Technical Assistance Consultant s Report

Transcription

1 Technical Assistance Consultant s Report Project Number: Regional Capacity Development Technical Assistance (R CDTA) August 2012 Republic of the Philippines: Updating and Improving the Social Protection Index (Cofinanced by the Republic of Korea e-asia and Knowledge Partnership Fund) Prepared by Ofelia Cantos-Hamper For Asian Development Bank This consultant s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project s design.)

2 ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank AE assistance to the elderly AFMA Agriculture and Fisheries Modernization Program AFP Armed Forces of the Philippines ATM automated teller machine BIR Bureau of Internal Revenue BOC Bureau of Customs BWSC Bureau of Workers with Special Concern CAR Cordillera Administrative Region CBFM Community-Based Forest Management CCT Conditional Cash Transfer CENRO Community Environment and Natural Resources Office CFO Commission on Filipinos Overseas CHED Commission on Higher Education CICL Children in Conflict with the Law CLEEP Comprehensive Livelihood and Emergency Employment Program CP child protection DA Department of Agriculture DA disaster and relief assistance DBM Department of Budget and Management DepEd Department of Education DENR Department of Environment and Natural Resources DILG Department of Interior and Local Government DK DOLE Kabuhayan (Nutrition) DND Department of National Defense DOH Department of Health DOLE Department of Labor and Employment DMC developing member country DND Department of National Defense DPWH Department of Public Works and Highways DTI Department of Trade and Industry DOST Department of Science and Technology DOT Department of Tourism DPWH Department of Public Works and Highways DSWD Department of Social Welfare and Development EC employees compensation ETEEAP Expanded Tertiary Education Equivalency and Accreditation Program EFP endowment fund/quality health care program FFCCCI Federation of Filipino-Chinese Chambers of Commerce and Industry, Inc. FFS farmers field school FIDA Fiber Industry Development Authority FIES family income and expenditure survey FSP food for school

3 GAA Government Appropriations Act GDP gross domestic product GNP gross national product GOP Government of the Philippines GPS government premium subsidy GSIS Government Service Insurance System GSIS Wireless Automated Processing System HA health assistance HEDF Higher Education Development Fund HI health insurance HIV/AIDS human immunodeficiency virus/ acquired immune deficiency syndrome HUDCC Housing and Urban Development Coordinating Council ICT information and computer technology IEC information, education and communication ILO International Labor Organization IMAP individual medical assistance program IPs indigenous peoples IRA Internal Revenue Allotment KALAHI-CIDSS Kapit-Bisig Laban sa Kahirapan (joint effort against poverty Comprehensive and Integrated Delivery of Social Services immune deficiency syndrome km kilometer kph kilometer per hour LEP ladderized education program LFPR labor force participation rate LFS labor force survey LGUs Local Government Units LMP labor market programs LOI Letter of Instruction LWUA Local Water and Utilities Administration MCF microcredit finance MDG Millennium Development Goals MOU Memoranda of Understanding MPBF Miscellaneous Personnel Benefits Fund MSMEs micro, small, and medium enterprises MTPDP Medium-Term Philippine Development Plan MWSS Metropolitan Waterworks and Sewerage Service NAPC National Anti-Poverty Commission NCR National Capital Region NEDA National Economic and Development Authority NEP National Expenditure Program NFA National Food Authority NFP National Fisheries Program NGAs national government agencies NHA National Housing Authority NHIP National Health Insurance Program NHTS-PR national household targeting system- poverty reduction NNC National Nutrition Council NSCB National Statistical Coordination Board

4 NSO National Statistics Office OFW overseas Filipino workers OP Office of the President OSCAs Offices of the Senior Citizens Affairs OSA other social assistance OSI other social insurance OSY out-of- school Youth OTOP One Town, One Product OWWA Overseas Workers Welfare Administration PCIC Philippine Crop Insurance of the Philippines PEN pensions PCSO Philippine Charity Sweepstakes Office PD Presidential Decree PDF Philippine Development Forum PhilHealth Philippine Health Insurance Corporation PIN PhilHealth Identification Number POs peoples organizations PRC-BON Professional Regulations Commission-Board of Nursing PVAO Philippine Veterans Affairs Office PWD persons with disability RA Republic Act RRCY Regional Rehabilitation Center for Youth SAE small area estimates SAP Shelter Assistance Program- DSWD SAP Social Amelioration Program DOLE SDC Social Development Committee SDEC Special Drug Education Program SEA-K Self-Employment Assistance Kaunlaran (Development) Program SFP Supplementary Feeding Program SPF Special Purpose Funds SP social protection SPI Social Protection Index SPI p social protection index on the poor SPI np social protection index on the non-poor SS social security SSS Social Security System SULONG SME Unified Lending Opportunities for National Growth TA Technical Assistance TESDA Technical Education and Skills Development Authority TOR terms of reference TVET technical-vocational education and training UB unemployment benefit UDP Upland Development Program USA United States of America US United States UNECE United Nations Economic Commission for Europe UNICEF United Nations International Children Emergency Fund VAT value-added tax WB World Bank

