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World Bank approves loan to modernize civil service

by March 23, 2025
March 23, 2025

THE World Bank has approved a $67.34-million loan to fund the digitalization of the Philippine civil service, citing the need to increase transparency and better forecasting of salary expenses.

The Philippine Civil Service Modernization Project will support the establishment of a Human Resources Management Information System (HRMIS) and payroll system, it said in a statement on March 22.

The bank said the web-based and government-wide HRMIS will improve analytics for workforce planning, career development, succession planning, and training.

“Strong public institutions are fundamental to achieving inclusive growth and development,” World Bank Country Director for the Philippines, Malaysia, and Brunei Darussalam Zafer Mustafaoglu said.

“Global experience shows that countries with high-quality public administrations, including a merit-based civil service, raise more revenue, deliver better services, and create a more supportive environment for inclusive growth,” he added.

“This new system will allow budgeting based on the actual number of staff rather than plantilla positions, which will help manage cash better and save the government money,” the World Bank said.

In 2023, the Philippine civil service included 2.18 million plantilla positions and over 830,000 employees hired through job orders and service contracts.

The system is expected to enhance the accuracy of salary expense forecasts, transparency, and improved data for payroll management throughout the government.

The project will be piloted in 40 agencies such as the Civil Service Commission, the Department of Budget and Management (DBM), the Department of Information and Communications, the National Economic and Development Authority, and the Department of Finance.

Currently, there is no comprehensive HRMIS covering the whole public workforce.

The DBM maintains the establishment records of authorized positions for each department and agency called the Personnel Services Itemization and Plantilla of Personnel.

Meanwhile, departments and agencies also maintain their own personnel management systems. — Aubrey Rose A. Inosante

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