1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
1st Regular Session 
House Bill No. ________ 
Introduced by Representatives EDVIC G. YAP, JOCELYN P. TULFO, and 
JEFFREY SORIANO 
EXPLANATORY NOTE 
The ballooning and bloated government organizations, including overlapping, 
fragmented, or ambiguous offices, becomes a pertinent issue as the clamor in 
streamlining government offices continues. According to the Department of Budget 
and Management, the number of government personnel has grown from 1,108,856 in 
2005 to 1,899,747 in 2022—corresponding to 71.32% increase. In addition to such 
growth is the remarkable increase in the total government expenditure.  
 Apart from rationalizing the country’s public expenditure management, there is also 
a need to recalibrate government organizations and streamline their operations in 
order to deliver an efficient, responsive, and practical public service. This is the actual 
process of “rightsizing” the government.  
In this pursuit, this proposed measure seeks the institutionalize the Rightsizing 
Program of the government which shall determine the role of every government office 
in accordance with its constitutional mandate, political and socio-economic objectives 
of the government, and available resources. This bill also accentuates the essence of a 
unified government operations within and across agencies, highlighting the speedy 
disposition of government services.  
In view of the foregoing, approval of this bill is earnestly sought. 
      EDVIC G. YAP 
   JOCELYN P. TULFO 
 JEFFREY SORIANO 
August 11, 2022
2:35 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
1st Regular Session 
House Bill No. ________ 
Introduced by Representatives EDVIC G. YAP, JOCELYN P. TULFO, and 
JEFFREY SORIANO 
AN ACT 
RIGHTSIZING THE NATIONAL GOVERNMENT TO IMPROVE PUBLIC 
SERVICE DELIVERY 
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."  
SEC. 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 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 duplication in its operations and simplify its rules and 
regulations, 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, government-owned or 
controlled corporations (GOCCs) not covered by Republic Act No. 10149 or the GOCC 
Governance Act of 2011. 
The Legislature, the Judiciary, the Constitutional Commissions, 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. 
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 RA No. 7160 or the local Government Code of 1991, and subject to their 
financial capability. 
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The Governance Commission for GOCCs (GCG) shall continue to exercise its 
authority under RA No. 10149 to reorganize, merge, streamline, abolish, or privatize 
any GOCC, in consultation with the department or agency to which the GOCC is 
attached. 
 
SEC. 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 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 responsibilities between the National Government and 
the LGUs in the provision, production, and delivery of goods and services 
shall be clearly defined; 
 
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 departments/ 
agencies can 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 simplified and modernized to 
facilitate the delivery and upgrade the quality of frontline services, as well 
as to improve policy formulation, planning and performance evaluation, 
and raise overall productivity of the public sector; 
 
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 an agency shall be designed to facilitate the 
effective, efficient, and economical implementation of programs and 
projects, and the attainment of organizational outputs and outcomes; 
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. 
 


 
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SEC. 5. Authority of the President of the Philippines to Rightsize the 
Operations of the Executive Branch. - Pursuant to the governing rules, policies, 
standards and guidelines stipulated in this act, the President of the Philippines 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 that can better be carried out or undertaken by the private 
sector, or have already been devolved to LGUs consistent with the 
governing principles provided in this Act; and 
3. Transfer/integrate functions from one agency to another which can 
better perform the same. 
 
b. To undertake the following organizational actions: 
1. Regularize ad hoc offices whose functions are vital and significant, thus 
must be continually undertaken by the government; 
2. Merge or consolidate agencies whose functions are necessarily 
overlapping or duplicating and can be undertaken by a single entity; or 
clients are similar or related to rationalize the use of government 
resources; 
3. Split agencies with multifarious functions which are deemed distinct 
and equally serve important aspects of governance; 
4. Transfer offices to other agencies wherein their functions are more 
aligned; and 
5. Abolish agencies (i) which functions are already redundant or no longer 
relevant necessary, or better undertaken by another entity; (ii) which are 
no longer achieving the objectives and purposes for which these were 
originally created; (iii) which are not cost-effective since these do not 
generate the desired levels of outputs and outcomes vis-à-vis the 
resource inputs; and/or (iv) which have already become non-
operational, dormant and/or outlived their purposes. 
 
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 departments/agencies who may be affected by 
the government’s rightsizing efforts. 
 
e. To formulate an organizational development program to strengthen the 
institutional capacity of the agencies and improve productivity of 
employees. 
 


 
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SEC. 6. Creation of a Committee on Rightsizing the Executive Branch. - 
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 Executive Secretary as Chairperson, 
and the Secretary of the Department of Budget and Management (DBM) as Co-
Chairperson, with the Secretary of Socio-Economic Planning, 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 Subcommittees 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 Subcommittees. 
 
In the spirit of transparency and participatory governance, the Committee shall 
consult the departments/ agencies concerned and accredited public sector unions, 
and other stakeholders, relative to the implementation of the Executive Branch 
Rightsizing Program. 
 
