EIGHTEENTH CONGRESS 
REPUBLIC OF THE PHILIPPINES 
F irst R egular Session
S E N A T E
SENATE BILL No. 
2 4 4
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•19 
JUL -8 P12 ••04
RECii.
In tro d u ced  by SENATOR VICENTE C. SOTTO III
AN ACT
RIGHTSIZING THE NATIONAL GOVERNMENT TO IMPROVE PUBLIC
SERVICE DELIVERY
EXPLANATORY NOTE
The Philippine government bureaueracy comprising a total of 186 
departments, agencies and other offices has already bloated to some 1.5 
million workers at present. These figures have tremendously increased over 
the years without properly managing its proper size in the workforce that led 
to duplications in functions and redundancy in the position.
The intention of this bill to rationalize the operations of offices from and 
among various government offices having related functions, through 
streamlining of the positions in any government bureaucracy, will enable the 
present administration to promote efficiency and cost in the delivery of public 
.service.
With the Personal Seiwices eating almost 30% of the entire pie of the 
national budget, the concept of “Rightsizing” as coined in this measure, is in 
line with the battle cry of the Duterte administration to operate the national 
government with optimal cost and efficient human resources.


The primary purpose of this measure is to enhance the government’s 
institutional capacity to improve public seivice delivery. This bill will affect 
particularly the national government agencies, including departments, 
bureaus, offices, commissions, boards, councils, and all other entities 
attached to or under their administrative supervision. In order to execute the 
aforementioned objective, this bill proposes to give the President the authority 
to abolish, create and transfer offices within the National Government, among 
others. To oversee the implementation of this measure, a Committee on 
Rightsizing the National Government shall be created, which will be chaired 
by the Executive Secretaiy 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.
While there might be eventual changes in the organizational structure 
and staffing in the affected offices, affected personnel, whether hired on a 
permanent, temporary, casual or contractual basis, shall be entitled to 
retirement benefits and separation incentives.
Considering that this bill is in line with the directive of the President, 
passage of the measure is earnestly requested.
VICENTE <£. SOTTO III


EIGHTEENTH CONGRESS 
j
REPUBLIC OF THE PHILIPPINES 
} 
F irst R egular Session 
\
S E N A T E  
SENATE BILL No. 244
©filer cf thf &
'19 
JUL -8  
P12 -04
RECt:
In tro d u ced  by SENATOR VICENTE C. SOTTO III
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:
1 
SECTION 1. Short Title. -  This Act shall be known as a Rightsizing the
2 
National Government Act."
3 
SECTION 2. D eclaration of Policy. - It is hereby declared the policy of
4 
the State to promote and maintain effectiveness, efficiency and economy in
5 
the government, and enhance institutional capacity to improve public service
6 
delivery, and to ensure the attainment of the country’s societal and economic
7 
development goals and objective. Consistent with this, the government shall
8 
focus its functions and resources on the essential role, scope, and level of
9 
governance, and minimize, if not eliminate, redundancies, overlaps and
10 
duplications in its operations and simplify its systems and processes.
11 
SECTION 3. Coverage. -  This Act shall cover all national government
12 
agencies, including departments, bureaus, offices, commissions, boards,
13 
councils, and all other entities attached to or under their administrative
14 
supervision.


1 
The Legislature, The Judiciaiy, Constitutional Offices, State Universities
2 
and Colleges, and Local Government Units (LGUs) may, within their respective
3 
authorized appropriations, likewise rightsize their respective offices,
4 
consistent with the principles and guidelines contained in this Act.
5 
The Governance Commission for Government-Owned or -Controlled
6 
Corporations shall continue to exercise its authority under Republic Act (RA)
7 
No. 10149 to recognize, merge, streamline, abolish or privatized any
8 
government-owned or -controlled corporation (GOCC), in consultation with
9 
the department or agency to which the GOCC is attached.
10 
SECTION 4. Principles an d  Guidelines. - The National Government
11 
shall implement a Rightsizing Program in accordance with the following
12 
principles and guidelines:
13 
a) The role of government and the scope, level and prioritization of
14 
government activities shall be determined in accordance with the
15 
Constitutional mandate, political and socio-economic objectives of
16 
the government, and available resources;
17 
b) The delineation of responsibilities between the National Government
18 
and the LGUs in the provision, production and delivery of goods and
19 
services shall be clearly defined;
20 
c) Government 
operations 
shall 
be 
simplified 
so 
that 
the
21 
departments/agencies could focus on the performance of their core
22 
functions and implementation of programs and projects that will
23 
lead to the attainment of the desired sectoral and national goals and
24 
outcomes;
25 
d) Government systems and processes shall be simplified to facilitate
26 
the delivery and upgrade the quality of frontline services, as well as
27 
to 
improve policy formulation, 
planning and 
performance
28 
evaluation;
29 
e) Government rules shall be rationalized to reduce the regulatory
30 
burden on citizens, businesses and other stakeholders; and
31 
f) The organizational structure of agencies shall be rightsized and the
32 
appropriate staffing mix shall be determined based on the skills and


1 
competencies required to effectively and efficiently carry out the
2 
agency mandate and functions.
3 
SECTION 5. A uthority of the President of the Philippines to
4 
R ightsized the Operations of the N ational Government. -  Pursuant to the
5 
policies, principles and guidelines stipulated in this Act, the President is
6 
hereby granted the following authority in the rightsizing of the operations of
7 
the different departments/agencies of the national Government;
8 
a) To undertake the following organizational actions in order to eliminate
9 
functions, programs and projects which are already redundant, no
10 
longer necessary, or those duplicating or overlapping between and
11 
among 
the 
units 
within 
the 
department 
or 
with 
other
12 
departments/agencies of the National Government:
13 
a. 1 Abolish, deactivate, group, integrate, merge, consolidate or
14 
split national government agencies, including departments,
15 
bureaus, offices, commissions, boards, councils, and all other
16 
■ 
entities attached to or under their administrative supervision;
17 
a.2 Create, establish or regularize offices; and
18 
a.3 Transfer offices, functions, programs and projects, and/or the
19 
corresponding appropriations, equipment, properties, records,
20 
personnel, and transactions, from one department/agency to
21 
another.
22 
b) To formulate and provide safety nets, including their implementation
23 
strategies, for employees of departments/agencies who may be affected
24 
by the government’s rightsizing efforts.
25 
SECTION 6. Creation of a Committee on Rightsizing the N ational
26 
Government. 
-  A Committee on Rightsizing the National Government is
27 
hereby created to oversee the implementation of the National Government’s
28 
Rigtsizing Program, in accordance with the provisions of this Act.
29 
The Committee shall be composed of the E.xecutive Secretary as
30 
Chairman, and the Secretary of Budget and Management as Co-Chairman,
31 
with the Director-General of the National Economic and Development


1 
Authority, Chairperson of the Civil Service Commission (CSC), and the head
2 
of the Presidential Management Staff, as members.
3 
The Committee shall be organized within fifteen (15) days from the
4 
effectivity of this Act.
5 
The Committee shall also organize a Technical Working Group
6 
composed of experts on government operations, organizational development,
7 
and human resource management to assist in the performance of its
8 
functions.
9 
In the spirit of transparency and participatory governance, the
10 
Committee shall consult the departments/agencies concerned and accredited
11 
public sector unions relative to the implementation of the National
12 
Government’s Rightsizing Program.
13 
SECTION 7. Powers and Functions of the Committee on Rightsizing
14 
the N ational Government. -  The Committee shall have the following powers
15 
and functions:
16 
a) To develop the policies, framework, strategies and mechanisms to
17 
be adopted in the implementation of the National Government’s
18 
Rightsizing Program;
19 
b) To conduct studies on the functions, programs, projects, operations,
20 
structure 
and 
manpower 
complement 
of 
the 
different
21 
departments/agencies;
22 
c) To develop and prepare the rightsized organizational structure of
23 
departments/agencies concerned and the corresponding executive
24 
issuances for approval by the President;
25 
d) To 
monitor 
the 
implementation 
by 
the 
different
26 
departments/agencies of their respective approved Rightsizing
27 
Plans, and report to the President any issue that must be addressed;
28 
e) To commission the conduct of an independent impact assessment
29 
on the National Government’s Rightsizing Program after its
30 
completion, to determine any effects of, and gains from, the


1 
implementation of the Program, mitigate any adverse effects, and
2 
address areas which still require improvements; and
3 
f) To formulate the implementing rules and regulations (IRR) of this
4 
Act.
5 
SECTION 8. 
Submission 
of the Rightsized 
O rganizational
6 
S tructure ad  Proposed Executive Issuances to the President. - The
7 
Committee on Rightsizing the National Government shall submit to the
8 
President the rightsized organizational structure of departments/agencies
9 
concerned and the corresponding executive issuances within one (1) year from
10 
the effectivity of the IRR of this Act.
11 
SECTION 9. Submission of the Detailed O rganizational S tructure
12 
an d  Staffing to the DBM. - Department Secretaries/Agency Heads shall
13 
prepare and submit to the DBM the detailed organizational structure and
14 
staffing of their respective departments/agencies within ninety (90) days after
15 
then approval of the proposed executive issuances by the President.
16 
SECTION 10. Retirem ent Benefits an d  Separation Incentiifes fo r
17 
Personnel Who May be Affected by the N ational Government’s
18 
R ightsizing Program . - The affected personnel, whether hired on a
19 
permanent, temporary, casual or contractual basis and with appointments
20 
attested by the CSC, shall be entitled to retirement benefits and separation
21 
incentives.
22 
10.1. The affected personnel shall be given the option to avail themselves
23 
of any of the following retirement benefits under existing laws, if
24 
qualified:
25 
a) Retirement gratuity provided under RA No. 1616 (An Act
26 
Further Amending Section Twelve of Commonwealth Act
27 
Numbered One Hundred Eighty-Six, as Amended, By
28 
Prescribing Two Other, Modes of Retirement and for Other
29 
Purposes), as amended; or
30 
b) Retirement benefit under RA No. 660 (An Act to Amend
31 
Commonwealth Act Numbered One Hundred Eighty-Six


1 
Entitled “An Act to Create and Establish a Government Service
2 
Insurance System, to Provide for its Administration and to
3 
Appropriate the Necessary Funds Therefore,” and to Provide
4 
Retirement Insurance and for Other Purposes); or
5 
c) Retirement, separation or unemployment benefit provided
6 
under RA No. 8291 (An Act Amending Presidential Decree No.
7 
1146, as Amended, Expanding and Increasing the Coverage
8 
and Benefits of the Government Service Insurance System,
9 
Instituting Reforms Therein and for Other Purposes).
10 
The retirement gratuity of affected personnel who are qualified and have
11 
opted to avail themselves of FiA No. 1616 shall be paid by the Government
12 
Service Insurance System (GSIS). The GSIS shall no longer pay the refund of
13 
retirement premiums (both personnel and government shares) of the affected
14 
personnel who will opt to avail of RA No. 1616 benefits.
15 
10.2. In addition to said retirement benefits, the affected personnel who
16 
would opt to retire or be separated shall be entitled to the following
17 
applicable separation incentives:
18 
a) th e  a ctu al m o n thly basic salary for every year of government
19 
seiwice, for those who have rendered less than 11 years of
20 
service;
21 
b) 1 '/a of actu al m onthly basic salary for every year of
22 
government service, computed starting from the Is' year, for
23 
those who have rendered 11 to less than 21 years of service;
24 
c) 2 of th e  actu al m onthly basic salary for eveiy year of
25 
government service, computed starting from the lsl year, for
26 
those who have rendered 21 to less than 31 years of service;
27 
and
28 
d) 2 V
-2 of th e  actu al m onthly basic salary for every year of
29 
government seiwice, computed starting from the Is' year, for
30 
those who have rendered 31 yeeu's of service and above.


1 
The actual monthly basic salary shall refer to the salary of the
2 
affected 
personnel 
within 
the 
authorized 
period 
of
3 
implementation 
of 
the 
Program 
in 
their 
respective
4 
departments/agencies.
5 
A minimum of five (5) years of government service is required in
6 
order for an affected personnel to be entitled to avail of Program’s
7 
separation incentives under Section 10.2 of this Act.
8 
PROVIDED: That for the purpose of computing total amount of
9 
separation incentives that an affected personnel would receive,
10 
only his/her government seiwice up to the age 59 and a fraction
11 
thereof would be counted. Government service starting at the age
12 
60 would no longer be subject to the separation incentives
13 
provided herein, without affecting the original incentive factor
14 
determined as applicable based on the actual years of seiwice of
15 
the affected personnel.
16 
PROVIDED FURTHER: That for the purpose of complying with
17 
the required number of years of seiwice under RA No. 8291, the
18 
probability scheme under IM No. 7699 (An Act Instituting Limited
19 
Portability Scheme in Social Security Insurance Systems by
20 
Totalizing the Workers’ Creditable Seiwices or Contribution in
21 
Each of the Systems) may be applied, subject to existing policies
22 
and guidelines.
23 
The affected personnel, if with permanent appointment attested by the
24 
CSC, who will not opt to retire from the seiwice shall be placed in a manpower
25 
pool o be organized and administered by the CSC. The CSC shall retool the
26 
subject affected personnel and deploy them to agencies which require their
27 
qualifications, skills and competencies.
28 
The number of personnel who will avail of the separation incentives
29 
under Section 10.2 of this Act shall in no case e.xceed the number of positions
30 
declared for abolition.


1 
The specific guidelines to carry out the provisions of this Section shall
2 
be prescribed in the IRR of this Act.
3 
SECTION 11. O ther Benefits of R etired/Separated Personnel. -  The
4 
affected personnel who retired/separated shall, in addition to applicable
5 
benefits above, be entitled to the following:
6 
a) Refund of Pag-IBIG Contributions - all affected personnel who are
7 
members of the Pag-IBIG shall be entitled to the refund of their
8 
contributions (both personal and government), pursuant to
9 
existing rules and regulations of the 
Home Development Mutual
10 
Fund; and
11 
b) Commutation of Unused Vacation and Sick Leave Credits - all
12 
affected personnel shall be entitled to the commutation of unused
13 
vacation and sick leave credits in accordance with existing rules
14 
and regulations.
15 
SECTION 12. Period of Availability of the Retirem ent Benefits and
16 
S eparation Incentives. - The retirement benefits and separation incentives
17 
provided in this Act shall be available within sixty (60) days upon approval by
18 
the DBM of the detailed rightsized organizational structure and staffing of
19 
departments/agencies concerned.
20 
SECTION 
13. 
Prohibition 
on 
Rehiring 
of 
Personnel
21 
R etired/Separated from  
the 
Service. 
-  Affected 
personnel who
22 
retired/separated from the seiwice as a result of the implementation of the
23 
National Government’s Rightsizing Program shall not be appointed nor hired
24 
as casuals or contractual in any agency of the National Government, including
25 
in GOCCs, for a period of five (5) years, e.xcept as teaching staff in a state
26 
university or college.
27 
The provision of consultancy services by government personnel who
28 
retired or were separated as a result of the rightsizing efforts shall be governed
29 
by Section 7 of RA No. 6713 (Code of Conduct and Ethical Standards for
30 
Public Officials and Employees).


1 
SECTION 14. Report to Congress. -  The President shall submit a
2 
report to Congress on the results of the Program after the completion of its
3 
implementation.
4 
SECTION 15. Funding Requirements. - The amount necessary for the
5 
implementation of this Act shall be sourced against any applicable
6 
appropriation items under current General Appropriations Act. Subsequent
7 
amount needed to continue the implementation of the National Government’s
8 
Rightsizing Program in the National Government shall be included in the
9 
succeeding appropriations.
10 
SECTION 16. Im plem enting Rules an d  Regulations. -  The Committee
11 
on the Rightsizing of the National Government shall formulate the necessary
12 
IRR within thirty (30) days from the organization of the Committee. Such rules
13 
and regulations shall take effect fifteen (15) days after its publication in a
14 
newspaper of general circulation.
15 
SECTION 17. Separability C lause- If any of provision of this Act is
16 
held invalid or unconstitutional, the same shall not affect the validity and
17 
effectivity of the other provisions hereof.
18 
SECTION 18. Repealing Clause. -  All laws, decrees, orders, and
19 
issuances, or portions thereof, which are inconsistent with the provisions of
20 
this Act, are hereby repealed, amended or modified accordingly.
21 
SECTION 19. Effectivity Clause. -  This Act shall take effect fifteen (15)
22 
days after its publication in the Official Gazette or in two (2) newspapers of
23 
general circulation.
Approved,