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REVENUE MEMORANDUM CIRCULAR NO.

7-2018 issued on January 16, 2018


publishes the full text of the Inter-Agency Task Force (IATF) Memorandum Circular No. 2017-
2, entitled “Procedures Ensuring Quality of Validity/Assessment of Requirements for the Grant
of the FY 2017 Performance-Based Bonus (PBB)”.
For FY 2017 PBB, the target payout period to eligible departments and attached
agencies, other executive offices, state universities and colleges, and Government-Owned or
Controlled Corporations (GOCCs) covered by the Department of Budget and Management will
be on May 31, 2018, for small agencies and November 30, 2018, for big departments.
For GOCCs under GCG, Local Water Districts, and Local Government Units, target
payout shall be based on the identified timeline in their respective General Guidelines for the
FY 2017 PBB cycle.
Oversight/Validating agencies, including their field offices, are still granted the authority
to withhold the PBB and the authority to appeal in behalf of the agencies they oversee/validate.
The Anti-Red Tape Act, Citizen’s Charter/Service Charter validation shall now be
complemented with the reports on feedback and complaints covered until November 15, 2017
from citizens gathered by the Office of the President, Presidential Management Staff,
Presidential Communications Operations Office and the Civil Service Commission’s (CSCs)
Contact Center ng Bayan/Hotline #8888. The said agencies shall issue a negative report on
agencies, including those of GOCCs and LGUs. Data will be mainly regarding transactions,
processing times, and frequency of these complaints. Based on the said reports, the AO 25 IATF
will determine eligibility of reported agencies for FY 2017 PBB.
If complaints were not resolved by the agencies, they shall remain in the Non-Compliant
(NC) list. For those who are able to address the complaints against their service, they must
ensure that an improvement action plan and non-recurrence of the complaint will be
implemented. Hence, the Oversight/Validating agencies will deliberate and determine if an
agency can be cleared from the NC list based on the sufficiency of reports submitted and the
implemented improvements.
Further details on compliance may be found in the CSC Memorandum Circular No. 14,
s. 2017 Guidelines on the Validation of the Citizen’s Charter requirements for FY 2017 PBB.
For compliance to PhilGEPS, agencies may monitor their status through the PhilGEPS
microsite: http://data.philgeps.gov.ph/directory/pbb.aspx. This system will guide agencies on the
bid notice postings that need appropriate action through the generation and downloading of
reports.
There will be a stricter review of physical accomplishments vs. BUR, and justifications
of agencies for not meeting their targets and the 100% Disbursements BUR will not be accepted
starting this cycle, except for savings in Obligations and Disbursements arising from efficiency
measures implemented in procurement and other agency operations. These savings must
therefore be clearly specified in the explanations and justifications on submitted BUR reports.
Eligibility of individuals to the grant of PBB shall remain based on the eligibility of the
agencies and ranking of their respective delivery units. MC-2017-1 Section 8.0 Ranking of
Delivery Units indicates the following:
Ranking Performance Category
Top 10% Best Delivery Units
Next 25% Better Delivery Units
Next 65% Good Delivery Units

The rates of PBB shall also maintain and be based on the performance ranking of the
individual’s bureau or delivery unit, with the incentive as a multiple of one’s basic salary
following the table below:
Performance Category Multiple of Basic Salary
Best Delivery Units 0.65
Better Delivery Units 0.575
Good Delivery Units 0.5

Pertinent to FY 2017 PBB requirements, submission of agency’s Form 1.0 and PBB
Evaluation Matrix will be on or before March 30, 2018.

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