5 CONTENTS Page I. INTRODUCTION 1 A. Background 1 B. Definition of Social Protection 1 C. Report Structure 3 II. COUNTRY OVERVIEW 3 A. Geography 3 B. Demographic Profile 4 C. Economy 4 D. Poverty Profile 5 E. Employment and Labor Force 5 F. Health 6 III. CURRENT SOCIAL PROTECTION PROGRAMS AND ACTIVITIES 7 A. Data Collection 7 B. Social Assistance Programs 8 C. Social Insurance 14 D. Labor Market Programs 18 IV. THE SOCIAL PROTECTION INDEX AND ITS DISAGGREGATION 21 V. ANALYSIS OF COUNTRY RESULTS 28 A. Disaggregation by Social Protection Category 28 B. Disaggregation by Depth and Breadth 29 C. Disaggregation by Poverty Focus 29 D. Disaggregation by Gender 30 VI. CONCLUSION AND RECOMMENDATIONS 31

6 I. INTRODUCTION A. Background 1. Asian Development Bank s (ADB) development of the social protection index contributed to the strengthening of social protection programs in developing member countries (DMCs). ADB will continue its work on updating and improving the Social Protection Index (SPI). The SPI s update will address and incorporate lessons learned from two technical assistance projects 1 that developed the SPI for 35 countries in Asia and the Pacific and introduce new components and institutional arrangements to sustain the effective use of social protection indicators in policy analysis and formulation in the DMCs. 2. These initiatives will be implemented under the ADB commissioned regional technical assistance project 2 that seeks to (i) improve the methodology in defining social protection for each DMC in order to ensure comparability among DMCs; (ii) improve data gathering for statistical analysis on social protection; and (iii) develop capacity of DMCs in monitoring the SPI and allow comparisons between countries and over time on implementation performance. 3. This country study provides updated information and data on social protection arrangements, legislation, and institutions and calculates the SPI for the Philippines in view of the revised SPI methodology. The SPI can be updated periodically to assess progress in social protection arrangements in the country and analyse deeper aspects of targeting, coverage and expenditures on various social protection programs; for example, on the breadth (coverage) of social insurance versus social assistance or labour market programs, or on the depth (size of benefit) of various categories of social protection. The revised SPI methodology also provides scope to measure the gender responsiveness of programs, and poverty targeting of programs The primary objective of the Philippines Country Report is to present the results of the research on social protection programs and policies in the Philippines from all related departments, particularly Social, Health, Education, Labor and Employment and Vocational Training; and, summarize quantitative information on these activities to enable the formulation of a national Social Protection Index (SPI). This is the first study to gather information on social policy and programs in the Philippines in the formulation of a social protection index. B. Definition of Social Protection 5. Social protection is defined as the set of policies and programs designed to reduce poverty and vulnerability by promoting efficient labor markets, diminishing people s exposure to risks, and enhancing their capacity to protect themselves against hazards and interruption/loss of income. 6. This definition categorizes all programs under the traditional components of social protection as social insurance, social assistance, and labour market programs. Microfinance as a form of social protection is excluded from the calculation of SPI since it does not involve a transfer in cash or kind and beneficiaries incur loans or debt instead of transfers. Thus, by 1 ADB Technical Assistance for Social Protection Index for Committed Poverty Reduction. Manila (TA REG); ADB Technical Assistance for Scaling Up of the Social Protection Index for Committed Poverty Reduction. Manila (TA 6308-REG). 2 ADB Technical Assistance for Updating and Improving the Social Protection Index. Manila (TA 7601-REG). 3 To be able to calculate with relative accuracy the poverty-targeting rate of programs, household surveys need to contain a social protection data. However, the data of the survey was not available at the time of writing this report.

7 2 eliminating microfinance from the coverage of social protection programs, three major programs are left: (i) social insurance (i.e., the categories of old-age insurance, programs for the disabled, and health expenditure on insurance and pensions; (ii) social assistance (i.e., the categories of non-contributory health insurance, conditional cash transfers, child protection, and unconditional cash transfers; and (iii) labour market programs as shown in Table 1. Table 1: Social Protection Categories and Types of Programs Social Protection Category Type of Program Social Insurance Programs Pensions Unemployment Benefits Health Insurance - but not universal health insurance Other social insurance (maternity, disability benefits) Social Assistance Assistance for the elderly (e.g., non-contributory basic allowances for the elderly, old-age allowances) Health assistance (e.g., reduced medical fees for vulnerable groups) Child protection (school feeding, scholarships, fee waivers, allowances for orphans, street children initiatives) Family allowances (e.g., in-kind or cash transfers to assist families with young children to meet part of their basic needs) excluding any transfers through the tax system Welfare and social services targeted at the sick, the poor, the disabled, and other vulnerable groups Disaster relief and assistance Cash/in-kind transfer (e.g., food stamps, food aid) Temporary subsidies for utilities and staple foods - only if imposed in times of crisis and if targeted at particular vulnerable groups. General subsidies are excluded even if their rationale is to assist the poor Land tax exemptions Labor Market Programs Direct employment generation through public works programs including food for work programs Direct employment generation through loan-based programs included if loans are subsidized and/or job creation is an explicit objective of the program Labor exchanges and other employment services if distinct from social insurance and including retrenchment programs Unemployment benefits if distinct from social insurance and including retrenchment programs Skills development and training included if targeted at particular groups (e.g., the unemployed or disadvantaged children. General vocational training is excluded). Source: ADB The Revised Social Protection Index: Methodology and Handbook. Manila. 7. The Philippines has adopted a definition of social protection in the Social Development Committee (SDC) Resolution No. 1, Series of As defined in the resolution, social protection constitutes policies and programs that seek to reduce poverty and vulnerability to risks and enhance the social status and rights of the marginalized by promoting and protecting 4 The resolution was approved by the SDC - Cabinet Level composed of the National Economic and Development Authority (NEDA), Department of Labor and Employment (DOLE), Housing and Urban Development Coordinating Council (HUDCC), Department of Social Welfare and Development (DSWD), Department of Education (DepEd), Department of Health (DOH), Department of Interior and Local Government (DILG) and Department of Agriculture (DA).

