Government Gratuity Pay: Here's What Contract Workers Need to Know

Philippines – Just before the holiday season, President Ferdinand Marcos Jr. greenlit the distribution of P7,000 in gratuity pay to contract of service (COS) and job order (JO) workers across government sectors. This one-time payment, formalized through Administrative Order No. 39 on December 11, represents official recognition of these workers’ contributions to government operations and public service delivery during challenging economic times.

Why this matters for non-permanent staff

Unlike regular government employees who receive mid-year bonuses, year-end bonuses, performance incentives, and personnel economic relief allowances, contract and job order workers have historically been excluded from such benefits. The gratuity pay addresses this disparity, though it remains a single disbursement rather than recurring compensation.

Who qualifies for the payment?

The gratuity pay covers workers employed by national government agencies, state universities and colleges, government-owned or -controlled corporations, and local water districts. The eligibility criteria centers on service duration and employment status as of December 15.

Workers with at least four months of continuous, satisfactory service performance will receive the full P7,000. Those with shorter tenures qualify on a pro-rata basis:

• Three to four months of service: up to P6,000
• Two to three months of service: up to P5,000
• Less than two months of service: up to P4,000

Payment timeline and distribution

Administrative Order No. 39 mandates that gratuity pay distributions cannot commence before December 15. The order also authorizes a separate one-time gratuity payment for this year’s COS and JO workforce, though implementation details for that disbursement require further clarification.

The gratuity pay framework essentially creates a structured mechanism recognizing contract workers’ role in government service while maintaining the distinction between permanent and non-permanent employment classifications.