Administrative Code of 1987

Section 1

Each department or agency of government, whether national or local, including bureaus and agencies, state colleges and universities; and government-owned and controlled corporations with original charters, shall establish its own Department or Agency Employee Suggestions and Incentives Award System in accordance with these Rules and shall submit the same to the Commission for approval.

Section 1

In addition to the grounds for administrative disciplinary action prescribed under existing laws, the acts and omissions of any official or employee, whether or not he holds office or employment in a casual, temporary, hold-over, permanent or regular capacity, declared unlawful or prohibited by the Code, shall constitute grounds for administrative disciplinary action, and without prejudice to criminal and civil liabilities provided herein, such as: (a) Directly or indirectly having financial and material interest in any transaction requiring the approval of his office. Financial and material interest is defined as a pecuniary or proprietary interest by which a person will gain or lose something; (b) Owning, controlling, managing or accepting employment as officer, employee, consultant, counsel, broker, agent, trustee, or nominee in any private enterprise regulated, supervised or licensed by his office, unless expressly allowed by law; (c) Engaging in the private practice of his profession unless authorized by the Constitution, law or regulation, provided that such practice will not conflict or tend to conflict with his official functions; (d) Recommending any person to any position in a private enterprise which has a regular or pending official transaction with his office, unless such recommendation or referral is mandated by (1) law, or (2) international agreements, commitment and obligation, or as part of the functions of his office; These acts shall continue to be prohibited for a period of one (1) year after resignation, retirement, or separation from public office, except in the case of paragraph (c) above, but the professional concerned cannot practice his profession in connection with any matter before the office he used to be with, within one year after such resignation, retirement, or separation, provided that any violation hereof shall be a ground for administrative disciplinary action upon re-entry to the government service. (e) Disclosing or misusing confidential or classified information officially known to him by reason of his office and not made available to the public, to further his private interests or give undue advantage to anyone, or to prejudice the public interest; (f) Soliciting or accepting, directly or indirectly, any gift, gratuity, favor, entertainment, loan or anything of monetary value which in the course of his official duties or in connection with any operation being regulated by, or any transaction which may be affected by the functions of, his office. The propriety or impropriety of the foregoing shall be determined by its value, kinship or relationship between giver and receiver and the motivation. A thing of monetary value is one which is evidently or manifestly excessive by its very nature. * Gift refers to a thing or a right disposed of gratuitously, or any act of liberality, in favor of another who accepts it, and shall include a simulated sale or an ostensibly onerous disposition thereof. Loan covers both simple loan and commodatum as well as guarantees, financing arrangement or accommodations intended to ensure its approval. Commodatum refers to a contract whereby one of the parties delivers to another something not consumable so that the latter may use the same for a certain time and return it. This prohibition shall not include: (1) Unsolicited gift of nominal or insignificant value not given in anticipation of, or in exchange for, a favor from a public official or employee or given after the transaction is completed, or service is rendered. As to what is a gift of nominal value will depend on the circumstances of each case taking into account the salary of the official or employee, the frequency or infrequency of the giving, the expectation of benefits, and other similar factors. (2) A gift from a member of his family or relative as defined in the Code on the occasion of a family celebration, and without any expectation of pecuniary gain or benefit. (3) Nominal donations from persons with no regular, pending, or expected transactions with the department, office or agency with which the official or employee is connected, and without any expectation of pecuniary gain or benefit. (4) Donations coming from private organizations whether local or foreign, which are considered and accepted as humanitarian and altruistic in purpose and mission. (5) Donations from government to government entities. As to gift or grants from foreign governments, the Congress consents to: (i) The acceptance and retention by public official or employee of a gift of nominal value tendered and received as a souvenir or mark of courtesy; (ii) The acceptance by a public official or employee of a gift in the nature of a scholarship or fellowship grant or medical treatment; or (iii) The acceptance by a public official or employee of travel grant or expenses for travel taking place entirely outside the Philippines (such as allowances, transportation, food and lodging) of more than nominal value if such acceptance is appropriate or consistent with the interests of the Philippines, and permitted by the head of office, branch, or agency to which he belongs. Nothing in the Code shall be construed to restrict or prohibit any educational, scientific or cultural exchange programs subject to national security requirements. (g) Obtaining or using any statement filed under the Code for any purpose contrary to morals or public policy or any commercial purpose other than by news and communications media for dissemination to the general public; (h) Unfair discrimination in rendering public service due to party affiliation or preference; (i) Disloyalty to the Republic of the Philippines and to the Filipino people; (j) Failure to act promptly on letters and requests within fifteen (15) days from receipt, except as otherwise provided in these Rules; (k) Failure to process documents and complete action on documents and papers within a reasonable time from preparation thereof, except as otherwise provided in these Rules; (l) Failure to attend to anyone who wants to avail himself of the services of the office, or to act promptly and expeditiously on public personal transactions; (m) Failure to file sworn statements of assets, liabilities and net worth, and disclosure of business interests and financial connections; and (n) Failure to resign from his position in the private business enterprise within thirty (30) days from assumption of public office when conflict of interest arises, and/or failure to divest himself of his shareholdings or interests in private business enterprise within sixty (60) days from such assumption of public office when conflict of interest arises: Provided, however, that for those who are already in the service and a conflict of interest arises, the official or employee must either resign or divest himself of said interests within the periods herein-above provided, reckoned from the date when the conflict of interest had arisen.