8 3 livelihood and employment, protecting against hazards and sudden loss of income and improving people's capacity to manage risks. 8. Republic Act (RA) 8425, otherwise known as the Social Reform and Poverty Alleviation Act took effect in June RA 8425 institutionalizes the Social Reform Agenda of the Philippine government. The National Anti-Poverty Commission (NAPC) was created as a result of RA The agency has been tasked to serve as a coordinating and advisory body in implementing the social reform agenda. The core thrusts that NAPC covers include livelihood and employment, social protection, human development services, pro-poor infrastructure, asset reform, and participation in governance. 9. The Medium-Term Philippine Development Plan has included the strategy of improving social services and empowering the vulnerable groups. The Philippine Development Forum (PDF) has been the primary mechanism of the Government in facilitating substantive policy dialogue among stakeholders national government agencies, local government units, civil society, international community, academe and the private sector on the country s development agenda. The Department of Finance and the World Bank serve as co-chairs of the PDF. Working groups on the Millennium Development Goals and Social Progress were formed for the PDF. Social Protection has been one of the subgroups, created to review social protection programs for the poor and marginalized. C. Report Structure 10. The Philippines Country Report is structured as follows: Chapter II contains a brief overview of the social and economic development in the Philippines. Chapter III describes current social protection activities and programs in the country using ADB s typology. Chapter IV provides an overview of the derivation of SPI and its disaggregation. Chapter V presents the analysis of the country results. Chapter VI discusses the conclusion and recommendations. II. COUNTRY OVERVIEW 11. This chapter provides a brief description of the socioeconomic characteristics of the Philippines, main features of the country s current developmental situation and recent trends. A. Geography 12. The Philippines is a part of Southeast Asia, bordered by the Philippine Sea on the east, the South China Sea on the west, the Luzon Strait on the north, and Celebes Sea on the south. The total land area is slightly more than 300,000 square kilometers. Luzon, Visayas and Mindanao are the three largest islands. The Philippine islands have an estimated coastline of 18,411 kilometers, one of the longest coastlines of any nation in the world.

9 4 B. Demographic Profile 13. According to the August 2007 census, the Philippines total population is 88.6 million. There is an increase of 12 million since the May 2000 population count of 76.5 million. The population increased to 92 million in Table 2 shows an overview of the Philippine population in Table 2: Population Characteristics, 2007 Population Statistics 2007 Population, in million 88.6 Male to Female Ratio 1.02:1 Male Population, in million 44.6 Female population, in million 43.7 Dependency ratio Working group: dependents 100: age group: 0-14 age group 100: group: 65-over 100:9 Households Household population 88,304,615 Household size 4.8 Life expectancy Men, years (2005) 66 Women, years 72 Source: Various publications of the National Statistics Office, 2005; The average annual population growth rate (PGR) is 2.04% during the period. The rate is lower compared with the earlier period ( ), when the annual PGR recorded was 2.36%. 15. In 2007, the household population is 88,304,615 persons. The average household size in 2007 is 4.8. This is a marked decrease from 2000 that had an average of 5 persons per household. There were more males than females in the age group between 0-54 years old in On the other hand, age-sex distribution of the household population showed that females outnumbered males in older age groups (i.e., 55 years old and over). The male to female ratio in the Philippines is 1.02:1 or 102 males for every 100 females in The male population is 44,583,853 while female population stands at 43,720,762. C. Economy 16. The National Statistical Coordination Board s (NSCB) National Accounts of the Philippines reported that since the 1980s, the highest growth in gross domestic product (GDP) was posted in The growth rate in 2010 is at 7.6%, about 6% higher compared with GDP in 2009 at 1.1%. The GDP in 2010 surpassed the government s target of 5-6% for the same year. 17. The increase in GDP is attributed to the expanding industry sectors during the last quarter of The agricultural sector declined in 4 succeeding quarters and recovered despite the El Niño 5 experienced in the final quarter of the year. 5 The phenomenon of coastal warming of ocean waters in the Pacific that is linked to global climate patterns.

