Q & A on the Amended Migrant Workers Act (AMWA – Republic Act No.

10022)

Four months after the passage of the Act and prior to its effective implementation, this edition of the
Philippine Shipping Update will try to explain the new law in the form of a simple Q&A. (Some of the
statements contained below are opinions of Del Rosario & Del Rosario and does not constitute legal
advice)

I. EFFECTIVITY DATE OF THE AMWA

Q: When did the Amended Migrant Workers Act (AMWA) become law?

A: The Act became law on 8 March 2010 and took effect on 9 May 2010 after satisfying the publication
requirement. However, for the law to be effectively implemented, the Act required Implementing Rules
and Regulations (IRR). The IRR was prepared and signed July 8, 2010 and it becomes fully effective after
publication in two (2) newspapers of general circulation. It is expected that said publication will be done
soonest.

Q: Can the Act be now implemented after the Implementing Rules and Regulations (IRR) have been
published in two (2) newspapers of general circulation?

A: Yes, the law can now be fully implemented with the exception of the “Compulsory Insurance
Coverage” provisions (Sec. 23 / 37-A, AMWA). Under the IRR, the Insurance Commission shall within 30
days from effectivity of the IRR consult with the concerned government agencies and private sector, in
order to issue the necessary rules and regulations, which shall include the following:

1. Qualification of participating insurers;

2. Accreditation of insurers;
3. Uniform Standard Policy format;
4. Premium rate;
5. Benefits;
6. Underwriting Guidelines;
7. Claims procedure;
8. Dispute settlement;
9. Administrative monitoring and supervision; and
10. Other matters deemed necessary. (Sec. 15, Rule XVI, IRR)

II AREAS OF CONCERN HAVING AN IMPACT ON SEAFARERS AND THE MANNING INDUSTRY

A. On Illegal Recruitment / Non-Filipino Citizen

Q. Section 5(n) on illegal recruitment prohibits a non-Fiipino citizen to head or manage a licensed
recruitment/manning agency. Can a non-Filipino representative of the shipowner/shipmanager hold
a position in the office of the manning agents?

A. Yes, provided he does not head or manage the manning agency. According to the IRR, the terms
“head” or “manage” refers to any of the following acts:

1. Control and supervise the operations of the recruitment/manning agency or branch thereof of
which they are employed; or
2. Exercise the authority to hire or fire employees and lay down and execute management policies of
the recruitment/manning agency or branch thereof. [Rule II, Sec.1(r)]

Q: What does illegal recruitment mean?

A: Illegal recruitment shall mean any act of canvassing, enlisting, contracting, transporting, utilizing,
hiring, or procuring workers and includes referring, contract services, promising or advertising for
employment abroad, whether for profit or not, when undertaken by non-licensee or non-holder of
authority contemplated under Article 13 (f) of Presidential Decree No. 442, as amended, otherwise
known as the Labor Code of the Philippines: Provided, that any such non-licensee or non-holder who, in
any manner, offers or promises for a fee employment abroad to two or more persons shall be deemed
so engaged.

Q. Is a case of a seafarer who has signed a contract of employment but not deployed considered
illegal recruitment

A: No. The mere signing of an employment contract is not considered illegal recruitment. To be liable
for illegal recruitment, there must be failure to deploy a contracted worker without a valid reason as
determined by the Department of Labor and Employment. When the seafarer signs a contract of
employment, the seafarer cannot be classified as a “contracted” worker because according to the IRR, to
be considered as a contracted worker, said seafarer’s employment contract has already been processed
by the POEA for overseas deployment. [Sec. 5 Sec. 6 (l) AMWA in relation to Rule II Sec. (f) IRR]

B. On Prohibited Acts – Medical Clinics and Training Institutions

Q: Can the manning agents require the seafarer to undergo health examinations only from specifically
designated medical clinics, institutions, entities or persons?

A: Yes provided the cost of the health examination will be shouldered by

principal/shipowner. Otherwise, the seafarer has the right to choose his own service provider.

Q: Can the manning agents require a seafarer to undergo recommendatory training, seminar,
instruction or schooling only from specifically designated institutions, entities or persons?

