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DSWD SITUATIONER (01 December 2016)

ON THE EMPLOYMENT
OF MOA AND JO
WORKERS
The DSWD Mandate
The DSWD is the national government agency
mandated to address the social welfare and
development needs of the poor, vulnerable and
marginalized sector of our society (RA 5416, EO 123
and 229). After the enactment of the Local
Government Code of 1991, basic social welfare and
development services were devolved.The DSWD
became an agency meant to provide leadership and
technical assistance to local governments and other
intermediaries in social welfare and development but
continues to provide direct services in order to
implement statutory and specialized programs (EO 15
and 221).
The DSWD Public and Target
Clientele

At
present, the number of poor
people, according to NEDA, is 21.9
million or 21.6 percent of the 100.9
million total 2015 Philippine
population based from PSA.

From this total, the DSWD target


clientele based on Listahanan
2016 data sets are 5,116,976 poor
households or 28,685,782
DSWD MFOs/PAPs
The 4 Major Final Outputs (MFOs) of the DSWD are:
Social Protection Policies;
Social Protection Services;
Capacity-Building Services, and;
Regulatory Services.

Among others, the major DSWD programs and services are the:
PantawidPamilyang Pilipino Programor "4Ps, Kapit-Bisig Laban
saKahirapan Comprehensive and Integrated Delivery of Social
Services National Community-Driven Development Program (Kalahi
CIDSSNCDDP), Sustainable Livelihood Program (SLP), Listahanan,
Social Pension, Supplemental Feeding Program, Disaster Response
Operations, Recovery and Reintegration Program for Trafficked
Persons (RRTP), Protective Services Program, Residential and Non-
Residential Facilities, International Social Welfare Services for Filipino
Nationals (ISWSFN), and Adoption and Foster Care Services
DSWD Financial Portfolio

The DSWD was provided this year a


total budget of Php 110,480,
692,000 (GAA 2016).
PS-P4,719,318,000;
MOOE-P103,953,833;
FE-P781,732,000;
CO-P1,025,809,000.
HISTORY AND RATIONALE FOR HIRING MOA/JO WORKERS

The implementation of RA 7160 or the Local Government Code in 1991 devolved more
than 61% of the total manpower compliment of the Department to local government
units. However, statutory programs and services were retained and special social
welfare and development programs, projects and services such as the Comprehensive
and Integrated Delivery of Social Services (CIDSS) which was a lead program of the
Ramos Administrations Social Reform Agenda were implemented directly by the
Department. Hence, the need to hire more workers became imperative, even on an
emergency basis, due to the limitations imposed by the Attrition Law (RA 7430) and the
limitation imposed by the non-creation of new positions, to provide continuity of workers
job tenure.

To address the manpower needs, the Department resorted to the hiring of cash
assistance and subsidy workers using DSWD program funds clients. But this was practice
was phased-out on February 4, 1994 by then DSWD Sec. Corazon Alma de Leon who
issued Department Order No. 3. Instead contractual and casual workers were hired
charged against the funds for personnel services of the project. Or in the absence of
appropriation for personnel services, services of extra workers shall be charged against
the Maintenance and Other Operating Expenditures (MOOE), the Order allowed
contracting of workers using a Memorandum of Agreement (MOA).

HISTORY AND RATIONALE FOR HIRING MOA/JO WORKERS

From then on, the hiring of MOA and Job Order (JO) workers was
undertaken by Department following the guidelines provided for
by the Civil Service Commission (CSC) Memorandum Circular
No. 40 S. 1998 or the Revised Omnibus Rules on Appointment
and Other Personnel Actions, Rule XI, that:
The contract covers lump sum work or services such as janitorial,
security or consultancy services where no employer-employee
relationship exists;
The job order covers piece work or intermittent job of short duration not
exceeding six months on a daily basis;
The contracts of services and job orders are not covered by Civil Service
rules and regulations but covered by COA rules;
The employees involved in the contracts or job orders do not enjoy the
benefits enjoyed by government employees such as PERA, COLA and
RATA.