10 5 18. Contributing to economic growth is the increase in consumer spending supported by increased fixed capital investments. The double-digit increase in international trade served as an important factor for GDP to increase. The corresponding result in per capita GDP is favorable, increasing by 5.3% in 2010 as recorded by NSCB, and decreasing at 0.9% in Given the sustained growth and improved domestic pattern for economic stability, the 2011 outlook should be positive. The favorable climate for domestic trade and local business encouraged the influx of investments to the economy. NSCB posted Gross National Product (GNP) at 7.2% in The rate was about 3% higher than the previous year. The industry sector provided a major contribution to the country s economic growth. D. Poverty Profile 20. In 2009, NSCB reported that a Filipino needed P1,403 per month to stay out of poverty, with a minimum of P974 for food. The yearly amount needed is P16,841 or the poverty line per capita. The population living below the poverty line is estimated at 23.1 million during the same year. This indicated a poverty incidence of 26.5% among the population. 21. The major factors contributing to poverty in recent years are the rise in food prices, the 2008 global crisis that affected Filipinos dependent on family members working overseas; and natural disasters such as the 2009 El Niño phenomenon, including strong typhoons and flooding. About P39.2 billion worth of damages is estimated as a result of natural calamities in affected regions. E. Employment and Labor Force 22. From 2008 until 2011, the employment rate has been almost constant at nearly 93%. The underemployment rate decreased from 21% in 2008 to 19.7% in Table 3 presents the labor and employment rates from 2008 to Table 3: Labor and Employment Rates, Indicator July 2008 July 2009 July 2010 Total 15 years old and 58, ,513 60,934 over Labor Force Participation Rate Employment Rate Unemployment Rate Underemployment Rate Source: Various publications of National Statistics Office, Labor Force Surveys, 2008, 2009, The labor force participation rate (LFPR) is about 64% in 2011 based on the National Statistics Office report. This rate represents about 39 million persons out of nearly 62 million, aged 15 years and above. 24. At the start of the year, an estimated 36.3 million are employed, with more than half belonging to the services sector. The services sector mostly employs people in wholesale and retail trade, sale of personal and household goods, and repair of motor vehicles. Workers in the agriculture sector accounted for about 33% of the total employed; those engaged in the agriculture, hunting and forestry sub-sector comprising the largest sub-sector. About 15% of the

11 6 total employed is found in the industry sector, with the manufacturing sub-sector comprising 8% of the total employed. 25. Among the various occupation groups, the laborers and unskilled workers comprise the largest group at 31.7% of the total employed population in Farmers, forestry workers and fishermen are the second largest group, accounting for 16% of the total employed population. 26. Employed persons fall into any of the following categories: (i) wage and salary workers; (ii) own account workers; and, (iii) unpaid family workers. Wage and salary workers are employed in private households, private establishments, government or government corporations and family operated farms or businesses. The majority (55%) of the total employed population in 2011 is wage and salary workers, with the largest percentage (41%) working for private establishments. Those working for government or government-controlled corporations account for only 8%, while those working for private households comprise 5%. Self-employed workers without paid employees constitute 30% of the total employed population while employers in family-owned operated farms or businesses constitute 4% percent of the employment share. The unpaid family workers account for 11% of the total employed population. 27. Employed persons are classified as either full-time workers or part-time workers. Fulltime workers are employees working 40 hours or more while part-time workers work less than 40 hours. Of the total employed persons in 2011, over 62% are working full time, while over 36% are part-time workers. 28. Employed persons expressing the desire to have additional hours of work in their present job, or having an additional job, with longer working hours are considered underemployed. The number of underemployed persons in 2011 is estimated at 7.1 million, placing the underemployment rate at 19.4%. About 60.5% of the total underemployed persons are working less than 40 hours a week. These underemployed workers are classified as underemployed. People working for 40 hours or more account for 37% of the employed population. The underemployed persons in the agriculture sector account for 44.8% of the total underemployed population; 40.4% in the services sector and 14.8% in the industry sector. 29. The unemployment rate in 2011 is estimated at 7.4%. There are more unemployed males (63%) than females (37%). Almost half (49%) of the unemployed population is in the age group of 15 to 24 years old. More than one third (35%) of the unemployed are high school graduates, with almost 39% having a college education. F. Health 30. Persons with disability comprise a little over 1% of the population, based on the National Statistics Office s Census of Population and Housing. About 942,098 persons are registered with disability, with nearly half of the disabled population composed of men. The most common cause of disability is low vision (37%); followed by partial blindness (8%); mental illness (7%); and, mental retardation (7%). The health figures in 2008 and 2009 are found in Table 4. Table 4: Health Statistics, Statistic Number Rate Number Rate Livebirths 1,917,251 1,067,927 Total Deaths* 389, ,

12 Statistic Number Rate Number Rate Maternal 1, Deaths** Infant Deaths** 17, , Fetal Deaths** 4, , Source: DOH Field Health Services Information System, Annual Reports, 2008 and * Total death rate per 1000 population. ** Maternal, infant and fetal death rates per 1000 live births. 31. As shown in Table 5, a total of 3,679 health facilities are accredited to provide services and quality care to members nationwide. Of the 1,531 accredited hospitals, there are 931 private hospitals (61%) and 600 government-owned (39%) hospitals. There are 685 hospitals located in Luzon (excluding National Capital Region (NCR) and Rizal; 424 in Mindanao; 232 in the Visayas; and 190 in NCR and Rizal. Table 5: PhilHealth Accredited Health Facilities, 2008 Facility Number of Accredited Facility Hospitals 1,531 Rural health stations 1,217 Free standing dialysis clinics 28 TB-DOTS centers 507 Maternity care clinics 396 Total 3,679 Source: Department of Health, Annual Report, III. CURRENT SOCIAL PROTECTION PROGRAMS AND ACTIVITIES 32. This chapter presents an overview of the data collection process, objectives, and current social protection activities in the Philippines including challenges and difficulties encountered during the course of the study. The two-fold objective of this chapter is to present the main features of the social protection programs in the country and provide quantitative information that will serve as the basis for the formulation of the Social Protection Index. A. Data Collection 33. The existing social protection programs in the Philippines are classified into 3 major social protection components: (i) labor market programs; (ii) social assistance; and, (iii) social insurance. The major social protection activities and programs in the Philippines are implemented by government agencies. 34. Data collection is derived from various sources such as reports and surveys conducted by the National Statistics Office (NSO). The NSO is the country s authority in statistical information. The government agency follows a scientific and statistical methodology in conducting surveys. The labor force survey (LFS) and household income and expenditure surveys (HIES) are used in the population census and projections. The agencies provided data for fiscal years 2008 to Different agencies are designated to participate in the program category of social insurance, social assistance and labor market. The report is based from data collected from more than 20 government departments. There is no single agency or centralized source to obtain social protection information. Only few sets of data and statistics are available from