A: Yes provided the cost of recommendatory training will be shouldered by the

principals/shipowners. Otherwise, the seafarer has the right to choose his own service provider.
1. Persons Liable and Corresponding Penalties

Q: Who are the persons that can be held criminally liable for acts constituting illegal recruitment and
prohibited acts?

A: The persons that can be held criminally liable for illegal recruitment and prohibited acts are the
principals, accomplices and accessories. In case of juridical persons, the officers having ownership,
control, management or direction of their business who are responsible for the commission of the
offense and the responsible employees/agents thereof shall be liable.

Q: What are the penalties provided in the amended law for the commission of illegal recruitment and
prohibited acts?

A: (a) Any person found guilty of illegal recruitment shall suffer the penalty of imprisonment of not less
than twelve (12) years and one (1) day but not more than twenty (20) years and a fine of not less than
One Million pesos (P1,000,000.00) nor more than Two Million pesos (P2,000,000.00).

(b) Any person found guilty of any of the prohibited acts shall suffer the penalty of imprisonment of not
less than six (6) years and one (1) day but not more than twelve (12) years and a fine of not less than
Five Hundred Thousand pesos (P500,000.00) nor more than One Million pesos (P1,000,000.00).

(c) If the offender is an alien, he or she shall, in addition to the penalties herein prescribed, be deported
without further proceedings.

(d) In every case, conviction shall cause and carry the automatic revocation of the license or registration
of the recruitment/manning agency, lending institution, training school or medical clinic.

C. On Money Claims

1. Jurisdiction

Q: Which quasi-judicial body or agency of the government has jurisdiction over money claims of
seafarers?

A: The Labor Arbiters of the National Labor Relations Commission (NLRC) shall have the original and
exclusive jurisdiction to hear and decide, within ninety (90) calendar days after the filing of the
complaint, the claims arising from an employer-employee relationship or by virtue of any law or
contract involving Filipino workers for overseas deployment including claims for actual, moral,
exemplary or other form of damages.

Q. Is there a provision on voluntary arbitration in the law?

A. The IRR states that for OFW’s with Collective Bargaining Agreements, the case may be submitted for
voluntary arbitration in accordance with Articles 261 and 262 of the Labor Code. (Rule VII, Sec. 7). Note
the use of the word “may” which means it is not mandatory to submit to voluntary arbitration.
2. On Joint and Solidary Liability of the Manning Agents and their Officers, Directors and Partners

Q: Is the joint and solidary liability of the corporate officers and directors and partners with the
corporation or partnership for money claims of the seafarers retained in the amended law?

A: Yes the above nature of liability of the corporate officers, directors and partners was retained in the
amended law.

3. On the Liability of the Manning Agents on Illegal Dismissal and Unauthorized Deduction on
Seafarer’s Salary

Q: What is the extent of liability of the manning agents/principals in case of termination of a seafarer
without just, valid or authorized causes or any unauthorized deductions from the seafarer’s salary?

A: The seafarer shall be entitled to the following: (1) full reimbursement of the deductions made with
interest at twelve (12%) per annum; and (2) salaries for the unexpired portion of his employment
contract or for three (3) months for every year of the unexpired term, whichever is less.

4. Effect of a Final and Executory Judgment of the NLRC

Q: What is the effect of a final and executory judgment of the NLRC against a foreign
employer/principal?

A: The foreign employer/principal shall be automatically disqualified from participating in the Philippine
Overseas Employment Program until and unless it fully satisfies the judgment award. The POEA shall
issue an order of disqualification after it receives from the NLRC or any interested party a certified true
copy of the sheriff’s return indicating the failure to fully satisfy a final and executory judgment against a
foreign employer/principal.

5. On the Legal Assistance Fund

Q: What is the purpose sought to be achieved in creating the Legal Assistance Fund?

A: The Legal Assistance Fund shall be used exclusively to provide reasonable legal services to migrant
workers and overseas Filipinos in distress in accordance with the approved guidelines, criteria and
procedures of the Department of Foreign Affairs.

Q: What are the uses of the Legal Assistance Fund?

