RMC 63-2020

REVENUE MEMORANDUM CIRCULAR NO.
63-2020 issued on June 23, 2020 publishes the

Guidelines on the Grant of the Performance-Based Bonus (PBB) for Fiscal Year 2020 under
Executive Order (EO) No. 80, s. 2012 and EO No. 201, s. 2016.
All personnel of government agencies holding regular, contractual and casual positions are
covered by the guidelines. Excluded from the coverage are individuals engaged without employer-
employee relationship and funded from non-Personnel Services (PS) budget. To be eligible for the
grant of PBB, each agency must satisfy the following conditions:
A. Good Governance Conditions (GGCs). Departments/agencies shall satisfy 100% of GGCs
for FY 2020 as provided in Section 4.0 of the guidelines, to wit:
i. Maintain/Update the agency Transparency Seal
ii. Update the PhiIGEPS posting of all invitations to bids and awarded contracts for
transactions above Php 1 Million from January 1 to December 31, 2020, including Early
Procurement of FY 2021 Non-Common Use Supplies and Equipment (Non-CSE) items
iii. Set-up most current and updated Citizen's or Service Charter reflecting the agency's
improved and streamlined/re-engineered system and procedure for all its government
services to citizens, businesses and government agencies
B. Performance Targets of Agencies. Departments/agencies shall satisfy FY 2020
performance targets relative to the streamlining and process improvement of the agency’s
critical services, including digitization, development of online systems, and/or
contactless transactions, based on the provisions stated in Section 5.2 of the guidelines.
Departments/agencies should also embed feedback mechanisms and citizen/client
satisfaction measurement in their process improvement efforts.
Another performance target is the initial Certification/Recertification of the
agency's Quality Management System (QMS) covering at least one (1) critical frontline
service or core process as mandated under its existing pertinent laws. For frontline
agencies, it is expected that the core agency process pertains to an agency process most
demanded by the citizens and businesses, and targeted for improvements.
Frontline agencies shall endeavor that their frontline processes are standardized,
including those implemented at the Regional, Satellite, and Extension Offices.
The common GASS Targets and other cross-cutting requirements that must be
complied with by departments/agencies are specified in the guidelines.
To reinforce fairness in the assessment of the performance of each delivery unit
under operations with those under support services, departments/agencies should also
declare non-frontline services provided to units/employees performed by the latter
delivery units.
The rating of the performance of the First and Second Level officials and employees of
departments/agencies in NGAs, GOCCs, and LGUs, including managerial or director positions, but
are not Presidential appointees, shall be consistent with the CSC-approved Strategic Performance
Management System (SPMS). For the CES officers and incumbents to CES positions, the rating of
their performance shall be based on the guidelines issued by the CES Board (CESB).
Employees belonging to the First, Second and Third Levels should receive a rating of at least
“Satisfactory” based on the agency’s CSC-approved SPMS or the requirement prescribed by the
CESB.
An official or employee who has rendered less than nine (9) months but a minimum of three
(3) months of service with at least Satisfactory rating shall be eligible for the grant of the PBB on a
pro-rata basis corresponding to the actual length of service rendered, as follows:
LENGTH OF SERVICE RATE OF PBB
8 months but less than 9 months 90%
The following are the valid reasons for an employee who may not meet the nine-month actual
service requirement to be considered for PBB on a pro-rata basis:
a. Being a newly hired-employee;
b. Retirement;
c. Resignation;
d. Rehabilitation Leave;
e. Maternity Leave and/or Paternity Leave;
f. Vacation or Sick Leave with or without pay;
g. Scholarship/Study Leave; and
h. Sabbatical Leave
The following personnel are not eligible to the grant of the FY 2020 PBB:
a. An employee who is on vacation or sick leave, with or without pay, for the entire year;
b. Personnel found guilty of administrative and/or criminal cases by final and executory
judgment in FY 2020 (if the penalty meted out is only a reprimand, such penalty shall not
cause the disqualification to the PBB);
c. Officials and employees who failed to submit the 2019 Statement of Assets, Liabilities
and Networth (SALN) or those who are responsible for the non-compliance with the
establishment and conduct of the review and compliance procedure of SALN;
d. Officials and employees who failed to liquidate all cash advances received in FY 2020
within the reglementary period; and
e. Officials and employees who failed to submit their complete Strategic Performance
Management System (SPMS) Forms.
Officials and employees responsible for the implementation of the prior years' audit
recommendations, QMS certification, or posting and dissemination of the department/ agency
system of ranking performance of delivery units, shall not be entitled to the FY 2020 PBB if
the department/agency fails to comply with any of these requirements.
Bureaus, offices or delivery units eligible to the PBB shall be forced ranked according to the
following categories:
RANKING PERFORMANCE CATEGORY

Top 10% Best Delivery Units
Top 25% Better Delivery Units
Top 65% Good Delivery Units
The declarations of responsible bureaus/offices/delivery units in the completion of each
critical service or other key processes shall be the basis for equitable performance ranking of delivery
units.
To facilitate the ranking of delivery units, agencies may group or cluster the delivery units
based on similarities of tasks and responsibilities, and rank the units within each group or cluster.
Only the personnel belonging to eligible delivery units are qualified for the PBB.
The rates of the PBB for each individual shall be based on the performance ranking of the
individual's bureau or delivery unit with the rate of incentive as a multiple of one's monthly basic
salary as of December 31, 2020, based on the table below.
PERFORMANCE CATEGORY MULTIPLR OF BASIC SALARY

Best Delivery Unit 0.65
Better Delivery Unit 0.575
Good Delivery Unit 0.50
For FY 2020, agencies that are unable to comply with all the GGCs shall be considered
ineligible for the FY 2020 PBB. Departments/agencies that are unable to comply with a maximum of
two (2) Performance Targets due to controllable factors, as determined by the validating agencies,
shall be considered ineligible for the FY 2020 PBB.
In the event the AO25 Inter-Agency Task Force (IATF) conducted a random check of
submitted SALN of employees and found non-compliance with the guidelines prescribed by the CSC
and the posted Review and Compliance Procedure of the concerned department/agency, such incident
could be a cause to disqualify the department/agency in the succeeding cycle of the PBB.
A department/agency/GOCC/LWD/LGU which, after due process by the oversight agency
has been determined to have committed the following prohibited acts, shall be disqualified from the
PBB in the succeeding year of its implementation:
a. Misrepresentation in the submitted/posted reports and requirements for the PBB, a
commission of fraud in the payment of the PBB and violation of the provisions of this
guidelines (AO25 IATF Memorandum Circular No. 2020-1); and
b. Evenly distributing PBB among employees in an agency, in violation of the policy of
paying the PBB based on the ranking of delivery units.
Moreover, the CSC or Ombudsman shall file the appropriate administrative case.

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RMC 63-2020

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REVENUE MEMORANDUM CIRCULAR NO.

63-2020 issued on June 23, 2020 publishes the

RANKING PERFORMANCE CATEGORY

PERFORMANCE CATEGORY MULTIPLR OF BASIC SALARY

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