1. Under Administrative Order No. 161 dated December 6, 1994 the grant of Productivity Incentive Benefit (PIB) was authorized effective 1995 to all appointive employees of the national government, local government units (LGUs), government-owned and controlled corporations (GOCCs) and government financial institutions (GFIs) including casual, temporary and full-time contractual personnel whose employment is in the nature of regular personnel.

2. The grant thereof, shall be based on the individual personnel productivity and performance as evaluated and determined by the heads of the respective agencies in accordance with the policies and standards set by the Civil Service Commission.  The amount of PIB that will be paid may vary for each official/employee within an agency depending on individual performance appraisal.

3. Agency heads are, however, prohibited from establishing and authorizing a separate productivity and performance incentive award or any form of the same or similar nature.

4. It shall be chargeable, in the case of national government agencies, from the lump sum appropriation provided for the purpose in the FY 2000 General Appropriations Act.  In the case of GOCCs and GFIs, and LGUs, funding shall be sourced from their corporate and local funds, respectively.

5. The rules and regulations for the grant thereof is provided for under National Compensation Circular (NCC) No. 73 dated December 27, 1994 as amended by NCC No. 73-A dated March 1, 1995.

6. Please be guided accordingly.

Adopted: 02 March 2001

(SGD.) EMILIA T. BONCODIN
Secretary