SEVENTEENTH CONGRESS 
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REPUBLIC OF THE PHILIPPINES 
}
FIRST REGULAR SESSION 
}
SENATE 
SENATE BILL No.
1167
(§ ifife of th e S rr
*16 
SEP 21 
P 3  :02
RFC1;; 
f>Y;
In tro d u ced  by SENATOR VICENTE C. SOTTO III
AN ACT
RIGHTSIZING THE NATIONAL GOVERNMENT TO IMPROVE PUBLIC
SERVICE DELIVERY
EXPLANATORY NOTE
The Philippine government bureaucracy comprising a total of 186 
departments, agencies and other offices has already bloated to some 1.5 
million workers at present. These figures have tremendously increased over 
the years without properly managing its proper size in the workforce that led 
to duplications in functions and redundancy in the position.
The intention of this bill to rationalize the operations of offices from 
and among various government offices having related functions, through 
streamlining of the positions in any government bureaucracy, will enable the 
present administration to promote efficiency and cost in the delivery of 
public service.
With the Personal Services eating almost 30% of the entire pie of the 
national budget, the concept of “Rightsizing” as coined in this measure, is in 
line with the battle cry of the Duterte administration to operate the national 
government with optimal cost and efficient human resources.
The primary purpose of this measure is to enhance the government’s 
institutional capacity to improve public service delivery. This bill will affect 
particularly the national government agencies, including departments, 
bureaus, offices, commissions, boards, councils, and all other entities


attached to or under their administrative supervision. In order to execute 
the aforementioned objective, this bill proposes to give the President the 
authority to abolish, create and transfer offices within the National 
Government, among others. To oversee the implementation of this measure, 
a Committee on Rightsizing the National Government shall be created, 
which will be chaired by the Executive Secretary with the Secretary of the 
DBM as co-chair, and the NEDA Director-General, Chairperson of the CSC 
and Head of the Presidential Management Staff as members.
While there might be eventual changes in the organizational structure 
and staffing in the affected offices, affected personnel, whether hired on a 
permanent, temporary, casual or contractual basis, shall be entiUed to 
retirement benefits and separation incentives.
Considering that this bill is in line with the directive of the President, 
passage of the measure is earnestly requested.
TE C. BOTTO III
w


SEVENTEENTH CONGRESS 
}
REPUBLIC OF THE PHILIPPINES 
}
FIRST REGULAR SESSION 
}
SENATE
SENATE BILL No. 
1 1 6 7
<Slf<reoft(!e£^Vrit (3ru
*16 
SEP 21 
P 3  .-02
HF U
f  : i \ ‘ •»' HY*
In tro d u ced  by SENATOR VICENTE C. SOTTO III
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AN ACT
RIGHTSIZING THE NATIONAL GOVERNMENT TO IMPROVE PUBLIC
SERVICE DELIVERY
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t
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 of 2016”
SECTION 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 objective. 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 
systems and processes.
SECTION 3. Coverage. - This Act shall cover all national government 
agencies, including departments, bureaus, offices, commissions, boards,
councils, and all other entities attached to or under their administrative 
supervision.
The Legislature, The Judiciary, Constitutional Offices, State Universities 
and Colleges, and Local Government Units (LGUs) rnay, within their 
respective authorized appropriations, likewise rightsize their respective 
offices, consistent with the principles and guidelines contained in this Act.


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The Governance Commission for Government-Owned or -Controlled 
Corporations shall continue to exercise its authority under Republic Act (RA) 
No. 10149 to recognize, merge, streamline, abolish or privatized any 
government-owned or -controlled corporation (GOCC), in consultation with 
the department or agency to which the GOCC is attached.
SECTION 4. Principles an d  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 
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) Government 
operations 
shall 
be 
simplified 
so 
that 
the 
departments/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;
d) Government systems and processes shall be simplified to facilitate 
the delivery and upgrade the quality of frontline services, as well as 
to 
improve 
policy 
formulation, 
planning 
and 
performance 
evaluation;
c) Government miles shall be rationalized to reduce the regulatory 
burden on citizens, businesses and other stakeholders; and
f) The organizational structure of agencies shall be rightsized and the 
appropriate staffing mbc shall be determined based on the skills 
and competencies required to effectively and efficiently cany out 
the agency mandate and functions.
SECTION 5. Authority o f the President o f the Philippines to 
Rightsized the O perations of the N ational Government. — Pursuant to


