REVENUE MEMORANDUM CIRCULAR NO. 85-2021 issued on July 15, 2021 publishes the full text of Administrative Order (AO) 25 Inter-Agency Task Force (IATF) Memorandum Circular No. 2021-1 titled “Guidelines on the Grant of the Performance-Based Bonus (PBB) for the Fiscal Year (FY) 2021 under Executive Order (EO) No. 80, S. 2012 and EO No. 201, S. 2016”.
The FY 2021 PBB covers all departments, bureaus, offices, and other agencies of the National Government, including Constitutional Commissions, Other Executive Offices (OEOs), Congress, the Judiciary, Office of the Ombudsman, State Universities and Colleges (SUCs),Government-Owned or-Controlled Corporations (GOCCs), Local Water Districts (LWDs) and Local Government Units (LGUs).
All personnel of agencies holding regular, contractual, and casual positions are covered by
the guidelines. Excluded from the coverage are individuals engaged without employer-employee relationship and funded from non-Personnel Services (PS) budget.
To be eligible for the grant of FY 2021 PBB, each agency must satisfy the criteria and conditions under the four dimensions of accountability, namely: Performance Results, Process Results, Financial Results and Citizen/Client Satisfaction Results and attain a total score of at least 70 points based on the PBB Scoring System.
a. Performance Results refer to the accomplishment of the Congress-approved performance targets under the Performance-Informed Budgeting (PIB) of the FY 2021 General Appropriations Act (GAA). This physical target is an existing eligibility criterion for SUCs and is only reinstated in the case of the National Government Agencies (NGAs).
b. Process Results refer to the achievements in ease of doing business/ease of transaction
with the agency as a result of streamlining, standardization i.e., through the ISO-certified QMS or its equivalent, digitization, and related improvements in the delivery of services. This is an existing criterion for NGAs and the GOCCs covered by the Department of Budget and Management (DBM).
c. Financial Results refer to the actual spending of the agency’s budget allotment vis-à-vis
the realization of the committed programs and projects based on the FY 2021 GAA. The Disbursements (Budget Utilization Rate) as well is a prevailing common target of all agencies.
d. Citizen/Client Satisfaction Results refer to the achievements in satisfying the quality expectations of the transacting public.
For FY 2021, the Good Governance Conditions (GGCs) shall no longer be required in determining the overall PBB eligibility of the agency. Nonetheless, compliance with these conditions shall be used as the basis in determining the eligibility of responsible units and individuals.
The agency accomplishments for each of the criteria shall be rated using a scale of 1 to
(where 5 is the highest). Each criterion has an assigned weight, as shown in the table below. The maximum score that may be obtained by the agency is 100 points. To be eligible for the FY 2021 PBB, the agency must attain a total score of at least 70 points.T
| TABLE 1: FY 2021 PBB SCORING SYSTEM | ||||||||
|---|---|---|---|---|---|---|---|---|
| CRITERIA AND CONDITIONS | WEIGHT | PERFORMANCE RATING | ||||||
| 1 | 2 | 3 | 4 | 5 | ||||
| Performance Results | 5 | 5pts | 10pts | 15pts | 20pts | 25pts | ||
| Process Results | 5 | 5pts | 10pts | 15pts | 20pts | 25pts | ||
| Financial Results | 5 | 5pts | 10pts | 15pts | 20pts | 25pts | ||
| Citizen/Client Satisfaction Results | 5 | 5pts | 10pts | 15pts | 20pts | 25 | ||
| TOTAL SCORE MAXIMUM = 100 POINTS | ||||||||
The target under Process Results is the greater ease of transaction of frontline servicescovering all government-to-citizens (G2C), government-to-businesses (G2B), and government-to government (G2G) transactions. This may be achieved through streamlining especially of frontline services; standardization of frontline processes including those implemented at the Regional, Satellite, and Extension Offices; digitization e.g., by developing electronic or online paperless systems, new service delivery channels, contactless transactions; and other process improvements for faster and more efficient public service delivery.
a. For departments/agencies and GOCCs covered by the DBM, the target under Process
Results is the greater ease of transaction of frontline services covering all G2C, G2B and
G2G transactions.
b. For SUCs, the target is to assure quality of service delivery through ISO- certified QMS
or its equivalent certification of frontline services.
