Perceived Effects of the Performance-Based Bonus on Government Employees' Productivity

The Performance-Based Bonus (PBB) was established in 2012 primarily to reward exemplary employee performance and improve public service delivery. This study is a follow-up of a process evaluation of the PBB conducted in 2019. It undertook a perception-based survey on the effects of the PBB with more than 1,200 respondents. The paper suggests that while the PBB has had design issues and implementation challenges, the program is generally welcomed across the bureaucracy. There is evidence that the PBB has helped boost the motivation and productivity of employees, which can lead to individual and agency-wide improvements. It also shows that the PBB can be redesigned to further hone its effects on public sector reforms.