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the policies, principles and guidelines stipulated in this Act, the President is 
hereby granted the following authority in the rightsizing of the operations of 
the different departments/agencies of the national Government:
a) To undertake the following organizational actions in order to 
eliminate functions, programs and projects which are already 
redundant, no longer necessary, or those duplicating or overlapping 
between and among the units within the department or with other 
departments/agencies of the National Government:
a.l Abolish, deactivate, group, integrate, merge, consolidate or 
split national government agencies, including departments, 
bureaus, offices, commissions, boards, councils, and all other 
entities attached to or under their administrative supervision; 
a.2 Create, establish or regularize offices; and 
a.3 Transfer offices, functions, programs and projects, and/or 
the 
corresponding 
appropriations, 
equipment, 
properties, 
records, 
personnel, 
and 
transactions, 
from 
one 
department/agency to another.
b) To formulate and provide safety nets, including their implementation 
strategies, for employees of departments/agencies who may be 
affected by the government’s rightsizing efforts.
SECTION 6. Creation of a Committee on Rightsizing the N ational 
Government. -  A Committee on Rightsizing the National Government is 
hereby created to oversee the implementation of the National Government’s 
Rigtsizing Program, in accordance with the provisions of this Act.
The Committee shall be composed of the Executive Secretary as 
Chairman, and the Secretary of Budget and Management as Co-Chairman, 
with the Director-General of the National Economic and Development 
Authority, 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.


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The Committee shall also organize a Technical Working Group 
composed of experts on government operations, organizational development, 
and human resource management to assist in the performance of its 
functions.
In the spirit of transparency and participatory governance, the 
Committee 
shall 
consult the 
departments/agencies concerned, 
and
accredited public sector unions relative to the implementation of the 
National Government’s Rightsizing Program.
SECTION 7. 
Powers and Functions o f the Committee on 
Rightsizing the N ational Government. -  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 
National Government’s 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 
monitor the 
implementation 
by the 
different
departments/agencies 
of 
their 
respective 
approved 
Rightsizing Plans, and report to the President any issue that 
must be addressed;
e) To commission the conduct of an independent impact 
assessment on the National Government’s Rightsizing 
Program after its completion, to determine any effects of, and 
gains from, the implementation of the Program, mitigate any 
adverse effects, and address areas which still require 
improvements; and


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f) To formulate the implementing rules and regulations (IRR) of 
this Act.
SECTION 
8. 
Submission 
of the Rightsized O rganizational 
Structure ad  Proposed Executive Issuances to the President. - The
Committee on Rightsizing the National Government shall submit to the 
President the rightsized organizational structure of departments/agencies 
concerned and the corresponding executive issuances within one (1) year 
from the effectivity of the IRR of this Act.
SECTION 9. Submission of the Detailed O rganizational Structure 
and Staffing to the DBM. -  Department Secretaries/Agency Heads shall 
prepare and submit to the DBM the detailed organizational structure and 
staffing of their respective departments/agencies within ninety (90) days 
after then approval of the proposed executive issuances by the President.
SECTION 10. Retirem ent Benefits an d  Separation Incentives fo r 
Personnel Who May be Affected by the N ational G overnm ents 
Rightsizing Program. -  The affected personnel, whether hired on a 
permanent, temporary, casual or contractual basis and with appointments 
attested by the CSC, shall be entitled to retirement benefits and separation 
incentives.
10.1. The affected personnel shall be given the option to avail
themselves
of any of the following retirement benefits under existing laws, if
qualified:
a) Retirement gratuity provided under RA No. 1616 (An Act 
Further Amending Section Twelve of Commonwealth Act 
Numbered One Hundred Eighty-Sbc, 
as Amended, 
By 
Prescribing Two Other, Modes of Retirement and for Other 
Purposes), as amended; or
b) Retirement benefit under RA No. 660 (An Act to Amend 
Commonwealth Act Numbered One Hundred Eighty-Six 
Entitled An Act to Create and Establish a Government


