Manila: President Ferdinand R. Marcos Jr. has issued administrative orders granting a service recognition incentive (SRI) to government employees and a gratuity pay to contract of service (COS) and job order (JO) workers. Marcos signed Administrative Orders (AOs) 39 and 40, with copies posted on the Official Gazette website.
According to Philippines News Agency, AO 40 authorizes a one-time SRI at a uniform rate not exceeding PHP20,000 for personnel in the executive department. Eligible recipients include civilian personnel of national government agencies (NGAs), state universities and colleges (SUCs), and government-owned or -controlled corporations (GOCCs) in regular, contractual, or casual positions. Personnel from the Armed Forces of the Philippines, the Philippine National Police, and other specified agencies are also entitled to receive the SRI. Funding will come from available Personnel Services allotments under the 2025 General Appropriations Act (GAA). In case of funding deficiencies, the amount may be charged against the Maintenance and Other Operating Expenses allotments, subject to certain rules.
Other eligible personnel include employees of the Judiciary, Congress, Office of the Ombudsman, constitutional offices with fiscal autonomy, and personnel in local government units (LGUs), including barangays and local water districts, depending on budget availability. Payment of the SRI is scheduled for no earlier than Dec. 15, 2025, as stated in AO 40.
Meanwhile, AO 39 provides a one-time gratuity pay for COS and JO workers for fiscal year 2025. Workers with at least four months of satisfactory performance as of Dec. 15, 2025, may receive up to PHP7,000, while those with less than four months are eligible for a pro-rata gratuity. The gratuity pay varies based on tenure, with workers employed for less than two months receiving up to PHP4,000.
NGAs and SUCs must request the use of savings from the Department of Budget and Management (DBM) within five working days of the order's effectivity for endorsement to the Office of the President. The DBM will release the funds upon presidential approval. LGUs are encouraged to adopt similar measures for their COS and JO workers.
AO 39 acknowledges the hard work and valuable participation of COS and JO personnel in implementing government programs and delivering services amid socio-economic challenges. Both AOs take effect immediately following publication in the Official Gazette or a general circulation newspaper.
