Senior Citizens Employment Incentives Act

SenaTe Office of the Borictarp TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES 25 AUG -7 P6:11 First Regular Session RECEIVED BY: SENATE Senate Bill No. 1151 Introduced by Senator JOEL VILLANUEVA AN ACT EXPANDING EMPLOYMENT OPPORTUNITIES FOR SENIOR CITIZENS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7432, ENTITLED "AN ACT TO MAXIMIZE THE CONTRIBUTION OF SENIOR CITIZENS TO NATION BUILDING, GRANT BENEFITS AND SPECIAL PRIVILEGES AND FOR OTHER PURPOSES," AS AMENDED EXPLANATORY NOTE Republic Act No. 7432, entitled "An Act to Maximize the Contribution of Senior Citizens to Nation Building, Grant Benefits and Special Privileges and for Other Purposes," and its subsequent amendments were enacted to recognize the invaluable contributions of senior citizens to our society and institutionalize government support to help them live comfortably and with dignity in their later years. According to the 2020 Census of Population and Housing, senior citizens constitute 8.5% of the population, equivalent to 9.22 million Filipinos who are aged 60 years old and above.1 While this number is relatively small compared to the total population of the Philippines, studies have shown that the country may have an ageing and aged population in the coming years. Citing projections made by the United Nations Department of Econamic and Social Affairs (UN DESA), the Philippine Institute for Developmental Studies (PIDS) said that the Philippines will "join the ranks of countries with ageing population" by 2032 (i.e., at least 7% of the population is aged 65 or 1 PSA. Age and Sex Distribution in the Philippine Population (2020 Census of Population and Housing). Available at https://psa.gov.ph/content/age-and-sex-distribution-philippine-population-2020-census-population-and- housing (Accessed on 10 July 2025).

above), and "eventually become an aged society" by 2069 (i.e., at least 14% of the population is aged 65 or above).2 Thus, while still currently a young society, the Philippines may move towards the direction of an ageing one. Therefore, there is a need to provide opportunities for our senior citizens who are still able and willing to obtain gainful employment, and wish to continue to become economically active and productive during their golden years. Under our current laws, private entities are entitled to an additional deduction from their gross income, equivalent to fifteen percent (15%) of the total amount paid as salaries and wages to senior citizens. In addition, matching services are provided to help them become more productive members of society, with their employment terms required to comply with the provisions of the Labor Code and other pertinent laws. It is also prohibited to impose arbitrary age limitations on job requirements, hiring, compensation, promotion, training, dismissal, and retirement of employees, except when the age limitations fall under the exceptions provided under the law. Hence, to further support and promote equal work opportunities for our senior citizens, this bill seeks to: a) Mandate the Department of Labor and Employment, through the Public Employment Service Offices, to provide matching and employment facilitation services to senior citizens who have the capacity and desire to work or be re- employed; b) Increase the allowable deduction from gross income of private entities that will employ senior citizens from fifteen percent (15%) to twenty-five percent (25%) of the total amount paid as salaries and wages, as well as trainings provided to senior citizens, in accordance with Section 34 of the National Internal Revenue C) Remove the proviso that the annual income of the senior citizen should not exceed the latest poverty threshold, to encourage employers to hire senior citizens from all walks of life, as long as they are able, willing, and qualified to d) Waive government fees and charges for senior citizen jobseekers if such fee or charge is paid in connection with the application for and the granting of licenses, proofs of identification, clearances, certificates, or other documents usually required in the course of employment; and e) Strengthen the design and delivery of training programs tailored to the needs of senior citizens, with the specific inclusion of the Technical Education and Skills PIDS. Silver Linings for the Elderly in the Philippines: Policies and Programs for Senior Citizens. Discussion Paper Series 2019-09. Published September 2019. Available at https://pidswebs.pids.gov.ph/CDN/PUBLICATIONS/pidsdps1909.pdf (Accessed on 10 July 2025).

Development Authority as among the coordinating agencies tasked for its implementation. Given the foregoing, this bill would redound to the benefit of millions of senior citizens who wish to remain economically active and productive. The enactment of this measure would reaffirm the government's commitment to inclusivity, dignity, and equal opportunities for all, regardless of age, and foster a society that values the wisdom and experience of its senior citizens. Hence, the immediate passage of this bill is earnestly sought.

• Selate Offier of the seretary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES 25 AUG -7 P6:11 First Regular Session SENATE RECEIVED BY: Senate Bill No. 1151 Introduced by Senator JOEL VILLANUEVA AN ACT EXPANDING EMPLOYMENT OPPORTUNITIES FOR SENIOR CITIZENS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7432, ENTITLED "AN ACT TO MAXIMIZE THE CONTRIBUTION OF SENIOR CITIZENS TO NATION BUILDING, GRANT BENEFITS AND SPECIAL PRIVILEGES AND FOR OTHER PURPOSES," AS AMENDED Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Short Title. - This Act shall be known as the "Senior Citizens

Employment Incentives Act."

