Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS “NICK” C. ENCISO VIII 
EXPLANATORY NOTE 
The Philippine government has around 1.7 million workers according to the 2022 
data of the Civil Service Commission (CSC).1 They are spread across 187 
government agencies and government-owned and -controlled corporations (GOCCs) 
that have functions that either overlap or are redundant.2 As Personnel Services take 
almost 30% of the national budget annually, rightsizing government agencies and 
GOCCs will surely allow appropriate utilization of our financial resources.  
This premise is in consonance with Section 27, Article II of the 1987 Constitution 
which declares that “The State shall maintain honesty and integrity in the public 
service and take positive and effective measures against graft and corruption.” 
Towards this objective, this measure proposes to rationalize the operations of offices 
from and among various government offices having related functions, through 
streamlining of the positions in any government bureaucracy.  
To streamline public service delivery and cost cut unnecessary expenses, this bill 
also proposes to give the President the authority to abolish, create and transfer 
offices within the National Government including departments, bureaus, offices, 
commissions, boards, councils, and all other entities attached to or under their 
administrative supervision. To oversee the implementation of this measure, a 
Committee on Rightsizing the National Government shall also be created, which will 
be chaired by the Executive Secretary with the Secretary of the DBM as co-chair, 
and the NEDA Director-General, Chairperson of the CSC, and Head of the 
Presidential Management Staff as members. 
The Department of Budget and Management (DBM) has also expressed its support 
for this bill in accordance with the thrust of the President for a lean, efficient, and 
responsive government workforce.3 
1 http://web.csc.gov.ph/78-auxiliary-menu/igp.html 
2 https://www.pna.gov.ph/articles/1179187 
3 https://www.dbm.gov.ph/index.php/secretary-s-corner/press-releases/list-of-press-releases/2286-
dbm-supports-rightsizing-of-government-agencies-and-personnel 
August 23, 2022
2:00 pm
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In view of the foregoing, swift passage of this bill is earnestly sought. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
 MIGUEL LUIS R. VILLAFUERTE 
TSUYOSHI ANTHONY G. HORIBATA 
NICOLAS “NICK” C. ENCISO VIII 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS “NICK” C. ENCISO VIII 
AN ACT 
RIGHTSIZING THE NATIONAL GOVERNMENT 
TO IMPROVE PUBLIC SERVICE DELIVERY 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:  
SECTION 1. Short Title. - This Act shall be known as the “Rightsizing the National 
Government Act."  
SECTION 2. Declaration of Policy. - It is hereby declared the policy of the State to 
promote and maintain effectiveness, efficiency and economy in the government, and 
enhance institutional capacity to improve public service delivery, and to ensure the 
attainment of the country’s societal and economic development goals and objective. 
Consistent with this, the government shall focus its functions and resources on the 
essential role, scope, and level of governance, and minimize, if not eliminate, 
redundancies, overlaps and duplications in its operations and simplify its systems 
and processes.  
SECTION 3. Coverage. - This Act shall cover all national government agencies, 
including departments, bureaus, offices, commissions, boards, councils, and all other 
entities attached to or under their administrative supervision. The Legislature, The 
Judiciary, Constitutional Offices, State Universities and Colleges, and Local 
Government Units (LGUs) may, within their respective authorized appropriations, 
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likewise rightsize their respective offices, consistent with the principles and 
guidelines contained in this Act. The Governance Commission for Government-
Owned or -Controlled Corporations shall continue to exercise its authority under 
Republic Act (RA) No. 10149 to recognize, merge, streamline, abolish or privatized 
any government-owned or -controlled corporation (GOCC), in consultation with the 
department or agency to which the GOCC is attached.  
 
SECTION 4. Principles and Guidelines. - The National Government shall 
implement a Rightsizing Program in accordance with the following principles and 
guidelines:  
a)  
The role of government and the scope, level and prioritization of government 
activities shall be determined in accordance with the Constitutional mandate, 
political and socio-economic objectives of the government, and available 
resources;  
 
b)  
The delineation of responsibilities between the National Government and the 
LGUs in the provision, production and delivery of goods and services shall be 
clearly defined;  
 
c)  
Government operations shall be simplified so that the departments/agencies 
could focus on the performance of their core functions and implementation of 
programs and projects that will lead to the attainment of the desired sectoral 
and national goals and outcomes;  
 
d)  
Government systems and processes shall be simplified to facilitate the delivery 
and upgrade the quality of frontline services, as well as to improve policy 
formulation, planning and performance evaluation;  
 
e)  
Government rules shall be rationalized to reduce the regulatory burden on 
citizens, businesses and other stakeholders; and  
 
f)  
The organizational structure of agencies shall be rightsized and the appropriate 
staffing mix shall be determined based on the skills and competencies required 
to effectively and efficiently carry out the agency mandate and functions.  


