President Ferdinand “Bongbong” R. Marcos Jr. issued an Administrative Order (AO) granting a gratuity pay of P7,000 to contract-of-service (COS) and job order (JO) employees in the government for fiscal year (FY) 2024.

Marcos signed AO 28 on Thursday, and it was publicized by Malacañang on Friday.

In the four-page order, Marcos also approved the provision of gratuity pay for employees who have rendered satisfactory performance, as stipulated in their respective contracts, as of 15 December 2024, and whose contracts are still effective as of the same date, for less than four months of service in the government.

The gratuity will be given on a pro-rata basis: P6,000 for COS and JO workers who have served three to four months, P5,000 for those who have worked two to three months, and P4,000 for those who have worked less than two months.

The President's AO will also cover workers whose services are directly engaged through COS and JO by national government agencies (NGAs), state universities and colleges (SUCs), government-owned or -controlled corporations (GOCCs), and local water districts (LWDs).

The funding source for the implementation of the order shall be governed by the following:

For NGAs and SUCs, the required amount shall be charged against their respective available Maintenance and Other Operating Expenses (MOOE) allotment for the same Program/Activity/Project (PAP) where the compensation of workers engaged through COS and JO is sourced, subject to the approval of the Agency Head.

For GOCCs and LWDs, the amount required shall be charged against their respective approved corporate operating budgets.

Under the order, NGAs and SUCs shall submit requests for the use of savings to the Department of Budget and Management (DBM) no later than five working days from the effectivity of this order, which will then be endorsed to the Office of the President.

The AO also encourages local government units (LGUs) to adopt the grant of gratuity pay for workers whose services are engaged through COS and JO in their respective offices. They shall utilize appropriate and available funding sources from their respective local government funds.

The corresponding supplemental budget (SB) for this purpose shall be enacted by the local Sanggunian concerned, chargeable against the available FY 2024 appropriations or surplus.

If an LGU fails to enact an SB within FY 2024, the LGU may enact an SB for FY 2025, provided that the funding source shall be charged against the LGU's reverted and unused prior year's surplus, subject to compliance with the provisions of RA 7160, or the “Local Government Code of 1991,” as amended.

The order also states that pertinent laws, rules, and regulations apply to prior year’s surplus backed by cash, and the annual budget for FY 2025 is already approved.

In his order, Marcos said the payment of gratuity pay to qualified COS and JO workers in government for FY 2024 shall be made no earlier than 15 December 2024.

He likewise instructed the DBM to issue supplemental guidelines for the effective implementation of this order.

In 2021, Marcos ordered an increase in gratuity pay for COS and JO workers, raising it from P3,000 to P5,000.

AO 28 will take effect immediately following its complete publication in the Official Gazette or in a newspaper of general circulation.