The benefits and privileges of senior citizens in the Philippines

What are the Filipino senior citizens' benefits granted under existing laws and regulations.

Republic Act (RA) 9994, also known as the Expanded Senior Citizens Act of 2010, grants Filipinos ages 60 years and above the following benefits and privileges:

Entitlement to priority in queues: The law requires the creation of express lanes in establishments, or for senior citizens to be given priority in queues to prevent them from waiting for extended periods.

Twenty-percent discount on the following goods or services:

1. Medicines and vaccines including those for influenza and pneumococcal diseases, and other essential medical supplies.

2. Professional fees of physicians, whether in hospitals, clinics or home health care services, including those of other licensed professional health workers providing health care services as endorsed by private hospitals or employed through home health care employment agencies.

3. Medical and dental services, including diagnostics and laboratory tests, whether such services are rendered in private hospitals, medical facilities, outpatient clinics and home health services.

4. Transportation such as fares on public land transportation, including buses, jeepneys, taxis, public rail services, as well as to air and sea travel within the Philippines.

5. Accommodation and recreational services when staying in hotels, dining in restaurants, or using recreational facilities like cinemas, theaters and concert halls. In some municipalities, senior citizens are entitled to free entrance fees to theaters and parking areas.

6. Funeral and burial services for the death of the senior citizen, which covers the purchase of casket or urn, embalming, hospital morgue, transport of the body to intended burial site in the place of origin but shall exclude obituary publication and the cost of the memorial lot.

The VAT exemption on the foregoing sale of goods and services to senior citizens has also been codified in the National Internal Revenue Code (Tax Code), pursuant to RA 19063, the Tax Reform for Acceleration and Inclusion or the Train Act.

RA 9994 also grants senior citizens a 5-percent discount on utility bills, for consumption that does not exceed 10 kilowatt-hour for electricity and 30 cubic meters for water. The utility accounts must be under the senior citizen's name.

Other benefits

Other benefits include:

(a) exemptions from training fees for socioeconomic programs,

(b) free medical and dental services in all government hospitals and clinics, including diagnostics and laboratory tests,

(c) free vaccinations against the influenza virus and pneumococcal disease for indigent senior citizens,

(d) a monthly stipend in the amount of P1,000 and (e) death benefit assistance of at least P2,000 to the nearest surviving relative of a deceased senior citizen.

Interestingly, RA 9994 also provides educational assistance to senior citizens who wish to pursue post-secondary, tertiary or vocational education, whether in a public or private school, through scholarships, financial aid, subsidies and other incentives. This includes learning materials such as books and uniforms. Thus, it is never too late for senior citizens to go back to school and earn a diploma.

RA 9994 further mandates the continuation of benefits to senior citizens from the Government Service Insurance System, Social Security System and Pag-IBIG "to the extent practicable and feasible."

Another law, RA 10645, provides that all senior citizens are automatically covered by PhilHealth, even if they have not made prior contributions.

These laws reflect the government's commitment to protecting and enhancing the welfare of senior citizens in the Philippines. However, there was a question as to whether or not the mandate of all those benefits, which in the end are shouldered by the establishments providing the aforementioned services and goods, are constitutional.

The establishments granting the 20-percent discounts are entitled to claim the same as income tax deductions, not as tax credits. Unlike a tax credit, a tax deduction does not offer full reimbursement of the senior citizen discounts granted. As such, it raised the question whether the state, in promoting the health and welfare of a special group of citizens, can impose upon private establishments the burden of partly subsidizing a government program.

In several decisions, the Supreme Court has ruled that the grant of 20-percent discount and the tax deduction scheme is a valid exercise of the police power of the state. The Supreme Court also recognized that the duty to care for the elderly and the disabled lies not only upon the state but also on the community and even private entities.

Source: Business World

Sun Life survey highlights inflation challenges for retirees in Asia

Retirees in the Philippines are struggling financially amid high inflation, according to a Sun Life Asia survey.

Many of them lament past financial decisions, citing inadequate savings, poor investment choices and early retirement as key sources of regret.

