BEYOND BUDGET
Assalamu alaikum wa Raḥmatullahi wa Barakatuh.
I believe that the true essence of the holiday season is the shared love, joy, and hope it brings. It is in the spirit of generosity, acknowledgment, kindness, and gratitude, that we show our appreciation by giving gifts to the people who have consistently supported us throughout the year.
As I celebrate this holiday season and my birthday today, I find it fitting to honor those in government who work hard silently—most of the time unacknowledged—yet play an integral part in our nation’s development: the contract of service (COS) and job order (JO) workers.
COS and JO workers in government
COS refers to the engagement of the services of an individual, private firm, other government agency, non-governmental agency, or international organization as a consultant, learning service provider, or technical expert to undertake a special project or job within a specific period. Meanwhile, JO refers to piece work (pakyaw) or intermittent or emergency jobs undertaken for a short duration and for a specific piece of work.
Civil Service laws, rules, and regulations do not cover their services, and thus, are not creditable as government service. This also means they do not enjoy the same benefits as government employees.
Despite these, COS and JO workers perform frontline duties and responsibilities to the best of their abilities, such as assisting in disaster response, helping build infrastructure, supporting educational programs, or ensuring the smooth operation of government offices. They contribute immensely to the implementation of agencies’ programs, activities, and projects (PAPs), especially the priority items under the Philippine Development Plan 2023-2028 and President Ferdinand R. Marcos Jr.’s (PBBM) 8-Point Socioeconomic Agenda.
In this regard, their work directly impacts Filipinos' lives. In recognition of their importance in achieving our Agenda for Prosperity and to facilitate a seamless transition toward new opportunities for them in the government, the President ordered the extension of the deadline for their engagement to Dec. 31, 2025, instead of Dec. 31 this year. More importantly, the President ordered appropriate agencies to conduct a thorough study of the current state of the government workforce.
Gratuity pay increased
Last Friday, Dec. 20, I also announced that PBBM approved Administrative Order (AO) No. 28, authorizing the grant of up to ₱7,000 as gratuity pay for qualified COS and JO workers, to be released no earlier than Dec. 15. I believe that this is a fitting gesture that reflects PBBM’s sincerity and gratitude toward COS and JO workers, recognizing their contributions to building a better nation. To ensure its effective implementation, we at the DBM, issued Budget Circular No. 2024-08 on Dec. 20.
I agree with the President that, “Granting a year-end gratuity pay to COS and JO workers is a well-deserved recognition of their hard work and valuable participation in the implementation of various PAPs of the government, and their pivotal role in the delivery of government services amidst the present socio-economic challenges.”
Thus, I would like to thank PBBM for approving a higher gratuity pay—up to ₱7,000, compared to only up to ₱5,000 in 2023—for CO and JO workers. As you may know, the last gratuity pay hike, from ₱3,000 to ₱5,000, was way back in 2021. I am confident that with this initiative, COS and JO workers will feel the appreciation they so rightfully deserve.
The AO covers all COS and JO workers whose services are directly engaged by departments, bureaus, offices, and agencies of the national government, including Constitutional Offices enjoying fiscal autonomy, SUCs, GOCCs, and local water districts. Excluded are institutional COS who are assigned to government agencies.
According to the AO, JO and COS employees who have rendered a total or an aggregate of at least four months of actual satisfactory service performance as of Dec. 15, 2024, and whose contracts are still effective as of the same date, are entitled to receive the gratuity pay.
Meanwhile, those who have rendered less than four months of satisfactory performance as of Dec. 15 may be granted the same on a pro-rated basis. COS and JO workers whose length of service is three months but less than four months shall receive gratuity pay not exceeding P6,000; those who have rendered two months but less than three months of service shall receive not exceeding ₱5,000; while those who have served less than two months shall receive not exceeding ₱4,000.
Beyond budget, under the PBBM administration, the contributions of COS and JO workers do not go unnoticed. Rest assured that the government will never abandon them but will strive to improve their working conditions and equip them to become regular government employees.
To all COS and JOs workers, thank you for serving the nation. Your commitment, especially during challenging times, brings hope and inspiration. I believe that by working harmoniously, we can build a government and a Bagong Pilipinas that is inclusive, effective, efficient, and sustainable.
Have a joyous holiday season, everyone!
(Amenah F. Pangandaman is the Secretary of the Department of Budget and Management.)