Republic of the Philippines
HOUSE 0F REPRESHNTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
Second Regular Session
HoUSH BILLNo.  8650
RECEIV±D
1  JUL   2023
•T"E
Introduced by Representative lvan Howard A. Guintu
EXPLANATORY NOTE
Based   on   the   Civil   Service   Commission's   Inventory   of  Government   Human
Resources as of June 2022, out of 2,462,534 government employees, 642,077 or 26.07% are
contractual  employees.  The  number  of  government  contractual  employees  increased  by
10.25%  from  2021.   Out  of the  642,077  government  contractual  employees,  493,943  or
76.93% are under a job order and 148,134 or 23.07% are under a contract of service.
On  a  local  government  level,  there  are  487,149  contractual  employees,  which  is
75.87%   of  the   total   government  contractual   employees.   Undoubtedly,   it   is   the   local
government unit that employs most of the govemment's contractual employees.
Unfortunately,  these  contractual  employees  are  not  covered by  social  security  and
welfare benefits because of the lack of employer-employee relationship with the government.
Thus, they do not have access to benefits normally enjoyed by a permanent employee of the
goverrment. These benefits include the housing loan avallable to members of pag-IBIG.
In  order  to  make  housing  more  accessible  to  these  contractual  employees  through
affordable housing loans,  this legislative measure seeks to include contractual employees of
LGUs who have rendered service  for an aggregate  and non-continuous period of at least 3
years under the coverage of the Pag-IBIG Fund through a shared contribution scheme.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
Second Regular Session
HOUSE BILLNo.  8650
Introduced by Representative Ivan Howard A. Guintu
AN ACT
MANDATING LOCAL GOVERNMENT UNITS T0 PROVIDE PAG-IBIG
BENEFITS TO THEIR CONTRACTUAL EMPLOYEES UNDER A JOB ORDER,
CONTRACT OF SERVICE, OR OTHER SIMILAR CONTRACTUAL
ARRANGEMENT THROUGH A SHARED CONTRIBUTION SCHEMH
Be it enacted by the Senate and the House Of Representatives Of the Philippines in Congress
assembled:
S;HC"OIN 1. Home Development Mutual Fund (Pag-IBIG) Coverage and Payment
a/ Co#fri.d##.o#s.  -  Contractual  employees  of local  government  units  (LGUs)  employed
under  a job  order,  contract  of service  or other  similar  contractual  arrangement  who  have
rendered  service  for  an  aggregate  and  non-continuous  period  of at  least  3  years  shall  be
covered by the Pag-IBIG Fund. The payment of the Pag-IBIG monthly contributions shall be
jointly shared by the contractual employees and the local government unit in accordance with
existing rules and regulations.
SEC.   2.  J[cpco/I.Hg   CJo#se.   -  All   laws,  presidential  decrees,  executive  orders,
proclamations,  rules  and  regulations,  or  any  part  thereof,  which  are  inconsistent  with  the
provisions of this Act are hereby repealed or modified accordingly.
SHC. 3. E#ccfI.vrty. -This Act shall take effect fifteen (15) days from its publication
in the Official Gazette or in at least two (2) newspapers of general circulation.
Approved,