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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _______ 
Introduced by Representative Ron P. Salo 
EXPLANATORY NOTE 
Studies have shown that the existing governmental organization is bloated and 
overstaffed, with redundant offices having overlapping, fragmented, or ambiguous 
functions. The situation calls for the rightsizing of the bureaucracy to promote 
effectiveness, efficiency, and economy in the delivery of services to the people. 
Streamlining the operations or departments/agencies is needed to achieve the 
government's goal of maintaining a well-functioning system of governance. Further, 
according to the Department of Budget and Management, shedding redundant staff in 
government can save as much as P14.8 billion. 
Thus, there is a need to rationalize the existing machinery, reconfigure the 
organization, contain the costs and expenditures, and streamline operations to fulfill 
the constitutional mandate of the civil service and maximize the role of the public sector 
in national development. In short, there is a need to 'rightsize' the government. 
Accordingly, this bill seeks the implementation of a right-sizing program in the 
Philippine Government to promote effectiveness, efficiency, and economy in the 
Philippine bureaucracy, enhance institutional capacity to improve the delivery of 
services to the Filipino people, and ensure the attainment of the country's development 
goals and objectives.  
Under the proposed measure, the President is granted authority to implement 
the Rightsizing Program for the Executive Branch with the goal of eliminating 
redundant, duplicating, or overlapping functions and simplifying its rules and 
regulations, systems, and processes. It also provides for the creation of the Committee 
on Rightsizing the Executive Branch mandated to develop policies and strategies and 
monitor the implementation of the rightsizing program; as well as prepare the 
rightsized organizational structure of the departments and agencies for approval by 
the President. Furthermore, this measure provides for the optional adoption by the 
Legislature, Judiciary, Constitutional Commissions, Office of the Ombudsman, and 
local government units of the rightsizing program. In all instances, the bill ensures that 
mechanisms are in place to safeguard the welfare of the affected personnel in this 
endeavor. 
Essentially, the bill seeks to streamline the whole bureaucracy and ensure more 
focused roles, functions, and programs, that will ultimately result in the efficient 
July 28, 2022
3:46 pm
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mobilization of the government's valuable resource and efficient delivery of services 
to its constituencies. 
In view of the foregoing, approval of this bill is earnestly sought. 
RON P. SALO   
   KABAYAN Party List 


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _______ 
Introduced by Representative Ron P. Salo 
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 “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 R.A. No. 7160 or the Local Government Code of 1991, and subject to 
their financial capability. 
The Governance Commission for GOCCs (GCG) shall continue to exercise its 
authority under R.A. No. 10149 to reorganize, merge, streamline, abolish, or privatize 
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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.   
 
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: 


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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 or 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. – 
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 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 on Rightsizing the                    
Executive Branch. – 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; 
 


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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 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 


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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. 
 
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 (¾) 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) 
years 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 
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 


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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. 
 
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; and  
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 
of 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. 


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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. 
 
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 of 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 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, 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 amounts 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,