By el Amigo
MANILA, Philippines — Contract of service (COS) and job order (JO) workers in government agencies may now have their social protection contributions deducted directly from their compensation, following an order issued by President Ferdinand Marcos Jr.
Administrative Order No. 43, signed on June 3, 2026, instructs government offices to facilitate the voluntary deduction and remittance of contributions to the Social Security System (SSS), Philippine Health Insurance Corp. (PhilHealth), and Pag-IBIG Fund for eligible COS and JO personnel.
The arrangement requires the workers’ consent before any deductions can be made. Government agencies are also directed to establish systems that will allow interested workers to participate and to provide information about the available social protection benefits.
Under the previous system, COS and JO workers were generally responsible for making their own voluntary payments to the government-run social insurance and savings programs.
The new order covers departments, agencies, bureaus, offices and other instrumentalities of the national government. Government-owned and -controlled corporations as well as state universities and colleges are also included.
Local government units are encouraged to adopt the same policy.
The directive is anchored on Republic Acts 11199, 11223 and 9679, which govern the SSS, national health insurance and Pag-IBIG programs, respectively.
A Joint Circular issued in 2025 also allows COS and JO workers to receive a premium of as much as 20 percent of their compensation for voluntary or self-employed contributions to government-mandated social protection programs.
Marcos directed the Department of Budget and Management, Civil Service Commission, Commission on Audit, SSS, PhilHealth and Pag-IBIG Fund to coordinate in drafting the implementing rules and guidelines for the new arrangement.
The policy is intended to make it easier for government contract workers to maintain their participation in social protection programs while giving them the option to decide whether they want the deductions made from their pay.
elamigo/ia
