Metro Manila (CNN Philippines, May 1) — The government is looking to shell out ₱24 billion to provide wage subsidy to around one million workers, the country’s trade chief said Saturday.
During the Task Group on Economic Recovery (TGER) – National Employment Recovery Strategy (NERS) Job Summit 2021, Trade Secretary Ramon Lopez said the proposed wage subsidy seeks to “preserve and protect existing employment.”
Lopez, who is also chairperson of the NERS Task Force, said the program hopes to provide ₱8,000 per month – for a maximum of three months – to workers affected by coronavirus lockdowns.
“The proposed subsidy, currently being evaluated by NEDA (National Economic and Development Authority), intends to benefit one million workers,” he said.
Once approved, priority will be given to micro, small and medium enterprises currently implementing flexible work arrangements or temporary closure, and establishments availing of the zero or low-interest loan facility of DTI-SB Corp and COVID-19 Assistance to Restart Enterprises or CARES program.
“This will also a form of pump-priming the economy,” Lopez added.
The ₱24-billion wage subsidy program is part of the government’s 8-Point Employment Recovery Agenda.
Late in March, the Philippine Statistics Authority reported that 4.2 million Filipinos were jobless in February due to the impact of the COVID-19 pandemic.
READ: Unemployment worsens with 4.2 million jobless in February — PSA
As cases continued to spike, the government reimposed the enhanced community quarantine in NCR Plus for two weeks, starting March 29. Lopez earlier said the ECQ resulted in 1.5 million jobs lost, as many businesses were forced to suspend or limit the capacity of their operations.
