Manila: The government has implemented a limit on the hiring of Contract of Service (COS) and Job Order (JO) workers as part of its efforts to tackle the long-standing issue of contractualization within the public sector. This move is aimed at ensuring a more stable and secure employment environment for workers engaged under these contracts.

According to Philippines News Agency, the Civil Service Commission (CSC) has issued Joint Circular (JC) No. 1, series of 2025, in collaboration with the Commission on Audit (COA) and the Department of Budget and Management (DBM). The circular introduces revised guidelines for the engagement of COS and JO workers in government agencies, setting a limit on the number of such personnel that can be hired, not exceeding the total as of the end of 2025.

The new guidelines are applicable to national government agencies, government-owned or -controlled corporations with original charters, state universities and colleges, and constitutional bodies. However, local government units and COS and JO workers paid from engineering and administrative overhead expenses are exempt from this cap.

Furthermore, the circular mandates that agencies review their staffing needs, develop optimization plans as per the Government Optimization Act, and consider the absorption of existing COS and JO workers into permanent positions. This initiative also outlines provisions for ancillary benefits, reporting requirements, and the responsibilities of agency heads to ensure the welfare of COS and JO workers is maintained.

Joint Circular No. 1, series of 2025, is set to become effective 15 days after its publication in a newspaper of general circulation and subsequent filing with the Office of the National Administrative Register at the University of the Philippines Law Center.