Malacañang releases AO authorizing the Grant of 5K Gratuity Pay

Malacañang releases AO authorizing the Grant of 5K Gratuity Pay

Malacañang releases Administrative Order No. 46 Authorizing the Grant of Gratuity Pay to Contract of Service (COS) and Job Order (JO) Workers in Government for FY 2021. 

Based on Section 1 of the said AO, "All workers whose services are engaged through COS and JO, who have rendered a total or an aggregate of at least four (4) months of actual satisfactory performance of services, as stipulated in their respective contracts, as of 15 December 2021, and whose contracts are still effective as of the same date, may be granted a one-time Gratuity pay not exceeding five thousand pesos (P5,000) each.

Read full text of Administrative Order 46:


WHEREAS, various government agencies have engaged and continue to engage workers under contract of service (COS) and job order (JO) schemes;

WHEREAS, the Commission on Audit (COA) and Department of Budget and Management (DBM) Joint Circular (JC) No. 2 (s. 2020) or the "Updated Rules and Regulations Governing COS and JO Workers in the Government," prescribes the existing policies and guidelines on the engagement of services of these workers;

WHEREAS, COS and JO workers, together with other government personnel, are required by their respective agencies to report for work regardless of the varying forms of community quarantine and mobility restrictions to ensure the continuous and responsive delivery of government services;

WHEREAS, COA and DBM JC No. 1 (s. 2020) or the "Interim Guidelines Governing COS and JO Workers in Government for the Duration of the State of Calamity and Community Quarantine Due to Corona Virus Disease," integrates the work schedule of COS and JO workers in the alternative work arrangements adopted by various government agencies during the period of implementation of community quarantine;

WHEREAS, while COS and JO workers in the government are paid salaries/wages equivalent to those received by personnel occupying comparable positions in government and a premium of up to 20% of such salary/wage, they do not enjoy benefits accorded to regular government employees such as the Personnel Economic Relief Allowance, Mid-Year and Year-End Bonuses and Performance-Based Bonus, among others, as they have no employer-employee relationship with the government;

WHEREAS, 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, including those which are part of the emergency COVID-19 response efforts of the government;

WHEREAS, Administrative Order No. 38 (s. 2020) authorized the grant of Gratuity Pay to JO and COS workers in government for Fiscal Year (FY) 2020; and

WHEREAS, Section 17, Article VII of the Constitution vests the President with control over all the executive departments, bureaus and offices;

NOW, THEREFORE, I, RODRIGO ROA DUTERTE, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution and existing laws, do hereby order:

a. Report on the number and names of workers engaged through COS and JO qualified for Gratuity Pay, as certified by the head of the human resource management unit and endorsed by the Department Secretary or Agency Head concerned; and

b. Certification from the budget officer that the required amount from the existing MOOE allotment is free from any obligation and may be declared as savings pursuant to Section 69 of the General Provisions of the FY 2021 GAA, to cover the funding requirements for the grant of Gratuity Pay, likewise endorsed by the Department Secretary or Agency Head concerned.

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

SECTION 5. Grant of Gratuity Pay in Local Government Units (LGUS), LGUS are 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 2021.

SECTION 6. Supplemental Guidelines. As may be necessary, the DBM shall issue supplemental guidelines for the effective implementation of this Order.

SECTION 7. Repeal. All orders, rules and regulations and other issuances or parts thereof, which are inconsistent with this Order are hereby revoked, amended or modified accordingly.

SECTION 8. Separability. If any provision of this Order is declared invalid or unconstitutional, the other provisions not affected thereby shall remain valid and subsisting.

SECTION 9. Effectivity. This Order shall take effect immediately.

DONE, in the City of Manila, this 29th day of December __ in the year of our Lord, Two Thousand and Twenty-One.

By the President:

Executive Secretary
Malacañang releases AO authorizing the Grant of 5K Gratuity Pay

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