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Performance-Based Bonus (PBB) for LGUs 

Executive Order No. 201 s. 2016 revised the Compensation and Position Classification System in order to, among others, strengthen the performance-based incentive system in recognition of government personnel who play a greater role and carry a heavier responsibility in attaining performance targets and delivering units. Said EO also stipulates that the grant of the enhanced PBB shall be subject to the achievement by departments or agencies, including LGUs and individual employees of their performance targets or commitments and compliance with good governance and other conditions.

The DILG and DBM prescribes for the criteria and conditions for the grant of the PBB to support the Administration’s focus on the streamlining of government services, integrity, transparency, accountability, proper management of public affairs and public property, as well as to establish effective practices, aimed at the efficient turnaround of the delivery of government services and the prevention of graft and corruption in government.

Coverage

The Joint Memorandum Circular (JMC) yearly issued by the DILG-DBM covers all provinces, cities and municipalities, excluding barangays; and applies to all their officials and employees holding regular plantilla positions, as well as, contractual and casual personnel, having an employer-employee relationship with these LGUs, and whose compensation are being paid wholly out of the Personnel Services budget. 

Eligibility Criteria and Conditions

DILG-DBM JMC No. 2023-001 s. 2023

• Section 3.1 of JMC 2021 - 001 series fo 2021 is amended to provide for appropriate and meaningful eligibility criteria. The minimum local governance standard for the grant of FY 2022 PBB is  the SGLG. This means that the LGU mus be an awardee of SGLG for CY 2022.

DILG-DBM JMC 2021-01 s. 2021 

• LGUs must pass the minimum local governance standards which entails becoming a consistent passer of the Good Financial Housekeeping (GFH) excluding After Assessment passers, from FY 2014 up to the most recent assessment period, as of November 5, 2021.

• Set-up Most Current and Updated Citizen’s Charter reflecting the LGU’s improved and streamlined/re-engineered system and procedure for all its government services to citizens, businesses and government agencies pursuant to Section 6 of Republic Act No. 11032 and the President’s directive to reduce processing time of all public transactions with government and ensure accessible and convenient delivery of services to the public.

• Sustained Compliance with Audit Findings of at least 30% prior years’ audit recommendations must be fully implemented as shown in the Report on the Status of Implementation Prior Years’ Recommendations.

• Performance Rating System to be used for personnel in the First and Second Levels, and those occupying Career Executive Service (CES) positions of departments/agencies in NGAs, GOCCs, and LGUs, including managerial or director positions, but are not Presidential appointees, shall be consistent with Civil Service Commission (CSC)-approved Strategic Performance Management System (SPMS).

• LGUs must first meet the requirement prescribed in Section 3.1 as a consistent passer of Good Financial Housekeeping form FY 2014 up to the most recent assessment period, and satisfy the criteria and conditions in Section 3.2. In case of non-compliance with any one (1) of the three (3) conditions in Section 3.2, LGUs may still qualify for the FY 2021 PBB with isolation of the unit/s and official/s most responsible for the deficiency.
  
  
  

Enrollment Process

The grant of the PBB to LGUs is not mandatory, and shall be implemented through an enrollment process. LGUs that intend to participate in the grant of the PBB shall signify their intention by writing a  Letter of Intent addressed to the DILG Regional Director concerned, through the concerned DILG Field Officers.

Scoring System

LGUs shall be rated in accordance to their compliance to the criteria cited in the JMC. Each criterion has assigned weight. The maximum score that may be obtained by the LGU is 50 points. To be eligible for the grant, the LGU must attain a total score of at least 40 points. 

Funding Sources

The PBB shall be charged against LGU funds, subject to the Personnel Services limitation in LGU budgets, pursuant to Sections 325(a) and 331(1) of the Local Government Code of 1991 (R.A. No. 7160).

The LGU shall exxercise prudence in the use of local funds. In determining the amount of the PBB, the Sanggunian concerned shall ensure that the same is reasonable and that the expenditure will not, in any way, adversely affect the delivery of services to the public.

Submission of Accomplished Forms 

• The PDO and HRMO of the eligible LGU shall accomplished Form 1 (Report on LGU Officials and Employees Eligible to Receive Grant).

• Prior to the release of the PBB to the eligible individuals, the accomplished Form shall be submitted to the following personnel: 

a. DILG Provincial Director for Provinces

b. City Director or City Local Government Operations Officer (CLGOO) for cities

c. Municipal Local Government Operations Officer (MLGOO)

The City Director/CLGOO/MLGOO shall transmit all submitted Form 1 documents to the concerned Provincial Director through the designated LGU-PBB Provincial Focal Person.

• The designated LGU-PBB Provincial Focal Person shall accomplish Form 2 (Provincial Consolidation Report for Component Cities and Municipalities) and submit such, together with Form 1 documents, to the concerned DILG Regional Office through the designated LGU-PBB Regional Focal Person.

• The designated LGU-PBB Regional Focal Person shall accomplish Form 3 (Regional Consolidation Report for Provinces, Hughly Urbanized Cities and Independent Component Cities) and submit such, together with accomplished Form 1 and 2, to the BLGS, not later than the date identified by the bureau. 

Legal Bases / References

• Unnumbered Memo 2024.03.18 Updates on the Guidelines on the Grant of the Performance-Based Bonus for Officials and Employees of Local Government Units for Fiscal Year 2023, and Submission of LGU Letter of Intent for FY 2023

• Unnumbered Memo 2024.01.05 Amended Notice of Eligibility for the Grant of FY 2022 LGU PBB

• Unnumbered Memo 2023.11.23 Notices of Eligibility on the Grant of FY 2022 Performance - Based Bonus to LGU and Employees

• Unnumbered Memo 2023.11.03 List of Eligible LGUs for the Grant of FY 2022 PBB

• DILG-DBM JMC 2023-001 entitled "Amendment to DILG-DBM JMC No. 2021-01 for the Grant of Performance-Based Bonus for Officials and Employees of Local Government Units for Fiscal Year 2022"

• DILG-DBM JMC 2021-01 entitled “Guidelines on the Grant of the Performance-Based Bonus for Officials and Employees of Local Government Units for Fiscal Year 2021”

• DILG-DBM JMC 2020-04 entitled “Guidelines on the Grant of the Performance-Based Bonus for Officials and Employees of Local Government Units for Fiscal Year 2020”

• DILG-DBM JMC 2019-01 entitled “Guidelines on the Grant of the Performance Based Bonus for Officials and Employees of Local Government Units for Fiscal Year 2019”

• DILG-DBM JMC 2018-01 entitled “Guidelines on the Grant of the Performance Based Bonus for Officials and Employees of Local Government Units for Fiscal Year 2018”