Personnel found guilty of administrative and/or criminal cases by final and executory judgment in FY 2020 (if the penalty meted out is only a reprimand, such penalty shall not cause the disqualification to the PBB);
c. Officials and employees who failed to submit the 2019 Statement of Assets, Liabilities and Networth (SALN) or those who are responsible for the non-compliance with the establishment and conduct of the review and compliance procedure of SALN;
d. Officials and employees who failed to liquidate all cash advances received in FY 2020 within the reglementary period; and
e. Officials and employees who failed to submit their complete Strategic Performance Management System (SPMS) Forms.

Officials and employees responsible for the implementation of the prior years’ audit recommendations, QMS certification, or posting and dissemination of the department/ agency system of ranking performance of delivery units, shall not be entitled to the FY 2020 PBB if the department/agency fails to comply with any of these requirements.
Bureaus, offices or delivery units eligible to the PBB shall be forced ranked according to the following categories:

Top 10% Best Delivery Units
Top 25% Better Delivery Units
Top 65% Good Delivery Units

The declarations of responsible bureaus/offices/delivery units in the completion of each critical service or other key processes shall be the basis for equitable performance ranking of delivery

To facilitate the ranking of delivery units, agencies may group or cluster the delivery units based on similarities of tasks and responsibilities, and rank the units within each group or cluster. Only the personnel belonging to eligible delivery units are qualified for the PBB.

The rates of the PBB for each individual shall be based on the performance ranking of the individual’s bureau or delivery unit with the rate of incentive as a multiple of one’s monthly basic
salary as of December 31, 2020, based on the table below.

Best Delivery Unit 0.65
Better Delivery Unit 0.575
Good Delivery Unit 0.50

For FY 2020, agencies that are unable to comply with all the GGCs shall be considered ineligible for the FY 2020 PBB. Departments/agencies that are unable to comply with a maximum of two (2) Performance Targets due to controllable factors, as determined by the validating agencies, shall be considered ineligible for the FY 2020 PBB.
In the event the AO25 Inter-Agency Task Force (IATF) conducted a random check of submitted SALN of employees and found non-compliance with the guidelines prescribed by the CSC and the posted Review and Compliance Procedure of the concerned department/agency, such incident could be a cause to disqualify the department/agency in the succeeding cycle of the PBB.
A department/agency/GOCC/LWD/LGU which, after due process by the oversight agency has been determined to have committed the following prohibited acts, shall be disqualified from the PBB in the succeeding year of its implementation:
a. Misrepresentation in the submitted/posted reports and requirements for the PBB, a commission of fraud in the payment of the PBB and violation of the provisions of this guidelines (AO25 IATF Memorandum Circular No. 2020-1); and
b. Evenly distributing PBB among employees in an agency, in violation of the policy of paying the PBB based on the ranking of delivery units.
Moreover, the CSC or Ombudsman shall file the appropriate administrative case.