14/08/2026
𝗥𝗘𝗔𝗗: A significant step toward expanding social protection for thousands of non-regular government workers has been taken by President Ferdinand “BBM” Marcos, Jr. through Administrative Order No. 43, which was signed on June 3, 2026.
Under the order, voluntary salary deductions and remittances of contributions to the Pag-IBIG Fund, Philippine Health Insurance Corporation (PHILHEALTH), and Social Security System (SSS) are allowed from the compensation of government Contract of Service (COS) and Job Order (JO) workers, subject to the consent of the workers themselves.
The order covers departments, agencies, bureaus, offices, and other instrumentalities of the national government, as well as government-owned or controlled corporations (GOCCs) and state universities and colleges (SUCs) that engage the services of individual COS and JO workers. Local government units (LGUs) are likewise encouraged to observe the provisions of the order.
AO No. 43 is significant because many COS and JO workers have long been providing services to the government but are not part of the regular government plantilla and are not covered by the Government Service Insurance System (GSIS) because of their employment status.
According to data from the Civil Service Commission (CSC), there were 699,070 COS and JO workers nationwide as of June 30, 2024.
The new mechanism could help ensure more consistent access to social insurance and other benefits for these workers.
Through regular SSS contributions, they may become eligible for or continue to access benefits such as sickness, maternity, disability, retirement, funeral, and death benefits, subject to their membership status, contribution records, and existing SSS rules.
Continued contributions to PhilHealth can help maintain their coverage for healthcare benefits, while contributions to the Pag-IBIG Fund can allow them to maintain their membership and access programs available under the Fund’s existing rules and policies.
However, an important point must be clarified that the order does not make COS and JO workers regular government employees. AO No. 43 expressly states that facilitating voluntary deductions and remittances does not alter, amend, or modify the existing contractual relationship between the government agency and the COS or JO worker.
In other words, the order is focused on social protection, not on changing their employment status, appointment, tenure, or other conditions of their contracts.
Because the mechanism is voluntary, COS and JO workers must first give their consent before contributions are deducted from their compensation.
Once they authorize the deductions, their actual take-home pay may naturally decrease because a portion of their compensation will be allocated to the Pag-IBIG Fund, PHILHEALTH, and SSS.
In return, however, they will have a more organized and convenient way to continue their social insurance contributions without having to personally arrange each remittance on a regular basis.
Workers should also make sure they understand the amount of each contribution, the frequency of deductions, and the impact on their net compensation before giving their consent.
The order will not only affect COS and JO workers. It will also create additional administrative responsibilities for government agencies.
Agencies are required to establish mechanisms that will enable COS and JO workers to participate in social protection programs and provide them with sufficient information about the available coverage.
They are likewise responsible for ensuring the timely remittance of deducted contributions directly to the Pag-IBIG Fund, PHILHEALTH, and SSS within the prescribed periods.
Agencies must also coordinate with these institutions and execute the necessary agreements to ensure the proper implementation of payroll deductions, reporting, and remittances.
One of the major potential benefits of the new system is reducing the possibility of COS and JO workers missing their monthly contributions.
The Regional Development Council XII had earlier emphasized the importance of such a mechanism. Based on its data, 10,988 COS and JO workers were employed in various government offices and LGUs in Region XII as of April 30, 2025, but only 4,012 had SSS coverage at that time.
If properly implemented, the payroll-based system could help prevent delays or interruptions in contributions that may affect eligibility for, or the amount of, certain social security benefits.
It is also important to emphasize that not all COS and JO workers will automatically have deductions made from their compensation under AO No. 43. The deductions are based on their consent. Government agencies should therefore establish clear procedures for obtaining and documenting workers’ authorization.
COS and JO workers should also be properly informed of their options so they can make decisions based on sufficient and accurate information.
The Department of Budget and Management (DBM), CSC, Commission on Audit (COA), Pag-IBIG Fund, PHILHEALTH, and SSS have been directed to jointly issue the necessary rules, guidelines, and accounting procedures for the implementation of the order.
These implementing guidelines will be important in clarifying how worker authorization, payroll deductions, reporting, accounting, and remittances will be carried out across different government offices.
AO No. 43 does not remove the contractual nature of COS and JO arrangements. Instead, it provides a more accessible mechanism for extending social protection to workers who play an important role in the day-to-day operations and delivery of public services.
Amid the continuing presence of non-regular workers in various parts of government, the measure could serve as a bridge toward more consistent access to social insurance, healthcare protection, and savings-related programs for COS and JO personnel, while keeping their participation voluntary and their existing contractual status unchanged.
*The Tagalog version can be read in the comment section.
