House Panel Approves P12,000 Annual Subsidy for Minimum Wage Households

THE proposed P12,000 annual subsidy for qualified minimum wage households should be viewed as an economic intervention that could also boost sales of small businesses, a lawmaker said as the measure was approved at the committee level. In a statement, Party-list Rep. Jude A. Acidre said that the proposed Pambansang Agapay sa Pamilya at Maliliit na Negosyo (PAMANA) Program is intended to strengthen household purchasing power while directing spending toward accredited local businesses. “We should be clear that PAMANA is not simply ayuda,” Mr. Acidre said. “The intention is not just to transfer money to a household and end the intervention there.” The House Committee on Social Services approved House Bill Nos. 10648 and 10735 on Monday, according to the lawmaker. Under the proposed program, eligible families would receive P12,000 a year, distributed in equal monthly payments of P1,000 through a digital wallet linked to the Philippine Identification System (PhilSys). Qualified beneficiaries would be families headed by a PhilSys-registered minimum wage earner and is not enrolled in the Pantawid Pamilyang Pilipino Program (4Ps) or any successor conditional cash transfer program. The measure would cover private-sector workers paid the statutory minimum wage, as well as public-sector employees whose salaries do not exceed the applicable minimum wage. Self-employed and informal-sector workers earning at or below their region’s minimum wage would likewise be eligible to apply. Regular employment does not necessarily translate to financial security for minimum wage households, Mr. Acidre said. The proposed measures would limit beneficiaries to spending P200 per day. Unused funds would remain available for succeeding days, subject to the same daily limit. The subsidy could not be converted to cash or transferred to another account. It also could not be used for online gambling, alcohol, tobacco, and other excluded goods and services. The measures would also establish a dedicated PAMANA Trust Fund to finance the program. The fund would be maintained by the Bureau of the Treasury and administered by the Department of Social Welfare and Development. — Pexcel John Bacon