President Ferdinand Marcos Jr. has expanded social protection coverage for government contract of service (COS) and job order (JO) workers by allowing voluntary deductions from their compensation for contributions to the Social Security System (SSS), PhilHealth, and Pag-IBIG Fund.
Through Administrative Order No. 43, government agencies are directed to facilitate the voluntary deduction and remittance of the prescribed contributions of COS and JO workers, subject to the workers’ prior consent.
“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,” the order stated.
The policy covers COS and JO workers in all government departments, agencies, bureaus, offices, and instrumentalities, including government-owned and -controlled corporations (GOCCs) and state universities and colleges (SUCs).
Local government units (LGUs) are likewise encouraged to observe the provisions of the order.
COS and JO workers are not regular government employees and are not covered by the Government Service Insurance System (GSIS). The new policy aims to make it easier for them to access social protection programs and benefits through their SSS, PhilHealth, and Pag-IBIG contributions.
Under the order, the government agencies where the workers are engaged will facilitate the deduction and remittance of their contributions to the three social protection agencies.
The Department of Budget and Management (DBM), Civil Service Commission (CSC), Commission on Audit (COA), SSS, PhilHealth, and Pag-IBIG Fund are tasked with jointly issuing the necessary rules, guidelines, and accounting procedures to ensure the uniform implementation of the order.
Meanwhile, under Joint Circular No. 1 issued by the CSC, COA, and DBM, COS and JO workers may receive a premium of up to 20% of their compensation to help cover their voluntary or self-employed social security contributions.
The government clarified that Administrative Order No. 43 does not change the contractual status of COS and JO workers.
The administrative order was signed by Executive Secretary Ralph Recto, by authority of the President, on June 3, 2026.