Section 2

The System is designed to encourage creativity, innovativeness, efficiency, integrity and productivity in the public service by recognizing and rewarding officials and employees, individually or in groups, for their suggestions, inventions, superior accomplishments, and other personal efforts which contribute to the efficiency, economy, or other improvement in government operations, or for other extraordinary acts or services in the public interest.

Section 3

The Systems shall apply to all officers and employees in the career or non-career service of the national and local governments, including those in the state universities and colleges, and government-owned or controlled corporations with original charters, whether or not they receive compensation, regardless of amount.

Section 4

Under the System, any of the following types of contributions shall be entitled to an award: (a) Idea type contribution which shall refer to an idea, a suggestion or an invention for improvement to effect economy in operation, to increase production, improve working conditions or service, or otherwise benefit the government. (b) Performance type contribution which shall refer to: (1) Performance of an extraordinary act or service in the public interest in connection with, or related to, one's official employment; or (2) Outstanding community service or heroic acts in the public interest; or (3) Sustained work performance for a minimum period of one year which is over and above the normal position requirement of the individual or group.

Section 5

Awards under the System shall consist of honor awards and incentive awards. The head of department or agency may, however, upon recommendation of the Department or Agency Suggestions and Incentive Award Committee created in accordance with Section 11 hereof, consider an employee for both incentive and honor awards.

Section 6

Honor awards shall consist of the following: (a) * Presidential or "Lingkod Bayan" Awards is conferred to an individual for consistent dedicated performance exemplifying the best in any of the profession or occupation resulting in the successful implementation of an idea or performance which is of significant effect to the public or principally affects the national interest, security and patrimony. This Lingkod Bayan Award is in the form of gold (gilded) medallion and plaque containing the citation and signature of the President of the Philippines. (b) * Civil Service Commission or PAGASA Award is conferred to a group of individuals or team who has demonstrated outstanding teamwork and cooperation which resulted in the successful achievement of its goal and greatly improved/facilitated the delivery of public service, effected economy in operation, improved working condition or otherwise benefitted the government. The Pagasa Award is in the form of gold-gilded medallion and plaque containing the citation and signature of the Chairman of the Civil Service Commission. (c) The departmental Award or the "Kapwa" Award which shall be given to an individual or group of individuals in recognition of contributions from an idea or performance resulting in direct benefits to a single department or agency in the government. Nominations for this category need not be submitted to the Civil Service Commission for screening and evaluation. The Department or Agency Suggestions and Incentive Awards Committee shall evaluate the nominations for this category and recommend to the head of the department or agency the most qualified awardees. This award shall consist of a gold (gilded) medallion and a plaque containing the citation and signature of the head of department or agency, or the head of office in the case of offices which are not under a department. (d) Outstanding Public Official/Employee Award or "Dangal ng Bayan" Award which shall be granted to officials and employee in the government who have demonstrated exemplary service and conduct on the basis of their observance of the eight (8) norms of behavior as provided for under Republic Act No. 6713. Administration of this Award and the procedures of nomination shall be governed by Republic Act No. 6713 and its Implementing Rules.