Agencies should report and provide the objectively verifiable evidence of their achievements
in ease of doing business or ease of transaction from the perspective of the transacting public e.g., actual reduction in processing time, documentary requirements, transaction costs, and other tangible improvements. Agencies may use the Modified Form A to report their streamlining and digitization accomplishments. The ISO-certified QMS or its equivalent certification for frontline services, service delivery standards manual, and the like may be used as evidence to the standardization achievements of the agency. The Process Results shall be assessed and scored as follows:
| TABLE 3: RATING SCALE FOR PROCESS RESULTS | ||||||||
|---|---|---|---|---|---|---|---|---|
| For department/ agencies and GOCCs covered by the DBM | No demonstrated ease of transaction | Achieved targets to ease transaction (streamlining, digitization, standardization) only for nonfrontline services | Achieved targets to ease transaction (streamlining, digitization, standardization) in less than 80% of frontline services | Achieved targets to ease transaction (streamlining, digitization, standardization) at least 80% of frontline services | Achieved targets to ease transaction (streamlining, digitization, standardization) in all frontline services | |||
| For SUCs | No demonstrated standardization/ quality assurance | Achieved ISOcertification or its equivalent certification only for non-frontline services | Achieved ISOcertification or its equivalent certification for less than 80% of frontline services | Achieved ISOcertification or its equivalent certification for at least 80% of frontline services | Achieved ISOcertification or its equivalent certification for all frontline services | |||
The target under Financial Results for agencies and GOCCs covered by the DBM is the attainment of the FY 2021 Disbursement BURs. The targets shall reflect the final payments made from the agency’s annual budget allotment to realize their committed programs and projects based on the valid appropriations for FY 2021. The requirements under the Financial Results shall be scored as follows:
| TABLE 4: RATING SCALE FOR FINANCIAL RESULTS | ||||||||
|---|---|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | ||||
| 40-59% Disbursements BUR | 20-39% Disbursements BUR | 40-59% Disbursements BUR | 60-79% Disbursements BUR | 80-100% Disbursements BUR | ||||
To achieve the Citizen/Client Satisfaction Results, NGAs, GOCCs covered by the DBM, and SUCs shall accomplish and submit reports on the Citizen/Client Satisfaction Survey (CCSS), and resolve all reported complaints from Hotline #8888 and Contact Center ng Bayan (CCB).
To determine the effectiveness of streamlining, standardization, digitization, and other process improvements in easing transactions with the public, agencies have been encouraged to embed feedback mechanisms and systematically measure citizen/client satisfaction in the delivery of services since the FY 2018 cycle. To provide evidence on the citizen/client satisfaction results, agencies may report the results of the CCSS following Annex 4: Citizen/Client Satisfaction Survey.
Agencies shall also ensure resolution of all complaints and grievances on government service procedures, acts of red tape, corruption, and/or other interferences to public service delivery by any government agency, individuals, or instrumentalities reported to Hotline #8888 and CCB. To provide evidence on this, agencies may submit a report summarizing the #8888 and CCB complaints received in FY 2021 and their status if resolved or pending. The validation shall be complemented with reports and collected data on feedback and complaints from citizens/clients gathered by the OP, PMS, CSC, and PCOO from Hotline #8888 and CCB databases, as well as the FOI portals. The requirements under the Citizen/Client Satisfaction Results shall be scored as follows:
| TABLE 5: RATING SCALE FOR CITIZEN/CLIENT SATISFATION RESULTS | ||||||||
|---|---|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | ||||
| No submission/ Did not conduct CCSS | Average to low satisfaction rate with unresolved #8888/CCB complaints | Average satisfaction rate with 100% #8888/CCB complaints resolved | High satisfaction rate with 100% #8888/CCB complaints resolved | High satisfaction rate without #8888/CCB complaints | ||||
To sustain the institutionalization of compliance to existing government-mandated laws and standards, agencies and their Performance Management Team (PMT) shall continue to implement, monitor and enforce compliance with the following requirements within their agencies:
a. Updating of Transparency Seal
b. Compliance with the Freedom of Information (FOI) Program
c. Updating of Citizen’s or Service Charter
d. Compliance to Audit Findings and Liquidation of Cash Advances
e. Submission and Review of SALN
f. PhilGEPS posting of all invitations to bids and awarded contracts
g. Submission of FY 2022 Annual Procurement Plan-Common Use Supplies and
Equipment (APP-CSE), FY 2021 Non-Common Use Supplies and Equipment (APP-non
CSE), Indicative FY 2022 APP, and the results of FY 2020 Agency Procurement
Compliance and Performance Indicators (APCPI) System
h. Undertaking of Early Procurement Activities covering 2022 Procurement Projects
While the above conditions are no longer required in determining the overall PBB eligibility of agencies, compliance with these conditions shall be used as the basis in determining the eligibility of responsible units and individuals. Agencies should submit these legal requirements directly to the oversight agencies.
For FY 2021 PBB, the delivery units (DUs) of eligible agencies shall no longer be ranked.