DSWD Personnel Complement


(2010-2013)

2010 2011 2012 2013


Regular 2,569 2,569 2,569 2570
Casual 71 70 66 72

Contractual 134 134 176 260

MOA
3,621 7,666 12,990 14,212
Workers
TOTAL 6,395 10,439 15,801 17,123
DSWD Personnel Complement
(2014-2016)

Regular 2,593 2,650 3,229


Casual 71 69 69
Contractual 9,940 9,940 9,940
MOA
14,42118,524 1,323
Workers
TOTAL 27,02531,18329,796
DSWD POLICIES ON MOA/JO WORKERS

The DSWD Memorandum Circular No. 06, S. 2006 defines


MOA or Contract of Service Worker refers to a worker hired
under the Contract of Service in the Department for the
implementation of its program services and special projects.

COS workers or MOA workers are workers contracted to


perform duties commensurate to rank and file positions (or
those with salary grades 1-24) in the Index of Occupational
Services (IOS) in the government. All others who are
contracted by the Department to perform duties outside this
list and/or who receive compensation over and above SG 24,
including those whose cost of services are funded by AECID,
UNFPA, ILO and such other funding agencies, shall not be
covered by this MC (DSWD MC 21, 2009).
COST OF SERVICES/COMPENSATION
RATES/BENEFITS

The total amount paid from MOOE and other fund sources shall be
equal to the basic salary grade of an equivalent regular
position of the Department based on National Budget Circular No.
474 S. 2001, or the cost of service of the latest contract, whichever is
higher and the amount received from the payment of additional/extra
services rendered.

The policy of no work, no pay applies to MOA workers hence they


are not entitled to holiday pays and the submission of their Daily
Time Records (DTRs) is the basis for the payment of cost of service.

MOA and JO workers are not provided with benefits such as


PERA/ACA, 13th month pay, collective negotiation incentives, PIB,
clothing allowance, hazard pay, performance-based bonuses and all
other benefits received by plantilla-based workers except for duly
authorized overtime pay and travel allowances.
DSWD Policies on MOA/JO
Workers
Creation, Hiring and Renewal Of Contracts. Creation of COS items shall be
subject to the approval of the Secretary or his/her duly aouthorized representative
and shall be allowed only for special/foreign assisted projects and extreme
necessity and availability of funds. Hiring or duration of contract shall not go
beyond December 31 of each year and renewal of contracts in January shall be
based on the guidelines setforth by MC6.

Solo Parents Leave. On May 19, 2014, then DSWD Secretary Corazon J. Soliman
issued a memorandum stating qualified solo parent workers, including MOA
workers, can avail of solo parents leave as provided for by the Solo Parents Law.

Facilitation of SSS and Philhealth Contributions. Based on a Memorandum


Issuance by then Secretary Soliman dated July 14, 2014, mandatory self-
employed contributions to Social Security System or (SSS) of MOA workers was
implemented by the Department. Collected contributions by the department was
then remitted to the SSS. The contributions to Philhealth and Pagibig followed
afterwards.

Group Accident Insurance. Last year, the Department purchased GSIS group
accident insurance for all employees including MOA workers.

ISSUES AND CONCERNS OF DSWD MOA/JO WORKERS

No job security/permanent contractuals

Full employment and job security are constitutional rights guaranteed to all workers (Art. XIII, Philippine Constitution).
However, because of neoliberal policies such as the Attrition Law (RA 7430) and other cost-cutting measures, the
government and the DSWD itself resorted to contractualization in order to be able to carry-out its mandates and
deliver much needed programs and services to the public.

At present, only 10% of the total DSWD personnel are permanent employees. About 35% of the total personnel are
casual and contractual employees who have no job security but enjoys benefits such as those received by regular
employees. Permanent, casual and contractual workers (45% of the actual current total DSWD personnel) are legally
considered as employees of the government who have CSC-approved plantilla positions.

