The joint circular issued by the Civil Service Commission (CSC), Commission on Audit (COA), and Department of Budget and Management (DBM) essentially limiting the number of Contract of Service (COS) or Job Order (JO) workers does not cover local government units.
Joint Circular (JC) No. 1, series of 2025, issued on Dec. 15, 2025, prescribes revised guidelines on the engagement of such workers in all constitutional bodies, National Government Agencies (NGAs), Government-Owned or -Controlled Corporations (GOCCs), and State Universities and Colleges (SUCs).
The limitation on the number of COS and JO workers likewise does not cover those whose service payments are accounted as Engineering and Administrative Overhead Expenses (EAOE) of the concerned departments as authorized in the 2025 General Appropriations Act.
Citing a noticeable increase in the number of COS and JO workers engaged by the different agencies of government, the circular stated that the implementation of the previous guidelines have been inconsistent and ambiguous across agencies.
It also noted that the issue of job contractualization in government has been a recurring concern even during the previous administration.
The revision of the rules and regulations on the engagement of COS and JO workers in government is needed to provide a cohesive and accountable framework that balances operational efficiency and fiscal discipline, while also protecting the welfare of workers, the circular stated.
Under the circular, government agencies may continue hiring COS and JO workers but shall not exceed the number of COS and JO workers as of the end of 2025, effectively placing a cap on contractual hiring to address recurring contractualization in government.
“To effectively manage their COS and JO workers, agencies shall no longer be allowed to increase the number of their COS and JO workers beyond the current number,” the circular provides, with all agencies covered to provide an inventory of their respective COS and JO workers whose contracts remain valid until Dec. 31, 2025.
The revised guidelines state that government agencies may engage outsourced services through institutional COS covering lump sum work or services to perform janitorial, security, consultancy, and other support functions, as long as the contractor or service provider complies witj the requirements.
They may also enter a COS with individuals as consultants, learning service providers or technical experts for a maximum period of one year, renewable at the option of the agency head but not exceeding the latter’s term.
The same existing rules on the hiring of JO workers have been retained by the circular.
In addition to the limitation of COS hiring for specific jobs, the circular directs agencies to ensure that the project or job is not part of the regular functions of the agency, or the expertise is not available in the agency, or it is impractical or more expensive for the agency to directly undertake the service provided by the individual or institutional contractor.
On the other hand, the circular limits the hiring of JO workers to emergency or intermittent work such as clearing of debris on roads, canals, and waterways after natural or manmade disasters, other trades and crafts, and manual tasks sich as carpentry, plumbing, painting, electrical, and the like which are not part of the regular functions of the agency.
“COS and JO workers should not, in any case, be made to perform functions which are part of the job descriptions of the agency’s regular employees,” the JC stated, adding that they should not be designated to positions exercising control or supervision over regular and career employees.
The circular reminds government agencies to consider their existing COS and JO workers in the preparation of their respective Optimization Plans pursuant to Republic Act 12231, so that qualified COS/JO workers can be absorbed in the plantilla positions that will be created in the agencies concerned.
The institutional contracts entered into by the agencies with a contractor or service provider, it added, should include a provision stipulating that the existing qualified COS/JO workers of the agency shall be considered during the recruitment or hiring processes of the contractor or service provider.
Agency heads may be held accountable for the proper implementation of the rules and regulations and may be held liable for any administrative, civil or criminal liabilities in accordance with the rules.