MANILA – President Ferdinand R. Marcos Jr. has ordered the grant of gratuity pay for contract of service (COS) and job order (JO) workers in government for fiscal year 2022.

Marcos on Friday inked Administrative Order (AO) 3, authorizing the release of a one-time gratuity pay not exceeding PHP5,000 for all government personnel working under COS and JO schemes.

AO 3 covers all workers whose services are directly engaged through COS and JO by national government agencies (NGAs), state universities and colleges (SUCs), government-owned and controlled corporations (GOCCs) and local water districts.

Based on the latest order, COS and JO workers who have rendered a total or an aggregate of at least four months of actual satisfactory performance of service, as stipulated in their respective contracts, as of Dec. 15, 2022, and whose contracts are still effective, as of the same date.

“Granting a year-end gratuity pay to COS and JO workers is a well-deserved recognition of their hard work in implementing programs, projects and activities and pivotal role in the delivery of government services amid the ongoing COVID-19 pandemic and present socio-economic challenges,” AO 3 read.

Under AO 3, 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 PHP4,000, while those who have rendered two months but less than three months will get an amount not exceeding PHP3,000.

A gratuity pay not exceeding PHP2,000 will be given to those who have rendered less than two months.

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 3, for endorsement to the Office of the President.

The DBM, according to AO 3, shall release the corresponding Special Allotment Release Order and Notice of Cash Allocation, as needed, upon approval of the President.

Local government units (LGUs) are enjoined to adopt in their respective offices the grant of gratuity pay to their COS and JO workers.

Employees and workers in government rendering services through JO, COS or other similarly situated working arrangements are likewise eligible to receive the one-time rice assistance authorized by the President through AO 2.

The Office of the Press Secretary released a copy of AO 3 on Friday.