Government firms barred from hiking COS, JO workers

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December 18, 2025 | 12:00am

MANILA, Philippines — Government agencies are now barred from increasing the number of contract-of-service and job order workers, in a bid to better manage their workforce, ensuring that staffing levels remain at their current count.

In a joint circular released by the Department of Budget and Management, all government agencies covered by the circular are tasked to submit an inventory of contract-of-service and job order workers with valid contracts until Dec. 31 to establish the baseline data.

“To effectively manage their contract-of-service and job order workers, agencies shall no longer be allowed to increase the number of their contract-of-service and job order workers beyond the current number,” the circular read in its transitory provision.

It was signed by the Civil Service Commission (CSC) and the Commission on Audit, aside from the budget department.

“Permanent positions may be created for regular functions, while casual or contractual personnel may be hired for projects and activities that are temporary in nature,” the circular added.

However, the measure remains subject to review by the DBM or Governance Commission for government-owned and -controlled corporations and must adhere to existing budgeting, accounting and auditing rules and regulations.

Government agencies may consider existing qualified contract-of-service and job order workers for vacant positions in accordance with civil service laws, CSC-approved Merit Selection Plans and equal opportunity policies in the selection and appointment of personnel.

“Agencies are encouraged to strengthen their selection and recruitment processes to keep a low vacancy rate and ensure a stable and well-functioning workforce,” the joint circular read.

For the payment of service, contract-of-service workers will receive either the prevailing market rate or the salary of equivalent government positions, while job order workers will be paid the daily wage corresponding to comparable government roles.

Agencies shall grant contract-of-service and job order workers a premium of up to 20 percent of their salary or wage, depending on funding. The payments will cover contributions to social security programs to ensure access to social security, healthcare and housing benefits.

“The services of the contract-of-service and job order workers are not covered by Civil Service laws, rules and regulations, thus, not creditable as government service. They do not enjoy the privileges and benefits that government employees receive,” it said.

These include benefits such as leaves, personnel economic relief allowance, representation and transportation allowances, as well as other bonuses, incentives and additional allowances, as specified in the circular.

Under the contract-of-service scheme, hiring is limited to consultants, learning service providers, or technical experts for special projects outside regular agency functions when internal expertise is lacking or direct execution would be impractical or costly, the circular states.

Meanwhile, it added that job order workers may be hired only for emergency or intermittent work, including debris clearing after disasters, or for trades and manual tasks such as carpentry, plumbing, painting and electrical work that fall outside the agency’s regular functions.