Skip to content

8box Solutions Inc.


Contact Number: 09369340340

REVENUE MEMORANDUM CIRCULAR NO. 84-2021 issued on July 15, 2021 circularizes Executive Order (EO) No. 138 titled “Full Devolution of Certain Functions of the Executive Branch to Local Governments, Creation of a Committee on Devolution, and for Other Purposes”.
            The EO shall cover all Local Government Units (LGUs), departments, agencies and instrumentalities of the Executive Branch whose functions are in line with the devolved functions of the LGUs under Section 17 of Republic Act (RA) No. 7160 (Local Government Code of 1991), and other pertinent laws.
             The functions, services and facilities which shall be fully devolved from the National Government (NG) to the LGUs no later than the end of FY 2024, shall include those indicated under Section 17 of RA No. 7160 and other existing laws which subsequently devolved functions of the NG to LGUs. Devolution shall pertain to the act by which the NG, as may be allowed by existing laws, confers power and authority to the various LGUs to perform specific functions and responsibilities.
                    Except those functions that shall continue to be shared with the NG pursuant to Section 2 of the EO, local governments shall be primarily and ultimately responsible and accountable for the provision of all basic services and facilities fully devolved to them in accordance with the standards for service delivery to be prescribed by the NG.
                    In accordance with Section 17(g) of RA No. 7160, the basic services and facilities fully devolved shall be funded from the share of the LGUs in the proceeds of national taxes and other local revenues. Local chief executives shall ensure that any fund or resource available for the use of their respective LGUs shall be first allocated for the provision of basic services or facilities devolved before applying the same for other purposes, in accordance with relevant laws and budgeting and auditing laws, rules and regulations.
                     The National Government Agencies (NGAs) concerned and all LGUs shall prepare their respective Devolution Transition Plans (DTPs), which conform to the guidelines to be jointly issued by the Department of Budget and Management (DBM) and the Department of the Interior and Local Government (DILG). There shall be only one (1) DTP for each department, which shall already cover the agencies and Government-Owned or -Controlled Corporations (GOCCs) under the control or supervision or attached to such department.
                  The NGA DTPs shall identify and clarify the functions and services devolved to the LGUs, by level of LGU, based on RA No. 7160 and other relevant laws, and the strategy for and phasing of devolution to the LGUs. They shall also include the definition of standards for the delivery of devolved services; strategy for the capacity development of the LGUs; framework for monitoring and performance assessment of the LGUs; and an organizational effectiveness proposal to strengthen the department/agency in assuming “steering functions” as part of the devolution efforts.
                   The NGAs concerned may consult and collaborate with the DILG, National Economic and Development Authority (NEDA), Department of Finance (DOF), Civil Service Commission (CSC) and the Development Academy of the Philippines (DAP), and other resource institutions for technical assistance in the preparation of their respective DTPs.
                 The DTP shall be submitted by the NGAs concerned to the DBM within one hundred twenty (120) days from the effectivity date of the EO, for evaluation and approval. The DILG, through its Local Government Academy (LGA), shall oversee the provision of capacity development interventions for local governments, and shall develop the appropriate mechanisms to ensure efficient utilization of government resources on this effort. The LGA shall harmonize all capacity development interventions by the DBM, NEDA, DOF, other NGAs, DAP and third party service providers for the LGUs. lt shall optimize the potential of the Local Governance
                 National and Regional Resource Centers as the convergence platform for capacity development.
                Further, the DILG, DBM and the Bureau of Local Government Finance of the DOF shall include public financial management processes, such as local planning, investment programming, resource mobilization and budgeting, in the capacity development of the LGUs to ensure that the allocation of the revenue allotment for basic services and facilities is in accordance with Section 17 of RA No. 7160 and other relevant laws. Moreover, the DILG shall develop other capacity development strategies, facilitate institutionalization of performance standards, and develop performance incentive mechanisms under the Seal of Good Local Governance to promote excellence in local governance. To ensure continuity in the efficient and effective delivery of services, capacity development interventions shall, as far as practicable, be offered preferably to career or permanent local government personnel as a means of institutional strengthening
              To the extent authorized by the civil service laws, rules and regulations, personnel hired on a permanent basis, who may be affected by the devolution, shall have the option to:
               a. Apply for transfer to other units/offices within the department/agency/GOCC concerned
                   without reduction in pay;
               b. Apply for transfer to other departments/agencies/GOCCs in the Executive Branch
                   without reduction in pay; or
               c. Avail the retirement benefits and separation incentives as provided under Section 13 of                         this Order and, subject to the discretion of the LGUs, apply to vacant positions therein,
                    provided that their reemployment shall be considered as new entry to the civil service
                    and that they shall be subject to the compensation system of the LGU concerned.
              The DBM and DILG, in coordination with the CSC and with prior consultation with the LGUs through their respective Leagues, shall develop and issue the guidelines, as may be necessary, to ensure the fair, orderly, and transparent implementation of this provision; provided, that the NGAs are authorized to institute their respective internal operationalization guidelines, subject to existing CSC and DBM rules and regulations.
                 Affected personnel with permanent appointments who would opt to retire or separate from the service shall be given the option to avail the retirement benefits under existing laws, if qualified. ln addition to said retirement benefits, the affected personnel who would opt to retire or separate from the service shall be entitled to the following separation incentives:

Length of Service Rate
Less than eleven (11) years of service 1/2 of the actual monthly basic salary for every year of government service
Eleven (11) to less than twenty-one (21) years of service 3/4 of the actual monthly basic salary for every year of government service, computed starting from the 1st year
Twenty-one (21) to less than thirty-one (31) years of service actual monthly basic salary for every year of government service, computed starting from the 1st year
Thirty-one (31) years of service and above 1 1/4 of the actual monthly basic salary for every year of government service, computed starting from the 1st year

             The actual monthly basic salary shall refer to the salary of the affected personnel as of the date of approval of the department/agency’s revised organizational structure and staffing pattern by the DBM. A minimum of five (5) years of government service is required in order for affected personnel to be entitled to avail of the separation incentives; Provided, that for the purpose of computing the total amount of separation incentives that affected personnel shall receive, only the government service up to the age of fifty-nine (59) and a fraction thereof shall be counted.
                  Government service starting at the age of sixty (60) shall no longer be subject to the separation incentives provided herein; Provided, further, that for the purpose of complying with the required number of years of service under RA No. 8291 (Government Service Insurance System [GSIS] Act of 1997), the portability scheme under RA No.7699 (Portability Law) may be applied, to existing
policies and guidelines.
                 The retirement gratuity benefit of affected personnel who are qualified and shall avail of RA No. 1616, as amended, shall be paid by the GSIS. The GSIS shall no longer pay the refund of retirement premiums, both personal and government shares, of the affected personnel who will opt to retire under RA No. 1616.
              The affected personnel who retired or separated from the service shall, on top of applicable
statutory benefits, be entitled to the following:
              a. Refund of Pag-lBlG contributions, both personal and government shares, of all affected
                  members, pursuant to existing rules and regulations of the Home Development Mutual
                  Fund; and
              b. Commutation of unused vacation and sick leave credits of the affected personnel in
                   accordance with existing civil service rules and regulations. 
              Without prejudice to existing laws and regulations, affected personnel with permanent appointments who retired/separated from the service as a result of the devolution efforts shall be prohibited from reemployment in any agency of the Executive Branch, for a period of five (5) years, except as teaching and medical staff in educational institutions and hospitals, respectively. The reemployment of the retired/separated personnel in the Executive Branch within the prohibited period shall cause the refund of the separation incentives received by subject personnel under Section 13 of the EO, on a pro-rated basis.
              It is understood that the prohibition on the reemployment of the affected personnel shall not apply in the other branches of the Government and in the local governments. However, the affected personnel who will opt to be reemployed in the local governments shall be subject to the prevailing compensation system in the LGU concerned. The engagement of consultancy services of government personnel who retired or separated from the service as a result of the devolution efforts shall be governed by Section 7 of RA No. 6713 or the “Code of Conduct and Ethical Standards for Public Officials and Employees,” and other pertinent laws, rules and regulations.
                      This Order, or any guidelines, rules or regulations issued in pursuance thereof, or any initiative towards the transition of devolved functions from the NGAs to the LGUs, shall not operate to suspend or exempt any government office or personnel from compliance with the provisions of RA No. 11032 (Ease of Doing Business and Efficient Government Service Delivery Act of 2018). Any conflict between and among the provisions of this Order, or any guidelines, rules or regulations issued in pursuance thereof, shall be resolved or construed liberally in favor of the interpretation that would prevent any impediment in the delivery of public services by the NGAs and the LGUs.