Meanwhile, Contract of Service (COS) or Memorandum of Agreement (MOA) workers are workers which are hired for
only 1 year and Job Orders (JO) workers for only 6 months. They are: non-plantilla workers; not considered as
employees of government, and not: entitled to benefits received by plantilla workers except for overtime payments
and travel allowances. They are paid according to the no work, no pay policy and are not entitled to leave benefits
nor holiday pays (CSC MC No 40 and 17).

Workers whose employment are dependent on the renewal of their contracts are always in fear of losing their jobs.
Hence, these workers are bound to exert more effort, to become more docile and more vulnerable to
exploitation/abuse than regular workers. This attraction for such workers to employers, the continuing demand for the
work they perform, and government-imposed limitations to create more regular positions results to the continuation
of contractualization as an employment scheme by government.

In the DSWD, there are at least 458 workers who have been serving for 5-26 years as MOA workers, based from
monitor reports of 11 of the 17 DSWD Field Offices. One would have concluded that these workers should have
become regular workers because the work they perform is already organic to the Department. Instead they have
become regular contractual workers of the DSWD.

ISSUES AND CONCERNS OF DSWD MOA/JO WORKERS

No benefits but taxed as employees


On September 29, 1998, the then Commissioner of the Bureau of Internal Revenue (BIR) Beethoven L. Ruelo made an opinion through a
letter in response to a DSWD query on MOA workers taxation that based on his review of the facts presented showing that the DSWD duly
exercised control and supervision over MOA workers, and in agreement with the opinion of then DOLE Legal Director Ancheta, and more
importantly in accordance with various Supreme Court rulings that the most important index of the existence of an employer-employee
relationship is the control test, MOA workers has an employer-employee relationship with the DSWD. Hence, he opined that MOA workers
are exempt from Value Added Tax (VAT) based on Section 109 (o) of the Tax Code. However, their compensation are subject to the regular
income tax imposed under Section 24 (A) (1) (a) of the Tax Code of 1997, and consequently to the withholding taxes.
Henceforth, with the premise that there is an employer-employee relationship between the DSWD and its MOA workers because of the said
opinions of DOLE and the BIR, the DSWD MOA workers were subjected to the regular income tax imposed under Section 24 (A)(1)(a) of the
Tax Code of 1997, and consequently to the withholding taxes.

Vulnerability to work hazards

Most of the DSWD MO/JO workers are frontline service workers. They work in far-flung remote communities, in disaster operations, in crisis
intervention units catering to the needs of people in difficult circumstances, or in residential facilities for the poor, victimized, abandoned
and marginalized people. The hazards these workers face are many. Some were victims of vehicular accidents such as the two workers who
were seriously injured when the helicopter they were riding to deliver relief goods for Typhoon Yolanda victims crashed. One MOA house
parent in a residential facility was stabbed by a fork by one of her wards. The Magna Carta for Public Social Workers provides hazard pay
even to DSWD non-social workers but because of their status as non-employees, MOA/JO workers are not entitled to this.

No recognition for contribution to agency achievements

If each of the 27,648 actual personnel of the DSWD were to serve the 28.7 million Listahanan targeted individuals on an equal basis, every
personnel would have to serve 1,063 people. If we exclude the DSWD MOA/JO workers, each of the remaining plantilla workers would have
to double their caseload. This quantitative analogy would suffice to show how much the DSWD MOA/JO workers are needed to achieve the
agency performance targets and yet only DSWD plantilla workers would receive performance-based bonuses for this year.

DSWD-SWEAP JOINT TASK FORCE


ON MOA AND JO WORKERS

Pursuant to the newly-signed Collective


Negotiation Agreement (C.N.A.) between DSWD
and SWEAP last August 26, 2016, Special Order
No. 3557 was issued creating a Joint Task Force
on MOA and JO workers. Its objective is to
address concerns such as:

1. Recognition of employer-employee relationship


between the DSWD and MOA/JO workers;
2. Clarify taxation policies applicable to MOA/JO
workers;
3. Rationalization of Compensation Rates;
4. Application to JO workers of MOA workers
policies