February 8, 2023

Juan Kabayan

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Marcos OKs gratuity pay for govt contract workers

PRESIDENT Ferdinand Marcos Jr. has signed Administrative Order (AO) 3 granting a year-end gratuity pay not exceeding P5,000 to Contract of Service (COS) and Job Order (JO) workers in the government.

The AO was issued upon the recommendation of the Department of Budget and Management (DBM).

In a statement on Saturday, the DBM said the AO covers 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).

The initiative aims to give COS and JO workers a well-deserved recognition for their hard work and participation in the timely, effective, and efficient implementation of various programs, projects and activities of the government.

“We are grateful to the President for this holiday gift to our government workers, especially our COS and JO personnel. This goes to show that we have a government that truly understands the plight of our fellow Filipinos. Sa gobyernong ito, walang maiiwan (No one will be left out in this government),” said DBM Secretary Amenah Pangandaman.

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The grant of the one-time gratuity pay covers all COS and JO workers who have rendered a total or an aggregate of at least four months of actual satisfactory performance of service as of Dec. 15, 2022, and whose contracts are still effective as of the same date.

Meanwhile, those who have rendered less than four months of actual satisfactory performance of service may also be granted the one-time gratuity pay, on a pro-rata basis, as follows: 3 months but less than 4 months – not exceeding P4,000; 2 months but less than 3 months – not exceeding P3,000; less than 2 months – not exceeding P2,000.

For NGAs and SUCs, funds are to be charged against their respective available Maintenance and Other Operating Expenses (MOOE) allotment for the same program, activity or project where the compensation of workers engaged through COS and JO are sourced. In case of deficiency, the agencies may modify the allotment issued within a P/A/P subject to approval by the Agency head or the DBM.

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

LGUs are likewise enjoined to adopt in their respective offices the grant of gratuity pay to workers whose services are engaged through COS and JO, utilizing appropriate and available funding sources from their respective local government funds.

The corresponding supplemental budget for the purpose shall be enacted by the local Sanggunian within FY 2022.

The grant of the gratuity pay for COS and JO workers in the government shall take effect immediately.