House bill proposes P12k yearly subsidy to minimum wage families outside of 4Ps

A bill granting a P1,000 monthly or P12,000 a year subsidy to minimum wage families outside the government's existing Pantawid Pamilyang Pilipino Program (4Ps) cash assistance for poor families has been filed in the House of Representatives by 11 lawmakers.

Representatives Jude Acidre of Tingog party-list, Zia Adiong of Lanao del Sur, Joel Chua of Manila, Jannette Garin of Iloilo, Jefferson Khonghun of Zambales, Gerville Luistro of Batangas, Francisco Paolo Ortega of La Union, Terry Ridon of Bicol Saro party-list, Ramon Rodrigo Gutierrez of 1-Rider party-list, David Suarez of Quezon, and Ysabel Maria Zamora of San Juan City made the proposal under House Bill 10648 or the Pambansang Agapay sa Pamilya at Maliliit na Negosyo (PAMANA) Act.

Under the bill, eligible families would receive P1,000 a month assistance to be deposited through a digital wallet linked to the Philippine Identification System (PhilSys).

The bill defines eligible families as those headed by a minimum wage earner, registered under PhilSys, and is not a beneficiary of the 4Ps.

"Many minimum wage earners report for work every day but still struggle to meet the cost of food, transportation, utilities, medicine, and other basic needs. PAMANA recognizes that having a job does not always mean having economic security," Acidre said.

"This [bill] provides targeted assistance to working families who are not covered by 4Ps but continue to face serious financial pressure," he added.

Self-employed and informal-sector workers earning at or below the regional minimum wage may also apply through their local social welfare and development offices.

MSME-linked

Unlike conventional cash assistance, however, the bill provides that the P1,000 monthly cash subsidy can only be used to purchase goods from accredited micro, small, and medium-sized Enterprises (MSMEs), including sari-sari stores, public market stalls, food eateries or carinderias, neighborhood groceries, pharmacies, and other qualified community enterprises.

In addition, beneficiaries may only spend up to P200 a day. Unused funds would remain in their digital wallets and may be used on succeeding days, subject to the same daily limit.

The subsidy may not be withdrawn as cash, transferred to another account, or used for online gambling, alcohol, tobacco, and other goods and services excluded under the program.

"The subsidy is designed to benefit both the family receiving assistance and the small enterprise where it is spent. When a beneficiary buys from a sari-sari store, a market vendor, or a neighborhood food business, the assistance becomes income for a local entrepreneur and continues circulating within the community," Ortega said.

The bill tasks the Department of Social Welfare and Development (DSWD) to administer the program in coordination with the Department of Trade and Industry, Bangko Sentral ng Pilipinas, Department of Information and Communications Technology, Philippine Statistics Authority, and Department of Labor and Employment.

Likewise, the bill provides that the DSWD would cross-match beneficiary records with the Listahanan and 4Ps databases to verify eligibility and prevent duplicate assistance.

Qualified families would receive PhilSys-linked digital wallets at no cost. Those without smartphones or reliable internet access would be provided alternative payment mechanisms, including QR-enabled cash cards and offline payment solutions.

"Digital delivery allows the government to identify qualified beneficiaries, transfer assistance directly, and properly account for how public funds are used. PhilSys-linked wallets, accredited merchants, spending restrictions, and public reporting are intended to reduce leakage and ensure that the subsidy reaches its intended recipients," Chua said.

The bill's authors estimate that the measure will require an annual budget of approximately P64 billion to P68 billion, an amount that accounts for less than one percent of the proposed national budget for fiscal year 2026.

To support the program in the long term, the bill would establish the PAMANA Trust Fund using identified revenue sources, including portions of incremental value-added tax collections from digital services and national government revenues under the mining fiscal regime. — VDV, GMA News