POSTED LAST 20 Jun 2019 - 03:11 pm


The Office of the President has approved the revised Interim Performance Based Incentive (PBI) System for the Appointive Directors of Government Owned or Controlled Corporations (GOCCs), as proposed by the Governance Commission for GOCCs (GCG), setting the limits and the conditions on its grant.

The grant of the incentive was previously suspended following President Duterte’s directive to study and control the allowances of GOCCs and other government entities for transparent and corrupt-free governance.

Under the revised system, an Appointive Director merits to receive PBI only if the GOCC: (1) achieved a weighted-average of at least 90% in its Performance Scorecard for the applicable year; and (2) complied with the various good governance conditions set by the Inter-Agency Task Force and the GCG.

In addition, the Appointive Director must have: (1) attended at least 90% of all duly called for Board and Committee meetings; (2) rendered at least three (3) months of aggregate service as an Appointive Director in any GOCC for the applicable calendar year; (3) submitted all the requirements for Director Performance Review; and (4) has not been found guilty of an administrative and/or criminal cases related to his/her work.

The maximum PBI amount that an Appointive Director may receive varies depending on its asset and revenue sizes based on the GOCC’s classification under Executive Order (EO) No. 24, s.2011. 

With the revisions, the maximum PBI amount has decreased by 67%. For the largest GOCCs (Class A), the maximum PBI has been reduced to P512,000.00 from the previous maximum amount of P1,536,000.00. On the other hand, the maximum PBI for the smallest GOCCs (Class E) is now P64,000, compared to the previous P192,000.00.

The funding for the PBI shall be charged to the respective corporate funds of GOCCs, subject to the approval of their respective Governing Boards per applicable laws, rules, and regulations.

With the upcoming State of the Nation Address (SONA), the Revised PBI is another accomplishment by President Duterte from his 2017 SONA stating that salaries, allowances, incentives, benefits and bonuses across the GOCCs will have to pass by the Office of the President. The limitations set can allow these government corporations to allocate more funds to better serve the public.


Click here to see the Fact Sheet on the Classification of GOCCs per E.O. No. 24, s. 2011 and the Comparison of PBI Rates.

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Kristine Joyce B. Reaño

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