However, the unit/s most responsible for deficiencies shall be isolated.
a. Based on Table 1, to be eligible for the FY 2021 PBB, the agency must attain a total
score of at least 70 points. To be able to attain at least 70 points, the agency should
achieve a performance rating of 4 in at least three (3) criteria. In such case, while the
agency will be eligible, the unit/s most responsible (including its head) for the criteria
stated in Section 3.0 of the IATF Memorandum Circular (MC) with a performance rating
of below 4 will be isolated from the grant of the FY 2021 PBB.
b. The unit/s most responsible (including its head) for the non-compliance with the Agency
Accountabilities provided in Section 5.0 of the MC will also be isolated from the grant of the FY 2021 PBB.
Eligible DUs shall be granted FY 2021 PBB at uniform rates across the agency, including its
officials and employees. The corresponding rates of the PBB shall be based on the agency’s achieved total score as shown in Section 7.0 of the MC.
Department Secretaries, Heads of OEOs, Chairpersons, and Commissioners of Constitutional Offices, Heads of Attached Agencies, Presidents of SUCs, and non-ex officio Heads of GOCCs covered by the DBM are eligible only if their respective agencies are eligible. If eligible, their PBB rate for FY 2021 shall be equivalent to the rates as stated in Section 7.0 of the MC and shall be based on their monthly basic salary (MBS) as of December 31, 2021.
To be eligible for FY 2021 PBB, employees belonging to the First, Second, and Third Levels should receive a rating of at least “Very Satisfactory” based on the agency’s CSC-approved Strategic Performance Management System (SPMS) or the requirement prescribed by the CESB.
Personnel in detail to another government agency for six (6) months or more shall be included in the recipient agency that rated his/her performance. The payment of the PBB shall come from the mother agency. Personnel who transferred from one government agency to another agency shall be included by the agency where he/she served the longest. If equal months were served for each agency, he/she will be included in the recipient agency. Officials and employees who transferred from government agencies that are non-participating in the implementation of the PBB shall be rated by the agency where he/she served the longest; the official/employee shall be eligible for the grant of the PBB on a pro-rata basis corresponding to the actual length of service to the participating implementing agency, as stated in Section 6.11 of the MC.
An official or employee who has rendered a minimum of nine (9) months of service during the fiscal year and with at least a Very Satisfactory rating may be eligible for the full grant of the PBB. An official or employee who has rendered less than nine (9) months but a minimum of three (3) months of service with at least Very 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:
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/or
h. Sabbatical Leave.
The following personnel are not eligible/entitled to the grant of the FY 2021 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 2021 (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 2020 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; and
d. Officials and employees who failed to liquidate all cash advances received in FY 2021
within the reglementary period as prescribed in COA Circular 97-002 dated February
10, 1997, and reiterated in COA Circular 2009-002 dated May 18, 2009.
The total score as stated in Section 4.0 of the MC shall be the basis in determining the amount
of the PBB an agency is eligible for. The maximum rate of the PBB for agencies that will achieve 100 points shall be 100% of the 65% monthly basic salary (MBS) of an individual as of December 31, 2021. For illustration, see table below:
| TABLE 6: RATES OF THE PBB | ||||||||
|---|---|---|---|---|---|---|---|---|
| Total Score | PBB Rates | |||||||
| 100 points | 65% (100% of the 65% monthly basic salary) | |||||||
| 95 points | 61.75% (95% of the 65% monthly basic salary) | |||||||
| 90 points | 58.5% (90% of the 65% monthly basic salary) | |||||||
| 85 points | 55.25% (85% of the 65% monthly basic salary) | |||||||
| 80 points | 52% (80% of the 65% monthly basic salary) | |||||||
| 75 points | 48.75% (75% of the 65% monthly basic salary) | |||||||
| 70 points | 45.5% (70% of the 65% monthly basic salary) | |||||||
All agencies should submit evidence of accomplishments of Performance Results, Process Results,Financial Results, and Citizen/Client Satisfaction Results, as provided in Section 4.0 of the MC, on or before February 28, 2022. Agencies are encouraged to make an electronic submission (scanned copy of the official submission and editable MS Word or Excel files for use of the AO 25 Secretariat).
Agencies shall ensure that all explanations and justifications for deficiencies are already attached in their submission. The AO 25 IATF shall conduct spot checks to validate claims and certifications made by the agencies on their submitted/posted reports and/or requirements. Agencies are encouraged to provide information to the AO 25 Secretariat on compliance with the Agency Accountabilities provided in Section 5.0 of the MC.
A Department/Agency/GOCC/LWD/LGU which, after due process by the oversight agency has been determined to have committed a prohibited act, shall be disqualified from the PBB in the succeeding year of its implementation. Moreover, the CSC or Ombudsman shall file the appropriate administrative case for 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 the Circular.