Issued on December 15, 2025
The Civil Service Commission (CSC), Commission on Audit (COA), and the Department of Budget and Management (DBM) jointly issued Joint Circular No. 1, s. 2025 to establish a unified, stricter, and more accountable framework governing the engagement of Contract of Service (COS) and Job Order (JO) workers in government.
This issuance is not merely procedural. It represents a policy correction to long-standing issues related to contractualization, inconsistent implementation across agencies, audit disallowances, and the misuse of COS/JO workers for regular government functions.
This article provides an in-toto, plain-language, and operational discussion of the Circular, particularly relevant to DepEd schools, Schools Division Offices (SDOs), SUCs, and NGAs.
I. Background and Policy Direction
Government agencies have increasingly relied on COS and JO workers to address manpower gaps. However, the CSC, COA, and DBM observed that:
- Implementation of COS/JO guidelines varied widely across agencies
- Some COS/JO workers were performing duties identical to regular plantilla positions
- There was growing risk of illegal contractualization and audit exposure
In response, the Joint Circular establishes a uniform policy framework that balances:
- Operational efficiency
- Fiscal discipline
- Worker welfare
- Strict observance of civil service and labor laws
All prior issuances inconsistent with this Circular are deemed repealed or modified.
II. Coverage and Exclusions
Covered Agencies
- National Government Agencies (NGAs)
- Government-Owned or Controlled Corporations (GOCCs) with original charters
- State Universities and Colleges (SUCs)
- Constitutional bodies
DepEd schools and SDOs are fully covered.
Excluded from Coverage
- COS/JO workers paid under Engineering and Administrative Overhead Expenses (EAOE)
- COS/JO workers engaged by Local Government Units (LGUs)
III. Key Definitions Explained
Contract of Service (COS)
A COS refers to the engagement of an individual, firm, NGO, or government entity to undertake specific projects or specialized work within a defined period.
Job Order (JO)
A JO refers to piece-work, intermittent, or emergency tasks such as clearing of debris, carpentry, plumbing, painting, or other manual or technical services of short duration.
Institutional COS
Engagement of outsourced services (e.g., janitorial, security, consultancy) through a third-party contractor, not direct hiring.
IV. Modes of Engagement and Governing Rules
A. Institutional Contract of Service
Government agencies may engage outsourced services through institutional COS, subject to:
- Compliance with the New Government Procurement Act (RA 12009)
- Proper registration of the contractor with DOLE, BIR, DTI/SEC
- Active employer registration with SSS, PhilHealth, and Pag-IBIG
Workers under institutional COS remain employees of the contractor. Discipline, compensation, and benefits are the contractor’s responsibility.
Agency heads must not directly supervise or discipline outsourced workers.
B. Individual Contract of Service
Agencies may engage individuals as consultants, learning service providers, or technical experts. The contract period:
- Shall not exceed one (1) year
- May be renewed at the discretion of the agency head
- Shall not exceed the term of the appointing authority
C. Job Order Engagement
JO workers may be engaged only for emergency or intermittent work that is not part of the agency’s regular functions.
V. Absolute Limitations and Prohibitions
The Circular is explicit: COS and JO workers shall not, under any circumstances:
- Perform duties of regular plantilla positions
- Exercise supervision or control over regular employees
- Be designated to positions with decision-making authority
- Be credited with government service
- Receive benefits exclusive to regular government employees
For public schools, this directly affects COS-engaged bookkeepers, clerks, ICT personnel, and administrative aides performing core school functions.
VI. Compensation, Premiums, and Funding
Basic Pay
- COS: Prevailing market rate or comparable government position
- JO: Daily wage of comparable government position
Premium Payment
Agencies may grant a premium of up to 20% of the salary or wage, subject to funding availability.
The premium is intended to cover SSS, PhilHealth, and Pag-IBIG contributions and is not automatic.
Funding Source
All COS/JO payments and premiums shall be charged against the Maintenance and Other Operating Expenses (MOOE).
VII. Ancillary Benefits (Subject to Funds)
- Overtime pay, subject to CSC–DBM overtime rules
- Reimbursement of official local travel expenses
- Flexible Work Arrangement (FWA), where applicable
VIII. Transitory Provisions and Mandatory Actions
No Increase in COS/JO Headcount
Agencies are prohibited from increasing their COS/JO workforce beyond the current number of engaged workers.
Mandatory Inventory (Annex “A”)
All agencies must submit an inventory of COS and JO workers with valid contracts as of December 31, 2025.
- Submitted to COA
- Furnished to CSC and DBM
- Deadline: January 31, 2026
Failure to submit may result in audit findings and administrative liability.
Absorption and Workforce Rationalization
Agencies are directed to review their staffing patterns and consider qualified COS/JO workers for plantilla positions, subject to civil service rules and merit selection standards.
