President Ferdinand R. Marcos Jr. has issued administrative orders (AOs) granting a service recognition incentive (SRI) to government employees and a gratuity pay to contract of service (COS) and job order (JO) workers.
Marcos on Thursday signed AOs 39 and 40, copies of which were posted on the Official Gazette website.
Under AO 40, Marcos authorizes a one-time SRI at a uniform rate not exceeding PHP20,000 for personnel working under the executive department.
Those eligible include civilian personnel of national government agencies (NGAs), including those in state universities and colleges (SUCs), and government-owned or -controlled corporations (GOCCs) in regular, contractual, or casual positions.
Personnel of the Armed Forces of the Philippines, the Philippine National Police, the Philippine Public Safety College, Bureau of Fire Protection, Bureau of Jail Management and Penology, the Bureau of Corrections (BuCor), the Philippine Coast Guard (PCG), and the National Mapping and Resource Information Authority (NAMRIA) are also entitled to receive the SRI.
Funding for NGAs, SUCs, and military and uniformed personnel will come from available Personnel Services allotments under the 2025 General Appropriations Act (GAA).
“In case of deficiency, the amount required may be charged against the Maintenance and Other Operating Expenses allotments of the concerned government agency, subject to the rules on modification in allotments under Section 80 of the General Provisions of RA No. 12116, and other pertinent budgeting, accounting and auditing rules and regulations,” AO 40 read.
Other eligible personnel include employees of the Judiciary, Congress, Office of the Ombudsman, and constitutional offices vested with fiscal autonomy, as well as personnel in local government units (LGUs), including those in barangays (villages), and employees in local water districts (LWDs), subject to budget availability.
Payment of the SRI should be made no earlier than Dec. 15, 2025, according to AO 40.
Gratuity Pay
Meanwhile, AO 39 authorizes a one-time gratuity pay for COS and JO workers for the fiscal year 2025.
Workers with at least four months of satisfactory performance as of Dec. 15, 2025, may receive up to PHP7,000.
Those with less than four months are eligible for a pro-rata gratuity.
Those who are working in government for three months but less than four months will receive a gratuity pay not exceeding PHP6,000, while those who have rendered two months but less than three months will get an amount not exceeding PHP5,000.
A gratuity pay not exceeding PHP4,000 will be given to those who have rendered less than two months.
NGAs and SUCs must submit requests for the use of savings to 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 through Special Allotment Release Orders and Notices of Cash Allocation upon presidential approval.
LGUs are encouraged to adopt similar gratuity pay measures for their COS and JO workers.
According to AO 39, the grant of gratuity pay recognizes the hard work and valuable participation of COS and JO personnel in implementing government programs and delivering services amid socio-economic challenges.
AOs 29 and 40 take effect immediately following complete publication in the Official Gazette or in a newspaper of general circulation. (PNA)
