The World Bank has authorised a $67.34-million loan to aid a project focused on modernising the Philippines' civil service system.

In a statement released on Sunday, the multilateral lender announced that its board of executive directors approved the funding for the Philippines Civil Service Modernisation Project, which aims to enhance recruitment, learning and development, performance management, and rewards and recognition within the civil service.

The project will be carried out by the Civil Service Commission in collaboration with the Department of Budget and Management and the Department of Information and Communications Technology.

It will be piloted in approximately 40 agencies, including the implementing bodies, as well as the National Economic and Development Authority, the Department of Finance, the Department of Education, and the Department of Health, The Philippine Star reports.

To enhance workforce planning, career development, and succession planning within the civil service, the project will include the development of an integrated, government-wide, web-based Human Resources Management Information System (HRMIS) and payroll system.

In addition, it will establish a human resource certification system to standardise practices and improve the competence of human resource management officers.

The system, hosted on the government’s central cloud and data centre infrastructure, is designed to be resilient, capable of withstanding and recovering from disruptions or cyberattacks.

“The digitisation of HR records and the implementation of the HRMIS will enhance the government’s resilience to climate-related disasters by minimizing the risk of service interruptions, delays and loss of information, enabling continuous and effective public service delivery in times of shocks and disaster events,” said World Bank task team leader Davit Melikyan.

The new system will also enhance cash management by enabling the government to budget based on the actual number of staff, rather than fixed plantilla (establishment) positions.

From 2020 to 2023, personnel services made up approximately 28% of the national government budget.

In 2023, the country's civil service comprised 2.18 million plantilla positions, with nearly two million filled. Furthermore, over 830,000 employees were hired through job orders and service contracts.

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

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