Gratuity pay for government contract workers raised to P7,000 under Marcos order

President Ferdinand R. Marcos Jr. has approved an increase in gratuity pay for government workers under Contract of Service (COS) and Job Order (JO) arrangements, raising the maximum amount to PhP7,000. The adjustment will take effect no earlier than December 15, 2024.

Under Administrative Order 28, signed by Executive Secretary Lucas P. Bersamin, workers with at least four months of satisfactory service as of December 15 will be entitled to the full gratuity pay of PhP7,000, an increase from the previous rate of PhP5,000.

President Marcos highlighted the workers’ critical role in implementing government programs, activities, and projects, especially during socio-economic challenges.

Those with less than four months of service are also eligible for the gratuity pay on a pro-rata basis:

  • Workers with three to less than four months of service may receive up to PhP6,000.
  • Those with two to less than three months may receive up to PhP5,000.
  • Employees with less than two months may receive up to PhP4,000.

The last increase in gratuity pay occurred in 2021, when the amount was raised from PhP3,000 to PhP5,000.

AO 28 takes effect immediately after its publication in the Official Gazette or a newspaper of general circulation.