Results of the survey, "Retirement Reimagined: Facing the Future with Confidence" — comprising 3,500 respondents across Asia, including the Philippines — showed 73 percent of Filipino retirees regretted not saving enough, 47 percent wished they had invested more wisely and 38 percent felt they retired too early.

A significant 25 percent said they have been caught off guard by the high cost of living, with 77 percent citing increased general living expenses and 46 attributing it to health care costs.

Despite efforts in savings, the Filipino participants admitted failure in financial preparation. While a number of them managed to save at least 10 percent of their income for retirement, 37 percent said they did not save at all and 21 percent did not foresee their retirement expenses, forcing them to cut back on spending or seek financial support from their respective families.

Inflation has worsened the situation. The Philippines is suffering more from high inflation rates than the Asian average, the survey said.

Consumer price growth hit a 14-year high of 8.7 percent in January 2023, which led the Bangko Sentral ng Pilipinas to tighten its monetary policy.

To date, inflation has settled within the 2.0- to 4.0-percent target range of the central bank at 3.4 percent and the average core inflation to around 2.4 percent, following the four-year low of 1.9 percent in September.

Carla Gonzalez-Chong, Sun Life Philippines chief client experience and marketing officer, stressed the value of financial literacy in addressing these challenges.

"Financial literacy remains key," she said. "We are committed to this advocacy to help more Filipinos overcome the obstacles and enjoy quality lives in their golden years."

The survey also revealed a growing trend among young Filipinos to delay retirement in response to rising living expenses.

Some expect to retire at an average age of 65, significantly later than the current retirees' average of 58. Many younger workers have postponed their retirement plans, with 59 percent citing the necessity of sufficient savings and 46 percent mentioning the demands of covering for increasing expenses.

Source: Business World and Sunlife

Poorest regions left out in transport projects

The National Capital Region (NCR) is set to receive 85 percent of the P181 billion budget of the Department of Transportation (DOTr) for 2025, raising concerns on the financing distribution for mass transit.

An analysis conducted by the Congressional Policy and Budget Research Department (CPBRD) showed that NCR will obtain 85 percent, or P153.61 billion, of the P180.89 billion allocation for the DOTr in the 2025 National Expenditure Program (NEP).

On the other hand, the CPBRD said the poorest regions in the archipelago—Zamboanga Peninsula, Bangsamoro, Bicol Region, Eastern Visayas, Northern Mindanao and Soccsksargen—would get below one percent.

Even Central Luzon and Southern Tagalog, which are closest to NCR, will pick up less than one percent of the DOTr budget next year. Central Luzon is allocated P531.7 million, while Southern Tagalog is earmarked with P397 million.

Based on the budget breakdown, tourist hotbed Western Visayas will secure the largest budget by region next to NCR at P7.15 billion. Central Visayas, home to metropolitan district Cebu, comes third with P6.41 billion, while the DOTr Central Offices ranks next with P4.16 billion.

Citing estimates from the Japan International Cooperation Agency, the CPBRD said it is crucial to speed up the movement of people and goods in NCR, as it is losing at least P2.4 billion a day to traffic congestion.

However, the CPBRD said the Metro Manila bias can only be justified if the DOTr expedites the completion of big-ticket projects in the capital, particularly railways.

For 2025, the DOTr will receive P63.91 billion for the North-South Commuter Railway (NSCR) and P39.37 billion for the Metro Manila Subway Project based on the NEP.

In 2023, both NSCR and MMSP posted obligation rates of more than 92 percent. In spite of this, the projects’ disbursement rates failed to surpass the 67 percent mark, signaling slow progress.

The CPBRD saw similar struggles in the construction of foreign-assisted railways, including the Light Rail Transit Line 1 Cavite Extension and Philippine National Railways South Long Haul. As a whole, the DOTr saw its obligation and disbursement rates fall to 71 percent and 41 percent, respectively, in 2023.

The DOTr justified the Metro Manila bias of its budget in a legislative hearing in August, saying the bulk of the funds are just parked in NCR because the agency is headquartered in the region.

Still, big-ticket projects like the NSCR, which will pass through Central Luzon, Metro Manila and Southern Tagalog, are supported by the allocation for NCR.

Source: Inquirer