REVENUE MEMORANDUM ORDER NO. 31-2013 issued on November 26, 2013 prescribes the policies, guidelines and procedures in the implementation of the Performance-Based Incentive System (PBIS) for government employees and the criteria and conditions for the grant of Performance-Based Bonus (PBB) in FY 2013. The PBB shall cover all officials and employees of Departments/Agencies, State Universities and Colleges, Government-Owned and-Controlled Corporations holding regular plantilla positions, and contractual and casual personnel having an employer-employee relationship with the said agencies, and have rendered at least 9 months of service for the year 2013. The PBB is characterized by a two-step system of ranking the offices under a Department and the employees within the offices according to their performance as measured by verifiable and credible indicators of performance based on the pillars of the Results-Based Performance Management System:  Department’s/Agency’s Major Final Output (MFO) and Performance Targets as specified in its Organizational Performance Indicators Framework and consistent with the targets reflected in the 2013 Approved Budget;  Department’s/Agency’s commitments to the President that are supportive of the priorities under Executive Order (EO) No. 43; and  Good Governance conditions based on the performance drivers by the Administrative Order 25 Inter-Agency Task Force. The Department/Agency/Unit shall be eligible for the PBB, provided that the following criteria shall be satisfied:  Achieve at least 90% of each one of the performance targets for the delivery of MFOs, Support to Operations, and General Administration and Support Services;  Achieve at least 90% of each one of the priority program/project targets under the 5 Key Result Areas of EO No. 43;  Satisfy 100% of the Good Governance conditions set by the Inter-Agency Task Force for CY 2013; and  Ranking of performance of bureaus/delivery units and the personnel within the bureaus/delivery units. For FY 2013, inability to meet any of the targets in III.2 of the Order will render departments/agencies ineligible for the PBB. Inconsistency and inaccuracy of the compliance reports/certification made by the department/agency may also be considered a ground for disqualification to the PBB, upon proper determination and due process. The qualified agencies, bureaus, offices or delivery units shall be ranked as follows: Ranking Performance Category Top 10% Best Bureau/Office/Delivery Unit Next 25% Better Bureau/Office/Delivery Unit Next 65% Good Bureau/Office/Delivery Unit In determining the eligibility of personnel for the PBB, the following shall be observed:  Employees belonging to the First and Second Levels should receive a rating of at least “Satisfactory” under the existing Performance Evaluation System;  Officials belonging to the Third Level should receive a rating of at least “Very Satisfactory” under the Career Executive Service Performance Evaluation System (CESPES). Payment of the PBB to Third Level Officials shall be contingent on the results of CESPES;  The contractual and casual personnel who may be entitled to the PBB shall be those whose compensation are charged to the lump sum appropriation under Personnel Services; or those occupying positions in the Department of Budget and Management-approved contractual staffing pattern of the agencies concerned. They may be included in the ranking along with the regular personnel;  Personnel on detail to another government agency for 6 months or more as of November 30, 2013 shall be included in the ranking of employees in the recipient agency that rated his/her performance;  Personnel on scholarship may be included in the ranking, provided they qualify based on the performance criteria established by the Performance Management Group of the Department/Agency and approved by the Department Secretary/ Head of Agency; and  Personnel found guilty of administrative and/or criminal cases filed against them and meted penalty in FY 2013 shall not be entitled to the FY 2013 PBB. If the penalty meted out is a reprimand, such penalty shall not cause the disqualification to the PBB. Officials and employees of bureau, offices or delivery units that qualified for the PBB shall be forced ranked, as follows: For the best and better bureaus: Ranking Individual Performance Category Top 15% Best Performer Next 30% Better Performer Next 55% Good Performer For the good bureaus: Ranking Individual Performance Category Top 10% Best Performer Next 25% Better Performer Next 65% Good Performer