Initial P10.1-B wage subsidies given to workers

Cash grants totaling PHP10.1 billion have been credited to more than 1.2 million employees of small businesses so far under the Small Business Wage Subsidy (SBWS) program as part of the Duterte administration's efforts to provide relief to poor and low-middle-income families along with other vulnerable sectors hardest-hit by the economic fallout from the coronavirus disease 2019 (COVID-19) outbreak.

Finance Secretary Carlos Dominguez III, in a statement said, “according to a report from the SBWS interagency task force, the first tranche of subsidies has been credited to a total of 1,261,044 beneficiary employees as of May 6. The amount of P10.1 billion has been deposited to the employees’ bank or PayMaya accounts and sent to MLhuillier, for those who chose to receive the subsidy via money remittance.”

MLhuillier Kwarta Padala, through the Development Bank of the Philippines (DBP), is the partner-remittance center of the Social Security System (SSS) in the disbursement of wage subsidies to unbanked beneficiaries.

The SBWS interagency task force is chaired by the Department of Finance (DOF), represented by Assistant Secretary Antonio Lambino II, and with SSS president and CEO Aurora Ignacio and Bureau of Internal Revenue (BIR) Deputy Commissioner Arnel Guballa as members.

Approximately 183,677 more beneficiaries were expected to receive their cash subsidies by May 7, Dominguez added.

SSS President and CEO Aurora Ignacio said “more than 101,400 employers have submitted applications for the SBWS program as of May 7, 7 a.m. These applications, all submitted electronically, are being processed by the SSS. So far, the applications for around 2.2 million employees have been approved according to program criteria. This represents around 65 percent of the program’s target of 3.4 million beneficiary employees.”

The SBWS aims to provide a monthly wage subsidy of PHP5,000 to PHP8,000 for two months to around 3.4 million eligible employees of small businesses affected by the work stoppages resulting from the enhanced community quarantine (ECQ) in Luzon and similar containment measures in other parts of the country that were imposed last March to curb the spread of Covid-19.

The initial payouts, which represent the first tranche of the SBWS subsidies, began on April 30, one day ahead of the announced May 1 to 15 schedule of release. Payouts for the second tranche are scheduled for May 16 to 31.