Republic of the Philippines
HOUSE OF REPRESENTATIVES

Batasan Hills, Quezon City So ATE: SUN 3.0 20% |
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NINETEENTH CONGRESS
First Regular Session

~- 409

HOUSE BILL NO.

Introduced by Honorable Representatives
ARLENE D. BROSAS (Gabriela Women’s Party),
FRANCE L. CASTRO (ACT Teachers Partylist),

and RAOUL DANNIEL A. MANUEL (Kabataan Partylist)

AN ACT PROVIDING FOR A TEN THOUSAND PESOS (P10,000) CASH SUBSIDY FOR
FAMILIES AFFECTED BY THE SEVERE ECONOMIC DOWNTURN, CALAMITIES AND.
COMMODITY PRICE HIKES AMID THE COVID-19 PANDEMIC

EXPLANATORY NOTE

Amid the militarist restrictions amid the COVID-19 pandemic, the Philippine economy has
crashed to its lowest point since 1946, suffering its first recession in 29 years. Millions of
Filipinos were thrown into joblessness, and more than a trillion pesos were slashed from the
incomes of Filipino families as a result of the lockdown and other restrictions. Philippine Gross
Domestic Product (GDP) in 2020 plunged by 9.5 percent — the biggest economic decline since
World War Ii, and the unemployment rate reached its highest since 2005 at an average of
10.5 percent for the same period. It is estimated that the pandemic has pushed around 2.7
million Filipinos to poverty despite the rollout of social amelioration programs (SAPs) towards
the middle of the year. Cash subsidies granted to poor families and displaced workers proved
to be largely insufficient, aside from the fact that interventions were scandalously delayed and

marred with irregularities

The economic fallout caused by the pandemic and restrictions has disproportionately affected
Filipino women — with the majority of female workers concentrated in low-paying, low-quality.
and non-regular jobs. Official data indicate that women’s labor force participation rate has
dropped significantly more than their male counterparts. With the closure of businesses and
disruptions in the informal economy, millions of Filipino women lost their jobs and sources of
income while bearing increased domestic pressures due to the stay-at-home policy.


According to a jobs report by the Department of Labor and Employment (DOLE), a total of
26,060 micro, small, medium, and large businesses closed permanently or retrenched some
of their workers. In contrast, more than 4.5 million workers in 161,251 establishments were
trapped in a “no work, no pay” situation due to the prolonged temporary business closure or
reduced work hours. A comprehensive July 2020 survey conducted by the World Bank, the
Department of Finance, and the National Economic and Development Authority (NEDA) also
confirmed that around 65 percent of Philippine-based companies either permanently shut
down or temporarily closed, pointing to mass layoffs and loss of incomes.

Ahead of the official start of the rainy season, hundreds of thousands of families have been
affected by severe flooding in various parts of the country since the start of the year. At least
200 people were reported dead and over 100 were missing In the wake of Tropical Storm
‘Agaton which caused massive flooding in the Visayas and Mindanao in April 2022. Close to
30,000 families were displaced while damage to agriculture was estimated at
P257,05,441.06.

Rising food prices and transportation costs have resulted in higher inflation rates even as
poor families continue to reel from the massive destruction of livelihood and the effects of the
COVID-19 pandemic. inflation spiked to a two-year high of 5.4 percent in May 2022, as prices
of petroleum products, pork, and other food commodities surged. Results of the April 2022
Social Weather Survey (SWS) showed that the number of families who consider themselves
as ‘poor’ increased to 10.9 million from 10.7 million in December 2021, or an increase of
200,000 poor families despite the loosening of quarantine restrictions and resumption of
business activities.

In a vain attempt to ease the economic hardships of Filipinos, the Duterte administration
announced a measly cash subsidy program in March 2022, which was initially at P200
monthly for each target beneficiary but was soon raised to P500 a month. The distribution of
the cash subsidy commenced only on the final day of Duterte in power, with around 12.4
million recipients targeted for the measly monthly subsidy for a six-month period. The total
subsidy, which would amount to P3,000 per target beneficiary, is insufficient to even mitigate

the impacts of the barrage of price hikes.

It should be noted that the 2022 General Appropriations Act (GAA) is utterly devoid of any
massive social protection or social amelioration program that will cushion the impacts of rising
commodity prices and stave off more job losses.


In view of the foregoing, the approval of this bill is earnestly sought.

~~
NI BROSAS
foriela Women’s Party

RAOYL DANNIEL A. MANUEL
Kabataan Partylist



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasan Hills, Quezon City

NINETEENTH CONGRESS
First Regular Session

409

HOUSE BILL NO.

introduced by Honorable Representatives
ARLENE D. BROSAS (Gabriela Women’s Party),
FRANCE L. CASTRO (ACT Teachers Partylist),

and RAOUL DANNIEL A. MANUEL (Kabataan Partylist)

AN ACT PROVIDING FOR A TEN THOUSAND PESOS (P10,000) CASH SUBSIDY FOR
FAMILIES AFFECTED BY THE SEVERE ECONOMIC DOWNTURN, CALAMITIES AND
COMMODITY PRICE HIKES AMID THE COVID-19 PANDEMIC

Be it enacted by the Senate and the House of Representatives of the Republic of the
Philippines in Congress assembled:

SECTION 1. Short title. This Act shall be known as the “P10K Cash Subsidy” Act of 2022

SECTION 2. Declaration of Policy. it is hereby declared the policy of the State to free the
people from poverty through policies that provide adequate social services, a rising standard
of living, and an improved quality of life for all. The State must ensure that Filipino families
will not further fall into the poverty trap and that dwindling family incomes will be augmented
amid the severe economic fallout of the COVID-19 pandemic. Towards this end, the State
shall provide an immediate, quick-release cash assistance to poor families as the effects of
the pandemic are seen to persist until 2023.