13 8 published reports and agency websites. Meetings, consultations and mini-workshops provided discussions on the required quantitative and qualitative data specified in the SPI terms of reference and SPI revised manual for the present study. B. Social Assistance Programs 36. The social protection programs are implemented by the PCSO, DOH, DSWD, DepEd, NFA, NCC, CHED, DOST and CFO. Table 6 shows a table of social assistance programs. Table 6: Social Assistance Programs Medical Assistance Program Social Amelioration Program in the Sugar Industry Supplementary Feeding Program Food for School and Other Feeding Programs Calamity Assistance Shelter Assistance Program Katas ng VAT: Pantawid Kuryente (Value-Added-Tax-Assisted Electric Bill Subsidy) Katas ng VAT: Tulong Para Kay Lolo at Lola (Value-Added-Tax Assisted Cash Subsidy to Grandparents) Project Pantawid Pamilyang Pilipino Program or Subsidy to the Filipino Family Program Bigasan (Rice Subsidy) and Tinadahan Natin (Our Store) Projects Assistance to Individuals Needing Social Protection CHED Programs Educational Benefit for Veteran Dependents Scholarship Grant from Other Agencies 1. Medical Assistance Program 37. The Philippine Charity Sweepstakes Office (PCSO) is the principal government agency for raising and providing funds for health programs, medical assistance and services, and charities of national character. The sources of its funds are lotteries, gaming and sweepstakes draws, all administered and operated by the PCSO. 38. PCSO s support is vital to the development of community health care in all regional hospitals nationwide through the establishment of tuberculosis centers, cancer and pain centers, and dialysis centers that deliver vital medical assistance and services to the people. The PCSO is engaged in various social welfare and development programs. The main programs of the agency are: (i) endowment fund and quality health care program (EFP); (ii) individual medical assistance program (IMAP); (iii) community outreach program; (iv) ambulance donation program; (v) national calamity and disaster program; and (vi) hospital renovation and improvement of health care facilities. The agency includes mandatory contributions to government agencies and charitable institutions engaged in providing welfare services to abandoned or exploited children and youth, the elderly, the physically and mentally handicapped, among others. 39. The agency allocated funding assistance to government and private hospitals for indigent patients in need of medical care, medicines, drugs, medical and surgical supplies, and diagnostic procedures for the management and treatment of various illnesses. The objective is to fund to hospitals and other health facilities, making health or medical services accessible to PCSO-authorized indigent patients, and enable charity patient access to medicines, drugs, medical supplies, implants, blood, diagnostic and laboratory procedures. Based on the

14 9 qualification criteria that include the presence of a social worker, the coverage of maximum assistance to PCSO-authorized charity patients is P50,000 per year for medicines, special drugs (e.g., chemo, dialysis, facts 8, and 9 IGIV); consumables (e.g., reagents, supplies, dye); diagnostic procedures (e.g., MRI, 2D Echo); metallic shunts; implants; equipment rental (e.g., life-saving ventilator, respirator); hearing aid; prosthetic devices; brachy therapy; and radiotherapy. Additional assistance is granted on a case-to-case basis as justified by a social worker. 40. The PCSO-PhilHealth Greater Medicare Access (GMA) Program is a joint undertaking between PhilHealth and the Local Government Units (LGUs). The program is aimed at assisting the enrollment of 539,670 indigent families in PhilHealth s Medicare para sa Masa 6 program. For the initial implementation of the program, the PCSO allocated about P67 million as its counterpart funding for the LGU share. 2. Social Amelioration Program in the Sugar Industry 41. Sugar workers or sacadas have been marginalized for decades, living under very poor conditions. To promote sugar workers' welfare and facilitate their access to social protection, the Social Amelioration Program (SAP) was instituted under RA It started in the early 1970's with sugar planters voluntarily contributing to set-up a fund to uplift the living conditions of workers and their families. 42. The RA expanded the sugar workers benefits and established the tripartite mechanisms for the participation of the planters, millers and workers in policy decision-making. While there was a minimal contributory insurance scheme and a program that provided rural labor market support, the SAP was more of a social assistance program targeted at workers in sugar plantations. 43. The program benefited about half a million sugar workers in Cash bonus in SAP is provided to sugar workers, both mill and field workers. Expenditures reached about P176 million in the same year. The fund for cash bonus came from 80% of the SAP. 3. Supplementary Feeding Program 44. A number of undernourished school children in different parts of the country benefited from SSS-sponsored Supplementary Feeding Programs (SFP). This was based on the Memoranda of Understanding (MOU) with representatives from public elementary schools in Bacolod City, Negros Oriental and Occidental provinces, City of Manila, and Nueva Ecija, among others, as selected by social security commissioners. Each child-beneficiary, mostly undernourished, was provided healthy lunches for 6 days every week in a span of 120 days. 45. Implementation and monitoring of the supplementary feeding program are coursed through the SSS Public Affairs and Special Events Division. In the middle of 2010, a total of 68 public schools and institutions, and 5,444 school children benefited from the program. 4. Food for School and Other Feeding Programs 46. The Department of Social Welfare and Development (DSWD) and Department of Education (DepEd) initially implemented the Food for School Program (FSP) in It is 6 For the masses