 
SEC. 7. Powers and Functions of the Committee - 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 Executive Branch 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 develop and prepare the overall change management program, 
including communication plans, to effectively manage the transition and 
ensure the smooth implementation of the Rightsizing Program; 
e. To formulate the 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; 


 
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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 of 
agencies concerned and the corresponding executive issuances within two hundred 
fifty (250) days from the effectivity of the Implementing Rules and Regulations (IRR) 
of this Act. 
 
SEC. 9. Submission of the Detailed Organizational Structure and Staffing to 
the DBM. - The heads of agencies shall prepare and submit to the DBM the detailed 
organizational structure and staffing of their respective agencies within ninety (90) 
days after the approval of the proposed executive issuances by the President: Provided, 
That assistance in the preparation of organizational structure and staffing pattern has 
been extended to the agency by the DBM and the CSC. 
 
SEC. 10. Retirement Benefits and Separation Incentives for Personnel Who 
May be Affected by the Executive Branch Rightsizing Program. - The affected 
personnel hired on a permanent basis and with appointments attested by the CSC, 
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 (An Act 
Further Amending Section 12 of Commonwealth Act No. 186, as 
Amended, By Prescribing Two Other Modes of Retirement and for 
Other Purposes), as amended; or 
2. Retirement benefit under Republic Act No. 660 (An Act to Amend 
Commonwealth Act No. 186 or "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 (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 
shall avail of Republic Act 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 
shall avail of Republic Act No. 1616 benefits. 
 


 
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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. One half (½) of the actual monthly basic salary for every year of 
government service, for those who have rendered less than eleven (11) 
years of service;  
2. Three fourth (3/4%) of the actual monthly basic salary for every year of 
government service, computed starting from the first (1st  year, for those 
who have rendered eleven (11) to less than twenty-one (21) ears of 
service; 
3. The actual monthly basic salary: for every year of government service, 
computed starting from the first (1st) year, for those who have rendered 
twenty-one (21) to less than thirty-one (31) years of service: and 
4. One and one fourth (1 ¼) of the actual monthly basic salary for every 
year of government service, computed starting from the first (1st) year, 
for those who have rendered thirty-one (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 the 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 shall receive only the government 
service up to age fifty-nine (59) and a fraction thereof shall be counted. Government 
service starting at the age sixty (60) shall 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 (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 subject 
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 of this Act shall in no case exceed the number of positions declared for 
abolition. 
 


 
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The specific guidelines to carry out the provisions of this Section shall be 
prescribed in the IRR of this Act. 
 
SEC. 11. Other Benefits of Retired/Separated Personnel. - The affected 
personnel who retire or are separated shall, in addition to the applicable benefits 
above, be entitled to the following: 
 
a. Refund of Pag-IBIG contributions, both personal and government of all 
affected members, pursuant to existing rules and regulations of the Home 
Development Mutual Fund: 
 
b. Commutation of Unused Vacation and Sick Leave Credits of the affected 
personnel in accordance with existing rules and regulations 
 
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 departments/ agencies concerned. 
 
SEC. 13. Prohibition on Reemployment of Personnel Retired/Separated from 
the Service. - Personnel who retire or are separated from the service as a result or the 
implementation of the Rightsizing Program shall not be reemployed in any agency of 
the Executive Branch, including in GOCCs, for a period of five (5) years, except as 
teaching or medical staff in educational institutions and hospitals, respectively. 
 
The retired/separated personnel under the program, who are re-employed 
within the prohibited period shall refund the separation incentives received under 
Section 10.b of this Act on a pro-rated basis. 
 
The retired/separated personnel under the program who undertake in 
consultancy services for the government shall be governed by Section 7 of Republic 
Act No. 6713 (Code of Conduct and Ethical Standards for Public Officials and 
Employees). 
 
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 the House of Representatives which shall include members of the Senate 
Committee on Civil Service, Government Reorganization and Professional 
Regulation, the Senate Committee on Finance, the House Committee on Government 
Reorganization and House Committee on Appropriations. 
 
SEC. 15. Conduct of An Impact Assessment. - The DBM shall commission the 
conduct of an independent impact assessment on the executive branch rightsizing 
program three (3) years from its completion to, among others, determine the effects 
of, and gains from, the implementation of the program. 


 
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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. Implementing 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. The IRR shall take effect fifteen (15) days after its 
publication in a newspaper or general circulation. 
 
SEC. 19. Provisions Applicable to other Branches of Government, 
Constitutional Commissions, Office of the Ombudsman, and the LGUs. - The 
governing principles, policies, standards, and guideline, 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. 
Office of the Ombudsman and the LGUs. 
 
The heads of offices, shall issue their respective IRR and furnish a copy thereof 
to the Joint Congressional Committee on the Rightsizing Program 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 Executive Branch Rightsizing Program in the 
Executive Branch shall be included in the succeeding appropriations. 
 
In the event that the Legislature, Judiciary, Constitutional Commissions and 
the Office of the Ombudsman implement the rightsizing under this Act, the funding 
requirements shall be included in the succeeding appropriations. 
 
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 take effect fifteen (15) days after 
its publication in the Official Gazette or in any newspaper of general circulation. 
 
 
Approved,