To: Undersecretaries
Assistant Secretaries
Bureau/Cultural Agency Directors
Directors of Services/Centers and Heads of Units
Regional Directors
Schools Superintendents
Presidents, State Colleges and Universities
Vocational School Superintendents/Administrators

1. For the guidance and compliance of all concerned, inclosed is a copy of Administrative Order No, 161, dated December 6, 1994 issued by the Office of the President, prescribing a standard incentive pay system based. on productivity and performance among officials and employees of the government, which shall take effect on January 1, 1995.
2. Section 10 of said Administrative Order directs the Department of Budget and Management to issue appropriate circulars for its implementation. As the basis of the grant of this incentive pay is individual productivity and performance for CY 1994, it is suggested, that required performance evaluation results in the respective offices be made ready in time for the issuance of the implementing circulars.
3. The Suggestion and Incentive Awards Committee, as constituted under DECS Order No. 61, s, 1993, shall undertake the implementation of the incentive pay system prescribed in this Administrative Order.
4. Please be guided accordingly.

Incl.: As stated
Reference: DECS Order: (No. 61, s. 1993)
Allotment: 1-2-3—(M.O. 1-87)

To be indicated in the Perpetual Index under the following subjects:.
BUREAUS & OFFICES
EMPLOYEES
OFFICIALS
RULES & REGULATIONS