President Ferdinand R. Marcos Jr. has expanded access to social protection programs for contract of service (COS) and job order (JO) workers in the government through an administrative order allowing the voluntary deduction and remittance of their contributions to key government social insurance and savings programs.
In a statement Thursday, the Presidential Communications Office (PCO) said Marcos, through Administrative Order (AO) No. 43, directed government agencies to facilitate the voluntary deduction of prescribed contributions to the Social Security System (SSS), Philippine Health Insurance Corp. (PhilHealth), and Pag-IBIG Fund from the compensation of covered COS and JO workers.
“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 and in accordance with RA Nos. 11199, 11223, and 9679,” the President said in the order issued June 3.
“For this purpose, agencies shall ensure that appropriate mechanisms are in place to enable participation and shall provide COS and JO workers with the necessary information on available social protection coverage,” he added.
The order covers departments, agencies, bureaus, offices and instrumentalities of the national government, including government-owned or -controlled corporations and state universities and colleges that engage individual COS and JO workers.
Local government units are also encouraged to observe the provisions of AO 43.
Under the order, concerned agencies will directly remit the deducted contributions to the SSS, PhilHealth and Pag-IBIG Fund and ensure their timely remittance. They are also directed to execute the necessary agreements with the three institutions to facilitate implementation.
The order, however, clarified that the voluntary deduction and remittance mechanism will not alter, amend or modify the existing contractual relationship between government agencies and their COS or JO workers.
The order directs 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.
The order follows Joint Circular No. 1, s. 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. (PNA)
