NINETEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES  
) 
First Regular Session 
HOUSE OF REPRESENTATIVES 
HOUSE BILL NO. ____ 
Introduced by REPRESENTATIVE VIRGILIO S. LACSON 
EXPLANATORY NOTE 
This bill seeks the implementation of a national rightsizing program 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.  
In an interview with Budget Secretary Amenah F. Pangandaman, she stated that by 
rightsizing  the government will be able to save a significant amount of the budget which may be 
used to fund priority projects such as in building much-needed infrastructure, for social services, 
programs in the health sector, agriculture, among others. For instance, 5% implementation will 
yield 14.8 billion pesos. Furthermore, studies have shown that the existing governmental 
organization is bloated and overstaffed, with redundant offices and overlapping functions. 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.  
Under this proposed measure, the President is granted authority to implement the 
Rightsizing Program and simplifying its rules and regulations, systems, and processes. It also 
September 5, 2022
11:52 am
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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.  
In view of the foregoing, the passage of this bill is immediately sought. 
 VIRGILIO S. LACSON 
Manila Teachers Party-list 


NINETEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES  
) 
First Regular Session 
HOUSE OF REPRESENTATIVES 
HOUSE BILL NO. ____ 
Introduced by REPRESENTATIVE VIRGILIO S. LACSON 
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 “National Rightsizing 
Program".  
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.  
4411


SEC. 3. Coverage. — This Act shall cover all national government agencies, including 
departments, bureaus, offices, commissions, boards, council, and all other entities attached to 
or under their administrative supervision.  
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 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 Republic Act 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 socioeconomic objectives of the government, and available resources;
(b) 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;
(c) 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;
(d) 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 desired sectoral and national goals and
outcomes;


 
(e) 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 
formation, planning and performance evaluation, and raise overall productivity of the 
public sector;  
 
(f) Government rules, procedures, and requirements shall be rationalized to reduce the 
regulatory burden on citizens, businesses and other stakeholders; and  
 
(g) 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's mandate and functions.  
SEC. 5. Authority of the President. - Pursuant to the governing rules, policies, standards 
and guidelines stipulated in this Act, the President is hereby granted the following authority in 
the rightsizing of the operations of the offices, agencies, units or bureaus under it. 
 
(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/subsector outcomes of the agency;  
 
(2) Scale down, phase out, eliminate or discontinue functions, programs, and 
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 nonoperational, 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; and  
 
(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.– 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;  
 
(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 Subcommittee 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 Head. — 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 (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 Twelve of Commonwealth Act of Numbered One Hundred 
Eighty Six, as Amended, by Prescribing Two Modes of Retirement and for Other 
Purposes), as amended; or  
 
(2) Retirement benefit under Republic Act No. 660 (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 (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 the Republic Act No. 1616 
benefits.  
 
(b) In addition to said retirement benefits, the affected personnel who would opt to retire 
of be separated shall be entitled to the following applicable separation incentives:  
 
(1) One half (1/2) of the actual monthly basic salary for every year of the 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) years of service; and  
 
(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 1/4) of the actual monthly basic salary for every year of 
government service, computed starting from the (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 of 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.  
 
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 education institutions and hospitals, respectively.  
 
The retired /separated personnel under the program, who are reemployed within the 
prohibited period shall refund the separation incentives received under Section 10(b) of this Act 
on a prorated 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 Overnight 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 the 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.  
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 the offices shall issue their respective IRR and furnish a copy thereof to 
the Joint Congressional Oversight Committee on the Rightsizing Program and the DBM.  
SEC. 20. Funding Requirements. — The amount necessary for the initial 
implementation if this Act shall be sourced against any applicable appropriation items under 
the current General Appropriation 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.  
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 any newspaper of general circulation 
 
Approved.