The Philippine government has taken a definitive step to limit the practice of contractualization within the public sector by imposing a cap on the hiring of Contract of Service (COS) and Job Order (JO) personnel. This major policy shift aims to address long-standing concerns over job security and employment terms for government workers.
New Circular Sets Hiring Ceiling
In a significant move announced on Thursday, the Civil Service Commission (CSC), together with the Commission on Audit (COA) and the Department of Budget and Management (DBM), issued Joint Circular No. 1, series of 2025. This circular introduces revised guidelines for engaging COS and JO workers across various government bodies.
The core provision of the new policy establishes a hiring freeze at current levels. Government agencies are now instructed that they may not exceed the number of COS and JO personnel they had on record as of December 31, 2025. This effectively creates a fixed ceiling for future contractual hiring.
Scope and Agency Responsibilities
The issuance covers a wide range of government institutions, including:
- National government agencies
- Government-owned or -controlled corporations with original charters
- State universities and colleges
- Constitutional bodies
Notably, the circular excludes local government units and workers whose salaries are drawn from engineering and administrative overhead expenses.
Agency heads are now tasked with critical responsibilities. They must conduct a thorough review of their staffing needs and develop optimization plans in line with the Government Optimization Act. A key directive is to consider existing COS and JO workers for potential absorption into regular plantilla positions, offering a pathway to more stable employment.
Implementation and Worker Welfare
The circular also outlines provisions for ancillary benefits and sets reportorial requirements to ensure transparency. It emphasizes the responsibility of agency leaders to safeguard the welfare of contractual workers during this transition.
JC No. 1, series of 2025, will officially take effect 15 days after its publication in a newspaper of general circulation. It must also be filed with the Office of the National Administrative Register at the University of the Philippines Law Center.
This policy represents a concrete attempt to balance operational needs with the push for more secure employment within the Philippine bureaucracy. It signals a shift towards optimizing the government workforce while addressing the recurring issue of job contractualization that has affected thousands of public sector workers.
