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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _____ 
Introduced by Representative Ron P. Salo 
EXPLANATORY NOTE 
      The government is considered to be the biggest employer, considering the 
size of government bureaucracy. Based on the 2019 staffing summary of the 
Department of Budget and Management (DBM), the entire government structure has 
a total of 1,863,361 permanent positions, including the President down to the lowest-
paid employee. Further, there are those positions whose term of employment are 
considered to be temporary, contractual or fixed term, casual, or job order, or simply 
referred to as contractual employees or ‘endo’ in the government. 
Based on the 2017 data provided by the Civil Service Commission (CSC), 
there are more than 660,000 contractual employees in the government. From these 
660,000 contractual employees, seventy percent (70%) were hired by the LGUs 
which comprise roughly about 460,000 thousand 'endo' personnel. 
Although the latest available government data points to the fact that our 
unemployment rate has steadied at 5.4% in recent times, finding or landing on 
another job still requires time and normally results to financial constraints that will 
certainly impact the lives of these displaced employees, as well as that of their 
families. 
With the current Administration being sensitive to the sentiments of the people 
over the issue of ‘endo’, the government already made some efforts to prioritize 
contractual and job order employees in filling up vacant positions in the government 
through a joint circular  (Joint Circular No. 1, S. 2017) issued by the CSC, COA, and 
DBM in June 15, 2017.  
On the part of Congress, House Bill 00953 was recently filled by the 
undersigned providing for the automatic civil service eligibility to those who have 
rendered at least three consecutive years of government service or at least five non-
consecutive years, and whose appointment is either contractual, casual, or job order. 
Notwithstanding the above measures, the government should implement 
more measures aimed at the regularization of as many government employees as 
possible, in order for the government to have the moral ascendancy to call for an end 
July 1, 2022
8:01 am
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to the practice of ‘endo’ in the private sector. Nonetheless, it is noted that 
regularizing all these ‘endos’ in the government will pose a great challenge, 
especially on the aspect of fiscal management.   
With the regularization of all government employees still being a work in 
progress, it is necessary that a financial assistance be extended to these employees 
upon the termination of their contract in order to assist them as they seek other 
employment opportunities. For this purpose, it is proposed that a “Government 
Unemployment Assurance Mutual Fund” be created for these contractual, casual 
and job order employees in the government. 
In view of the foregoing, approval of this bill is earnestly sought. 
RON P. SALO 
   KABAYAN Partylist 


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _____ 
Introduced by Representative Ron P. Salo 
AN ACT  
CREATING THE GOVERNMENT UNEMPLOYMENT ASSURANCE MUTUAL 
FUND FOR THE BENEFIT OF SEPARATED GOVERNMENT EMPLOYEES AND 
FOR OTHER PURPOSES  
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. –. This Act shall be known as “The Government 
Unemployment Assurance Mutual Fund”. 
SEC. 2. Declaration of Policy – The State affirms the role of those in the civil 
service as its primary partners in delivering efficient government services to the 
people. To ensure the welfare of government employees, particularly those who are 
contractual, casuals and  job orders, the State hereby creates a mutual fund that will 
provide displaced or separated government employees belonging to these groups 
with the unemployment financial assistance during the period of their unemployment. 
SEC. 3. Definition of Terms – 
a. 
Casual Employment – an appointment issued 
only for essential and necessary services where there are not enough regular 
staff to meet the demands of the service and for emergency cases and 
intermittent period, not to exceed one year. 
b. 
Contractual Employment – an appointment 
issued to a person whose employment in the government is in accordance 
with a special contract to undertake local or foreign assisted projects, or a 
specific work or job requiring special or technical skills not available in the 
employing agency, to be accomplished within a specific period. 
c. 
Job Order – refers to piece work, intermittent or 
emergency jobs such as clearing of debris on the roads, canals, waterways, 
etc., after natural/man-made disasters/occurrences and other manual/trades 
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and crafts services such as carpentry, plumbing, electrical and the like. These 
jobs are of short duration and for a specific piece work.   
 
d. 
Employer – shall mean the Government of the 
Republic of the Philippines, its political subdivisions including the various 
Local Government Units (LGUs), agencies, instrumentalities, and Government 
Owned and Controlled Corporations (GOCCs) with original charter. 
 
