The Department of Budget and Management (DBM) has released in its website the guidelines on the grant of performance-based bonus of government employees for CY 2023, particularly Memorandum Circular No. 2023-01.
Said guidelines was issued to prescribe the criteria and conditions for the grant of the PBB for FY 2023 performance, to be given in FY 2024.
Who may be granted with the PBB for CY 2023?
If you’re a personnel of the following agencies holding regular, contractual, or casual position, you may be eligible to receive PBB for CY 2023 which will be paid in CY 2024.
— National Government, including Constitutional Commissions;
— Other Executive Offices (OEOs);
— Congress;
— the Judiciary;
— State Universities and Colleges (SUCs);
— Government-Owned or-Controlled Corporations (GOCCs);
— Local Water Districts (LWDs); and
— Local Government Units (LGUs).
What are the conditions in order to be eligible to the PBB for CY 2023?
According to the aforementioned Circular, government agencies concerned shall meet the following eligibility criteria in order for the agency to be eligible to the PBB for CY 2023, viz:
To be eligible for the grant of the FY 2023 PBB, each agency must satisfy the criteria and conditions under the four (4) dimensions of accountability: 1) Performance Results, 2) Process Results, 3) Financial Results, and 4) Citizen/Client Satisfaction Results and attain a total score of at least 70 points, and achieve at least a rating of 4 for at least three (3) in the four (4) dimensions of accountability based on the PBB Scoring System as will be discussed in detail in Section 4.0.
Performance Results refer to the accomplishment of the Congress- approved performance targets under the Performance-Informed Budgeting (PIB) of the FY 2023 General Appropriations Act (GAA).
Process Results refer to the achievements in ease of doing business/ease of transaction with the agency as a result of streamlining, digitization, standardization, systems and procedures reengineering, and other related improvements.
Financial Results refer to the actual spending of the agency’s budget allotment vis-a-vis the realization of the committed programs and projects based on the FY 2023 GAA.
Citizen/Client Satisfaction Results refer to the achievements in satisfying the quality expectations of the transacting public/client.
AO 25 Memorandum Circular No. 2023-01
On the other hand, personnel concerned shall comply the Agency Accountability requirements enumerated in Section 5.0 and Annex 6 of the Circular.
TAKE NOTE: While the Agency Accountability requirements are no longer required in determining the overall PBB eligibility of agencies, compliance with these conditions shall be used as the basis for determining the eligibility of responsible units and individuals. Agencies should submit these legal requirements directly to the validating agencies.FY 2023 PBB Scoring System
As provided in the Circular, for a government agency to be eligible to the PBB for CY 2023, it must be able to attain a total score of at least 70 points, and achieve at least a rating of 4 for at least three (3) criteria, based on the PBB Scoring System as shown below.
The Circular provides the rating matrix or rating scale for each dimension of accountability which shall be used in determining the overall score of the agency. It is emphasized that the agency must attain at least 70 points and a rating of 4 in at least 3 criteria to be eligible to the PBB for CY 2023. However, in case the agency fails to meet a rating of 4 in at least three (3) criteria, the unit/s most responsible (including its head) for the criteria stated in Section 3.0 with a performance rating of below 4 will be isolated from the grant of the FY 2023 PBB.
TAKE NOTE: The unit/s most responsible (including its head) for the criteria with a performance rating of below 4, will be isolated from the grant of the FY 2023 PBB.To illustrate, the agency may still get a score of 70 points but may not be able to comply but may not be able to get a rating of 4 in at least 3 criteria.
Performance Results (Score 4) = 20 points
Process Results (Score 5) = 25 points
Financial Results (Score 3) = 15 points
CCS Results = (Score 3) = 15 points
Total Points = 75 points (but scored 4 in only 2 criteria)
In the case above, the unit/s most responsible (including its head) for the criteria with a performance rating of below 4 (i.e., Financial and CCS Results), will be isolated from the grant of the FY 2023 PBB.
Conditions on the Grant of CY 2023 PBB to Government Officials and Employees
In addition to the above conditions (agency-specific), the following conditions must also be complied with by government employees concerned to be able to receive the CY 2023 PBB:
— First, Second, and Third Levels employees should receive a performance rating of at least “Very Satisfactory”.
— Heads of Agencies concerned shall be eligible to the PBB for CY 2023 only if their agency is eligible.
— Have rendered at least nine (9) months of service to receive the full rates of PBB, otherwise, the grant shall be on a pro-rata basis. An employee who is on vacation or sick leave, with or without pay, for the entire year is not eligible for the grant of the PBB.
— Has not been found guilty of administrative and/ or criminal cases by final and executory judgment in FY 2023.
— Has submitted his/her 2022 SALN.
— Has liquidated all cash advances received in FY 2023 within the reglementary period.
How much is the PBB for CY 2023?
As provided in the subject Circular, the PBB rates for CY 2023 are as follows:
Based on the above PBB rates for CY 2023, the employees of an agency which garnered a total of 100 points on all the accountability criteria may be granted 100% of the 65% of their monthly basic salary (MBS) as of December 31, 2023, 95% of the 65% of MBS if the agency score is 95 points, and so on.
However, if the eligible agency failed to submit the complete PBB requirements on time, the rates of incentives will be reduced by 5%.
Learn more
The summary presented above may have not included other conditions specific to certain government agencies. To learn more about the guidelines on the grant of PBB for CY 2023, download Memorandum Circular No. 2023-01 via the DBM website.
