To:     Undersecretaries
Assistant Secretaries
Bureau Directors
Directors of Services, Centers, and Heads of Units
Regional Directors
Schools Division Superintendents
Heads, Public Elementary and Secondary Schools
Chiefs of Divisions
All Others Concerned

1. The Department of Education (DepEd) hereby issues the enclosed Guidelines on the Grant of Performance-Based Bonus (PBB) for the DepEd Employees and Officials for Fiscal Year (FY) 2014, which aims to establish a set of guidelines that provides for systematic and evidence-based mechanisms, procedures, and criteria for the granting of PBB in DepEd.
2. On December 21, 2011, the President issued Administrative Order (AO) No. 25 creating an Inter-Agency Task Force (IATF) on the Harmonization of the National Government Performance Monitoring, Information and Reporting Systems, which seeks to rationalize, harmonize, streamline, simplify, and unify the efforts of all of the agencies towards the realization of the commitments in the Philippine Development Plan (PDP) 2011-2016 and the Administration’s five Key Results Areas (KRAs) under Executive Order (EO) No. 43. AO 25, establishes a unified and integrated Results-Based Performance Management System (RPMS) across all departments and agencies within the Executive Branch incorporating a common set of performance scorecard to serve a single source of information on the status of government performance.
3. On July 20, 2012, the President issued the EO 80 directing the adoption of the Performance-Based Incentive System (PBIS) for Government Employees. EO 80 is based on the principle that service delivery by the bureaucracy can be improved by linking personnel incentives to the bureau or delivery unit’s performance, and by recognizing and rewarding exemplary performance to foster teamwork and meritocracy.
4. The PBIS consists of the Productivity Enhancement Incentive (PEI) and the top-up Performance-Based Bonus (PBB). The PBB shall be given to all government personnel in accordance with their contribution to the accomplishment of their department’s overall targets and commitments.
5. To be eligible for PBB, the performance of each agency shall be measured using verifiable and credible indicators based on the pillars of RPMS:
   1. Department’s/Agency’s Major Final Outputs (MFOs) and Performance Targets (PT) as specified in the Organizational Performance Indicators Framework (OPIF) and consistent with the targets reflected in the approved Office of the President (OP) Form 1-Planning Tool and the 2014 Approved Budget;
   2. Department’s/Agency’s commitments to the President which are supportive of the priorities under EO 43; and
   3. Good governance conditions based on the performance drivers of RPMS; namely: (i) financial stewardship, (ii) process efficiency, and (iii) leadership, learning, and growth.
6. Once the agency acquires eligibility to PBB, the delivery units and personnel shall be evaluated according to their performance in the achievement of the agency’s performance targets.
7. DepEd Memorandum No. 200, s. 2013 reconstituted the composition of a Task Force that will oversee the implementation of this Order.
8. All DepEd Orders and other previous issuances which are inconsistent with this Order are hereby repealed, rescinded, or modified accordingly.
9. Immediate dissemination of and strict compliance with this Order is directed.

(Sgd.) BR. ARMIN A. LUISTRO FSC
Secretary

Encl.: As stated

References:
DepEd Order Nos.: 12, s. 2013 and 33, s. 2014
DepEd Memorandum No. 200, s. 2013

To be indicated in the Perpetual Index under the following subjects: