NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
SENATE
S. B. NO. 1474
Senate
of tl)c S? ‘rrlr.rp
*22 NOV-8 A 9 29
RECEIVI0 8V;
Introduced by SENATOR JOEL VILLANUEVA
AN ACT
RIGHTSIZING THE NATIONAL GOVERNMENT TO IMPROVE 
PUBLIC SERVICE DELIVERY AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The Philippine government is one of the biggest, if not the biggest, 
employers in the country. Based on the 2023 Department of Budget and 
Management (DBM) Staffing Summary, the total number of permanent 
positions for Fiscal Year (FY) 2023 is 1,943,316, of which 1,772,512 (91.2%) 
positions are filled and 170,804 (8.8%) are unfilled.1
Despite having roughly 1 out of 10 authorized positions unfilled, data 
from the Civil Service Commission (CSC) shows that the government hired 
642,077 non-permanent government workers under Job Order or Contract of 
Service status, as of June 30, 2022.2 Out of this number, the Department of 
Public Workers and Highways employed 22,457 JO/COS workers; 12,465 was 
hired by the Department of Education; 8,188 was hired by the Department of 
Health, and 7,340 was hired by the Department of Social Welfare and 
Development.
In order to improve the efficiency of government operations and enhance 
the delivery of public services to our citizens, it is necessary to regularly review 
and evaluate the government’s organizational structure, processes, and 
mandates, among others.
' staffing Summary of the National Government - FYs 2021, 2022, and 2023, Department of Budget and Finance. 
Retrieved from https://dbm.qov.ph/wp-content/uploads/StaffinQ/STAFFING2023/Table-l-Staffina-Summarv.pdf (date 
last accessed: November 6, 2022).
2 Inventory of Government Human Resources, Job Order and Contract of Service Data as of June 30, 2022. Civil 
Service Commission. Retrieved from https://www.csc.aov.ph/downloads/statistics-and-reports/cateaorv/313-2022 
(date last accessed: November 6, 2022).


Thus, this measure aims to implement an organizational and systemic 
reform to ensure a more effective, efficient, responsive, and progressive 
Philippine Government. This bill seeks to implement a Rightsizing Program, 
taking into consideration, among others, the role of the government and the 
scope, level, and prioritization of programs, activities and projects in 
accordance with the 1987 Constitution, political and socio-economic contexts 
and objectives of the government, and fiscal resources.
This bill also seeks to pursue the strengthening of functions of agencies; 
scaling down or discontinuation of functions or programs that can be 
undertaken by the private sector or can be devolved to local government units; 
reviewing the staffing needs of the government to address the growing number 
of non-permanent government workers despite the existence of unfilled 
positions; and transferring or integrating functions from one agency to another 
which could better perform the same.
To emphasize, “rightsizing” is not the same as “downsizing.” Ultimately, 
the aim of the measure is to reach the optimum structure and size of 
government agencies that will ensure an efficient and effective delivery of 
services, and to ensure the attainment of the country’s societal and economic 
development goals and objectives.
Thus, the immediate passage of this bill is earnestly sought.
SENATOR JoJeL VILLANUEVA L


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
SENATE
S.B. No. 1474
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*22 NOV-8 A 9 29
\
RECEIVED BV: ^ ^______
Introduced by SENATOR JOEL VILLANUEVA
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AN ACT
RIGHTSIZING THE NATIONAL GOVERNMENT TO IMPROVE PUBLIC 
SERVICE DELIVERY AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
SECTION 1. Short Title. - This Act shall be known as "Rightsizing the National 
Government Act of 2022."
SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State 
to promote and maintain effectiveness, efficiency, responsiveness, progressiveness, 
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 objectives. 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 rules and regulations, and systems and processes.
SEC. 3. Coverage. - This Act shall cover all agencies of the Executive Branch, 
including departments, bureaus, offices, commissions, boards, councils, and all other 
entities attached to or under their administrative supervision, and government-owned 
or -controlled corporations (GOCCs) not covered by Republic Act No. 10149, 
otherwise known as the “GOCC Governance Act of 2011.”
The Legislature, the Judiciary, Constitutional Commissions, Commission on 
Human Rights, and the Office of the Ombudsman may, within their respective 
authorized appropriations, likewise rightsize their respective offices, consistent with 
the principles and guidelines contained in this Act, within the parameters of the 
“Compensation and Position Classification Act” established under Republic Act No. 
6758, as amended, otherwise known as the “Compensation and Position Classification 
Act of 1989,” and in accordance with applicable laws, rules and regulations.


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Local Government Units (LGUs) may also rightsize their respective offices, 
consistent with the governing principles and guidelines contained in this Act and the 
provisions of Republic Act No. 7160, otherwise known as the “Local Government Code 
of 1991,” as well as other applicable laws, rules and regulations, and subject to their 
financial capability.
The Governance Commission for GOCCs shall continue to exercise its 
authority, as provided under the GOCC Governance Act of 2011, to reorganize, merge, 
streamline, abolish, or privatize any GOCC, in consultation with the agency to which 
the GOCC is attached.
SEC. 4. Governing Principles. - The National Government shall implement a 
Rightsizing Program in accordance with the following principles:
(a) 
The role of government and the scope, level, and prioritization of government 
programs, activities and projects, as well as the appropriate manner by which 
public goods and services are provided, shall be determined in accordance with 
the Constitutional mandate, political and socio-economic contexts and objectives 
of the government, and available resources:
(b) 
The government shall establish a conducive policy environment to encourage 
active private sector engagement in the production and delivery of goods and 
services;
(c) 
The delineation of functional assignments and responsibilities between the 
National Government and the LGUs in the provision of public goods and services 
shall be clearly defined, consistent with the provisions of the Local Government 
Code of 1991, and other pertinent laws and issuances, for purposes of providing 
a more seamless, accessible, and responsive government services to the 
people;
(d) 
A whole-of-government approach shall be adopted to ensure seamless 
operations of agencies within and across sectors and to be more responsive to 
public needs:
(e) 
Government operations shall be simplified so that the 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:
(f) 
Government systems and processes shall be streamlined and digitalized to 
improve government interoperability, ensure shared and secured access of 
information in government, and enable remote government operations to provide 
transparent, timely, convenient, undisrupted, and efficient delivery of public 
goods and services to the Filipino people and raise the overall productivity of the 
public sector;


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(g) 
Government rules, procedures and requirements shall be rationalized to reduce 
the regulatory burden on citizens, businesses and other stakeholders, as well as 
reduce the administrative burden on the part of the government; and
(h) 
The organizational structure of agencies shall be designed so as to facilitate the 
effective, efficient, and economical implementation of programs and projects, 
and the attainment of organizational outputs and outcomes. The appropriate 
staffing mix shall also be determined based on the skills and competencies 
required.
SEC. 5. Authority of the President of the Philippines to Rightsize the 
Operations of the Executive Branch. - Pursuant to the governing principles, policies, 
standards, and guidelines stipulated in this Act, the President is hereby granted the 
following authority in the rightsizing of the operations of the different agencies of the 
Executive Branch:
(a) 
To pursue the following functional shifts/modifications:
(1) 
Strengthen functions of the agency which directly contribute to the targeted 
ultimate societal outcomes of the National Government and/or the targeted 
sector/sub-sector outcomes of the agency;
(2) 
Scale down, phase out, eliminate, or discontinue functions, programs, 
projects or activities that could be better carried out or undertaken by the 
private sector, or have already been devolved to LGUs consistent with the 
governing principles provided in this Act, the Local Government Code of 
1991, and other laws, executive orders, rules and regulations;
(3) 
Review the duties and responsibilities of personnel, including job order and 
contract of service personnel, and adjust the required staffing of the agency 
to eliminate duplication of functions or create positions that will enable the 
agency to deliver on its mandate; and
(4) 
Transfer/integrate functions from one agency to another which could better 
perform the same.
(b) 
To implement the following organizational actions, upon determination of the 
Committee on Rightsizing created under this Act that it is to the best interest of 
the State to reorganize, merge, streamline or abolish agencies and offices:
(1) 
Regularize ad hoc offices whose functions are vital and significant, and thus 
must be continually undertaken by the government;
(2) 
Merge or consolidate agencies whose functions are unnecessarily 
overlapping or duplicating and could be undertaken by a single entity, or 
whose clients are similar or related, to rationalize the use of government 
resources:


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(3) 
Split agencies with multifarious functions which are deemed distinct but 
equally important aspects of governance;
(4) 
Transfer offices to other agencies where their functions are more aligned; 
and
(5) 
Subject to evaluation and favorable recommendation of the Committee on 
Rightsizing, abolish agencies when any of the following standards are 
present:
(i) The functions are already redundant or no longer relevant or necessary, or 
could be better undertaken by another entity;
(ii) Agency is no longer achieving the objectives and purposes for which they 
were originally created;
(iii) Continued operation is not cost-effective since they do not generate the 
desired level of outputs and outcomes vis-a-vis the resource inputs; and/or
(iv) Agency has already become non-operational or dormant and/or outlived its 
purpose.
(c) 
To undertake other functional/organizational actions, as necessary, consistent 
with the policies, principles, framework and standards of this Act;
(d) 
To develop and provide safety nets, including their implementation strategies, for 
employees of agencies who may be affected by the government's rightsizing 
efforts, such as, but not limited to, transfer to agencies in need of additional 
personnel, option to avail of skills training and reskilling, and efficient processing 
of separation or retirement benefits.
(e) 
To formulate an Organizational Development Program to strengthen the 
institutional capacity of the agencies and improve productivity of employees.
SEC. 6. Creation of a Committee on Rightsizing the Executive Branch. - 
A Committee on Rightsizing the Executive Branch is hereby created to oversee the 
implementation of the Rightsizing Program, in accordance with the provisions of this 
Act.
The Committee shall be composed of the following officials or their duly 
authorized representatives: The Executive Secretary as Chairperson, and the 
Secretary of the Department of Budget and Management (DBM) as Co-Chairperson; 
and the Secretary of the National Economic and Development Authority (NEDA), 
Chairperson of the Civil Service Commission (CSC), and the Director-General of the 
Anti-Red Tape Authority (ARTA), as members. The duly authorized representative 
shall be at least a third (3rd) ranking official of the agency.


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The Committee shall be organized within fifteen (15) days from the effectivity 
of this Act.
The Committee shall also organize Sub-Committees composed of experts on 
government operations, organizational development, and human resource 
management to assist in the performance of its functions.
The DBM shall provide the necessary secretariat services to the Committee 
and its Sub-Committees.
In the spirit of transparency and participatory governance, the Committee shall 
consult the agencies concerned, accredited public sector unions and other 
stakeholders relative to the implementation of the Rightsizing Program provided under 
this Act.
SEC. 7. Powers and Functions of the Committee on Rightsizing the 
Executive Branch. - The Committee shall have the following powers and functions:
(a) 
To formulate policies, framework, strategies and mechanisms to be adopted in 
the implementation of the Rightsizing Program of the Executive Branch;
(b) 
To conduct studies on the functions, programs, projects, operations, structure 
and manpower complement of the different agencies;
(c) 
To develop and prepare the rightsized organizational structure of agencies 
concerned and the corresponding executive issuances for approval by the 
President, in accordance with the provisions of Section 5 of this Act;
(d) 
To develop and prepare the overall Change Management Program, including a 
Communication Plan, to effectively manage the transition and ensure the smooth 
implementation of the Rightsizing Program;
(e) 
To formulate mechanisms to safeguard the welfare of employees who may be 
affected by the rightsizing efforts, as well as the appropriate Organizational 
Development Program, for approval of the President;
(f) 
To monitor the implementation by the different agencies of their respective 
approved Rightsizing Plans, and report to the President any issue that must be 
addressed;
(g) 
To engage the services of experts/consultants, through the DBM, to assist the 
Committee and its Sub-Committees in the performance of their functions; and
(h) 
To formulate the implementing rules and regulations (IRR) of this Act.
SEC. 8. Submission of the Rightsized Organizational Structure and Proposed 
Executive Issuances to the President. - The Committee on Rightsizing the 
Executive Branch shall submit to the President the rightsized organizational structure


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of agencies concerned and the corresponding executive issuances within two hundred 
fifty (250) days from the effectivity of the IRR of this Act. The heads of departments or 
agencies shall provide the necessary information and/or documentation to the 
Committee, as well as technical assistance, to produce the requirements under this 
Act.
SEC. 9. Submission of the Detailed Organizational Structure and Staffing to the 
DBM. - The heads of departments or agencies shall prepare and submit to the DBM 
the detailed organizational structure and staffing of their respective agencies, including 
fund requirements for personnel, within ninety (90) days after the approval of the 
proposed executive issuances by the President.
SEC. 10. Retirement Benefits and Separation Incentives for Personnel Who May 
be Affected by the Executive Branch's Rightsizing Program. - The affected 
personnel shall be entitled to retirement benefits and separation incentives.
(a) 
The affected personnel shall be given the option to avail themselves of any of 
the following retirement benefits under existing laws, if qualified:
(1) 
Retirement gratuity provided under Republic Act No. 1616, or “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
(2) 
Retirement benefit under Republic Act No. 660, or “An Act to Amend 
Commonwealth Act Numbered One Hundred and 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 
Therefor,’ and to Provide Retirement Insurance and for Other Purposes; or
(3) 
Retirement, separation or unemployment benefit provided under Republic 
Act No. 8291, or “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 benefit of affected personnel who are qualified and have 
opted to avail themselves of the benefits under Republic Act No. 1616 shall be paid 
by the Government Service Insurance System (GSIS). For the avoidance of doubt, the 
GSIS shall no longer pay the refund of retirement premiums, including both personnel 
and government shares, of the affected personnel who will opt to avail of the benefits 
under Republic Act No. 1616.
(b) 
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:
(1) 
1/2 of the actual monthly basic salary for every year of government service.


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for those who have rendered less than 11 years of service;
(2) 
% of the 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;
(3) 
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
(4) 
1 % 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 as of the date of approval of his/her agency's detailed 
organizational structure and staffing by the DBM.
A minimum of five (5) years of government service is required in order for an 
affected personnel to be entitled to avail of the Program's separation incentives 
under Section 10(b) of this Act: Provided, That for the purpose of computing the 
total amount of separation incentives that an affected personnel would receive, 
only his/her government service up to 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 Republic Act No. 8291, the 
portability scheme under Republic Act No. 7699, otherwise known as “An Act 
Instituting Limited Portability Scheme in the Social Security Insurance Systems 
by Totalizing the Workers' Creditable Services or Contributions 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 to 
be organized and administered by the CSC. The CSC, in coordination with 
other government agencies and relevant private institutions, shall retool the 
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(b) 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.
(c) The DBM, in coordination with relevant government agencies, shall set aside a


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lump-sum fund, which shall be used for purposes of providing separation 
incentives for affected job order and contract of service personnel who have 
rendered at least five (5) years of service.
SEC. 11. Other Benefits of Retired/Separated Personnel. - The affected 
personnel who retired/separated shall, in addition to the 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.
(c) 
Reskilling or upskiiling programs. All affected personnel may avail of reskilling 
and upskiiling programs, free of charge, from the Technical Education and Skills 
Development Authority or other government agencies.
SEC. 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 agencies concerned.
SEC. 13. Prohibition on Reemployment of Personnel Retired/Separated 
from the Service. - Affected personnel who retired/separated from the service as a 
result of the implementation of the Rightsizing Program shall not be reemployed in any 
agency of the National Government, including in GOCCs, for a period of five (5) years, 
except as teaching or medical staff in educational institutions and hospitals, 
respectively.
The reemployment of retired/separated personnel under the Program within the 
prohibited period shall cause the refund of the separation incentives received by the 
concerned personnel under Section 10(b) of this Act on a pro-rated basis.
SEC. 14. Joint Congressional Oversight Committee on the Rightsizing 
Program. - There is hereby created an Oversight Committee to oversee, monitor and 
evaluate the implementation of this Act.
The Oversight Committee shall be composed of five (5) members each from 
the Senate and from the House of Representatives, which shall include 
representatives of the Senate Committees on Civil Service, Government 
Reorganization and Professional Regulation, and Finance, and the House 
Committees on Government Reorganization and Appropriations.
SEC. 15. Conduct of an Impact Assessment. - The DBM shall commission


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the conduct of an independent impact assessment on the Rightsizing Program three 
(3) years from its completion to, among others, determine the effects of, and gains 
from, the implementation of the Program.
SEC. 16. Report to Congress. - The President shall submit a report to 
Congress on the results of the Program after the completion of its implementation.
SEC. 17. Sunset Provision. - The authority given to the President under this 
Act, as well as the existence of the Committee on Rightsizing the Executive Branch, 
shall end three (3) years after the effectivity of this Act.
SEC. 18. impiementing Rules and Regulations. - The Committee on 
Rightsizing the Executive Branch 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.
SEC. 19. Provisions Applicable to Other Branches of Government, 
Constitutional Commissions, Commission on Human Rights, Office of the 
Ombudsman, and the LGUs. - The governing principles, policies, standards, and 
guidelines, as well as the conditions and limitations provided in this Act, shall be 
followed in the implementation of the Rightsizing Program by other branches of 
government. Constitutional Commissions, Commission on Human Rights, Office of the 
Ombudsman, and the LGUs.
The heads of said offices shall issue their respective IRR and furnish a copy 
thereof to the Senate Committees on Civil Service, Government Reorganization and 
Professional Regulation, and Finance, the House Committees on Government 
Reorganization and Appropriations, and the DBM.
SEC. 20. Funding Requirements. - The amount necessary for the initial 
implementation of this Act shall be sourced against any applicable appropriation items 
under the current General Appropriations Act. Subsequent amount needed to continue 
the implementation of the National Government's Rightsizing Program shall be 
included in the succeeding appropriations.
In the event that the Legislature, the Judiciary, Constitutional Commissions, 
Commission on Human Rights, and the Office of the Ombudsman rightsize their 
respective offices in accordance with the provisions of this Act, funds necessary for 
the purpose shall likewise be sourced from any applicable appropriations under the 
GAA.
ForGOCCs not covered by Republic Act No. 10149, the amount needed for the 
implementation of their Rightsizing Program shall be outsourced from their respective 
corporate funds. In case of funding deficiency, the National Government may provide 
assistance in the payment of separation incentives of personnel who may be affected 
by the rightsizing efforts of these GOCCs, provided that their salaries and other 
compensation are covered by RA No. 6758 (Compensation and Position Classification 
Act of 1989), as amended.


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In case the LGUs pursue rightsizing efforts consistent with the provisions of this 
Act and the Local Government Code of 1991, the amount needed for the purpose shall 
be drawn from their respective local government funds.
SEC. 21. Separability Clause. - If any provision of this Act is declared 
unconstitutional or invalid, the other provisions not otherwise affected shall remain in 
full force and effect.
SEC. 22. Repealing Clause. - All laws, decrees, executive orders, rules and 
regulations, and other issuances or parts thereof which are inconsistent with this Act 
are hereby repealed, amended or modified accordingly.
SEC. 23. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in at least two (2) newspapers of general 
circulation.
Approved,
10