Rep Salceda proposes P45B wage subsidy for workers

Albay Rep. Joey Sarte Salceda has proposed a P45-billion wage subsidy program to support nearly six million workers, entrepreneurs, and freelancers affected by the enhanced community quarantine.

The proposed Payroll Support for Workers, Entrepreneurs, and Self-employed (PSWES) Program aims to provide financial aid for three months to individuals in micro, small, and medium enterprises (MSMEs), sole proprietorships, and the gig economy.

Salceda's proposal estimates the cost to be between P44.85 to P53.82 billion, covering a quarter to a third of the average monthly minimum wage.

The distribution of subsidies for formal economy workers would be facilitated by the Social Security System (SSS), Bureau of Internal Revenue (BIR), and Department of Labor and Employment (DOLE), while freelancers would have an open-application window similar to DOLE's CAMP program.

The Department of Labor and Employment reported that over 1 million formal sector workers have been affected by temporary closures or flexible work arrangements due to the pandemic.

BH Party-List Rep. Bernadette Herrera also emphasized the need to support MSMEs to prevent job losses, noting that these enterprises constitute over 99% of businesses in the country.

Herrera previously suggested measures such as tax breaks, loan moratoriums, and a two-month wage subsidy for MSME workers.