DOLE to Provide 3-Month Wage Subsidy for Employees Amid COVID-19

The Department of Labor and Employment (DOLE) is planning to provide a 3-month wage subsidy for workers to help cushion the effects of the COVID-19 pandemic in the Philippines. 

DOLE Assistant Secretary Dominique Tutay announced in a press conference on Friday, February 19, that the wage subsidy aims to support affected Filipino workers during the pandemic. 

Tutay stated, “We based the budget proposal on the average wage of the workers in different sectors. It is between ₱7,000 to ₱11,000 subsidy, and it will run for three months.”

Tutay continued that DOLE would need approximately ₱62 billion to ₱180 billion from the Department of Budget and Management (DBM) to fund the project, with 25% of the workers’ wage set to be subsidized. 

She continued, “If [the program] will run for three months and let us say we will shoulder 25% of the average wage, ₱62 billion [will be] the lowest request. The highest budget will be at ₱188 billion that would cover 75% of the monthly average wage rate. Our proposal is subsidizing 25%, 50%, or subsidizing 75% of the average wage rate.”

According to Tutay, the program will benefit employees with their expenses and help some businesses recover from the effects of the COVID-19 pandemic. 

Additionally, DOLE plans to provide around 2 million jobs in 2021. 

Tutay added, “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.”