GROWTH OF

MERIT SYSTEM
IN THE
PHILIPPINES
LEARNING OBJECTIVES:

• Definition
• What is merit system in the Philippines?
• Merit-based Civil Servants
• Historical Developments
• Philippine Civil Service Commission
Definition
A common conception of the Federal Government's merit system principles is that they are
designed to ensure fair and open recruitment and competition and employment practices free
of political influence or other non-merit factors. Although that is certainly true, a closer reading
of those principles suggests a much broader policy objective that relates directly to managing
the ongoing performance of the Federal workforce.
What is merit system in the Philippines?
Merit system means a broad program of personnel
management activities which are essential for
carrying out the merit principle: recruiting, selecting,
policing of anti-discrimination rules, and
administering related appeal provisions.
Merit-based Civil Servants

• Entrance to the service based on competitive exams.

• Protection of civil servants from arbitrary removal.
• Protection of their political neutrality.
• Policing of these rules by an independent body.
 Merit-based Civil Servants

Common features:
 positions are established centrally and classified according to rank;
 bureaucrats are paid a salary and pension that is determined by their rank, rather than the work that they do;
 there are often impediments to external lateral entry at senior grades;
 there are few points of entry, with most entering at a young age and most senior positions filled by promotion.
Table 1: Comparing Civil-Service Systems:

Management Principles Patronage system (modern) Merit system Entrance criteria Informally
based on loyalty/affinities, formally on merit criteria Competitive, transparent process open to all
citizens. Tenure & relation to political principals Most appointments on political/ welfare grounds.
Lifetime tenure, with removal only through due process.

Lifetime tenure, with removal only through due process, protects political neutrality.
Remuneration Formal pay structures undermined by variety of allowances, supplements, etc.
Relatively rigid pay structure based largely on rank (rather than work done); Position
classification Same as merit system. Positions are established centrally and classified according to
rank.

Lateral entry points (internal or external labor market) There are often impediments to external
lateral entry at senior grades; there are few points of entry, with most entering at a young age and
most senior positions filled by promotion. Senior appointments Many countries have flexible
approaches to political appointments. The amount and depth of political (as opposed to merit)
appointments is limited. Management is centralized, often with an independent body managing
appointments.
Table 2: Comparing Civil-Service Systems:

the External Environment Patronage system (modern) Merit system Political arrangements and
the civilservice system

•Modern spoils systems are informal, hidden behind formal merit systems.

•Informal patronage politics are based on spoils systems, affinity systems

•Merit systems arise under mature democracies with checks and balances and where political
parties are funded independently of civil-service spoils.

•A merit system, by protecting civil servants from politicians, promotes credible commitment,
but at the risk of shirking and inefficiency. Labor-market conditions and the civil-service system

•Scarcity of “modern-sector” jobs.

•Poorly functioning labor markets, and scarcities of qualified people.

•Well-functioning labor markets, but many civil services function as internal labor markets,
insulated from the national market.
Historical Developments
Under Public Law No. 5 ("An Act for the Establishment and
Maintenance of Our Efficient and Honest Civil Service in the
Philippine Island") in 1900 by the Second Philippine Commission. It
was reorganized into a Bureau in 1905. A Civil Service Board was
created composed of a Chairman, a Secretary and a Chief Examiner.
In 1935, Philippine Constitution firmly established the merit system as the basis for
employment in government. In 1959, Republic Act 2260, otherwise known as the
Civil Service Law, was enacted. This Act converted the Bureau of Civil Service into
the Civil Service Commission with department status. In 1975, Presidential Decree
No. 807 (The Civil Service Decree of the Philippines) redefined the role of the
Commission as the central personnel agency of government.
Philippine Civil Service Commission

RESPONSIBILITY

Recruitment, building, maintenance and retention of a competent, professional and highly motivated
government workforce truly responsive to the needs of the government's client - the public.

SPECIFIC FUNCTIONS

 leading and initiating the professionalization of the civil service;

 promoting public accountability in government service;

 adopting performance-based tenure in government; and

 implementing the integrated rewards and incentives program for government employees.