President Ferdinand Marcos Jr. has ordered all executive branch agencies to establish a system enabling voluntary payroll deductions for the social protection contributions of contractual government workers.
The directive was formalized through Administrative Order No. 43, signed on June 3 and published in the Official Gazette.
The mandate applies to national government agencies, government-owned and controlled corporations (GOCCs), and state universities and colleges (SUCs).
Local government units (LGUs) are also encouraged to implement a similar setup for deducting and remitting payments to the Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth), and Pag-IBIG Fund.
“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 (contractual) workers, subject to the prior consent of the worker and in accordance with (existing laws),” the order read.
“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,” it added.
Under the order, agencies are required to directly remit the collected funds to SSS, PhilHealth, and Pag-IBIG to ensure timely payments. Covered offices must also execute formal agreements with these welfare institutions to execute the scheme effectively.
The directive explicitly states that participating in the voluntary deduction and remittance mechanism will not alter the existing employment status or legal relationship between government offices and their contract of service (COS) or job order (JO) personnel.
To ensure proper execution, President Marcos instructed the Department of Budget and Management, the Civil Service Commission, the Commission on Audit, SSS, PhilHealth, and Pag-IBIG Fund to jointly draft the implementing rules, operational guidelines, and accounting protocols for the mandate.