Pensyonadong Magsasaka at Mangingisda Act

TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES JUL -8 ?5:08 First Regular Session SENATE Senate Bill No. 244 Introduced by Senator JOEL VILLANUEVA AN ACT CREATING AN AGRICULTURAL PENSION PROGRAM TO PROVIDE SOCIAL SECURITY AND PENSION BENEFITS TO FARMERS AND FISHERFOLK EXPLANATORY NOTE Agriculture remains a cornerstone of the Philippine economy, with farmers and fisherfolk playing a vital role in our overall development. As of April 2025, some 10 million Filipinos, or roughly 20.6% of the labor force, were employed in farming and fishing.' In 2024, agriculture, forestry, and fishing accounted for 8% of the Philippines' GDP, a modest share, yet one that belies the sector's foundational role. In real terms, using constant 2018 prices, its gross value added stood at P1.78 trillion, a testament to its continued relevance amid an increasingly service-driven economy. Yet despite its economic weight, the sector's productivity has failed to lift the fortunes of those who toil within it. Farmers and fisherfolk remain among the poorest in the country. In 2023, data from the Philippine Statistics Authority shows poverty incidence at 27% for farmers and 27.4% for fisherfolk, figures that have stubbornly persisted, with both groups also topping poverty rankings in 2018 and 2021.3 PSA. April 2025 Labor Force Survey. Available at https://psa.gov.ph/statistics/labor-force-survey/latest-press- release (Accessed on 04 July 2025). PSA. Agriculture and Fisheries Indicators System: Economic Growth (2020 - 2024). Published in June 2025. https://psa.gov.ph/system/files/main- publication/AFIS%20Economic%20Growth%20Agriculture%202020-2024_signed.pdf (Accessed on 04 July PSA. Poverty Incidence Declines from 2021 to 2023 in Ten Basic Sectors. Published on 31 March 2025. Available at https://psa.gov.ph/statistics/poverty (Accessed on 03 July 2025).

Further, agricultural work remains poorly rewarded compared with other sectors. In 2023, the average daily basic wage in the sector stood at just P322.23.4 Minimum wages for agricultural workers can be as low as P366.00, in stark contrast to those in non-agricultural roles, where daily minimum pay can reach up to P695.00.5 The low earnings in farming have deterred younger Filipinos from pursuing agriculture. A study in the Philippine Journal of Science highlights the sector's ageing workforce, with the average age of farmers now 53, up from 46 in 1966. Most have been in the industry for around 25 years. According to the study, 73% of farmers are convinced that their children would face bleak prospects if they followed in their footsteps, citing the physically demanding and financially unrewarding nature of farming.6 Thus, this proposed measure aims to acknowledge and properly value the crucial role of farmers and fisherfolk in sustaining daily life, securing food, and driving national development. There is an urgent need to safeguard their welfare through policies that mitigate their socioeconomic risks and vulnerabilities. To this end, a comprehensive pension and social security program is proposed to benefit farmers and fisherfolk. The State must ensure a higher quality of life for them, offering a reliable source of retirement benefits and social security for those who sustain the nation's food supply. In view of the foregoing, the passage of this bill is earnestly sought. 4 PSA. Agriculture and Fisheries Indicators System: Employment and Wages (2019 - 2023). Published in November https://psa.gov.ph/system/files/main- publication/AFIS%20Employment%20and%20Wages%20in%20Agri%20and%20Fishing%202019-2023_е- signed.pdf (Accessed on 03 July 2025). DOLE-NWPC. Summary of Current Regional Daily Minimum Wage Rates by Region, Non-Agriculture and Agriculture, as of 01 July 2025. Available at https://nwpc.dole.gov.ph/summary-of-current-regional-daily- minimum-wage-rates-by-region-non-agriculture-and-agriculture/ (Accessed on 04 July 2025). Palis, F. (2020). Aging Filipino Rice Farmers and their Aspirations for their Children. Philippine Journal of Science, Available https://philjournalsci.dost.gov.ph/images/pdf/pjs_pdf/vol149no2/aging_filipino_rice_farmers_.pdf (Accessed on 03 July 2025).

TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES 25 JUL -8 75:08 First Regular Session SENATE Senate Bill No. 244 Introduced by Senator JOEL VILLANUEVA AN ACT CREATING AN AGRICULTURAL PENSION PROGRAM TO PROVIDE SOCIAL SECURITY AND PENSION BENEFITS TO FARMERS AND FISHERFOLK 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 "Pensyonadong

Magsasaka at Mangingisda Act."

SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State

4 to: a) Revitalize the agriculture industry towards sustainability and create the necessary conditions to end hunger, achieve food security, and improve the general health and nutrition of Filipinos; b) Recognize the fundamental role and give proper value to the contributions of farmers and fisherfolk in our daily survival, national development, and in ensuring long-term food security; Protect and promote the welfare of farmers and fisherfolk by putting in place measures that would reduce their socio-economic risks and vulnerabilities, thereby improving their quality of life; and Establish and institutionalize a comprehensive pension and social security program for the benefit of farmers and fisherfolk.

SEC. 3. Farmers and Fisherfolk Social Security and Pension Program. -

There is hereby established the "Farmers and Fisherfolk Social Security and Pension Program," herein referred to as the Program, which shall provide farmers and fisherfolk a substantial and reliable source of income security and secured retirement in their old age. The Program shall consist of a comprehensive set of objectives, targets, and holistic approach in the provision of sickness, maternity, disability, retirement, death, and funeral benefits to farmers and fisherfolk. It shall be integrated and made consistent with the package benefits under the Social Security System (SSS) and relevant programs of the Department of Agriculture (DA) and the Philippine Crop Insurance Corporation (PCIC).

SEC. 4. Implementing Agencies. - The PCIC and the SSS shall be the primary

implementing agencies of the provisions of this Act. To fulfill the goals of this Act, they shall perform the following duties and functions: a) The PCIC and the SSS shall tap the expertise of other relevant government offices in the formulation of the objectives, targets, and approaches under the Program. b) The PCIC shall manage the registration system of eligible farmers and fisherfolk under the Registry System for Basic Sectors in Agriculture (RSBSA) and maintain the required operational reports. C) The SSS shall manage the funds allocated and the social security and pension scheme of the Program and maintain the required actuarial and financial reports. The PCIC and the SSS shall perform other duties and functions necessary in the efficient and effective implementation of this Act. The PCIC and the SSS shall collaborate with and secure the technical assistance of the DA in all stages of implementation of this Act. The DA shall ensure that the objectives of the Program are met and shall evaluate and monitor the Program's contribution to the productivity of the agricultural sector and the improvement of the quality of life of farmers and fisherfolk.

SEC. 5. Appropriations. - The amount necessary to carry out the initial

2 implementation of this Act shall be drawn from the savings of the national government. Thereafter, the funds necessary for the continuous implementation of 4 the Program shall be sourced from ten percent (10%) of the total annual duties 5 collected from the importation of agricultural products. Any supplemental amount 6 necessary for its implementation shall be included in the annual appropriations of the DA.

SEC. 6. Implementing Rules and Regulations (IRR). - Within ninety (90)

9 days from the date of effectivity of this Act, the PCIC shall, in consultation with the 10 DA, SSS, the Department of Budget and Management, and the Department of Finance, promulgate the rules and regulations for the proper implementation of this Act. Failure of the relevant government agencies to promulgate the IRR within the specified period shall subject the heads of these government agencies to administrative penalties under applicable civil service laws. Should the IRR contain provisions that are contrary to this Act, the heads of the government agencies responsible for such provision, when done in bad faith or with gross negligence, shall be held administratively liable.

SEC. 7. 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. 8. 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. 9. 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,