Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

5362

Introduced by Hon. RONNIE L. ONG

EXPLANATORY NOTE

Filipinos are known all over the world with how we, as a nation, treasure family
ties and values, shown especially by the care, respect, and love we give to our elderly.
Fondly called our “lolo's” and “Iola's,” the population of Filipinos aged 60 years old and
above numbers to around 8.7 million, representing 8.2% of the country's total
population of 107 million, based on the 2018 estimates of the Commission on
Population and Development (CPD).

The CPD also projects that the Philippines will have an “aging” population
between 2030 and 2035. The United Nations Population Fund supports this finding- it
projected in 2012 that by 2050, the population of senior citizens will grow by 15% to
23.63 million. In December 2018, the Philippine Institute for Development Studies
(PIDS) also conducted a study which showed that our country will transition to an aging
society by year 2032.

But while the number of senior citizens is growing, the current social safety nets
remain inadequate. Out of the 8.7 million senior citizens, around 5.8 million are not
covered by contributory pension, such as the Social Security System, the Government
Social Insurance System and other pension systems. And out of the 5.8 million, only
3.4 million are currently covered by the Social Pension Program for Indigent Senior
Citizens of the Department of Social Welfare and Development, leaving around 2.4
milion without any pension at all

Widening the coverage and the amount of the social pension program is a
laudable measure being sought right now to address these twin problems. However,
there are other equally-demanding social programs that need funding too. In addition,
under the law, senior citizens are also currently entitled to privileges such as the 20%
discount on medicines, medical supplies and equipment, medical services like lab
tests and x-rays, transportation fares, hotels, restaurants, recreation centers, and
places of leisure. But using these discounts and benefits assume that senior citizens
have the money in the first place.

‘Ang Probinsyano Party-List (APPL) believes that there is no other timely act of
love that reaffirms the Filipino tradition of caring for the elderly, addresses the


inadequate social program for senior citizens, prevents their mental and physical
deterioration, taps their wealth of life and work experiences, fosters their capacity to
attain a more meaningful and productive aging, motivates and maximizes their
contributions to nation building and augments their pensions and retirement savings,
if they have any, than giving the elderly the access to employment opportunities.

This is what this bill is aiming for. Currently, while we have the Expanded Senior
Citizens Act of 2010 and the Anti-Age Discrimination in Employment Act, we see that
the government, despite having various unfilled positions, has only taken the passive
role of providing information and matching services for senior citizens in private
employment. Moreover, while private entities are entitled to tax deduction of 15% of
the total amount paid as salaries, we observe that this barely encourages companies
to actually hire senior citizens for 15 years now, since 2004.

Hence, under the bill, we provided that government offices shall take active
roles in inviting, selecting and hiring senior citizens. The Department of Labor and
Employment and the National Commission of Senior Citizens shall also assist not just
in information and job matching services but, all the more, in aggressively promoting
the employment of senior citizens, especially those below the poverty threshold, and
identifying industries and positions in both the public and private sectors.

In addition, private entities that will employ qualified senior citizens shall be
entitled to a tax deduction equivalent to 70% of the total amount paid as wages to
senior citizens. Usual requirements such as police, NBI or barangay clearance and
medical or fit-to-work certificate shall also be provided for free to senior citizen
applicants and employees.

‘An important component of the bill too is conducting a study on the socio-
economic effect of either mandating a national policy or giving employers the option
of (a) raising the retirement age of employees; (b) ensuring continued employment
beyond retirement age but with reduced wages or other cost-effective arrangements
based on factors such as productivity and duties and responsibilities; or (c) abolishing
the retirement age. With this study as our guide, our country can unleash the potential
of our own senior citizens, taking the cue from other countries with established senior
citizen employment program (e.g. Japan, Singapore and Hong Kong) which, despite
having social contexts different from us, have already gathered overwhelming proof
that promoting senior citizen employment has benefits.

Again, this bill is about cherishing our elderly. More than the usual dole-outs,
giving them another chance at employment will provide the means to free them from
poverty and greatly motivate them to fully participate in society



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. 5362

Introduced by Hon. RONNIE L. ONG

AN ACT PROMOTING THE EMPLOYMENT OF SENIOR CITIZENS IN
GOVERNMENT OFFICES AND PRIVATE ENTITIES NATIONWIDE, FURTHER:
AMENDING FOR THE PURPOSE SECTION 5 OF REPUBLIC ACT NO. 7432, AS
AMENDED

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 "Senior Citizens
Employment Opportunity Act.”

SEC. 2. Declaration of Policy. It is the policy of the State to ensure the
prosperity and independence of the people and free them from poverty through
policies that provide adequate social services, promote full employment, a rising
standard of living, and an improved quality of life for all

The State also recognizes the growing population of senior citizens, their rights
to take their proper place in society, and the need to give them full support to improve
their total well-being and full participation therein.