e. 
Government Employees – for the purpose of this 
Act, the term Government Employees shall refer to any person working for the 
Government of the Republic of the Philippines, its political subdivisions 
including 
the 
various 
Local 
Government 
Units 
(LGUs), 
agencies, 
instrumentalities, including Government Owned and Controlled Corporations 
(GOCCs) with original charter, who are employed as casual, contractual, or 
job order. 
 
f. 
Unemployment Financial Assistance (UFA) - 
shall refer to the financial assistance which shall be given to the displaced or 
separated government employee during the period of unemployment. 
 
g. 
Separation – shall refer to the severance of the 
employment relationship of the government employee without cause on the 
part of the government employee.  
 
SEC. 4. Creation of the Assurance Fund. – There is hereby created an 
Assurance Fund for displaced government employees covered by this Act. The Fund 
shall be sourced from the mandatory contributions of both the employer and the 
employee as provided under Section 6 of this Act.  
 
SEC. 5. Covered Employees – For the purpose of this Act, covered 
employees shall include all employees of the Government of the Republic of the 
Philippines, its agencies, its political subdivisions including the various Local 
Government Units (LGUs), and its instrumentalities including Government Owned 
and Controlled Corporations with original charter, who are considered contractual, 
casual or job orders, who have completed their employment contract or their contract 
was pre-terminated by the government without the consent of the employee 
concerned. 
 
SEC. 6. Duty to Contribute, Withhold, and Remit to the Mutual Fund - 
Within the period of seven (7) days from the end of each month, the employer shall 
remit to the mutual fund an amount equivalent to twenty (20) per cent of the 
employee’s monthly basic compensation which shall be the employer’s share to the 
mutual fund. Likewise, the employer is mandated to withhold and remit to the mutual 
fund within the same period stated above, an amount equivalent to five (5) per cent 
of the employee’s basic compensation which shall be the employee’s share to the 
mutual fund. Said duty to contribute shall cease upon regularization of the employee 
concerned. 
 
SEC. 7. Administration of the Assurance Fund – The contributions to the 
mutual fund shall be managed by a non-profit entity engaged by the Civil Service 


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Commission. It shall serve as the mutual fund administrator subject to the 
supervision of the Insurance Commission, and audit by the Commission on Audit. 
The Civil Service Commission shall issue the appropriate guidelines, outlining the 
criteria, in selecting the fund administrator.  
 
SEC. 8. Benefits of the Assurance Fund – Government employees covered 
by this Act who have been separated from work by virtue of the completion of his or 
her employment contract shall be entitled to an unemployment financial assistance if 
such separated employee remains unemployed for a period of at least thirty (30) 
days from the date of separation. The separated employee shall be entitled to 
receive the following: an amount equivalent to forty percent (40%) of the monthly 
compensation of the separated employee from his or her last employment to be 
given on the 35th day of unemployment; an amount equivalent to forty percent (40%) 
of said monthly compensation he or she received from his or her last employment to 
be given on the 65th day of unemployment; and an amount equivalent to forty 
percent (40%) of the monthly compensation he or she received from his or her last 
employment to be given on the 95th day of unemployment.  
 
SEC. 9. Cessation of Benefits. - The benefits under this Act shall not be 
given in case the employment contract is renewed. Once already given, it shall 
cease as soon as the employee gets employed whether in the government or in the 
private sector. 
 
SEC. 10. Separability Clause – If any provision or portion of this Act is 
declared unconstitutional, the remainder of this Act or any provision not thereby 
affected shall remain in full force and effect.  
 
SEC. 11. Repealing Clause. – all laws, decrees, executive orders, 
ordinances, rules, regulations, or other issuances, or parts thereof which are 
inconsistent with any of the provisions of this Act are hereby repealed, amended, 
and/or modified accordingly. 
 
SEC. 12. Implementing Rules and Regulations. – The Civil Service 
Commission (CSC), and the Insurance Commission (IC), shall issue the 
Implementing Rules and Regulations (IRR) within ninety (90) days from the 
effectivity of this Act. 
 
SEC. 13. Effectivity. – This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in two (2) newspapers of general circulation. 
 
           
Approved.