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EXECUTIVE ORDERS
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EXECUTIVE ORDER NO. 486 -
ESTABLISHING A PERFORMANCE-BASED INCENTIVE SYSTEM FOR GOVERNMENT-OWNED
OF CONTROLLED CORPORATIONS AND FOR OTHER PURPOSES
WHEREAS,
in line with the Reform Program for Government Corporation, the
Government, through the Government Corporate Monitoring and
Coordinating Committee (GCMCC), seeks to improve the financial and
operating efficiency and effectiveness of government-owned or
controlled corporations (GOCCs);
WHEREAS, The establishment, development and implementation of an
effective Performance Evaluation System as provided under Executive
Order No. 236 dated 22 July 1987 constitute one of the most important
elements of the Reform Program;
WHEREAS, there is a need to establish a well-designed incentive system
to complement the exemplary performance of GOCCs bases on the
Performance Evaluation System; and
WHEREAS, Presidential Decree No. 985, as amended by Presidential Decree
No. 1597 and Republic Act No. 6758, authorizes the Department of Budget
and Management to review on continuing basis and to prepare, for the
consideration and approval of the President, policies and levels of
allowances and other fringe benefits applicable to government
personnel;
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby order:
Section 1.
Sec. 2.
Sec. 3.
Sec. 4.
The incentives and rewards may be any of the following:
a.
b.
c.
The above incentive fund shall be the source for rewards, either in kind or in cash bonuses, to be granted by GOCCs only to deserving officers and employees based on an evaluation of their individual performance and relative contribution to the attainment of the corporation’s goals and targets. Said system for evaluating the employees’ performance shall be consistent with the pertinent policies and guidelines issued by the Civil Service Commission. The maximum allowable amount of incentive bonus for a GOCC officer or employee shall vary according to the performance grade of the GOCC and to his individual performance but shall in no case exceed three (3) months basic salary or its equivalent.
Each eligible GOCC shall prepare a program for the disposition of the incentive fund to deserving officers and employees, subject to the guidelines to be issued jointly by the GCMCC and the DBM upon the recommendation of an Inter-Agency Committee.
This Inter-Agency Committee is hereby created to be composed of representatives, with the rank of Director, from the Government Corporate Monitoring and Coordinating Committee, the Department of Budget and Management and the Civil Service Commission.
Funding for the implementation of the corporate incentive awards authorized herein shall be provided in the succeeding budget of the respective GOCCs following the year performance criteria and targets are negotiated and agreed upon with the GCMCC.
The GCMCC, upon the recommendation of the Inter-Agency Committee, may introduce modifications or additional forms of incentives, subject to the approval by the President of the Philippines.
Sec. 5.
Sec. 6.
Sec. 7.
Sec. 8.
Sec. 9.
Sec. 10.
DONE in the City of Manila,
this 8th day of November, in the year of Our Lord, nineteen hundred and
ninety-one.
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