 
SECTION 5. Authority of the President of the Philippines to Rightsized the 
Operations of the National Government. - Pursuant to the policies, principles and 
guidelines stipulated in this Act, the President is hereby granted the following 
authority in the rightsizing of the operations of the different departments/agencies of 
the national Government: 
a)  
To undertake the following organizational actions in order to eliminate 
functions, programs and projects which are already redundant, no longer 
necessary, or those duplicating or overlapping between and among the units 
within the department or with other departments/agencies of the National 
Government:  
a.1  Abolish, deactivate, group, integrate, merge, consolidate or split national 
government 
agencies, 
including 
departments, 
bureaus, 
offices, 
commissions, boards, councils, and all other entities attached to or under 
their administrative supervision;   
a.2  Create, establish or regularize offices; and   
a.3 
Transfer 
offices, 
functions, 
programs 
and 
projects, 
and/or 
the 
corresponding appropriations, equipment, properties, records, personnel, 
and transactions, from one department/agency to another.  
 
b)  
To formulate and provide safety nets, including their implementation strategies, 
for employees of departments/agencies who may be affected by the 
government’s rightsizing efforts.  
 
SECTION 6. Creation of a Committee on Rightsizing the National Government. 
- A Committee on Rightsizing the National Government is hereby created to oversee 
the implementation of the National Government’s Rightsizing Program, in 
accordance with the provisions of this Act.  
The Committee shall be composed of the Executive Secretary as Chairman, 
and the Secretary of Budget and Management as Co-Chairman, with the Director-
General of the National Economic and Development  Authority, Chairperson of the 
Civil Service Commission (CSC), and the head of the Presidential Management 
Staff, as members.  


The Committee shall be organized within fifteen (15) days from the effectivity of 
this Act.  
The Committee shall also organize a Technical Working Group composed of 
experts on government operations, organizational development, and human 
resource management to assist in the performance of its functions.  
In the spirit of transparency and participatory governance, the Committee shall 
consult the departments/agencies concerned and accredited public sector unions 
relative to the implementation of the National Government’s Rightsizing Program.  
 
SECTION 7. Powers and Functions of the Committee on Rightsizing the 
National Government. - The Committee shall have the following powers and 
functions:  
a)  
To develop the policies, framework, strategies and mechanisms to be adopted 
in the implementation of the National Government’s Rightsizing Program;  
 
b)  
To conduct studies on the functions, programs, projects, operations, structure 
and manpower complement of the different departments/agencies;  
 
c)  
To 
develop 
and 
prepare 
the 
rightsized 
organizational 
structure 
of 
departments/agencies concerned and the corresponding executive issuances 
for approval by the President;  
 
d)  
To monitor the implementation by the different departments/agencies of their 
respective approved Rightsizing Plans, and report to the President any issue 
that must be addressed;  
 
e)  
To commission the conduct of an independent impact assessment on the 
National Government’s Rightsizing Program after its completion, to determine 
any effects of, and gains from, the implementation of the Program, mitigate any 
adverse effects, and address areas which still require improvements; and  
 
f)  
To formulate the implementing rules and regulations (IRR) of this Act.  
 


SECTION 8. Submission of the Rightsized Organizational Structure and 
Proposed Executive Issuances to the President. - The Committee on Rightsizing 
the National Government shall submit to the President the rightsized organizational 
structure of departments/agencies concerned and the corresponding executive 
issuances within one (1) year from the effectivity of the IRR of this Act.  
 
SECTION 9. Submission of the Detailed Organizational Structure and Staffing 
to the DBM. - Department Secretaries/Agency Heads shall prepare and submit to 
the DBM the detailed organizational structure and staffing of their respective 
departments/agencies within ninety (90) days after then approval of the proposed 
executive issuances by the President.  
 
SECTION 10. Retirement Benefits and Separation Incentives for Personnel 
Who May be Affected by the National Government’s Rightsizing Program. - The 
affected personnel, whether hired on a permanent, temporary, casual or contractual 
basis and with appointments attested by the CSC, shall be entitled to retirement 
benefits and separation incentives.  
 
10.1. The affected personnel shall be given the option to avail themselves of any of 
the following retirement benefits under existing laws, if qualified:  
a)  
Retirement gratuity provided under RA No. 1616 (An Act Further Amending 
Section Twelve of Commonwealth Act Numbered One Hundred Eighty-Six, as 
Amended, By Prescribing Two Other, Modes of Retirement and for Other 
Purposes), as amended; or  
 
b)  
Retirement benefit under RA No. 660 (An Act to Amend Commonwealth Act 
Numbered One Hundred Eighty-Six Entitled “An Act to Create and Establish a 
Government Service Insurance System, to Provide for its Administration and to 
Appropriate the Necessary Funds Therefore,” and to Provide Retirement 
Insurance and for Other Purposes); or  
 
c)  
Retirement, separation or unemployment benefit provided under RA No. 8291 
(An Act Amending Presidential Decree No. 1146, as Amended, Expanding and 


Increasing the Coverage and Benefits of the Government Service Insurance 
System, Instituting Reforms Therein and for Other Purposes).  
 
The retirement gratuity of affected personnel who are qualified and have opted to 
avail themselves of RA No. 1616 shall be paid by the Government Service Insurance 
System (GSIS). The GSIS shall no longer pay the refund of retirement premiums 
(both personnel and government shares) of the affected personnel who will opt to 
avail of RA No. 1616 benefits.  
 