15 10 considered an immediate intervention to address hunger among families through their children enrolled in public elementary schools, and DepEd-supervised preschools and day care centers. It is a form of food subsidy for young learners belonging to poor families, with a daily ration of 1 kilo of rice to a child for a specific period of time. Daily school and day care center attendance is a pre-requisite for a family to receive a daily supply of rice. 47. The program directly contributed to mitigate hunger among poor families and improve school attendance. The program components include deworming, orientation of stakeholders, and nutrition education. The beneficiaries are all Grade 1-3 pupils from government schools, DepEd supervised preschools, and day care children in identified target areas. The number of children receiving assistance amounted to 502,163 in Aside from the DSWD, the DOH also conducted feeding programs. DOH administers the MicroNutrient Supplementation Project as part of Garantisadong Pambata (Guaranteed for Children). The agency implemented the Infant and Young Child Feeding Program. The program s beneficiaries are babies and children ranging from 0-3 years old. The 2010 funding was obtained from the General Appropriations Act (GAA), UNICEF and other foreign donors, with a total project cost of P12.2 million. 5. Calamity Assistance 49. In October 2009, the Social Security System distributed relief bags as Typhoon Pepeng battered Laoag City and nearby areas. The relief bags contained bottled water, canned goods, rice, bread loaves, cheese spread, biscuits, snack bars and noodles. SSS contributed P100 million as calamity assistance to hundreds of thousands of people, who lost loved ones, homes and belongings from the storm and floodwaters that devastated Metro Manila and other provinces. The Social Security Commission and the SSS governing board permitted less stringent loan requirements during and after the period of calamity. Representing government, labor and management sectors, the board also donated P50 million when Typhoon Frank triggered floods and mud slips in central and southern Philippines during Shelter Assistance Program 50. The Shelter Assistance Program is a rehabilitation program of the DSWD. The program has provided structurally strong shelter units to families with houses completely destroyed by natural and man-made calamities, without capacity to build or construct their own typhoonresistant low cost housing and shelter units. The implementation of the program started in 1985 and fully funded under the GAA. 51. A total of 5,187 families were assisted in The project reduced the number of homeless families during the year and provided structurally sound indigenous shelter; withstanding approximately kph wind velocity, earthquake of moderate intensity, and other similar hazards. The program maximized participation and community involvement in maintaining houses as liveable, and promoted the value of self-reliance among beneficiaries. 7. Katas ng VAT: Pantawid Kuryente (Value-Added-Tax Assisted Electric Bill Subsidy) Project 52. Started in 2008, the project is pursuant to a presidential directive, RA The project provided subsidy to the poorest sector of society to help them pay their electricity bills. Funding allocation was obtained from oil VAT collections.

16 In 2009, a total of 742,522 households received subsidy. About 3.5 million people benefited from the project during the project duration. The poor were provided payment for electricity through a one-time subsidy in the amount of P500. The amount was deducted from the total amount of the electricity bill, which cushioned the impact of the high cost of electricity. Qualified beneficiaries are users whose monthly electric consumption is 100 kilowatt per hour or less during the designated billing period. 8. Katas ng VAT: Para Kay Lolo at Lola (Value-Added-Tax-Assisted Cash Subsidy to Grandparents) Project 54. The project involved a cash subsidy of P500 for nearly a million qualified senior citizens. This is a directive from the national government to alleviate economic difficulties affecting senior citizens, pursuant to RA This is funded through the revenues generated from the expanded value-added tax (EVAT) collection. It was implemented nationwide by the DSWD in coordination with the LGUs and Offices of the Senior Citizens Affairs (OSCAs). 55. In 2009, a total of 722,406 senior citizens received the subsidy and the total subsidy amounted to P361.2 million. The project augmented the resources of poor senior citizens, recognizing their contribution to society and alleviating the economic difficulties affecting senior citizens. Those qualified were beneficiaries 70 years old and above; dependent or belonging to a family with an income within or below the poverty threshold per area; and, not covered by retirement benefits from GSIS, SSS, or any private or government agency. 9. Pantawid Pamilyang Pilipino Program to the Filipino Family Program or Conditional Cash Transfer (4Ps) 56. The Pantawid Pamilyang Pilipino Program or Pantawid Pamilya is a poverty reduction program of the national government that provides cash grants to extremely poor households. It aims to improve health, nutrition and education, particularly of children aged The program supports the country s commitment to meet the Millennium Development Goals, such as eradicating extreme poverty and hunger; achieving universal primary education; promoting gender equality; reducing child mortality, and improving maternal health. The cash assistance to the poor is an attempt to break the intergeneration poverty cycle through investments in human capital. 57. Eligible recipients in 2009 included residents of the poorest municipalities based on the 2003 Small Area Estimates (SAE) of NSCB. Eligible program beneficiaries are households with an economic status within or below the provincial poverty threshold, households with children 0-14 years old, pregnant woman during the time of assessment, and households that meet the conditions specified in the program. 58. Cash grants amounted to P6,000 a year or P500 per month per household for health and nutrition expenses; P3,000 for 1 school year or P300 per month for 10 months per child for educational expenses. A maximum of 3 children per household is allowed. A household with 3 qualified children that meet the conditions of the program receives a subsidy of P1,400 per month during the school year or P15,000 annually. Cash grants are given to the head of household, usually the mother, through the government s Land Bank cash card. 59. To avail of cash grants, beneficiaries comply with several conditions. Pregnant women have to avail of pre-and post-natal care and have a trained health professional in attendance

