Summary
RMC No. 59-2018 publishes the full text of IATF Memorandum Circular No. 2018-1 of the DBM, the Guidelines on the Grant of the Performance-Based Bonus (PBB) for Fiscal Year 2018.
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Key points
- Coverage. It covers officials and employees of eligible government departments and agencies holding regular plantilla positions, contractual and casual personnel with an employer-employee relationship paid from the Personnel Services budget, and those in the DBM-approved contractual staffing pattern.
- Agency conditions. An agency must satisfy 100% of the Good Governance Conditions (Transparency Seal, PhilGEPS posting, Citizen’s or Service Charter) and achieve each Performance Target. Failing any one makes the whole agency ineligible, and the GGC assessment starts October 1, 2018.
- Performance targets. These cover process streamlining of critical services (no more than three (3) signatures, 50% cut in turnaround time and completion within 15 days), citizen satisfaction, QMS certification, and general administration targets such as early procurement of at least 50% of value.
- Individual eligibility. Employees need at least a Satisfactory rating. Nine (9) months of service gives the full PBB, and three (3) months to less than nine (9) months gives a pro-rata share from 40% to 90%. Those ineligible include employees on leave for the entire year, those found guilty of cases by final judgement (a reprimand alone does not disqualify), and those who missed the 2017 SALN, cash advance liquidation or complete SPMS Forms.
- Ranking and rates. Eligible delivery units are ranked: Top 10% Best, Next 25% Better and Next 65% Good. The PBB is 0.65, 0.575 and 0.50 of monthly basic salary as of December 31, 2018, and heads of agencies are capped at 65% of monthly basic salary.
- Prohibited acts. Misrepresentation, fraud in PBB payment, violating the Circular, or evenly distributing the PBB among employees disqualifies the agency from the PBB in the succeeding year.
Who is affected
- Officials and employees of eligible government departments and agencies
- Contractual and casual personnel with an employer-employee relationship
Deadlines and effectivity
- Good Governance Conditions assessment starts October 1, 2018
- Full PBB for at least nine (9) months of service
- Maximum rate based on monthly basic salary as of December 31, 2018
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.
