Marcos OKs higher gratuity pay of up to P7,000 for JO, COS govt workers

President Ferdinand "Bongbong" Marcos Jr. has authorized the grant of a one-time gratuity pay of up to P7,000 for government workers engaged under job contract (JO) or contract of service (COS).

According to a statement Friday by the Department of Budget and Management (DBM), the gratuity pay for qualified JO and COS state workers has increased from P5,000 to P7,000.

The gratuity pay is provided under Administrative Order 28, which covers JO and COS workers from national government agencies, state universities and colleges (SUCs), government-owned and -controlled corporations (GOCCs) and local water districts (LWDs) who rendered work on-site, identified as actual service.

Subject to the discretion of the Agency Head and the availability of funds, services rendered by COS and JO workers under any alternative work arrangement prescribed under Section 6.1 Commission on Audit-Department of Budget and Management Joint Circular 1 (s. 2022) may also be considered as actual service.

Specifically, those who have rendered a total of at least four months of actual satisfactory performance of service as stated in their respective contracts as of December 15, 2024, and whose contracts are still effective as of the same date are granted a one-time gratuity pay not exceeding P7,000 each for 2024.

Those who have rendered less than four months of actual satisfactory performance of service as of December 15, 2024, and whose contracts are still effective as of same date, are also eligible to receive gratuity pay as follows:

• maximum of P6,000 for those who rendered service for three months but less than four months;
• maximum of P5,000 for those who rendered service for two months but less than three months; and
• maximum of P4,000 for those who rendered service for less than two months.

Budget Secretary Amenah Pangandaman welcomed Marcos' approval of AO 28, which was signed by Executive Secretary Lucas Bersamin on his behalf on December 19, 2024.

"The last increase in the Gratuity Pay rate happened way back in 2021, kung saan tinaasan po ito from P3,000 to P5,000. Kaya nagpapasalamat po tayo kay Pangulong Bongbong Marcos because under his term, we will be increasing the Gratuity Pay for qualified COS and JO workers in government from P5,000 to P7,000,” Pangandaman said.

(The last increase in the Gratuity Pay rate happened way back in 2021, when it rose from P3,000 to P5,000. That's why we are grateful to President Bongbong Marcos because under his term, we will be increasing the Gratuity Pay for qualified COS and JO workers in government from P5,000 to P7,000.)

"Malaking bagay po ito. Isa po sa isinaalang-alang natin dito 'yung pagtulong sa ating mga manggagawa, lalo't magpapasko po at sunud-sunod 'yung nangyaring kalamidad sa bansa ngayong taon," the DBM Secretary added.

(This is a significant development. We take into consideration the assistance we can provide to our workers, especially now that it's Christmas season and a series of calamities have hit our country this year.)

"Hindi po natin pababayaan ang ating mga COS at JO personnel dahil malaki rin po ang ambag nila sa ating bansa. Hindi po matatawaran ang serbisyo nila sa publiko. Ayaw po natin na maging empty handed sila ngayong Pasko at Bagong Taon," she said.

(Our COS and JO personnel will not be left behind. Their contributions to the country and the Filipino people are valued. We don't want them to be empty handed this Christmas and New Year.)

The same AO also authorizes local government units to give gratuity pay to workers whose services are engaged through COS and JO by utilizing appropriate and available funding sources from their respective local government funds.

The corresponding supplemental budget for the purpose will be enacted by the local sanggunian concerned, chargeable against the available 2024 appropriations or surplus. — VDV, GMA Integrated News