DSWD rolls out financial aid program to shield minimum wage workers from inflation

The Department of Social Welfare and Development (DSWD) has started the implementation of the “Ayuda sa Kapos ang Kita Program” (AKAP) to protect minimum wage earners from the devaluing effects of inflation on their purchasing power.

In a statement on Monday, May 20, DSWD Secretary Rex Gatchalian said the new program aims to assist Filipinos who are considered minimum wage earners, poor, near-poor, and those in the informal economy. 

It also aims to protect beneficiaries whose livelihoods will be affected first by the changing economic situation.

The General Appropriations Act of 2024, specifically Special Provision No. 3 of the DSWD Budget, authorized P26.7 billion in funding for AKAP, which will provide financial assistance to minimum wage earners who are classified as low-income and have been severely impacted by rising inflation.

Based on the DSWD Memorandum Circular (MC) No. 4, series of 2024, AKAP will be implemented as a targeted social assistance program for individuals who may not have access to regular assistance because they do not fall under the poorest demographic.

A person must fall into the low-income category to be eligible for benefits, such as those whose income does not exceed the statutory minimum wage.

Meanwhile, the beneficiaries of DSWD programs already receiving regular assistance, such as households under the Pantawid Pamilyang Pilipino Program (4Ps) and indigent senior citizens who receive their P1,000 monthly social pension, are disqualified from receiving any form of assistance provided under AKAP.

DSWD Assistant Secretary and spokesperson Irene Dumlao added that beneficiaries who receive food, medical, funeral, and cash relief assistance through the Assistance to Individuals in Crisis Situation (AICS) program will be subject to the AKAP’s aid availability limitations and frequency rules.

Payment schemes

Dumlao pointed out that the AKAP program offers assistance in two modalities.

“The first is the direct implementation by the DSWD through the Crisis Intervention Unit/Sections (CIU/S) of the Central and Field Offices (FOs), respectively, as well as the Social Welfare and Development Satellite Offices (SWAD Office) nationwide,” she said.

“The second modality is through DSWD partners like local government units (LGUs), which will assist the agency in implementing AKAP, whether at the provincial, municipal, city or even at the barangay (if capable) level,” she added.

“Since the rising price of rice is the main contributory factor in inflation, the AKAP program was designed to provide beneficiaries with affordable rice using the two modalities for LGUs. What is important is to help minimum wage earners recover their eroded income through rice subsidy,” she explained.

A memorandum of agreement will be executed between the concerned LGU and DSWD, subject to the conditions under MC No. 4.

“The LGU shall take full responsibility for the proper disposition/disbursement of funds. Further, the said fund is not transferable to any other LGUs,” Dumlao said.

“Liquidation of funds transferred to LGUs shall be governed by COA Circular 94-013. Further, LGUs that have unliquidated CAs with DSWD shall not be eligible for fund transfer,” she added.

MC No. 4 provides outright cash assistance ranging from P1,000 to P10,000, depending on the assessment of DSWD social workers. 

Cash assistance over P10,000 will be provided via a Guarantee Letter approved by the DSWD secretary.

Dumlao said that minimum wage earners who are eligible for the AKAP program can apply by presenting any of the following documents or records issued within three months: contract of employment duly signed by the parties; certificate of employment with compensation or pay slip with full name and signature; income tax return (ITR); and any other document showing that the client’s income does not exceed the statutory minimum wage.