17 12 during childbirth. Parents also have to attend family development sessions. Children aged 0-5 years need to receive regular preventive health check-ups and vaccines; children aged 3-5 years attended day care or pre-school classes at least 85% of the time; and children aged 6-14 years received deworming pills twice a year and enrolled in elementary or high school, with at least 85% attendance. 60. In 2009, a total of 777,804 households or about 3.9 million children and mothers benefited from the program. During the same year, about P6.3 billion were spent by the government for the program. The Pantawid Pamilya operates in 79 provinces covering 936 municipalities and 74 key cities, with a target coverage of 2.3 million households in Bigasan 7 and Tindahan Natin 8 Projects 61. The Bigasan and Tindahan Natin projects promoted the national government agenda for food security, job generation and livelihood. It is a part of the Hunger Mitigation Program of the government and implemented through the cooperation of DSWD, National Food Authority (NFA) and the National Nutrition Council (NNC). 62. In 2009, low-priced good quality rice and noodles were provided in impoverished communities. Food items were distributed through stores jointly identified and endorsed by the DSWD, with provincial, city, and municipal Social Welfare and Development Offices of the LGUs in coordination with the barangay. Rice supply is provided by the NFA. Indigents are able to benefit from the project but resulted to NFA s income loss. 11. Assistance to Individuals Needing Special Protection 63. Women, children, men, youth and the elderly who are victims of crimes and difficult circumstances receive protection from the government. The DSWD through its facilities and programs provided center and community-based assistance in various situations. Children who are victims or witnesses of abuse are given special protection by DSWD during investigations. The pilot site is the NCR. 64. The Information Technology Literacy Program for Out-of-School Youth (OSY) and Youth with Disability or SCALA Program is a community-based basic computer literacy program, aiming to enhance the employment opportunities of disadvantaged youth. The program provided training and was implemented in partnership with Engineers without Borders of Canada and local government units. Pilot sites are in Regions I, Regions III-VIII, and the Cordillera Administrative Region. 65. The Group Home for Older Street Children is a residential facility within a community that provides alternative home arrangement for rehabilitated male street children ages years old. It has 8 to 10 persons living together under the supervision of a social worker from the LGU or NGO. The pilot site is in Region IV-A. 66. The Special Drug Education Program (SDEC) is a community-based facility that serves as a venue to equip out-of-school youth and street children with knowledge and life-coping skills to prevent drug and substance abuse. Pilot sites are in Region V and the NCR. 7 Rice Subsidy 8 Our Store

18 The half-way Home for Children in Conflict with the Law (CICL) is a residential home that provides 24-hour aftercare services to CICL. It is managed by the youth who have completed their rehabilitation process from the Regional Rehabilitation Center for Youth (RRCY). The pilot site is in Region XI. 68. The Character Building Program in Residential Care for Children and Youth guides the children and youth through character-building training, formation and reformation. Trainees become character coaches and conduct sessions on character building to others. Pilot sites are in NCR, Regions III, IV, VII and XI. 69. Rehabilitation services for Children in Conflict with the Law are provided by the DSWD. The agency provides a package of rehabilitation services through its residential care facilities such as the Regional Rehabilitation Center (RRCY), National Training School for Boys, and the National Training for Girls in Marillac Hills, to improve CICL s social functioning. It aims to reintegrate CICL with their families and the community. Services include psychosocial care, including educational, home-life, dietary, health, and recreational, cultural and spiritual enhancement. Areas covered are Regions I, III, IV-A, VI, VII, VIII, IX X, XI, CARAGA and NCR. 12. CHED Programs 70. The Commission on Higher Education (CHED) provides educational opportunities for the poor but academically excellent students through various scholarships and student financial assistance programs. CHED s objectives include financial assistance to poor but deserving tertiary students wanting to enter college, including providing support for alternative modes of learning and acquiring qualifications for future employment. In 2009, about 49,000 individuals were assisted and expenditures reached about P506 million. 71. CHED s Expanded Tertiary Education Equivalency and Accreditation Program (ETEEAP) is a route for workers and employees without a complete college degree to acquire skills and have their work experiences and prior learning credited towards a formal degree in higher education. Ladderization allows the recognition of units earned in technical vocational programs from TESDA-registered schools to be accredited as equivalent academic units in CHED-recognized programs and institutions. It enables students to join the workforce and eventually re-enter at any educational ladder. Ladderization enables more Filipinos to upgrade their capabilities while seeking employment either as salary workers, professionals or entrepreneurs. 72. CHED also offers other opportunities in the form of scholarships such as One Town and One Scholar (full or half merit), including scholarship programs for persons with disability (PWD), and indigenous and ethnic people. Other assistance include grant-in-aids; student loan programs; study grant programs for single parents and their dependents, senior citizens and elderly persons; study-now-pay-later plans; expanded tertiary education equivalency and accreditation programs; the ladderized education program (LEP); DND-CHED PASUC Scholarship Program; OPAPP-CHED study grant program for rebel returnees; and the Tulong- Dunong or Assistance-Intellect program. CHED operates through its Higher Education Development Fund (HEDF) and the GAA.

