Contract of service (COS) and job order (JO) workers in Davao City will receive a one-time gratuity pay following the approval of Supplemental Budget 1 (SB 1), Councilor Myrna Dalodo-Ortiz announced on Tuesday.
The 20th City Council approved the P2.21-billion SB 1, which includes the budget under the general fund, development fund, and economic enterprises.
Ortiz said the appropriation for the gratuity pay in SB 1 is P90 million. Each COS and JO worker will receive up to P5,000.
“We already have the budget for the pay stated in our SB 1. Once SB 1 is approved, it will be reflected in their payslips,” she said.
President Ferdinand Marcos Jr. signed Administrative Order No. 13 last December, granting gratuity pay to COS and JO workers.
Under the order, all COS/JO workers who have rendered at least four months of service as of December 15, 2023, and whose contracts are still effective as of the same date are entitled to the pay.
Those with less than four months of service will receive a prorated amount.
The order also states that COS and JOs of national government agencies, state universities and colleges, government-owned and controlled corporations, and local water districts are qualified to receive the P5,000 gratuity pay.
In addition to the gratuity pay, the salary of plantilla workers will increase based on their salary grade, Ortiz said.
The city council allocated P125 million for the salary increase under SB 1, which was passed on its final reading on Tuesday.
“This is a positive development for all the plantilla workers in the city,” Ortiz said.
The Department of Budget Management (DBM) released Local Budget Circular No. 160 on August 12, providing for the implementation of the first tranche of the Modified Salary Schedule for Local Government Personnel according to Executive Order (EO) 64.
The new salary rates will follow the First Tranche Monthly Salary Schedule for Local Government Personnel as per DBM Local Budget Circular No. 160.
The updated salary schedule for civilian personnel will be implemented in four tranches, from Fiscal Year 2024 to Fiscal Year 2027.
Fiscal Year 2023 marked the fourth and final tranche of the implementation of the modified salary schedule according to Republic Act 11466 or the Salary Standardization Law of 2019.
EO No. 64 provides the updated Salary Schedule for Civilian Government Personnel to ensure a competitive and sustainable Compensation and Position Classification System (CPCS) to retain and motivate civil servants.
“Given the prevailing economic circumstances, including erosion of purchasing power, there is a need to update salaries and benefits of government personnel to maintain a competent, agile, and healthy workforce… translating to increased productivity and higher quality public services,” EO No. 64 reads.
