President Ferdinand Marcos Jr. has approved a gratuity pay increase for Contract of Service (COS) and Job Order (JO) workers in the government, raising the amount to as much as P7,000. The new rates will take effect no earlier than December 15.

Under Administrative Order (AO) No. 28, signed by Executive Secretary Lucas Bersamin, COS and JO employees with at least four months of satisfactory service as of December 15 are entitled to gratuity pay ranging from P5,000 to P7,000.

““Granting a year-end gratuity pay to COS and JO workers is a well-deserved recognition of their hard work and valuable participation in the implementation of various PAPs of the government, and their pivotal role in the delivery of government services amidst the present socio-economic challenges,” said Marcos.

Workers with active contracts as of December 15 are also eligible, while those with less than four months of service may receive a pro-rata amount:

-3 to <4 months: up to P6,000

-2 to <3 months: up to P5,000

-<2 months: up to P4,000

The last gratuity pay adjustment was in 2021, when the rate increased from P3,000 to P5,000.

AO 28 takes effect immediately upon full publication in the Official Gazette or a newspaper of general circulation.IMT