10.2. In addition to said retirement benefits, the affected personnel who would opt to 
retire or be separated shall be entitled to the following applicable separation 
incentives:  
a)  
the actual monthly basic salary for every year of government service, for those 
who have rendered less than 11 years of 20 service;  
 
b)  
1/2 of actual monthly basic salary for every year of government service, 
computed starting from the 1st year, for those who have rendered 11 to less 
than 21 years of service;  
 
c)  
2 of the actual monthly basic salary for every year of government service, 
computed starting from the 1st year, for those who have rendered 21 to less 
than 31 years of service; and  
 
d)  
2 1/2 of the actual monthly basic salary for every year of government service, 
computed starting from the 1st year, for those who have rendered 31 years of 
service and above.  
 
The actual monthly basic salary shall refer to the salary of the affected personnel 
within the authorized period of implementation of the Program in their respective 
departments/agencies.   
 
A minimum of five (5) years of government service is required in order for an affected 
personnel to be entitled to avail of Program’s separation incentives under Section 
10.2 of this Act.  


 
PROVIDED: That for the purpose of computing total amount of separation incentives 
that an affected personnel would receive, only his/her government service up to the 
age 59 and a fraction thereof would be counted. Government service starting at the 
age 60 would no longer be subject to the separation incentives provided herein, 
without affecting the original incentive factor determined as applicable based on the 
actual years of service of the affected personnel.  
 
PROVIDED FURTHER: That for the purpose of complying with the required number 
of years of service under RA No. 8291, the probability scheme under RA No. 7699 
(An Act Instituting Limited Portability Scheme in Social Security Insurance Systems 
by  Totalizing the Workers’ Creditable Services or Contribution in Each of the 
Systems) may be applied, subject to existing policies and guidelines.  
 
The affected personnel, if with permanent appointment attested by the CSC, who will 
not opt to retire from the service shall be placed in a manpower pool o be organized 
and administered by the CSC. The CSC shall retool the subject affected personnel 
and deploy them to agencies which require their qualifications, skills and 
competencies.  
 
The number of personnel who will avail of the separation incentives under Section 
10.2 of this Act shall in no case exceed the number of positions declared for 
abolition. The specific guidelines to carry out the provisions of this Section shall be 
prescribed in the IRR of this Act.  
 
SECTION 11. Other Benefits of Retired/Separated Personnel. - The affected 
personnel who retired/separated shall, in addition to applicable benefits above, be 
entitled to the following:  
a)  
Refund of Pag-IBIG Contributions - all affected personnel who are members of 
the Pag-IBIG shall be entitled to the refund of their contributions (both personal 
and government), pursuant to existing rules and regulations of the Home 
Development Mutual Fund; and  
 


b)  
Commutation of Unused Vacation and Sick Leave Credits - all affected 
personnel shall be entitled to the commutation of unused vacation and sick 
leave credits in accordance with existing rules and regulations.  
 
SECTION 12. Period of Availability of the Retirement Benefits and Separation 
Incentives. - The retirement benefits and separation incentives provided in this Act 
shall be available within sixty (60) days upon approval by the DBM of the detailed 
rightsized organizational structure and staffing of departments/agencies concerned.  
 
SECTION 13. Prohibition on Rehiring of Personnel Retired /Separated from the 
Service. - Affected personnel who retired/separated from the service as a result of 
the implementation of the National Government’s Rightsizing Program shall not be 
appointed nor hired as casuals or contractual in any agency of the National 
Government, including in GOCCs, for a period of five (5) years, except as teaching 
staff in a state university or college.  
 
The provision of consultancy services by government personnel who retired or were 
separated as a result of the rightsizing efforts shall be governed by Section 7 of RA 
No. 6713 (Code of Conduct and Ethical Standards for Public Officials and 
Employees).  
 
SECTION 14. Report to Congress. - The President shall submit a report to 
Congress on the results of the Program after the completion of its implementation.  
 
SECTION 15. Funding Requirements. - The amount necessary for the 
implementation of this Act shall be sourced against any applicable appropriation 
items under current General Appropriations Act. Subsequent amount needed to 
continue the implementation of the National Government’s Rightsizing Program in 
the National Government shall be included in the succeeding appropriations.  
 
SECTION 16. Implementing Rules and Regulations. - The Committee on the 
Rightsizing of the National Government shall formulate the necessary IRR within 
thirty (30) days from the organization of the Committee. Such rules and regulations 


shall take effect fifteen (15) days after its publication in a newspaper of general 
circulation.  
 
SECTION 17. Separability Clause. - If any of provision of this Act is held invalid or 
unconstitutional, the same shall not affect the validity and effectivity of the other 
provisions hereof.  
 
SECTION 18. Repealing Clause. - All laws, decrees, orders, and issuances, or 
portions thereof, which are inconsistent with the provisions of this Act, are hereby 
repealed, amended or modified accordingly.  
 
SECTION 19. Effectivity Clause. - This Act shall take effect fifteen (15) days after 
its publication in the Official Gazette or in two (2) newspapers of general circulation.  
 
Approved,