Proposal on the Compensation of Contract of Service (COS) Faculty via Two-payment Methods
(BOR Resolution No. 101, s. 2025)

Rationale

Currently, COS faculty at the university are compensated based on the number of contact hours rendered within a semester. While this system offers flexibility, it also presents several challenges:

  •  Income unpredictability, which can impact faculty morale and financial planning.
  • Administrative complexities in accurately tracking and validating hours.
  • Limited incentives for faculty t o engage beyond scheduled contact hours.

To address these issues, the university is considering the adoption of an additional compensation method, a fixed monthly rate. This proposal outlines a flexible remuneration framework for COS faculty, incorporating two payment methods: compensation based on contact hours and on a fixed monthly pay.

Implementing these dual payment methods provides flexibility to align COS faculty compensation with course requirements, workload variations, and institutional planning strategies. This approach offers multiple solutions including fostering a more stable and efficient work environment, enhancing teaching quality, and promoting institutional stability.

Approval from the Board o f Regents (BOR) is BOR approval is hereby sought to formalize this dual approach, aiming to establish a fair and motivating environment for COS faculty members.

Legal Bases:

  • National Budget Circular No. 591 dated January 10, 2023. Implementation of the Fourth Tranche of the Modified Salary Schedule for Civilian Personnel in the National Government Pursuant t o Republic Act (RA) No. 11466
  • COA-DBM Joint Circular No. 2 s. 2020 dated October 20, 2020. Updated Rules and Regulations Governing Contract of Service (COS) and Job Order (JO) Workers in the Government

Section 11.5. Services of individuals engaged through COS basis, excluding persons or entities engaged through RA No. 9184, and JO shall be paid wages equivalent to the daily wage/salary of comparable positions in government.

Subject to the availability of funds, the COS and JO workers may also be granted a premium of up to 20% of their respective wages/salaries.

The premium payment may be paid monthly, in a lump sum, or in tranches (i.e., mid-year and year-end payments) as may be stated in the agreement o r contract with the agency. The payment of services shall be charged against the MOOE in the approved agency budget.

Objectives:

  • To provide equitable and transparent compensation options for Contract of Service faculty.
  • To accommodate diverse teaching arrangements, including variable contact hours and fixed workloads.
  • To foster increased faculty motivation and maintain teaching quality.

Proposed Compensation Structure

Below is the proposed compensation structure of the two-payment methods:

Nature Method of Payment
  Fixed monthly rate Contact-hour based
Scope The monthly rate will cover all scheduled classes, administrative duties, and related responsibilities as outlined in the COS faculty contract. For Part-time engagements or suitable for courses with variable schedules and responsibilities outlined in the COS faculty contract.
Compensation COS faculty will receive a predetermined fixed amount each month, regardless of the exact contact hours within that month

COS faculty are paid based on the number of contract hours rendered within a semester. 

Payment varies according to the total number of hours taught.
 Rate

Instructor I rate or Salary Grade 12 of the applicable yearly Tranche of the Salary Schedule for Civilian Personnel issued by DBM Plus 2% premium. 

No Preparation Pay

P182.28 per hour for BS degree holder*

P228.87 per hour for MS degree holder

P320.98 per hour for PhD degree holder

With Preparation Pay
Payment schedule  Per quincena or monthly, whichever the concerned COS faculty prefers.  Per quincena or monthly, whichever the concerned COS faculty prefers.
Attendance to work  

Report to the office daily from 8:00 AM to 12:00 NN and 1:00 PM to 5:00 PM, subject to actual class schedules and institutional needs or render service for a total of 40 hours per week.

In the event of absence from work, the monthly pay shall be deducted based with a daily computation of:

Amt. of deduction per day = monthly rate/30 days

 Report to class based on registered class schedules issued by the Registrar’s Office.
Documentation of claim wages

Approved/notarized contract of service (original for first salary)

Certificate of Assumption

Approved DTR

BIR withholding certificate

Philhealth payment

  Approved/notarized contract of service (original for first salary)

Certificate of Assumption

Approved DTR

BIR withholding certificate

Philhealth payment
Workload The average teaching workload units required per semester shall be at least 24 teaching workload units plus administrative duties and related responsibilities for the overall workload units. 

The monthly rate will be calibrated to reflect the average contact hours required per semester, ensuring fair compensation between regular faculty and those under COS.

The average teaching workload units required per semester shall be at least 24 teaching workload units plus administrative duties and related responsibilities for the overall workload units. 

The monthly rate will be calibrated to reflect the average contact hours required per semester, ensuring fair compensation between regular faculty and those under COS.
Duration

Start: Five (5) working days before the start of classes of the academic term or on the actual date of assumption to work. 

End: Ten (10) working days after the last day of the final exam of the academic term.

Start: Five (5) working days before the start of classes of the academic term or on the actual date of assumption to work. 

End: Ten (10) working days after the last day of the final exam of the academic term.
Advantages

Predictable income for faculty

Simplifies payroll processing and record keeping

Enhanced administrative planning

 Fairly aligns pay with workload, flexible to course demands.

*Existing compensation

Effectivity: 

This compensation shall be immediately implemented upon its final approval by the VSU Board of Regents.