Marcos allows voluntary gov’t contribution deductions for non-regular workers

MANILA, Philippines — Contract of service and job order workers may now choose to have their Philippine Health Insurance Corp. (PhilHealth), Social Security System (SSS) and Pag-IBIG contributions deducted from their pay.

This comes after President Ferdinand Marcos Jr. issued Administrative Order No. 43, allowing the deductions to be voluntary.

“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 (contract of service) and JO (job order) workers, subject to their prior consent,” the order read.

Before the issuance of this order, contract of service and job order workers personally remitted their voluntary contributions.

The order covers all government agencies, bureaus, offices, departments and instrumentalities, including government-owned or controlled corporations and state universities and colleges.

Local government units, meanwhile, are encouraged to observe the order’s provisions.

“The concerned agencies shall remit the deducted contributions directly to the SSS, PhilHealth and PAG-IBIG Fund within the prescribed periods,” the order read.

The order cited Joint Circular No. 1, series of 2025, of the Civil Service Commission (CSC), Commission on Audit and Department of Budget and Management (DBM), which grants contract of service and job order workers a premium not exceeding 20% of their salaries to cover voluntary or self-employed contributions.

Contract of service workers are people employed under temporary agreements to perform specific roles, such as consultancy tasks, project management and general services.

Meanwhile, job order workers are contractual workers hired to perform short-term tasks, with their work duration typically not exceeding six months.

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