Ched Rick Gatchalian

Article (news)

Marcos signs Government Optimization Act to rid gov’t of redundant posts, simplify procedures

Katrina Domingo

ABS-CBN News

MANILA — President Ferdinand Marcos Jr. has signed into law a measure that allows his office to dissolve or merge government agencies and positions to “eliminate, redundancies, overlaps, and duplications in its operations and simplify its rules and regulations… while protecting the welfare of civil servants and other government workers.“Republic Act 12231, or the Government Optimization Act, mandates a panel — headed by the Executive Secretary — to conduct a review on the mandates, functions and processes of all agencies under the executive branch, and subject agencies to “functional shifts or modifications” to ensure that there will be no redundancies in the bureaucracy.“The agency shall formulate an Optimization Plan consistent with the governing principles set forth under Section 5 of this Act, which shall include areas where improvements are necessary and areas where more resources need to be rechanneled as part of its institutional strengthening effort,” according to the law signed on August 4, 2025.<div><a class="fr-green fr-strong" href="https://www.abs-cbn.com/news/nation/2025/6/2/senate-oks-gov-t-optimization-bill-2056">Senate OKs gov&#x27;t optimization bill</a></div>“The Optimization Plan may also include the agency&#x27;s requirement for additional plantilla positions for its qualified casual or contractual personnel,” it read.“That the optimized agency shall not be allowed to hire casual or contractual personnel, as well as job order or contract of service workers within five years from the time the Optimization Plan is implemented.”While all executive agencies and government-owned and controlled corporations are covered by the new law, teaching and teaching-related positions, military and uniformed personnel are among those exempted from the law.“The Legislature, Judiciary, Constitutional Commissions, and Office of the Ombudsman may, within their respective authorized appropriations, optimize their respective offices, consistent with the principles and guidelines contained in this Act, and within the parameters of the Unified Position Classification and Compensation System established under Republic Act No. 6758, as amended,” it read.<div><a class="fr-green fr-strong" href="https://www.abs-cbn.com/news/2024/6/10/non-plantilla-workers-urged-to-avail-preference-rating-to-pass-civil-service-exam-1848">Non-plantilla workers urged to avail preference rating to pass civil service exam</a></div>“Local government units (LGUs) may also optimize their respective offices, consistent with the governing principles and guidelines contained in this Act,” it further read.The law also outlines the retirement benefits and separation incentives for personnel who may be affected by the optimization.A sunset provision was included, which means that the law is only effective for 5 years.Prior to the signing of the bill, the President had repeatedly emphasized the need to “rightsize” the bureaucracy and began implementing adjustments in Malacañang.

“The agency shall formulate an Optimization Plan consistent with the governing principles set forth under Section 5 of this Act, which shall include areas where improvements are necessary and areas where more resources need to be rechanneled,” according to the law signed on August 4, 2025.

“The agency shall formulate an Optimization Plan consistent with the governing principles set forth under Section 5 of this Act, which shall include areas where improvements are necessary and areas where more resources need to be rechanneled,” according to the law signed on August 4, 2025.