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PHILIPPINE LAWS, STATUTES & CODES
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ADMINISTRATIVE ORDERS
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ADMINISTRATIVE ORDER NO. 161 -
PRESCRIBING A STANDARD INCENTIVE PAY SYSTEM BASED ON PRODUCTIVITY AND
PERFORMANCE, FOR ALL OFFICIALS AND EMPLOYEES OF THE GOVERNMENT,
NATIONAL AND LOCAL INCLUDING THOSE OF GOVERNMENT-OWNED AND/OR
CONTROLLED CORPORATIONS AND GOVERNMENT FINANCIAL INSTITUTIONS AND FOR
OTHER PURPOSES
WHEREAS, government recognizes that
efficiency and effectiveness in the civil service can be further
enhanced by an incentive pay system that is based on employee
productivity and performance;
WHEREAS, some heads of government department/offices authorized to
grant of Productivity Incentive Benefits in varying amounts to their
officials and employees of CYs 1991, 1992 and 1993 invoking as legal
basis for such grant the provisions of Section s 31, 35 and 36(2),
Chapter 5, Subtitle I, Book V of the Administrative Code of 1987, but
which grant gave rise to dissension and dissatisfaction among those who
received less or no benefits due to lack of funds;
WHEREAS, there is a need to rationalize the grant of said Productivity
Incentive Benefit under a uniform set of guidelines to ensure fairness
and equity in its award;
WHEREAS, Sec. 17, Article VII of the 1987 Constitution vests in the
President of the Philippines prerogatives which include among others
the determination of the rates, the timing and schedule of payment, and
final authority to commit limited resources of government for the
payment of personnel incentives, cash rewards, productivity and loyalty
bonus, and other forms of additional compensation and fringe benefits
to government personnel.
NOW, THEREFORE, I, FIDEL V. RAMOS, President of the Republic of the
Philippines prerogatives which include among others the determination
of the rates, the timing and schedule of payment, and final authority
to commit limited resources of government for the payment of personnel
incentives, cash rewards, productivity and loyalty bonus, and other
forms of additional compensation and fringe benefits to government
personnel.
NOW, THEREFORE, I, FIDEL V. RAMOS, President of the Republic of the
Philippines, by virtue of the powers vested in me by law do hereby
direct.
Section 1.
Sec. 2.
Sec. 3.
Sec. 4.
Sec. 5.
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. For this purpose, government-owned
and/or controlled corporations and government financial institutions,
and local government units are hereby authorized to appropriate
annually an amount to cover these benefits.
Sec. 6.
Sec. 7.
Accordingly, all administrative authorization/decrees issued to select
government offices/agencies, government-owned and/or controlled
corporations and government financial institutions, and local
government units, relative to grant of any Incentive Award or Bonus;
administrative, memorandum and/or any order issued authorizing the
grant of Incentive Award or Bonus or any form of similar nature
pursuant to the provisions of Section s 31, 35 and 36(2), Chapter 5,
Subtitle A, Title I, Book V of Executive Order No. 292, otherwise known
as the Administrative Code of 1987; and executive orders providing for
the grant of said Incentive Award or Bonus that are not inconsistent
this Order are hereby revoked.
Sec. 8.
Sec. 9.
Sec. 10.
Sec. 11.
DONE in the City of Manila,
this 6th day of December in the year of our Lord, Nineteen Hundred and
Ninety Four.
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