THE Department of Labor and Employment (DOLE) is proposing a P10,800 cash subsidy for 4.1 million minimum-wage earners spread out over three years.
Labor Secretary Silvestre H. Bello III said they will be submitting to President Duterte the proposed subsidy program, after coordinating with the Department of Social Welfare and Development and the Department of Finance to determine its feasibility.
For this year, Bello said they are recommending a P200 monthly cash subsidy for minimum- wage earners.
“But this will be given one time so it could make an impact on workers—so it will be P2,400 this year,” Bello told reporters on Tuesday.
“This will be nationwide and shouldered by the government,” he added.
Bello said the monthly subsidy will be raised to P300 on 2019 and P400 on 2020. “This will of course be subject to the approval of Malacañang,” Bello said.
He said they hope Duterte will act on their proposal before his third State of the Nation Address (Sona).
“But maybe the President could also announce it during the Sona,” Bello said.
Bello explained the subsidy scheme was based on the appeal of the Trade Union Congress of the Philippines to Duterte to provide minimum-wage earners with a monthly subsidy of P500 to help them cope with the rising cost of living.
While the DOLE supported the initiative, the National Economic and Development Authority rejected the proposal since it will cost the government billions of pesos.