Senior citizens to get more jobs, tax breaks under House-approved bill

In this May 9, 2022 file photo, elderly people sit before voting at a polling station during the presidential election at an elementary school in Manila.
AFP/Chaideer Mahyuddin

MANILA, Philippines — The House of Representatives approved on third and final reading on Wednesday, November 20, a bill requiring the government to provide senior citizens with employment opportunities and reduced income taxes.

House Bill 10985, or the Employment Opportunities for Senior Citizens and Private Entities’ Incentives Act, was passed unanimously, with no votes against or abstentions.

The proposed legislation aims to amend the Expanded Senior Citizens Act of 2003 and 2010, mandating all government agencies and private entities to establish employment programs that ensure senior citizens are informed of job opportunities and provide them with access to the application process.

What kind of jobs? According to the bill, senior citiziens could be offered clerical, secretarial work, consultancy, cleaning or janitorial services, event organizing, teaching, kitchen help, sales assistance, business process outsourcing and other volunteer work. 

The bill also raises the tax deduction from 15% to 25% of senior citizens’ gross income, covering benefits and training.

What else is waived? Senior job seekers may also enjoy the privilege of waived feed and charges from obtaining government documents for employment such as police and barangay clearances, medical certificates, birth certificates, marriage certificates and other proofs of identification. 

The Department of Labor and Employment, Department of Trade Industry and the Civil Service Commission will also be required to design and implement training programs for the upskilling of senior citizens. 

In an interview with dzBB Super Radyo 594 on Thursday, November 21, lawyer Romulo Macalintal said the House-approved bill builds upon existing laws protecting the welfare of senior citizens. 

“Kaming mga senior citizens, kahit 60-years old and above na, hindi pa kami laos. ... Kailangang ipagpatuloy namin ang pagkilos para talagang makita na malakas pa kami,” he said. 

(We, as senior citizens, even though we're 60 years old and above, we’re not yet outdated. ... We need to continue being active to truly show that we’re still strong.)

Macalintal argued that the wages of senior citizens should still be in accordance with the Labor Code, saying that their old age should not warrant a low salary. 

Competition over jobs

Employers Confederation of the Philippines President Sergio Ortiz-Luis Jr., meanwhile, said on the same radio show on Thursday that while the bill benefits senior citizens, it may pose a challenge for younger workers.

“Reality check, tumaas ang life expectancy ng mga tao (the life expectancy of people has increased)... There is a shortage of work in country... A job that you give to a senior citizen, you take away from someone else... 'Yung mga fresh graduate, nakaabang (Fresh graduates are also waiting),” he said. 

Ortiz-Luis clarified that he is not opposed to the incentives and opportunities to be given to senior citizens. Rather, he is concerned that the lack of job opportunities in the country leaves other workers unemployed.

“Dapat ang gobyerno, kapag gumawa ng programa para sa mga unemployed, hindi 'yung mga nag-retire na may benepisyo na,” he said.

(The government should ensure that programs for the unemployed are for those who have not yet retired and already have benefits, not for retirees who already receive benefits.)

The unemployment rate decreased to 4% in August, down from 4.7% in July, according to the Philippine Statistics Authority. This translates to 2.07 million Filipinos without jobs.

The youth labor force participation rate declined slightly to 32.3% in August, down from 34.9% in 2023. This suggests a decrease in the number of 15 to 24-year-olds either working or seeking employment. However, the youth employment rate rose from 85.2% in July to 88% in August.

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