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Manila Bulletin devider Philippines devider BIR approves wage subsidy applications of more than 1 million workers

BIR approves wage subsidy applications of more than 1 million workers

Published May 1, 2020 12:00 am
By Jun Ramirez The Bureau of Internal Revenue (BIR) has approved the wage subsidy applications of more than one million workers who lost their jobs when their companies were temporarily closed due to Enhanced Community Quarantine (ECQ). Bureau of Internal Revenue (MANILA BULLETIN) Bureau of Internal Revenue (MANILA BULLETIN) The number of beneficiaries will more than double if the deadline for availment of the Small Business Wage Subsidy (SBWS) is extended for at least one week. The cash assistance program expired the other day. But many BIR officials are hopeful that it would be extended by the Department of Finance so that more employers could enroll their penniless employees. Records show that over 75,000 business owners have applied for SBWS, which is intended to cover the estimated 3.5 million workers nationwide. Eligibility is limited only to employees who did not receive salaries when the (ECQ) was implemented in March. The joint memorandum of agreement among the DOF, BIR, and Social Security System disqualifies certain group of workers from the program, such as those who work from home or are part of the skeleton force, as well as employees on leave for the entire duration of the ECQ, whether with or without pay. Employees with unsettled account or in-process SSS final claims are also excluded. BIR circularized the other day the memorandum through Revenue Memorandum Circular No.45-2020 to guide regional and district officials on how to implement the SBWS. The agreement stipulated that the SSS will release the cash aid to individual employees after the BIR issues the tax clearance to their tax-compliant employers.
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