DOLE asks DBM for addt'l budget for wage subsidy this year

The Department of Labor and Employment (DOLE) has submitted a request to the Department of Budget and Management (DBM) for additional funds for a wage subsidy program to be rolled out this year.

“For a wage subsidy, actually wala naman pong pondo under 2021 General Appropriations Act ‘yung wage subsidy, kaya po nagpo-propose po tayo sa ating Pangulo through DBM at ito po ay nai-submit na ng ating Kalihim Bebot Bello kay Secretary Wendel Avisado ‘yung atin pong request,” Labor Assistant Secretary Dominique Tutay said in a virtual press conference on Friday.

Under the 2021 national budget, the DOLE has an allocation of P37.1 billion.

Trade Secretary Ramon Lopez said that 1.6 million Filipinos have yet to return to work since several sectors are still not allowed to open under various quarantine restrictions.

As for the proposed wage subsidy program, Tutay said it will run for three months.

“We based the budget on the average wage of the workers in different sectors kasi iba-ibang industry po ay iba-iba ang kanilang average wage — so it’s between P7,000 to P11,000 na subsidy and it will run for three months,” Tutay said.

She said DOLE’s request to the DBM will cover 25% to 75% of workers’ monthly average wages.

“If we say we will shoulder 25% of the prevailing average wage po, nasa P62 billion ‘yung pinakamababa na request. Ang pinakamataas ay nasa P188 billion that would cover 75% of the average monthly wage rate po,” Tutay said.

“Proposal na aming sinubmit is subsidizing 25%, subsidizing 50%, or subsidizing 75% of the average wage po,” she added. —KBK, GMA News