House panel OKs tax breaks for companies hiring senior citizens

MANILA, Philippines — The House ways and means committee has approved a measure that seeks to expand job opportunities for senior citizens by incentivizing companies to hire them.

Rep. Erwin Tulfo (ACT-CIS) said on Tuesday that the still-unnumbered substitute bill offers tax reductions for companies that will hire elderly workers and requires the Department of Labor and Employment (DOLE) to help senior citizens looking for work.

Under the bill, companies hiring elderly workers can avail of a 25% tax reduction of the amount paid to salaries, wages and benefits and trainings for senior citizens. 

The DOLE, through the public emplyoment service offices, will also provide information and matching services for senior citizens "who have the capacity and desire to work," according to the bill. 

“All government agencies and private entities shall institute an employment program that shall promote the general well-being of senior citizens and ensure access to employment opportunities to those who have the qualifications, capacity, and interest to be employed,” the bill stated.

Tulfo said that the measure aims to increase job opportunities for senior citizens and reward companies who hire them, as senior citizens can "bring stability, loyalty, and wealth of experience to the workplace" and "often require less training and can serve as mentors to younger colleagues."

The measure also waives all fees for elderly workers applying for government documents needed for employment, such as the National Bureau of Investigation clearance, police clearance certificate, barangay clearance, among others.

Data from the Philippine Statistics Authority (PSA) in 2015 show that a large portion of senior citizens (persons aged 60 or older) are still active in the workforce.

Around 42%, equivalent to 3.17 million senior citizens, are engaged in gainful employment, according to the PSA. Of this number, 1.19 million are skilled in agricultural, forestry and fishery work (38%), 499,000 hold elementary occupations (16%), and 427,000 are in managerial positions (14%).