Towards this end, the State shall create opportunities and promote the
employment of senior citizens nationwide as a way of tapping their wealth of life and
work experiences, of fostering their capacity to attain a more meaningful and
productive aging and of motivating and maximizing their contributions to nation
building. Necessary support and incentives should also be given to entities that
‘employs the elderly and promotes their welfare.

SEC. 3. Amendment to Section 5 of Republic Act No. 7432, as amended.
Section 5, specifically paragraphs (a) and (b), of Republic Act (R.A.) No. 7432, as
amended by R.A. 9257 or the “Expanded Senior Citizens Act of 2003" and R.A. 9994
or the “Expanded Senior Citizens Act of 2010", is further amended to read as follows:


“SEC. 5. Government Assistance. - The government shall provide the
following

(a) Employment

(1) THE DEPARTMENT OF LABOR AND EMPLOYMENT (DOLE) AND
THE NATIONAL COMMISSION OF SENIOR CITIZENS (NCSC)
SHALL PROVIDE INFORMATION AND MATCHING SERVICES TO
SENIOR CITIZENS, WHO HAVE THE CAPACITY AND DESIRE TO
‘WORK, TO ENABLE THEM TO FIND JOBS AND BE PRODUCTIVE
MEMBERS OF SOCIETY.

IN PROMOTING EMPLOYMENT BOTH IN THE PUBLIC AND
PRIVATE SECTORS, PRIORITY SHALL BE GIVEN TO SENIOR
CITIZENS WHOSE ANNUAL INCOME IS BELOW THE POVERTY
THRESHOLD OF THE PHILIPPINE STATISTICS AUTHORITY (PSA).

(2) ALL GOVERNMENT OFFICES SHALL TAKE ACTIVE ROLES IN
INVITING, SELECTING AND HIRING QUALIFIED SENIOR CITIZENS
TO BE PART OF THEIR RESPECTIVE WORFORCE.

TO SUPPORT THIS, DOLE, NCSC AND THE CIVIL SERVICE
COMMISSION (CSC), IN COORDINATION WITH CONCERNED
GOVERNMENT AGENCIES, SHALL DETERMINE THE POSITIONS,
QUALIFICATIONS, FUNCTIONS, CONTRACTUAL OR
APPOINTMENT ARRANGEMENTS AND WORKING HOURS,
CONDITIONS, SALARIES, BENEFITS, INSURANCE COVERAGE
AND OTHER TERMS APPROPRIATE FOR SENIOR CITIZENS.

(3)FOR THEIR PART, PRIVATE ENTITIES THAT WILL EMPLOY
QUALIFIED SENIOR CITIZENS, UPON THE EFFECTIVITY OF THIS
ACT, SHALL BE ENTITLED TO AN ADDITIONAL DEDUCTION FROM
THEIR GROSS INCOME EQUIVALENT TO SEVENTY PERCENT
(70%) OF THE TOTAL AMOUNT PAID AS WAGES TO SENIOR
CITIZENS, SUBJECT TO THE PROVISION OF SECTION 34 OF THE
NATIONAL INTERNAL REVENUE CODE, AS AMENDED.

(4) TERMS OF EMPLOYMENT IN PRIVATE COMPANIES SHALL
CONFORM TO THE PROVISIONS OF THE LABOR CODE, AS
AMENDED, AND OTHER RULES AND REGULATIONS
PROMULGATED OR TO BE PROMULGATED BY DOLE, WITH THE
ASSISTANCE OF OTHER CONCERNED AGENCIES, ON THE
PRIVATE EMPLOYMENT OF SENIOR CITIZENS, ESPECIALLY IN


TERMS OF WAGES, MEDICAL BENEFITS AND INSURANCE
COVERAGE.

DOLE AND NCSC, WITH THE ASSISTANCE OF THE DEPARTMENT
OF TRADE AND INDUSTRY (DTI), SHALL ALSO IDENTIFY
PRIORITY INDUSTRIES SUCH AS, BUT NOT LIMITED TO, FAST
FOOD JOINTS, HOTELS, HOSPITALITY COMPANIES, RETAIL OR
GROCERY STORES, MANUFACTURING AND CLEANING AND
MANPOWER SERVICES, WHERE EMPLOYMENT OF SENIOR
CITIZENS MAY BE AGGRESSIVELY PROMOTED.

(5)UNLESS OTHERWISE PRESCRIBED BY THE CONCERNED
AGENCIES AS PROVIDED ABOVE, SENIOR CITIZENS MAY WORK
FOR A MAXIMUM OF FOUR (4) HOURS PER DAY EITHER IN THE
MORNING OR AFTERNOON SHIFT. THEY SHALL NOT ALSO BE
REQUIRED TO RENDER ANY TASK REQUIRING EXCESSIVE
PHYSICAL LABOR OR THOSE THAT MAY POSE A THREAT TO
THEIR HEALTH, SAFETY, AND WELL-BEING.

