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