SECTION 3. Definition of Terms.

a, Family—a group of persons usually living together and composed of the head
and other persons related to the head by blood, marriage or adoption. It
includes both the nuclear and extended family

b. Informal sector worker — a worker whose employment is not subject to
standard labor legislation, taxation, social protection or entitlement to certain
employment benefits including, but not limited to independent contractors,
street vendors, public utility vehicle drivers, operators, freelancers, agricultural
and fisheries workers, and self-employed workers in the gig economy; the job
is casual or of a limited short duration; the hours of work or wage are below a
certain threshold: the worker is not covered either by SSS or GSIS; or the
employer is an unregistered enterprise.


¢. Poor- to low-income earner — individuals who are receiving monthly
compensation as follows

Income Classification Monthly Income
Low Income Between Php 23,660.00 to Php 60,000.00
Poor Less than Php 23,660.00

SECTION 4. Cash Subsidy Program — A Cash Subsidy Program shall be implemented to
cover 18 million poor and low-income families affected by economic fallout from COVID-19
and incessant price hikes. Provided that a fixed monthly cash assistance of Ten Thousand
Pesos (PhP10,000.00) shail be provided to each of the beneficiary-family for a period of two
(2) consecutive months. Provided further, that the P10,000 cash subsidy shall be on top of
cash transfers from the Pantawid Pamilyang Pilipino Program (4Ps) and Assistance to
Individuals in Crisis Situations (AICS). Provided furthermore, that the availment of Cash
‘Subsidy Program should not affect the eligibility of a family to other social protection and
livelinood support programs. Provided finally, that a definite and actual list of target
beneficiaries of the cash subsidy program shall be finalized and submitted by the Department
of Social Welfare and Development (DSWD) and the Philippine Statistics Authority (PSA), in
coordination with the Department of Labor and Employment (DOLE) and local government
units, to Congress two (2) weeks after the effectivity of this Act.

SECTION 5. Eligibility. To be eligible under this Act, a family must be classified as poor and
low-income, and may include as member any of the following

a. Beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps)

b. Beneficiaries of the Unconditional Cash Transfer (UCT) program

cc. Farmers and fisherfolk who are not beneficiaries of 4Ps or UCT but earned
less due to the pandemic, successive oil price hikes, and massive
importation of agricultural commodities

d. Workers who are permanently displaced from his or her job or source of
income

e. Workers who are placed under floating status or who is under a no-work, no-
pay scheme

f. Solo parents who lost their sources of income
Workers who are placed under a recomputed remuneration arrangement or
lower monthly incomes due to the flexible work arrangements

h. Owners of micro and small enterprises who are suffering from losses due to
rising oil prices or pandemic restrictions

i, Informal sector workers whose livelihood is affected by the pandemic
restrictions and rising oil and commodity prices, such as but not limited to
public utility vehicle (drivers), freelancers and workers in the creative industry

j. Victims of natural calamities such as typhoons and landslides since the
quarter of 2020 as identified by local govemment units and the National
Disaster Risk Reduction and Management Council (NDRRMC)


k. Senior citizens and persons with disability

The level of quarantine classification or restrictions imposed in a locality shall have no bearing
in the eligibility of families.

SECTION 6. Form and manner of payment. The cash subsidy shall be released in two
tranches of Ten Thousand Pesos (PhP10,000) per tranche to target beneficiaries either in
cash or via electronic payment or any banking or non-banking service, whichever is more
practical and acceptable to the beneficiary, in the most expeditious manner within the two
months covered by the program,

SECTION 7. Waiver of fees. Any transaction or service fee arising from the payment of cash
subsidy to target beneficiaries, whether through banking or non-banking modes of cash
transfer, is hereby automatically waived. For this purpose, the Department of Social Welfare
and Development shall enter into a memorandum of agreement (MOA) with banking
institutions and financial service providers.

SECTION 8. Sources of funding. The amount necessary for the effective implementation of
this Act shall be included in the FY 2023 General Appropriations Act (GAA) of the Department
of Social Welfare and Development (DSWD).

SECTION 9. Separability Clause. if, for any reason, any portion or provision of this Act shall
be held unconstitutional or invalid, the remaining provisions not affected thereby shall
continue to be in full force and effect,

SECTION 10. Repealing Clause. Any law, presidential decree or issuance, executive order,
letter of instruction, department order, administrative order, rule or regulation contrary to, or
inconsistent with the provisions of this Act is hereby repealed, modified or amended
accordingly.

SECTION 11. Effectivity. This Act shall take effect fiteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation

Approved,