DOLE rolls out wage aid for struggling SMEs

The Department of Labor and Employment (DOLE) on Wednesday, 30 September, began offering financial assistance to small and medium enterprises (SMEs) struggling to cope with recent wage increases.

DOLE said Secretary Francis Tolentino ordered the rollout of the Sagip-Trabaho program, which is designed to provide assistance to qualified SMEs.

Under the program, qualified employers will receive direct wage subsidies for eligible workers for up to 90 days. Each qualified SME may have up to 35 registered workers.

During the subsidy period, employers must also maintain their workers’ benefit contributions to the Social Security System (SSS), Philippine Health Insurance Corp. (PhilHealth), Pag-IBIG Fund and Employees’ Compensation Commission (ECC).

SMEs that wish to avail themselves of the program must submit proof of legitimate business operations through a DOLE-formatted Job Preservation and Business Continuity Plan (JPBCP), sign an agreement with DOLE and their workers, and submit the complete requirements to a DOLE regional or field office for assessment.

The department rolled out the Sagip-Trabaho program following the implementation of a P60 daily wage increase for workers in Metro Manila on 26 September. The wage hike under Wage Order No. NCR-28 took effect on that date.

A P42 daily wage increase is also set to take effect in Central Visayas, as well as Negros Oriental and Siquijor, on 14 October. The National Wages and Productivity Commission has affirmed the P42 increase under the new Central Visayas wage order.