Philippines studies US$499mil wage subsidy plan for companies

This handout photo taken on May 1, 2021 and receive from the Presidential Communications Operations Office - Office of the Global Media and Public Affairs (PCOO-OGMPA) shows workers unloading first batch of the Russian-made Sputnik V coronavirus vaccine from a plane shortly after arriving at the international airport in Manila. - AFP

MANILA, May 1 (Bloomberg): The Philippines is considering a 24 billion-peso (US$499 million) wage subsidy plan that could help pandemic-hit companies retain as many as one million workers.

Small businesses that have reduced work hours or temporarily closed will be prioritised, Trade Secretary Ramon Lopez said in a virtual employment summit on Saturday. The plan, which is under review by economic managers, will provide a monthly subsidy of 8,000 pesos for each worker for three months.

"The proposed wage subsidy programme is a safety net programme which aims to save jobs, promote employee retention, and augment income loss of affected workers,” Lopez said.

The Philippines is struggling with widespread unemployment and income losses. Tighter movement curbs in the capital region and surrounding provinces -- the country’s economic backbone -- in late March to April are expected to fan the jobless rate, which rose to 8.8% in February. More recent jobs data is scheduled for release Thursday.

The Philippines’ recovery will lag that of regional peers, according to the Asian Development Bank. It’s also expected to chart Asia’s highest jobless rate this year, according to a Bloomberg survey.

Lopez also pushed for lawmakers to ease some of the country’s foreign investment restrictions, which the Organisation for Economic Co-operation and Development said is among Asia’s strictest. - Bloomberg
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Next In Aseanplus News

Asean News Headlines as at 8pm on Friday (July 30)
UK rebuffs Chinese media warning over carrier task force
Frenchman in Tokyo ends hunger strike over his 'abducted' children
Brunei reports 3 new imported Covid-19 cases, 336 in total
Indonesia reports 41,168 newly-confirmed Covid-19 cases, 1,759 new deaths
11 private hospitals and clinics in Singapore get green light to import Sinopharm vaccine
Cambodian PM creates team in search of medicines, devices for Covid fight
Hong Kong hopes US$600 vouchers will juice its economic recovery
Didi sinks as China vows to root out ride-hailing ‘illegalities’
Construction jobs erased in Myanmar amid Covid, political woes

Stories You'll Enjoy