DOLE proposes wage subsidy for workers in the Philippines

Assistant Secretary Dominique Tutay of the Department of Labor and Employment (DOLE) is proposing a three-month wage subsidy for workers.
By: | February 23, 2021

She said the wage subsidy is aimed at helping workers ride out the effects of the pandemic.  

“We based the budget proposal on the average wage of the workers in different sectors,” said Tutay. “It is between P7,000 (US$144) and P11,000 (US$227) subsidy and it will run for three months.” 

DOLE will be requesting funding from the Department of Budget and Management. 

Elaborating, she said, “So if it will run for three months and let us say we will shoulder 25% of the average wage, P62 billion (US$1.28 billion) is the lowest we will request. The highest budget will be at P188 billion (US$3.9 billion) that would cover 75% of the monthly average wage rate. Our proposal is subsidising 25%, 50%, or subsidising 75% of the average wage rate.” 

The subsidies are meant not only to help workers with their daily expenses, but also to help businesses recover during the pandemic as some have been forced to shut down due to the pandemic, according The Inquirer. 

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At the same time, DOLE is also planning to create more than two million jobs this year. “Based on the Philippine Development Plan, and we adapted this in the National Employment Recovery Strategy, it’s about 2.4 to 2.8 million employment for 2021,” said Tutay. “But this is a very difficult target since we’re in a pandemic stage.”