During the event, two women were called up to the stage to receive a book from the Filipino president.
The scene drew cheers from the crowd, mostly made of up other Philippine workers.
But the women's rights political party Gabriela in a statement denounced Duterte for his "perverted way of getting back at his women critics".
"This will cost you a kiss", Duterte said in his native Filipino.
It is not the first time Mr Duterte has been accused of inappropriate behaviour towards women.
"Don't take it seriously".
He hugged the first and gave her a kiss on the cheek before gesturing the second woman to kiss him on the lips.
Duterte asked if she can explain to her husband that the antic was just a joke, and she said yes.
While the young woman was laughing and the crowd cheering, comments on the internet were a lot more critical.
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"His repeated acts of machismo is meant as entertainment to hide the reality of his rapidly slipping popularity", Joms Salvador, Gabriela's Secretary General said, listing the issues Duterte is facing, including the extra-judicial killings and corruption allegations against government ministers.
A gathering of Filipino workers erupted in frenzy when the President planted a friendly kiss on the lips on one of the women onstage.
Mr Duterte has sparked outrage before with a string of comments seen as misogynistic.
When Duterte was a mayor in Davao, he was heard saying he was angry that a female Australian missionary was raped and murdered in 1989.
Her dismissal is sending a chilling message to other supreme court judges and members of the judiciary, Diego García-Sayán, special U.N rapporteur on the independence of judges and lawyers, said on Friday. But she was so attractive the mayor should have been first. His office apologized for the statement.
In February, he ordered his troops to shoot female rebels "in the vagina".
Both incidents lead to strong criticism and a backlash on social media.
Duterte's latest profanity-laced diatribe came after Diego Garcia-Sayan, the United Nations special rapporteur on the independence of judges and lawyers, said the president's statements against former chief justice Maria Lourdes Sereno were a "vicious attack" on the judiciary.