President Marcos Approves Gratuity Pay for Contract and Job Order Workers in Government for 2024

by: Edjun Mariposque

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December 21, 2024

4–5 minutes

In a landmark move to recognize the contributions of non-permanent government workers, President Ferdinand R. Marcos Jr. has issued Administrative Order No. 28, authorizing the grant of gratuity pay to contract of service (COS) and job order (JO) workers in the government for fiscal year 2024.

(This announcement follows contentious debates surrounding the previously issued AO No. 27, which initially excluded COS and JO workers from receiving similar financial assistance.

AO No. 27, signed earlier in 2024, was designed to provide a year-end service recognition incentive (SRI) for government personnel. However, its coverage was limited to regular, contractual, and casual employees, leaving out thousands of COS and JO workers who are also part of the government’s essential workforce. The exclusion sparked public outcry and criticism, with labor groups and advocates questioning the fairness of the policy.

Many argued that COS and JO workers, who play critical roles in delivering government services, deserved the same recognition as their regular counterparts. The controversy highlighted the long-standing disparities in the treatment of non-permanent government employees, reigniting calls for reforms in employment practices and labor policies.)

The directive aims to provide financial assistance to thousands of workers who have played a vital role in delivering essential public services, especially during challenging times. According to the order, COS and JO workers will receive a one-time gratuity pay as a token of appreciation for their hard work and dedication.

Under the administrative order, COS and JO workers who have rendered at least four months of service as of December 15, 2024, will be entitled to a gratuity pay of up to ₱5,000. Those with less than four months of service will receive a prorated amount:

₱4,000 for workers with three months of service,

₱3,000 for two months, and

₱2,000 for one month.

President Marcos emphasized that the grant of gratuity pay is aligned with the government’s commitment to fostering inclusivity and support for its workforce.

“This is a recognition of the significant contributions of our contract of service and job order workers in ensuring the efficient delivery of public services,” President Marcos stated.

Budget Secretary Amenah Pangandaman lauded the initiative, adding that the financial assistance would help alleviate the economic burden on COS and JO workers, especially amid the rising cost of living. She assured the public that the funds for the gratuity pay would be sourced from each agency’s maintenance and other operating expenses (MOOE).

The order also underscores the government’s continued efforts to improve the welfare of its workforce while ensuring fiscal discipline.

The release of gratuity pay is expected to benefit thousands of workers across various government agencies, providing much-needed relief during the holiday season.

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