19 Educational benefit for Veteran Dependents 73. The Philippine Veterans Affairs Office (PVAO) has been providing college scholarships to dependents of veterans. In 2009, around P58 million are allotted for scholarships and about 3,400 dependents availed of free matriculation fees. 14. Scholarship Grant from Other Agencies 74. In 2009, student financial assistance and scholarships were granted to deserving students by other agencies. These agencies included TESDA, Department of Science and Technology (DOST) and the Commission on Filipinos Overseas (CFO). The Department of Education also provided literacy and anti-poverty programs. These programs, classified as alternative learning system programs, are not part of the agencies regular and general education functions. C. Social Insurance Programs 75. The social insurance programs in the Philippines include social insurance for workers and employees in government service, government insurance in the private sector, the government health insurance program, and a retirement program for veterans. The Government Service Insurance System (GSIS), Social Security System (SSS), PhilHealth and the Philippine Veterans Affairs Office (PVAO) are the government agencies that implement these programs. 1. Social Insurance for Workers and Employees in Government Service 76. Membership in government social insurance is mandatory. This is to ensure social insurance and protection for the workforce, in sickness, disability, retirement, and upon death to surviving spouse and dependents. Employee contribution is equal to a percentage of the gross monthly salary or wage, which is automatically deductable from the payroll. The counterpart employer contribution, consisting of the same percentage paid by the government or private company, is in favor of the employee or worker. The company regularly remits the monthly employee and employer contributions to the GSIS or SSS. The employee can securely receive his benefits while working and the monthly pension once retired. Contributions are classified by fund category from which employee and retiree benefits are paid. A portion of the funds is invested to earn further income for members and pensioners for insurance agency expenditures and personal services, capital outlay, and operating expenses. 77. The GSIS administers the regular social insurance program to government workers and employees. It provides retirement benefits to qualified members that have rendered service and retired upon reaching the age of 60 or over. 78. Old-age pension with monthly payments until death is directly related to the level of earnings and length of employment. The pension level is based on the applicable presidential decree or republic act relative to pension payments, and terms and annuities during the year of retirement. 79. Unemployment benefit is only attained once the previous employed member becomes seriously disabled and incapacitated to perform normal employment activity for health reasons. This is commonly referred to as the disability benefit. Unemployment benefit is not available or a right given to employees after losing a job, during voluntary or forced resignation, retrenchment

20 15 or removal from a job for any specific reason. Table 7 provides GSIS data on contributions and membership. Table 7: Contributions and Membership in GSIS, Insurance Variable GSIS Contribution Amount (Philippine peso, billions) GSIS Membership (Philippine peso, millions) Source: GSIS, 2009, 2010 and In 2009, surviving spouses of members and pensioners were not allowed to receive monthly pension benefits without gainful employment or other sources of income. Surviving spouses were disqualified from getting the usual half of the GSIS pensioners monthly benefit if the spouse earned more than the minimum wage rate of national government employees or received pension from other institutions. The policy changed in 2011, in favor of more than 300,000 old age and survivorship pensioners employed. 81. In partnership with the education provider STI College, GSIS offers qualified relatives of members and pensioners a 20% scholarship grant on tuition and laboratory fees. The grant was implemented in In addition to making quality education more affordable, the collaboration also increased the employment rate in the country. 82. GSIS paid close to P38.3 billion in claims and benefits to members and pensioners in There are about 200,000 active old-age pensioners, disbursing an average of P1.7 billion in pension benefits every month. The GSIS also released about P11 billion in retirement claims and P4 billion in life insurance claims, aside from pension benefits in Government Insurance for Workers and Employees in the Private Sector 83. The SSS provides social insurance benefits for the employed, self-employed and retired employees of the private sector, private corporations and companies in the Philippines. 84. The Senate and House of Representatives of the Philippines in Congress amended Republic Act No or the "Social Security Law," also named the Social Security Act of It is the policy of the State to establish, develop, and promote a sound and viable taxexempt social security system suitable to the needs of the Filipino people. It promotes social justice and provides meaningful protection to members and their beneficiaries against hazards of disability, sickness, maternity, old age, death, and other contingencies resulting in loss of income or financial burden. The State also extends social security protection to workers and their beneficiaries, and eventually the creation of SSS. 85. There are two programs administered by the SSS. The first is social security including maternity, disability, retirement, death, and funeral services. It provides replacement income in times of death, sickness, disability, maternity and old age. The second is employees compensation that includes medical services, rehabilitation services and income cash benefit during the first day of disability or sickness, permanent total disability, including medical services and appliances. 86. The amount of contributions during the first 3 quarters of 2010 is about P59.5 billion. In the same period, investments and other income reached about P21 billion. The average