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Objectives of Administrative Order No. 25 Rationalize, harmonize, streamline, simplify, integrate and unify the efforts of government agencies relative to the National Leadership’s Agenda Establish a unified and integrated Results‐Based Performance Management Systems (RBPMS) Use RBPMS as basis for determining entitlement to performance‐based allowances, incentives, or compensation of personnel Executive ecut e O Order de  No. o. 80 Directing the Adoption of a  Performance‐Based Incentive (PBI)  System for Government Employees Premises There is a need to: 1. 2. 3. 4 4. Rationalize the current incentive system in government which is generally characterized by across‐the‐board bonuses Strengthen performance monitoring and appraisal systems based on existing systems like the OPIF, the Strategic Performance Management System of the CSC and the RBPMS Improve service delivery by the bureaucracy by linking personnel incentives to the bureau or delivery unit’s performance E t bli h a Performance Establish P f ‐Based B d Incentive I ti (PIB) System S t th t will that ill motivate ti t higher performance and greater accountability Performance‐Based Incentive System PBI system consisting of the Productivity Enhancement Incentive (PEI) and the Performance‐Based Bonus (PBB) shall be adopted in the national government beginning FY 2012. 1. 2 2. PEI at P 5,000 shall continually be granted across‐the‐board PBB, which is a top‐up bonus, PBB bonus shall be given to personnel of bureaus or delivery units in accordance with their contribution to the accomplishment of their Department’s overall targets and commitments i Qualifications for PBB* Achieved at least 90%  of f MFO targets agreed d  with the President  under the five Key  Results Areas of EO 43 Met 100% of the  Good Governance  conditions/  requirements set by  the AO 25 Task Force  ll  under d  the h   annually performance drivers  of the RBPMS Bureaus within the Department meeting above conditions are forced  ranked k d and d the h  personnel l within h  them h * Memorandum Circular (MC) No. 2012‐1 dated August 13, 2012 MC No No. 2012‐02 dated October 16 16, 2012 MC No. 2012‐02‐A dated October 31, 2012 Performance Categories* (Forced Ranking g of Bureaus/Delivery / y Units Eligible g  to the PBB) ) 10% BEST 25% BETTER 65% GOOD * Memorandum M d  Circular Ci l  N No. 2012‐03 d dated t d N November b  12 12, 2012 Performance Categories Categories* (Forced Ranking of Officials and Employees of Bureaus, Officers of  Delivery Units qualified  for the PBB) 10%    BEST 25% %   BETTER 65%   GOOD Below Satisfactory f y Rating g (First (  & Second Level – No PBB Below Very Satisfactory Rating (Third Level) – No. PBB * Memorandum Circular No. 2012‐03 dated November 12, 2012 Note:  GOCCs should refer to GCG 2012‐11 dated September 12, 2012 for the categories of ranking individuals  PBB RATES OF INCENTIVES* Bureau/Delivery u eau/ e e y U Unit t Performance Category Individual d dua  Performance e o a ce Category Catego y BEST 35 000 35,000 25,000 15,000 BETTER 20 000 20,000 13,500 10,000 GOOD 10 000 10,000 7,000 5,000 BEST BETTER GOOD * Memorandum Circular No. 2012‐03 dated November 12, , 2012 Submission of PBB Accomplishment Reports Deadline of Submission November 30, 2012 December 31, 2012 Grant of PBB December 2012 1st Quarter of 2013 Departments/Agencies should submit the PBB Accomplishment Reports (in hard and electronic copies) to their respective DBM‐ BMBs, copy of which should be furnished the IATF through