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THIRTEENTH CONGRESS OF THE REPUBLIC 
First Regular Session 
OF THE PHILIPPINES 
S E N A T E  
S. No. 
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Introduced by Senator S. R. Osmefia 111 
EXPLANATORY NOTE 
A professional bureaucracy is indispensable to a country's development. It is 
crucial for a nation to attract investments, compete in the global economy and .
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survive. 
Contrary to its Asian neighbors who are known for their highly efficient and 
professional bureaucracies, the Philippines' bloated bureaucracy has been recognized 
as a serious problem. 
It has long been known for its ineptness and is widely- 
perceived as graft-ridden. 
Despite every administration's effort to cut red tape and 
reduce corruption, progress has been disappointing. 
This bill attempts to remedy the problem through the re-institution of a system 
of attrition in government. Our experience with this system is quite notable. Reports 
from the Civil Service Commission revealed that while the previous Attrition Law 
(Republic Act 7430) was in force from 1992 to 1997, the government was able to save 
an estimated 6.4 billion pesos. 
Considering that a major overhaul of our bureaucracy through its reorganization 
is far from taking place, this measure provides an alternative through the system of 
attrition. 
Passage of this bill therefor is earnestly sought. 
SERGIO OSMENA 111 
Senator 
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THIRTEENTH CONGRESS OF THE REPUBLI 
First Regular Session 
OF THE PHILIPPINES 
S. No. 
Introduced by Senator S. R. Osmefia 111 
AN ACT 
UTILIZATION OF PERSONNEL IN GOVERNMENT SERVICE, PROVIDING 
PENALTIES THEREFOR AND FOR OTHER PURPOSES 
RE-IMPLEMENTING THE SYSTEM OF ATTRITION, PROVIDING FOR OPTIMUM 
Be it enacted by the Senate and the House of Representatives of the Republic of the 
Philippines in Congress assembled: 
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SECTION 1. Declaration of Policy. - It is the policy of the State to give 
highest priority to measures that will promote morale, efficiency, integrity, 
responsiveness and progressiveness in the civil service. Towards this end, 
optimum utilization of personnel shall be assured through the institution of a 
system of attrition in government. 
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SEC. 2. System of Attrition. - “Attrition” is the reduction of personnel as 
a result of resignation, retirement, dismissal in accordance with laws, death or 
transfer to another office. Within five (5) years from the approval of this Act, no 
appointment shall be made to fill vacated career positions in any government 
office as a result of attrition. 
SEC. 3. Scope of Coverage. - The system of attrition shall cover the 
national government and all its instrumentalities or agencies including 
government-owned and/or controlled corporations, and government financial 
institutions receiving subsidies from the national government: Provided, That 
the system of attrition shall not apply to the following: 
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(a) 
Where the position is head of a primary organic unit such as chief 
of d iv is i o n ; 
(b) 
(c) 
Where the position is the lone position in the organizational unit; 
Where the positions are basic positions for the initial operations of 
a newly created or activated agency: Provided, further, That the organizational 
structure and staffing pattern of the said office is duly approved by the 
Department of Budget and Management (DBM); 
(d) 
Where the positions are technical in nature, vital and necessary for 
the continued and efficient operation of the agency as determined by the DBM 
and the Civil Service Commission (CSC); 
(e) 
Where the replacements come from existing employees of same 
agency or any other agency; 
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Positions of teaching personnel, health workers, social workers 
and community development workers whenever applicable; 
(9) 
Uniformed personnel of the Department of the Interior and Local 
Government (DILG), Armed Forces of the Philippines (AFP) and prison guards 
of the Bureau of Corrections; 
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(h) 
(i) 
(j) 
(k) 
Appointments extended by the President; 
Position in local water districts; 
Positions in local government units; and 
Positions in Congress and in the judiciary. 
Provided further, That exemptions from this 
prohibition shall require 
authorization by the Civil Service Commission: 
Provided, finally, That no 
appointment shall be issued by the appointing authority nor approved by the 
Civil Service Commission without said authorization. Appointments made in 
violation of this act shall be null and void. 
SEC. 4. Penalty. - Any appointing authority who makes an appointment 
in violation of this Act, shall upon conviction, be punished by imprisonment of 
not less than three (3) months but not exceeding six (6) months or by a fine of 
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not less than Six Thousand pesos (P6,OOO.OO) but not exceeding Ten Thousand 
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pesos (PlO,OOO.OO), or both such imprisonment and fine, at the discretion of the 
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court. In addition, the appointing official shall be personally liable for the salary 
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that would have accrued to the employee had the employment been lawful, and 
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the disbursing official shall make payment to the employee of such amount from 
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SEC. 5. Annual Report. - The CSC and the DBM shall jointly monitor 
the salary of the appointing authority. 
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and render an annual report to the President and the Congress on the extent of 
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compliance of the law. 
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The report shall include, among others, the following: 
(a) Total number of positions authorized in the agency’s annual budget; 
(b) 
Total number of officers and employees separated from the 
service during the year categorized as follows: 
I )  Those who resigned; 
2) Those who retired; 
3) Those who were dismissed from the service; 
4) Those who died; and 
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Those who transferred to another government agency or 
instrumentality. 
6) Total number of new personnel recruited during the year; and 
7) Total number of vacancies at the end of the year. 
The DBM, in coordination of the CSC, shall conduct a personnel audit of 
ail government agencies to determine optimum utilization of personnel. The 
audit report shall, among others include information on whether the agency is 
over-staffed or under-staffed indicating therein its minimum and maximum 
personnel requirements. 
The DBM and CSC shall jointly conduct and prepare a work study which 
shall contain among others: the evaluation and effectiveness of the program 
during the five-year period of its enforcement and the feasibility of extending the 
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same to another period. They shall submit their auc t report and work study 
together with their recommendation to the President and the Congress of the 
Philippines. 
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SEC. 
6. 
Non-use of Savings Derived from Vacated and Unfilled 
Positions. - Savings from appropriations for the positions vacated and which 
remain unfilled under the provisions of this Act shall not be used for the 
employment of casual or emergency employees and shall revert to the National 
Treasury. 
SEC. 7. Implementing Rules and Regulations. -Within ninety (90) days 
from the effectivity of this Act, the CSC and the DBM shall issue the necessary 
rules and regulations to implement the provisions of this Act. 
SEC. 8. Repealing Clause. - All laws, presidential decrees, executive 
orders, other executive issuances or parts thereof, which are inconsistent with 
this Act are hereby repealed or modified accordingly. 
SEC. 9. Effectivity Clause, - This Act shall take effect fifteen (15) days 
after its publication in two (2) leading newspapers of national circulation. 
Approved, 
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