Twelve government workers were rescued after their boat capsized while delivering cash aid to islanders in the Philippines.

Staff were taking financial assistance to villagers living on remote islets when the pump boat they were riding sank off the coast of Pangan-an Island in Lapu-Lapu City, Cebu province, on October 20.

The passengers said they panicked when one of the boat's outriggers broke, causing it to overturn.

Luckily, several fishermen were nearby and jumped into the water to rescue the employees, who were transferred to another pump boat.

No casualties were reported and all of the passengers are safe.

Junard Abalos, head of the Lapu-Lapu City Social Welfare and Development Office, said: 'We were originally riding a bigger boat from the mainland, but the captain ordered us to transfer to a smaller one because we might run aground due to the low tide.

'When we were nearing the shore, the boat suddenly shook and we all panicked. We are just grateful that the water wasn't too deep, because most of the passengers did not know how to swim.'

Despite the mishap that had damaged the passengers' phones and list of beneficiaries, the cash handout was completed successfully, Junard added.