Plans to increase VAT levels have proved highly controversial

President Gloria Arroyo said the move was "imperative" because of soaring oil prices and a worsening fiscal position.

Inflation is running at 8.5%, jobless levels are above 11% and the budget deficit has widened to 4% of GDP.

The order will apply to all staff working in government departments as well as state-owned corporations.

'Leading the way'

From 4 April to 31 May, they will work a 10-hour four-day week instead of the current eight-hour five-day week.

Government agencies providing vital services such as health and law and order will be excluded.

However, Ms Arroyo has urged the country's legislature and judiciary to observe the same working patterns.

It is "imperative for the government to lead the way in energy conservation, without jeopardising the delivery of public service, in order to mitigate the impact of the oil price increases on the government's fiscal position and the country's dollar reserves," she said.

Newspaper reports claimed that the government hoped the measure would save up to 144m pesos ($2.6m; �1.3m).

Budget pledge

The government wants to push through a range of measures to boost its fragile fiscal position, claiming action is needed to rein in the country's spiralling budget deficit.

The shortfall rose to 186bn pesos ($3.4bn) last year.

Philippine lawmakers are currently debating a controversial proposal to increase VAT levels on most goods from 10% to 12%.

The legislature has already agreed to raise taxes on tobacco and alcohol and to introduce measures to make tax collection more efficient.

President Arroyo, re-elected last year, has pledged to balance the budget before leaving office in 2010.