IX. Responsibilities of Agency Heads
Agency heads, including School Heads, shall:
- Issue internal guidelines aligned with this Circular
- Ensure compliance with budgeting, accounting, and auditing rules
- Be personally accountable for violations
Non-compliance may result in administrative, civil, or criminal liability.
X. Final Notes for Public Schools
This Joint Circular marks a decisive shift in how COS and JO engagements are viewed. They are now strictly temporary, project-based, and non-core.
School heads and administrators are strongly advised to:
- Audit all COS/JO assignments
- Realign tasks to comply with plantilla descriptions
- Coordinate with SDOs on position creation and absorption planning
Compliance is no longer optional. It is an administrative and audit imperative.
Prepared for informational and compliance guidance purposes.
Frequently Asked Questions (FAQ) for COS and JO Workers
This section answers common questions raised by Contract of Service (COS) and Job Order (JO) workers regarding their engagement, compensation, benefits, and employment status under CSC–COA–DBM Joint Circular No. 1, s. 2025.
1. What is the difference between a COS worker and a JO worker?
A Contract of Service (COS) worker is engaged to provide professional, technical, consultancy, or specialized services for a specific project or period.
A Job Order (JO) worker is engaged for piece-work, emergency, intermittent, or short-term tasks such as manual, skilled trade, or support services that are not part of the agency’s regular functions.
2. Am I considered a government employee if I am COS or JO?
No. COS and JO workers are not government employees. They are not covered by Civil Service laws, rules, and regulations, and their service is not creditable as government service.
3. Can my COS or JO contract be renewed every year?
Yes, but subject to strict conditions.
- An individual COS contract may be renewed but shall not exceed one (1) year at a time.
- Renewal is at the discretion of the agency head.
- Renewal does not create security of tenure.
4. Does long service as a COS or JO make me a regular employee?
No. Length of service does not convert a COS or JO worker into a regular or permanent government employee. There is no automatic regularization.
5. Am I allowed to perform the same duties as regular employees?
No. COS and JO workers shall not be assigned tasks that are part of the job description of regular plantilla positions. Doing so exposes the agency to audit findings and administrative liability.
6. Can I supervise other employees if I am COS or JO?
No. COS and JO workers shall not be designated to positions that exercise supervision or control over regular or career employees.
7. How is my salary or wage determined?
For COS workers, payment is based on the prevailing market rate or the salary of a comparable government position.
For JO workers, payment is based on the daily wage of a comparable government position or an agreed amount for the piece of work.
8. What is the 20% premium mentioned in the Circular?
Agencies may grant a premium of up to 20% of the COS or JO salary/wage, subject to the availability of funds.
This premium is intended to cover contributions to:
- SSS
- PhilHealth
- Pag-IBIG Fund
The premium is not automatic and must be authorized by the agency.
9. Am I entitled to government employee benefits like PERA, bonuses, or leave credits?
No. COS and JO workers do not enjoy benefits exclusive to government employees, such as:
- Personnel Economic Relief Allowance (PERA)
- Representation and Transportation Allowance (RATA)
- Mid-Year and Year-End Bonuses
- Leave credits
10. Can I receive overtime pay?
Yes, if authorized and subject to the same rules prescribed under existing CSC–DBM guidelines on overtime services.
Overtime pay is charged against the same MOOE source as service payments.
11. Am I allowed to claim travel expenses?
Yes. COS and JO workers may be reimbursed for official local travel expenses, subject to existing government travel rules and the availability of funds.
12. Can I be placed under Work-from-Home (WFH) or Flexible Work Arrangement?
Yes, if the nature of your work allows it and subject to the agency’s internal guidelines and existing COA–DBM rules on Flexible Work Arrangements.
13. Can my contract be terminated before its end?
Yes. COS and JO contracts are governed by their specific terms and conditions. They may be terminated in accordance with the contract provisions and applicable laws.
14. Will COS and JO workers still be hired in the future?
Yes, but agencies are now prohibited from increasing their total number of COS and JO workers beyond the current level. Engagement will be limited to truly temporary, project-based, or emergency needs.
15. Will COS and JO workers be prioritized for plantilla positions?
Qualified COS and JO workers may be considered for appointment to vacant plantilla positions, subject to:
- Civil Service rules
- Merit Selection Plan
- Equal opportunity and non-discrimination policies
There is no automatic absorption, but agencies are encouraged to consider qualified existing COS and JO workers.
16. Who should I approach if I have concerns about my COS or JO engagement?
COS and JO workers may raise concerns with:
- The agency’s Human Resource Management Unit (HRMU)
- The Agency Head
- Concerned oversight agencies (CSC, COA, DBM), when appropriate
All concerns should be documented and raised through proper administrative channels.
This FAQ is provided for information and guidance purposes and does not create an employer–employee relationship.
The 2025 COS–JO Rulebook: What Every Government Worker Must Know
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