Section 7

The incentive awards shall consist of, though not limited to, the following: (a) Performance Incentive which shall be given to an employee who has obtained an outstanding or very satisfactory rating based on the Agency's Approved Performance Evaluation System for the last two successive evaluation periods which consist of step increments in accordance with the provisions of Joint CSC-DBM Circular No. 1, s. 1990. (b) Length of Service Incentive which shall be given to an employee who has rendered at least three years of continuous satisfactory service in a particular position and which shall consist of step increments in accordance with the provisions of Joint CSC-DBM Circular No. 1, s. 1990. (c) Productivity Incentive which shall be given to an employee or group of employees who has exceeded their targets or has incurred incremental improvement over existing targets. (d) Most Courteous Employee Award which is given to an employee in accordance with the criteria and standards established under CSC MC No. 15, s. 1990 which instituted the Courtesy Campaign Program in the Civil Service, known as the "Ang Magalang, Bow!" (e) Loyalty Award which shall be granted to an employee who has completed at least ten (10) years of continuous and satisfactory service in the government. This service award shall consist of cash bonus and a lapel emblem or loyalty pin differentiated as follows: 10 and 15 years — bronze service pin 20 and 25 years — silver service pin 30, 35 and 40 — gold service pin The cash bonus shall, upon the recommendation of the Agency SIAC, be not less than P100.00 per year, chargeable against the Agency's savings, provided however that those who have received the cash award during their first 10 years shall, upon reaching 15, only receive the cash award for the succeeding 5 years and so on. (f) Retirement Award which shall be given to a retiree who had rendered at least fifteen (15) years of satisfactory government service. This award shall be in the form of a plaque of appreciation, the design and citation of which shall be determined by the office concerned. (g) Year-end Benefits or Thirteenth Month Bonus Plus One Thousand Cash Gift which shall be granted to officials and employees in the national and local governments, including state colleges and universities, and government-owned and controlled corporations in recognition of their dedication to government service and in keeping with the spirit of Christmas. The grant of these year-end benefits shall be governed by the Compensation Circulars issued by the Department of Budget and Management in accordance with the provisions of Republic Act 6686. (h) Monetary Award which shall be granted to an employee whose contribution in terms of suggestions or invention or performance of functions results in monetary savings. When an employee's contribution can not be quantified in terms of monetary savings, or results in combined monetary savings and intangible benefits, the amount of cash award shall be determined in terms of a certain percentage of its estimated total value or benefit but not to exceed 20%. The foregoing shall not preclude departments and agencies in establishing other types of incentive awards which shall be incorporated in the Department/Agency ESIAS.

Section 8

Officials and employees nominated for any of the honor awards must: (a) Have been employed with the nominating agency for at least one year at the time of the nomination; (b) Have been rated at least Very Satisfactory or its equivalent for two appraisal periods immediately preceding the nomination; and (c) Have not been found guilty of any criminal or administrative offense involving moral turpitude or does not have any pending case against them at the time of nomination, as defined in these Rules.

Section 9

The procedure of nomination for the Honor Awards excluding nominations for the Outstanding Public Officials and Employees are as follows: (a) The immediate supervisor or any person or persons or association including those from the private sector shall make the nomination in writing to the Suggestions and Incentive Awards Committee (SIAC) in the Department or Agency concerned; (b) The Committee shall screen the nominations and evaluate the justification contained therein; (c) The Committee shall submit its recommendation to the head of the department or agency; and (d) The head of department or agency shall submit his nomination or the prescribed form to the Civil Service Commission. Nominations for the Outstanding Public Official/Employee or "Dangal ng Bayan" Award may be submitted by any person or group of persons or associations directly to the Civil Service Commission or to any of its regional or provincial or field offices.

Section 10

The Civil Service Commission shall prescribe nomination forms for the honor awards. All departments and agencies may secure such form from the Civil Service Commission or from any of its regional, provincial or field offices.

Section 11

A Suggestions and Incentive Award Committee, hereinafter called the Committee, shall be created in each department or agency to administer the System. Members of the Committee shall be designated by the head of such department or agency and shall include the chief or head of the personnel division/office thereat. The Committee shall have the following functions: (a) Prescribe, subject to the approval of the head of Department or Agency, the procedure in evaluating employee suggestions, inventions or accomplishments. (b) Receive, review and process suggestions and nominations. (c) Recommend the appropriate monetary award to be granted to the employee for his idea or suggestion. (d) Recommend to the head of department or agency the employees who shall be nominated for the honor awards or incentive awards or to both awards.

Section 12

The Civil Service Commission shall constitute a Special Committee on Awards composed of three prominent citizens who are not in the government service, the Chief Protocol Officer of the Office of the President, and a member of the Commission, which shall screen and evaluate objectively all nominations received by the Commission and shall recommend its choices to the President. The Committees shall likewise recommend to the Chairman of the Civil Service Commission its choices for the "Pagasa" Awards.

Section 13

Officials and employees who are conferred the honor awards shall be considered for promotion to the next higher position suitable to their qualifications. Records of awards as well as letters of commendations received shall be kept in employees' personnel folders.

Section 14

Each department or agency shall set aside in its annual budget the necessary appropriations to cover whatever necessary expenses will be incurred in the granting of both monetary and non-monetary awards.

Section 15

The Commission shall report annually the results of the Suggestions and Incentive Award Program together with recommendations to the President. The head of each department or agency shall submit to the Commission by the first week of January, a consolidated report on Suggestions and Incentive Award Program of the department or agency during the preceding year.