Benefits of Job Order (JO) and Contract of Service (COS) workers in the Government

Benefits of Job Order (JO) and Contract of Service (COS) workers in the Government

800,000+ Strong Workforce

As of 2024, there are more than 800,000 job order (JO) and contract of service personnel working in the Philippine government. With this number, they contribute a significant workforce in the entire bureaucracy.

If you belong to this strong workforce, you may be wondering, what are the benefits of job order and contract of service workers in the Philippine government?

Job Order vs. Contract of Service workers

Before we discuss the benefits of job order and contract of service workers in the government, we distinguish first what they are and the nature of their work.

Job order (JO) workers are individuals hired by the government for a specific, often short-term, task.

Job order refers to piece of work (pakyaw) or intermittent or emergency jobs such as clearing of debris on the roads, canals, waterways, etc. after natural/man-made disasters/occurences, and other manual/trades and crafts services such as carpentry, plumbing, electrical, and the like. These jobs are of short duration and for a specific piece of work. (DBM-COA Joint Circular No. 02, s. 2020)

On the other hand, Contract of Service (COS) workers are individuals hired by government agencies to perform specific, often technical jobs for a limited time.

Job order is often shorter in duration, six months or less, as compared to contract of service which may extend up to one (1) year.

It is noted that both job order workers and contract of service workers are not considered employees of the government and hence, not covered by Civil Service laws, rules and regulations.

Consequently, their services are not creditable as government service. Further, they do not receive the benefits received by regular, permanent, contractual and casual employees such as personnel economic relief allowance (PERA), representation allowance and transportation allowance (RATA) and other monetary benefits.

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Benefits of Job Order and Contract of Service workers in the Philippine Government

While not considered as regular employees of the government and do not receive the benefits received by government employees, job order workers and contract of service workers receive certain benefits from the government. Below are the common benefits given to them.

1 of 7: Daily Wage/Salaries

The services of a job order worker is either paid according to an agreed contract amount for the piece of work or on a daily wage or salary of comparable positions in government.

Likewise, contract of service workers engage through COS shall be paid wages equivalent to the daily wage/salary of comparable positions in government.

2 of 7: 20% Premium on Salary

According to DBM-COA Joint Circular No. 2, s. 2020, individuals hired through job order and contract of service shall be paid wages equivalent to the daily wage/salary of comparable positions in government and a premium of up to 20% of such wage/salary, subject to the availability of funds.

The premium payment may be paid monthly, in lump sum or in tranches (i.e., mid-year and year-end payments) as may be stated in the agreement or contract with the agency.

3 of 7: Gratuity Pay

Subject to the authorization or order from the President of the Philippines, job order and contract of service workers may receive gratuity pay with amount provided in the subject authorization or order.

Gratuity pay is a lump-sum payment made by an employer to an employee as a reward for their long and dedicated service. It is a token of appreciation for services rendered and is often based on factors like length of service.

The first gratuity pay for job order (JO) and contract of service (COS) workers was given in 2016 amounting to P2,000.00. In 2024, their gratuity pay is P7,000.00.

4 of 7: Priority in appointment to vacant positions

According to existing guidelines, contract of service or job order workers shall be given priority in the appointment by the agency to its vacant positions provided that they meet the appropriate eligibility and other qualification requirements for the positions subject to Civil Service laws and rules.

5 of 7: Career Service Eligibility – Preference Rating (CSE-PR)

The CSC supports the government in fulfilling it commitment to assist eligible contract of service and job order workers in obtaining the necessary eligibility for permanent positions in the government by issuing the Career Service Eligibility – Preference Rating (CSE-PR).

The initiatives aim to boost the skills and capabilities of contract of service and job order workers, empowering them to successfully pass the career service examinations, a prerequisite for pursuing career service position.

The CSE-PR is granted to eligible workers who have served for at least 10 years and have demonstrated valuable skills but lack the specific eligibility for plantilla positions.

Under CSC Resolution No. 2301123 promulgated on 7 December 2023, a Preference Rating of a maximum of 10 points shall be added to the failed rating range (70.00 to 79.99) to achieve the passing rate of 80.00 for qualified applicants in career service examinations, thereby qualifying them for Career Service Professional or Subprofessional eligibility. [Learn more…]

6 of 7: Protection against unfair workload

According to existing guidelines, contract of service and job order workers shall not, in any case, be made to perform functions which are part of the job description of the agency’s existing regular employees.

The Commission on Audit (COA) was tasked to monitor the compliance of agencies with the provisions of the guidelines.

Heads of agencies and/or responsible officers found to violate the provisions of the pertinent guidelines protecting job order and contract of service workers may be charged before the proper administrative bodies (i.e., Office of the Ombudsman, Office of the President or CSC).

7 of 7: PhilHealth Group Enrollment Program

Agencies and local government units can partner with PhilHealth to enroll job order and contract of service workers in a group program. This provides access to PhilHealth benefits, making it easier and more affordable for the workers to be covered by the national health insurance. By enrolling to the program, job order and contract of service workers will be able to pay their contributions and enjoy PhilHealth coverage. [Learn more…]

Summary

Job order (JO) and contract of service (COS) workers are vital to the government for filling temporary, project-based, or specialized needs that regular staff cannot handle.

They provide essential services for short-term projects, emergency jobs, or specific tasks, offering flexibility and supporting agency operations. However, the importance of these workers also highlights the need for fair treatment, including proper recognition and consideration for benefits. 

Recognizing this importance, the government provides job order and contract of service workers necessary benefits such as daily wages/salaries, compensation premium, gratuity pay, support for civil service eligibility attainment, protection from unfair workload, and support for health.

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