Bureaucrats' bonuses are set for a shake-up, with Premier Daniel Andrews determined to curb the number of government executives receiving lucrative rewards even when performance in services declines.

One year after coming to office, Mr Andrews has flagged a sweeping review of merit-based pay in government departments, telling senior executives across the bureaucracy: "I'd like to think that you only get performance pay if you perform."

Daniel Andrews has vowed to crack down on the number of government employees receiving bonuses even when they don't perform. Credit:Alex Ellinghausen

The comments come after The Sunday Age revealed that dozens of executives in the education department secured generous bonuses last financial year, despite a drop in the number of students who are completing year 12, meeting minimum learning standards, or taking part in vocational training.

Asked if there was a need to review the bonus system across state departments, Mr Andrews replied: "There is, absolutely."