President Ferdinand R. Marcos Jr. has authorized an increase in the year-end gratuity for contract of service (COS) and job order (JO) workers in the government sector for the fiscal year 2024. The new policy, outlined in Administrative Order (AO) 28, was signed by Marcos on Thursday and released to the public on Friday. Under this order, eligible COS and JO workers will now receive up to PHP7,000 in gratuity pay, up from the previous year’s PHP5,000.
To qualify for the full gratuity amount, workers must have completed at least four months of satisfactory service by December 15, 2024, and their contracts must still be active on that date. AO 28 emphasizes that this gratuity is a recognition of the essential contributions of COS and JO workers to government programs, activities, and projects, especially during challenging socio-economic times.
The order applies to all COS and JO workers employed by national government agencies, state universities and colleges, government-owned or controlled corporations, and local water districts. Workers with less than four months of service may still receive a pro-rated gratuity. Those with three to nearly four months of service can receive up to PHP6,000, while those with two to nearly three months can get up to PHP5,000. Workers with less than two months of service are eligible for up to PHP4,000.
Funding for the gratuity will come from the Maintenance and Other Operating Expenses of national government agencies and state universities. For government corporations and local water districts, the funds will be drawn from their approved operating budgets. Local government units are also encouraged to implement similar gratuity payments for their COS and JO workers.
National government agencies and state universities must submit requests for the use of savings to the Department of Budget and Management within five working days of AO 28’s effective date. The Department of Budget and Management will then issue the necessary Special Allotment Release Order and Notice of Cash Allocation upon presidential approval.