This Circular is being issued to prescribe the rules and regulations on the grant of PIB for CY 1994 and years thereafter authorized under Administrative Order No. 161, dated December 6, 1994.

2.0
Coverage

2.1 The benefits herein authorized shall apply to all appointive officials and employees of the national government, local government units and government-owned and/or controlled corporations and government financial institutions, including casual, temporary and full-time contractual personnel whose employment is in nature of regular personnel.

2.2. Officials and employees of government sequestered/foreclosed corporations that are covered by the national labor laws being implemented by the Department of Labor and Employment shall not be entitled to the benefits prescribed in this Circular.

3.0
Basis and Amount of Award

3.1 The incentive pay shall be based on individual personnel productivity and performance as evaluated and determined by the heads of the respective offices/agencies in accordance with the policies and standards set by the Civil Service Commission.

3.2 To be entitled to the PIB, officials/employees shall have at least a satisfactory performance rating for the two (2) semesters immediately preceding the year in which the incentive pay shall be released, and shall have contributed to the productivity of their office/agency as determined by the respective heads of agency.

3.3 The amount of incentive that will be paid deserving officials/employees pursuant to this Circular may vary for each official/employee within an agency depending on their individual performance appraisal.

4.0
Cost of Incentive

The total cost of the incentive pay that will be utilized for the purpose by any government agency, including government-owned and/or controlled corporations, government financial institutions and local government units, in any year shall in no case exceed the average of P2,000 per occupied/filled positions referred to in Item, 2.1 above.

5.0
Funding Source

5.1 For the National Government agencies, funding shall be from the Incentive Fund that will be provided in the annual General Appropriations Act.

5.2 In the case of government-owned and/or controlled corporations, including government financial institutions, local government units and project personnel, funding shall be sourced from their respective corporate, local and project funds.

6.0
Release of Funds to National Government Office/Agency

The Department of Budget and Management shall release the funds from the Incentive Fund direct to the government office/agency involved.

For the PIB for CY 1994, to be paid in 1995, agencies of the national government are required to submit, immediately after its payment, an accounting of the actual amount used for this purpose.

For the subsequent years, offices/agencies of the national government shall submit a list of officials and employees entitled to the benefit under this Circular within the first quarter of the calendar year immediately following the two semesters during which the benefit was earned, as basis for the release of funds.

7.0
Prohibition from Establishing/Authorizing a Separate Productivity and Performance Incentive Award

7.1 Heads of departments, agencies, governing boards, commissions, offices, including government-owned and/or controlled corporations and government financial institutions, and local government units, are hereby prohibited from establishing and authorizing a separate productivity and performance incentive award of any form.

7.2 Strict compliance by all concerned with the provisions of this Circular is enjoined. Anyone found violating any of the mandates in this Circular, including all officials/employees and the COA Auditor-In-Charge of such government office/agency found to have taken part thereof, shall be accordingly and severely dealt with in accordance with the applicable provisions of existing penal laws.

8.0

Cases not covered under this Circular shall be referred to the Department of Budget and Management for proper study and recommendation to the Office of the President.

9.0

The grant of benefit under said Circular shall take effect on January 1, 1995 based on the performance of officials and employees for CY 1994.

Adopted: 27 Dec. 1994

(SGD.) EMILIA T. BONCODIN
Acting Secretary