SEC. 2. Declaration of Policy. - It is the policy of the State to take care of the

4 interest and welfare of senior citizens and provide them with opportunities for gainful 5 employment. For this purpose, the State shall provide incentives to businesses and 6 other private entities that employ senior citizens. The State shall also expand accessibility to government services to improve the access of senior citizens to employment.

SEC. 3. Incentives to Private Firms Employing Senior Citizens. - Section

5 of Republic Act No. 7432, as amended, is hereby further amended to read as follows: "SEC. 5. Government Assistance. - The government shall provide the following: (a) Employment

Senior citizens who have the capacity and desire to work, or be re- employed, shall be provided information and matching services OF AVAILABLE JOB OPPORTUNITIES BY THE DEPARTMENT OF LABOR AND EMPLOYMENT (DOLE), THROUGH THE PUBLIC EMPLOYMENT SERVICE OFFICES (PESOS), to enable them to be productive members of society. Terms of employment shall conform with the provisions of the Labor Code, as amended, and other laws, rules and regulations. Private entities that will employ senior citizens as employees, upon the effectivity of this Act, shall be entitled to an additional deduction from their gross income, equivalent to [fifteen percent (15%)] TWENTY- FIVE PERCENT (25%) of the total amount paid as salaries, [and] wages, AND TRAININGS PROVIDED to senior citizens, subject to the provision of Section 34 of the NIRC, as amended: Provided, however, That such employment shall continue for a period of at least six (6) months. [Provided, further, That the annual income of the senior citizen does not exceed the latest poverty threshold as published by the Philippine Statistics Authority (PSA) for that year.] The [Department of Labor and Employment (DOLE)] DOLE, in coordination with other government agencies such as, but not limited to, the [Technology and Livelihood Resource Center (TLRC)] TECHNICAL EDUCATION AND SKILLS DEVELOPMENT AUTHORITY (TESDA) and the Department of Trade and Industry (DTT), shall assess, design and implement training programs that will provide skills and welfare or livelihood support for senior citizens. xXX"

SEC. 4. Waiver of Fees and Charges, - All government agencies and

instrumentalities, including government-owned and controlled corporations (GOCCS), local government units (LGUs), and government hospitals shall not collect fees and charges from a senior citizen jobseeker: Provided, That such fee or charge is paid in connection with the application for and the granting of licenses, proofs of

1 identification, clearances, certificates, or other documents usually required in the course of employment. No fees and other charges shall be collected from senior citizen jobseekers when 4 obtaining the following: 5 (a) Police clearance certificate; 6 (b) National Bureau of Investigation clearance; 7 (c) Barangay clearance; 8 (d) Medical certificate from a public hospital: Provided, That fees and charges collected for laboratory tests and other medical procedures required for the grant of a medical certificate shall not be free of charge; 11 (e) Birth Certificate; (f) Marriage Certificate; and (g) Other documentary requirements issued by the government that may be required by employers from job applicants. The waiver of fees and charges shall not include those in connection with an application to take a professional licensure examination conducted by the Professional Regulation Commission (PRC), application for a Philippine passport, authentication and apostillization of documents from the Department of Foreign Affairs (DFA), application for a career service examination, and application for a driver's license from the Land Transportation Office (LTO).

SEC. 5. Interpretation. - Nothing in this Act excludes any private entity from

hiring qualified senior citizens for consultancy and other types of arrangements, or prevents any employer from initiating or providing greater benefits or improving the working conditions and terms of employment of senior citizens beyond the minimum requirements provided by applicable laws.

SEC. 6. Suppletory Application. - Republic Act No. 10911, or the "Anti-Age

Discrimination in Employment Act," and all other applicable laws, rules, and regulations shall have suppletory application in cases involving employment of senior citizens not provided for under this Act.

SEC. 7. Implementing Rules and Regulations. - Within ninety (90) days

from the effectivity of this Act, the DOLE, the National Commission of Senior Citizens (NCSC), and the Civil Service Commission (CSC) shall, in coordination with other

1 relevant government agencies and stakeholders, promulgate the implementing rules 2 and regulations (IRR) to effectively carry out the provisions of this Act. Failure of the relevant government agencies to promulgate the IRR within the 4 specified period shall subject the heads of these government agencies to 5 administrative penalties under applicable civil service laws. Should the IRR contain provisions that are contrary to this Act, the heads of the 7 government agencies responsible for such provision, when done in bad faith or with 8 gross negligence, shall be held administratively liable.

SEC. 8. Separability Clause. - If any portion or provision of this Act is declared

unconstitutional, the remainder hereof or any provisions not affected thereby shall remain in force and effect.

SEC. 9. Repealing Clause. - Any law, presidential decree or issuance,

executive order, letter of instruction, rule, or regulation inconsistent with the provisions of this Act is hereby repealed or modified accordingly.

SEC. 10. Effectivity. - This Act shall take effect fifteen (15) days after its

complete publication in the Official Gazette or in a newspaper of general circulation. Approved,