In 2012, through Executive Order 80, series of 2012, the government established the Performance-Based Bonus (PBB) for employees in the executive branch of government. It was intended to reward exemplary performance, align individual personnel and departmental efforts with organizational targets, and improve service delivery. The PBB, together with the Productivity Enhancement Incentive (PEI), constitutes the Performance-Based Incentive System. Unlike the PEI, an across-the-board bonus, the PBB is awarded in compliance with several requirements, spanning organization, team, and individual levels.

 

The Department of Budget and Management (DBM) releases guidelines on criteria and conditions related to physical targets, good governance conditions, and performance management for the annual grant of the PBB. It chairs the Administrative Order (AO) 25 Interagency Task Force (IATF), which evaluates the eligibility of an agency (and its employees) to receive the PBB. Validating agencies, which are the members of the IATF Technical Working Groups (TWGs), together with the IATF Secretariat (the Development Academy of the Philippines), assess the documents submitted by agencies to quality for the PBB. 

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Source: think-asia.org