Budget official: Not all gets performance-based bonus

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Sunday, November 18, 2012

BUDGET and Management Secretary Florencio Abad clarified Sunday that the Performance-Based Bonus (PBB) system is different from other bonuses and not all government employees are entitled to it.

Abad said PBB is distinct from the 13th month pay, year-end cash bonus, and Productivity Enhancement Incentive (PEI) for government employees.

“The PBB is actually distinct from an employee’s year-end cash bonus, 13th month pay, and PEI. The purpose of the PBB is to ensure that our public servants receive due recognition for their efforts,” he said.


“An outstanding employee, for example, will receive a significantly higher PBB -- on top of the other bonuses given to him -- than a worker who merely fulfills the bare minimum of his duties,” he added.

Civil servants are entitled to receive 13th month pay -- equivalent to their monthly salary -- as well as a year-end cash gift of P5,000 and PEI worth P5,000.

Abad clarified, however, that not all government employees are guaranteed to receive a performance-based bonuses.

“In contrast to the other bonuses, the PBB is certainly not an entitlement. Because the PBB system is a decisively merit-based scheme, employees who underperform or fail to meet their targets won’t actually receive anything. Why reward someone who works poorly or inefficiently?” he said.

He said the PBB system was designed to address a longstanding problem in the Philippine bureaucracy, where the distribution of bonuses -- and their corresponding amounts -- was sometimes arbitrary or subject to biases.

“We’ve seen cases of employees receiving hefty perks with little justification. At the same time, many civil servants who turn out exceptional work don’t always get the recognition they deserve. This can be very demoralizing, especially if you’ve served the government for a long time and you do your best in every task,” he said.

“Under this administration, however, the distribution of performance based bonuses will be commanded solely by merit and the quality of an employee’s performance. The targets are actually measurable and strictly empirical, so that office higher-ups can preserve the objectivity of their assessments,” Abad added.

He likewise underscored the reform value of the PBB system, especially in view of the Aquino administration’s commitment to provide better and more efficient public goods and services to Filipinos. (Jill Beltran/Sunnex)

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