Contract of service (COS) and job order (JO) workers in government may now voluntarily have their contributions to key social protection programs deducted from their compensation under an administrative order issued by President Ferdinand Marcos Jr.
The Presidential Communications Office said Thursday that Marcos issued Administrative Order No. 43, directing government agencies to facilitate the voluntary deduction and remittance of contributions to the Social Security System (SSS), Philippine Health Insurance Corp. (PhilHealth) and Pag-IBIG Fund.
The order, issued June 3, requires the prior consent of covered workers and compliance with the laws governing the three programs.
“All covered government agencies are hereby directed to facilitate the voluntary deduction of prescribed SSS, PhilHealth, and Pag-IBIG Fund contributions from the compensation of COS and JO workers, subject to the prior consent of the worker,” Marcos said.
Agencies are also required to establish mechanisms allowing COS and JO workers to participate and provide them with information on available social protection coverage.
The order covers national government departments, agencies, bureaus, offices and instrumentalities, as well as government-owned or -controlled corporations and state universities and colleges that engage individual COS and JO workers.
Local government units are encouraged to adopt the same provisions.
Under AO 43, agencies will directly remit the deducted contributions to SSS, PhilHealth and Pag-IBIG and ensure that payments are made on time.
They are also required to enter into agreements with the three institutions to facilitate the system.
The order does not change the existing contractual relationship between government agencies and COS or JO workers.
The Department of Budget and Management, Civil Service Commission, Commission on Audit, SSS, PhilHealth and Pag-IBIG Fund are tasked with jointly issuing the rules, guidelines and accounting procedures needed to implement the order.
AO 43 follows Joint Circular No. 1, series of 2025, issued by the CSC, COA and DBM, which allows COS and JO workers to receive a premium of up to 20 percent of their compensation to cover voluntary or self-employed contributions to government-mandated social security programs.
The new mechanism is intended to make it easier for government’s non-regular workers to maintain coverage under social insurance, health insurance and savings programs while retaining the voluntary nature of their participation.
Photo courtesy of Philippine Star
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