PRESIDENT Ferdinand Marcos Jr. has expanded social protection coverage to include contract of service (COS) and job order (JO) workers in government to ensure their “equitable access” to social protection programs.
The president issued Administrative Order (AO) 43 facilitating the voluntary deduction and remittance of Social Security System (SSS), Philippine Health Insurance Corp. (PhilHealth), and Pag-IBIG Fund contributions of COS and JO workers.
The president also directed the Department of Budget and Management (DBM), Civil Service Commission (CSC), Commission on Audit (COA), SSS, PhilHealth and Pag-IBIG Fund to jointly issue the necessary rules, guidelines and accounting procedures to ensure the effective implementation of the order.
Under the AO, government agencies are directed to facilitate the voluntary deduction of SSS, PhilHealth and Pag-IBIG Fund contributions “subject to the prior consent of the worker” and in accordance with Republic Act (RA) 11199, RA 11223 and RA 9679.
The order covers all departments, agencies, bureaus, offices and instrumentalities of the national government, including government-owned or -controlled corporations, and state universities and colleges, engaging the services of individual COS and JO workers.
Local government units are also encouraged to observe the order.
Concerned agencies should remit the deducted contributions directly to the SSS, PhilHealth and Pag-IBIG Fund, ensure the timely remittance of such contributions and execute the necessary agreements with the concerned institutions to facilitate proper implementation, the AO stated.
The facilitation of voluntary deduction and remittance should not alter, amend, or modify the existing contractual relationship between government agencies and their COS or JO workers, it added.
Joint Circular 1 (Series of 2025) issued by the CSC, COA and DBM provides that COS and JO workers may be granted a premium, not exceeding 20 percent of their compensation, to cover voluntary or self-employed contributions to government-mandated social security programs.