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Service Insurance System, to Provide for its Administration 
and to Appropriate the Necessary Funds Therefore,” and to 
Provide Retirement Insurance and for Other Purposes); pr ,
c) Retirement, separation or unemployment benefit provided 
under RA 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 of affected personnel who are qualified and 
have opted to avail themselves of RA 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 will opt to avail of RA No. 1616 benefits.
10.2. 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:
a) th e 
actu al m onthly basic salary for every year of 
government service, for those who have rendered less than 11 
years of service;
b) 1 V2 o f actu al m onthly 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;
c) 2 o f th e  actu al m onthly 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
d) 2 Vt. o f th e  actu al m onthly 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.


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The actual monthly basic salary shall refer to the salary of the 
affected 
personnel 
within 
the 
authorized 
period , pf
implementation 
of 
the 
Program 
in 
their 
respective
departments/agencies.
A minimum of five (5) years of government service is required in 
order for an affected personnel to be entitled to avail of 
Program’s separation incentives under Section 10.2 of this Act.
PROVIDED: That for the purpose of computing total amount of 
separation incentives that an affected personnel would receive, 
only his/her government service up to the 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 RA No. 8291, the 
probability scheme under RA No. 7699 (An Act Instituting 
Limited Portability Scheme in Social Security Insurance 
Systems 
by Totalizing the Workers’ Creditable Services or 
Contribution 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 o be organized and administered by the CSC. The CSC shall 
retool the subject 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 10.2 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 sh^l 
be prescribed in the IRR of this Act.
SECTION 11. Other Benefits of R etired/Separated Personnel -
The affected personnel who retired/separated shall, in addition to 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.
SECTION 12. Period of Availability of the Retirem ent 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.
SECTION 
13. 
Prohibition 
on 
Rehiring 
o f 
Personnel 
R etired/Separated from  
the 
Service. 
-  
Affected 
personnel 
who 
retired/separated from the service as a result of the implementation of the 
National Government’s Rightsizing Program shall not be appointed nor hired 
as casuals or contractual in any agency of the National Government, 
including in GOCCs, for a period of five (5) years, except as teaching staff in 
a state university or college.
The provision of consultancy services by government personnel who 
retired or were separated as a result of the rightsizing efforts shall be 
governed by Section 7 of RA No. 6713 (Code of Conduct and Ethical 
Standards for Public Officials and Employees).


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SECTION 14. Report to Congress. -  The President shall submit a 
report to Congress on the results of the Program after the completion of its 
implementation.
SECTION 15. Funding Requirements. -  The amount necessaiy for 
the implementation of this Act shall be sourced against any applicable 
appropriation items under current General Appropriations Act. Subsequent 
amount 
needed 
to 
continue 
the 
implementation 
of the 
National 
Government’s Rightsizing Program in the National Government shall be 
included in the succeeding appropriations.
SECTION 
16. 
Implementing Rules and Regulations. -  The 
Committee on the Rightsizing of the National Government 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.
SECTION 17. Separability Clause -  If any of provision of this Act is 
held invalid or unconstitutional, the same shall not affect the validity and 
effectivity of the other provisions hereof.
SECTION 18. Repealing Clause. - All laws, decrees, orders, and 
issuances, or portions thereof, which are inconsistent with the provisions of 
this Act, are hereby repealed, amended or modified accordingly.
SECTION 19. Effectivity Clause. -  This Act shall take effect fifteen 
(15) days after its publication in the Official Gazette or in two (2) newspapers 
of general circulation.
Approved,