Senate
Bill No. 890, also known as the Government Optimization Act, was ratified by
the Senate on June 4, 2025. This legislation empowers the President to
streamline the executive branch through a five-year rightsizing program aimed
at eliminating redundant functions and improving service delivery.
The bill (as filed) provides several incentives for government personnel who may be affected by the
rightsizing program:
1. Retirement
Benefits: Eligible personnel may opt for retirement benefits under existing
laws, such as:
* Retirement gratuity under Republic Act No.
1616;
* Retirement benefits under Republic Act No.
660; or
* Retirement, separation, or unemployment
benefits under Republic Act No. 8291.
2. Separation
Incentives: In addition to retirement benefits, affected personnel who choose
to retire or be separated are entitled to separation incentives based on their
years of service:
* ½ of the actual monthly basic salary for
every year of government service for those with less than 11 years of service;
* ¾ of the actual monthly basic salary for
every year of government service for those with 11 to less than 21 years of
service;
* The actual monthly basic salary for every
year of government service for those with 21 to less than 31 years of service;
* 1¼ of the actual monthly basic salary for
every year of government service for those with 31 years of service and above.
A minimum of five years of government
service is required to avail of these separation incentives.
3. Other
Benefits:
*Refund of Pag-IBIG Contributions: Affected
personnel who are members of the Pag-IBIG Fund are entitled to a refund of
their contributions, both personal and government shares, pursuant to existing
rules and regulations.
*Commutation of Unused Leave Credits: All
affected personnel are entitled to the commutation of their unused vacation and
sick leave credits in accordance with existing rules and regulations.
4. Reemployment
Restrictions: Personnel who avail of the retirement or separation incentives
are prohibited from reemployment in any agency of the national government,
including government-owned or -controlled corporations, for a period of five
years, except as teaching or medical staff in educational institutions and
hospitals. Reemployment within the prohibited period will require the refund of
the separation incentives received on a pro-rated basis.
5. Manpower
Pool and Redeployment: Affected personnel with permanent appointments who do
not opt for retirement or separation will be placed in a manpower pool managed
by the Civil Service Commission (CSC). The CSC, in coordination with other
government agencies and relevant private institutions, will retool and deploy
these personnel to agencies that require their qualifications, skills, and
competencies.
These
provisions aim to ensure that the rightsizing program enhances government
efficiency while safeguarding the welfare of affected employees.
Senate
Bill No. 890, also known as the Government Optimization Act, is a legislative
measure passed by the Philippine Senate on June 2, 2025 and was passed by the
Bicameral Conference Committee on June 4, 2025. Its primary aim is to
streamline the executive branch of the government to enhance public service
delivery.
Key
Objectives:
- Eliminate Redundancies:
The bill seeks to remove obsolete positions and overlapping functions within
government agencies.
- Simplify Processes:
It aims to simplify rules, regulations, and procedures to make government
operations more efficient.
- Empower the
President: The President is authorized to reorganize executive agencies,
including scaling down or abolishing certain offices, to optimize performance.
Scope and
Exemptions
- Covered
Entities: All agencies under the executive branch, including departments,
bureaus, offices, commissions, boards, councils, and government-owned or
-controlled corporations (GOCCs) not covered by Republic Act No. 10149, are
subject to this act.
- Exempted
Entities: The legislature, judiciary, constitutional commissions, the Office of
the Ombudsman, local government units (LGUs), and teaching-related positions in
the education sector are exempted.
Implementation
Committee
on Optimizing the Executive Branch (COEB): A committee will be established to
oversee the implementation of the optimization program. It will be composed of
the Executive Secretary (chairperson), the Secretary of the Department of
Budget and Management (co-chairperson), and other key officials.
Duration:
The authority granted to the President under this act will be effective for
five years from its enactment.
Employee
Welfare
Career
Advancement: The bill emphasizes that rightsizing is not solely about reducing
the workforce but also about creating new positions and opportunities for
career growth through upskilling and reskilling.
In
summary, the Government Optimization Act aims to create a leaner and more
efficient government structure by removing redundancies and simplifying
processes, all while considering the welfare and development of government
employees.
LINK: Senate Bill 890 (Rightsizing)