Contract of service (COS) and job order (JO) workers in government will have an easier way to keep up with their social protection contributions under a new order from President Ferdinand Marcos Jr.
Administrative Order No. 43, signed on June 3, 2026, directs government agencies to help COS and JO workers make voluntary contributions to the Social Security System (SSS), Philippine Health Insurance Corp. (PhilHealth), and Pag-IBIG Fund.
No More Need to Pay Contributions on Your Own
Before the new order, COS and JO workers had to personally pay and process their voluntary contributions to SSS, PhilHealth, and Pag-IBIG.
Under AO No. 43, government agencies can deduct the required contributions directly from a worker’s compensation and send the payments to the appropriate government agencies.
However, the deductions will only be made if the worker agrees to them.
The order also requires agencies to provide workers with information about available social protection programs and set up systems that will make it easier for them to participate.
Workers May Get Up to 20% Premium
The new policy builds on Joint Circular No. 1, series of 2025, which allows COS and JO workers to receive a premium of up to 20 percent of their compensation for voluntary or self-employed contributions to government-mandated social security programs.
In simple terms, this can help workers set aside money for important benefits such as health insurance, retirement, and other forms of social protection without having to handle every payment themselves.
The contribution remains voluntary, meaning workers can choose whether they want the deductions from their compensation.
Who Are Covered by the New Order?
The order applies to government departments, agencies, bureaus, offices, and other national government instrumentalities. It also covers government-owned or -controlled corporations and state universities and colleges.
Local government units are encouraged to follow the same policy.
Marcos also directed the Department of Budget and Management, Civil Service Commission, Commission on Audit, SSS, PhilHealth, and Pag-IBIG Fund to work together on the rules needed to implement the order.
For thousands of COS and JO workers, the policy could make contributing to social protection programs more convenient and help them stay covered while working under government contracts.
