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Administrative Order No. 39
ADMINISTRATIVE ORDER NO. 39 AUTHORIZING THE GRANT OF GRATUITY PAY TO CONTRACT OF SERVICE AND JOB ORDER WORKERS IN GOVERNMENT FOR FISCAL YEAR 2025
Section 17, Article VII of the Constitution vests in the President the power of control over all Executive departments, bureaus, and offices; NOW, THEREFORE, I, FERDINAND R. MARCOS, JR., President of the Philippines, by virtue of the powers vested in me by the Constitution and exiting laws, do hereby order:
Section 1. Grant of Gratuity Pay in National Government Agencies (NGAs). 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 service, as stipulated in their respective contracts, as of 15 December 2025, and whose contracts are still effective as of the same date, may be granted a one (1)-time Gratuity Pay not exceeding P7,000.00 each for FY 2025. Those who have rendered less than four (4) months of actual satisfactory performance of service, as stipulated in their respective contracts as of 15 December 2025, and whose contracts are still effective as of same date, may also be granted the one (1)-time Gratuity Pat, on a pro rata basis, as follows: LENGTH OF SERVICE AMOUNT OF GRATUITY 3 months but less than 4 months Not exceeding P6,000.00 2 months but less than 3 months Not exceeding P5,000.00 Less than 2 months Not exceeding P4,000.00 For this purpose, actual service shall refer to services rendered on-site. However, subject to the discretion of the Agency Head and the availability of funds, services rendered by COS and JO workers under any alternative work arrangement prescribed under Section 6.1 COA-DBM JC No. 1 (s. 2022) may also be considered as actual service.
Section 2. Coverage. This Order shall cover workers whose services are directly engaged through COS and JO by NGAs, state universities and colleges (SUCs), government-owned or -controlled corporations (GOCCs) and local water districts (LWDs).
Section 3. Funding Sources. The funding source for the implementation of this Order shall be governed by the following. a. For NGAs and SUCs, the amount required shall be charged against their respective available Maintenance and Other Operating Expenses (MOOE) allotment for the same PAP where the compensation of workers engaged through COS and JO are sourced, subject to the approval of the Agency Head. In case of deficiency, agencies may modify the allotment issued within the PAP, subject to the approval of the Agency Head or the DBM, as the case may be, pursuant to the rules on the modification in allotments under Section 80 of the General Provisions of Republic Act (RA) No. 12116 or the "General Appropriations Act for FY 2025," and existing laws, rules and regulations, and other issuances, or submit a request to augment actual deficiencies from savings in other PAPs, subject to the approval of the President, in accordance with rules on use of savings and augmentation under Sections 76, 77, 78 and 79 of the General Provisions of RA No. 12116, and existing laws and issuances; and b. For GOCCs and LWDs, the amount required shall be charged against their respective approved corporate operating budgets.
Section 4. Use of Savings. Requests for the use of savings under Section 3(a) hereof shall be submitted by NGAs and SUCS to DBM not later that five (5) working days from the effectivity of this Order, for endorsement to the Office of the President. All such request shall be supported by the following documents: a. Report on the number and names of workers directly engaged through COS and JO schemes who are qualified for Gratuity Pay, as certified by the head of the human resource management unit and endorsed by the Department Secretary or Agency Head; 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 77 and 79 of the General Provisions of RA No. 12116, to cover the funding requirements for the grant of Gratuity Pay, likewise endorsed by the Department Secretary or Agency Head. 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 encouraged 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 (SB) for the purpose shall be enacted by the local sanggunian concerned chargeable against the available FY 2025 appropriations or surplus. In case an LGU fails to enact an SB within FY 2025, the LGU concerned, may enact an SB during FY 2026, provided that the: (i) SB shall be charged against the LGU's reverted and unused prior year's surplus subject to compliance with the provisions of RA No. 7160 or the "Local Government Code of 1991," as amended, and pertinent laws, rules and regulations; (ii) prior year's surplus is backed by cash; and (iii) annual budget for FY 2026 is already approved.
Section 6. Payment Date. The payment of Gratuity Pay to qualified COS and JO workers in govenrment for FY 2025 shall be made not earlier than 15 December 2025.
Section 7. Supplemental Guidelines. As may be necessary, the DBM shall issue supplemental guidelines for the effective implementation of this Order.
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. Repeal. All issuances, orders, rules and regulations, or parts thereof which are inconsistent with the provisions of this Order, are hereby repealed or modified accordingly.
Section 10. Effectivity. This Order shall take effect immediately following its complete publication in the Official Gazette or in a newspaper of general circulation. DONE, in the City of Manila, this 11 th day of December, in the year of our Lord, Two Thousand and Twenty-Five. (SGD.) FERDINAND R. MARCOS, JR. By the President: (SGD.) RALPH G. RECTO Acting Executive Secretary