President Rodrigo Roa Duterte has signed Administrative Order (AO) No. 38 which authorizes granting of gratuity pay to job order and contractual workers of the government for Fiscal Year 2020.

As per AO 38, all job order and contractual workers in national government agencies (NGAs), state universities and colleges (SUCs), government-owned or controlled corporations (GOCCs) and local water districts (LWDs) who have rendered at least four months of service as of December 15, 2020 will receive a gratuity pay not exceeding P3,000 each. Those who have served for less than four months will receive gratuity pay on a pro-rata basis. See the table below.

LENGTH OF SERVICEAMOUNT OF GRATUITY PAY
3 months or more but less than 4 monthsnot exceeding P2,000
2 months or more but less than 3 monthsnot exceeding P1,500
Less than 2 monthsnot exceeding P1,000

Meanwhile, Section 5 of AO 38 encourages local government units (LGUs) to grant gratuity pay to their job order and contractual employees as well subject to their respective available funding sources.

Read full text of AO 38 below.

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