Marcos OKs higher gratuity pay for COS, JO workers

By Filane Mikee Cervantes, Philippine News Agency

Under Administrative Order (AO) 28, signed by Marcos on Thursday and made public Friday, eligible COS and JO workers will receive a gratuity pay of up to PHP7,000, an increase from the PHP5,000 granted in 2023. (PCO file photo)

MANILA – President Ferdinand R. Marcos Jr. has approved the grant of a higher yearend gratuity pay for contract of service (COS) and job order (JO) workers in the government for fiscal year 2024.

Under Administrative Order (AO) 28, signed by Marcos on Thursday and made public Friday, eligible COS and JO workers will receive a gratuity pay of up to PHP7,000, an increase from the PHP5,000 granted in 2023.

The order states that workers who have rendered a total or aggregate of at least four months of “actual satisfactory service performance” as of Dec. 15, 2024 and whose contracts remain effective as of the same date, are entitled to the full gratuity pay.

“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 (programs, activities, and projects) of the government, and their pivotal role in the delivery of government services amidst the present socio-economic challenges,” the AO 28 read.

AO 28 covers all workers whose services are directly engaged through COS and JO by national government agencies (NGAs), state universities and colleges (SUCs), government-owned or -controlled corporations (GOCCs), and local water districts (LWDs).

According to AO 28, COS and JO workers who have rendered less than four months of actual satisfactory performance of service may also be granted a one-time gratuity pay on a pro rata basis.

Those who are working in government for three months but less than four months will receive a gratuity pay not exceeding PHP6,000, while those who have rendered two months but less than three months will get an amount not exceeding PHP5,000.

A gratuity pay not exceeding PH4,000 will be given to those who have rendered less than two months.

The funding for the gratuity pay will be sourced from the respective Maintenance and Other Operating Expenses allotment of NGAs and SUCs.

For GOCCs, and LWDs, the amount required shall be charged against their respective approved corporate operating budgets.

Local government units are also encouraged to adopt in their respective offices the grant of gratuity pay to their COS and JO workers.

Requests for the use of savings shall be submitted by NGAs and SUCs to the Department of Budget and Management (DBM) not later than five working days from the effectivity of AO 28, for endorsement to the Office of the President.

The DBM shall release the corresponding Special Allotment Release Order and Notice of Cash Allocation, as needed, upon approval of the President.