(6) FOR PURPOSES OF EMPLOYMENT, POLICE CLEARANCE, NBI
CLEARANCE, BARANGAY CLEARANCE AND/OR MEDICAL
‘SCREENING TO DETERMINE FIT-TO-WORK CAPACITY SHALL BE
PROVIDED FOR FREE TO SENIOR CITIZENS BY THE ISSUING
GOVERNMENT OFFICE.

NOTHING IN THIS ACT EXCLUDES ANY COMPANY OR OFFICE FROM
HIRING QUALIFIED SENIOR CITIZENS OR PREVENTS ANY
EMPLOYER FROM INITIATING OR PROVIDING GREATER BENEFITS
OR IMPROVING THE WORKING CONDITIONS AND TERMS OF
EMPLOYMENT OF SENIOR CITIZENS BEYOND THE MINIMUM
REQUIREMENTS PROVIDED BY LAW.

(b) EDUCATION AND TRAINING

(1) THE DEPARTMENT OF EDUCATION (DEPED), THE TECHNICAL
EDUCATION AND SKILLS DEVELOPMENT AUTHORITY (TESDA)
AND THE COMMISSION ON HIGHER EDUCATION (CHED), IN
CONSULTATION WITH NON-GOVERNMENTAL ORGANIZATIONS
(NGOs) AND PEOPLE’S ORGANIZATIONS (POs) FOR SENIOR
CITIZENS, SHALL INSTITUTE PROGRAMS THAT WILL ENSURE
ACCESS TO FORMAL AND NON-FORMAL EDUCATION WITH THE
END GOAL OF IMPROVING THEIR KNOWLEDGE AND SKILLS AND
INCREASING THEIR CHANCES AT BEING EMPLOYED.


(2)IT SHALL BE THE DUTY OF ANY EMPLOYER, WHETHER
GOVERNMENT OR PRIVATE, REGARDLESS OF CONTRACTUAL
ARRANGEMENT, TO ORIENT AND TRAIN THE SENIOR CITIZEN
APPLICANTS OR EMPLOYEES ON MATTERS THAT AFFECT THEIR
HEALTH AND SAFETY AND TO PROVIDE ANY NEEDED
PROTECTIVE EQUIPMENT AND GEARS.

EMPLOYERS SHALL ALSO ENSURE THAT OTHER EMPLOYEES
TAKE PART IN PROVIDING A SAFE AND SECURE WORKING
ENVIRONMENT WHERE SENIOR CITIZENS CAN BE INTEGRATED
AS PART OF THE OFFICE COMMUNITY.

(3) DOLE AND NCSC SHALL ENDEAVOR TO EDUCATE THE PUBLIC
AND PRIVATE SECTORS IN PROVIDING AGE-FRIENDLY
WORKPLACES AND SHALL SHOWCASE PRACTICAL GUIDELINES
AND GOOD PRACTICES OF SELECTED ORGANIZATIONS IN
PROMOTING THE WELFARE OF SENIOR CITIZEN EMPLOYEES.”

SEC. 4. Report to Congress. Within two (2) years from the implementation of
this Act and every year thereafter as may be appropriate, the following reports shall
be submitted to Congress:

1) The Department of Finance (DOF) shall conduct studies and researches on
the appropriate incentives or subsidies to be given to private entities
employing senior citizens and the effect of such incentives or subsidies to
the efforts of the government to raise revenues and to provide social safety
nets for senior citizens especially those under the poverty threshold.

2)

The DOLE, NCSC and CSC, in coordination with the DOF, DTI, the National
Economic and Development Authority (NEDA), Government Service
Insurance System (GSIS) and the Social Security System (SSS), shall
conduct studies and researches on the socio-economic effect of either
mandating a national policy or giving employers the option of (a) raising the
retirement age of employees; (b) ensuring continued employment beyond
retirement age but with reduced wages or other cost-effective arrangements
based on factors such as productivity and duties and responsibilities; or (c)
abolishing the retirement age.

SEC. 5. Implementing Rules and Regulations. The DOLE, NCSC and CSC,
in coordination with concerned agencies and private stakeholders, shall formulate its
rules and regulations within ninety (90) days after the effectivity of this Act.

SEC. 6. Suppletory Application. Republic Act No. 10911 or the “Anti-Age
Discrimination in Employment Act’ and all other applicable laws, rules and regulations


shall have suppletory application in cases involving employment of senior citizens not
provided for under this Act.

SEC. 7. Separability Clause. If any provision or part hereof is held invalid or
unconstitutional, the remaining provisions not affected thereby shall remain valid and
subsisting

SEC. 8. Repealing Clause. Any law, presidential decree or issuance, executive
order, letter of instruction, administrative order, rule or regulation contrary to or
inconsistent with the provisions of this Act is hereby repealed, modified or amended
accordingly.

SEC. 9. Effectivity. This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in any two (2) newspapers of general circulation
in the Philippines

Approved,