A: The Legal Assistance Fund shall be used exclusively for the following specific purposes:

(a) In the absence of counsel de oficio or court-appointed lawyer, payment of attorney’s fees to
foreign lawyers for their services in representing migrant workers facing criminal and labor cases
abroad, or in filing cases against erring or abusive employers abroad, provided, that no amount shall be
disbursed for the appeal of cases except when the penalty meted is life imprisonment or death or under
meritorious circumstances as determined by the Undersecretary for Migrant Workers Affairs.
(b) Bail bonds to secure the temporary release of workers under detention upon the recommendation
of the lawyer and the foreign service post concerned; and
(c) Court fees, charges and other reasonable litigation expenses when so recommended by their
lawyers.

Q: Can a seafarer who is currently facing criminal and labor charges abroad or a seafarer who has filed
a case in foreign jurisdiction seek reimbursement from the Legal Assistance Fund for the expenses
incurred in defending or prosecuting the case?

A: The seafarer can seek reimbursement from the Legal Assistance Fund subject to approved guidelines,
procedures and criteria, governing its use, disposition and disbursement. The said guidelines are to be
issued by the Office of the Legal Assistant for Migrant Workers Affair but to date, no such guidelines
have been issued.

6. On Tax Exemption Granted to the Migrant Worker

Q: Are there tax incentives available to the migrant workers under the old and the amended law?

A: Under the old law, the migrant worker shall be exempt from the payment of travel tax and airport fee
upon proper showing of proof of entitlement by the POEA. In the new law, in addition to the afore-said
exemption, it is further provided that the remittances of all overseas Filipino workers, upon showing of
the same proof of entitlement by the overseas Filipino worker’s beneficiary or recipient, shall be exempt
from the payment of documentary stamp tax.

7. On Repatriation of Workers

Q. Who has primary responsibility for repatriation of workers?

A. The primary responsibility for repatriation now rests with the principal or agency without a prior
determination of the cause of the termination of the worker’s employment. Upon the worker’s return
to the country, the principal or agency may recover the cost of repatriation from the worker if the
termination of employment was due solely to his or her fault. (Rule XIII, Sec. 1, IRR)

8. Compulsory Insurance Coverage for Migrant Workers

a. Benefits Covered

Q: What are the benefits covered by the Compulsory Insurance Coverage provided under Section 37-A
of the amended law?

A: The benefits covered are as follows:

(1) Accidental death, with at least USD15,000 survivor’s benefit payable to the migrant worker’s
beneficiaries;

(2) Natural death of at least USD10,000 survivor’s benefit payable to the migrant worker’s
beneficiaries;

(3) Permanent total disablement, with at least USD7,500 disability benefit payable to the migrant
worker. The following disabilities shall be deemed permanent: total, complete loss of sight of both eyes;
loss of two limbs at or above the ankles or wrists; permanent complete paralysis of two limbs; brain
injury resulting to incurable imbecility or insanity;

(4) Repatriation cost of the worker when employment is terminated without any valid cause, including
transport of his personal belongings; repatriation of remains in case of death of the seafarer including
assistance on the requirements for repatriation of remains;

(5) Subsistence allowance benefit of at least One hundred US Dollars (USD100) per month for a
maximum of 6 months for a migrant worker who is involved in a litigation in receiving country;

(6) Money claims arising from employer’s liability equivalent to at least 3 months’ salary for every year
of the migrant worker’s employment contract;

(7) Compassionate visit when a migrant worker is hospitalized and has been confined for at least 7
consecutive days wherein the insurance provider will shoulder the transportation cost of one family
member of the migrant worker in going to the major airport closest to the place of hospitalization of the
migrant worker;

(8) Medical evacuation cost when there is no proximate adequate medical facility; and

(9) Medical repatriation cost when medically cleared to travel by commercial carrier; if period to receive
such clearance exceeds 14 days, an alternative mode of transportation, such as air ambulance, may be
arranged; medical escorts shall also be provided if necessary.

b. Concept of Insurance Cover

Q: Is the coverage of the seafarer mandatory under Section 37-A of the amended law?

A: Yes, each migrant worker deployed by a recruitment/manning agency shall be covered by a

compulsory insurance policy.

Q: To whom did the amended law impose the burden of shouldering the cost of premium of the
compulsory insurance policy?

A: The amended law placed the burden on the employer and in fact, it states that the policy shall be
secured at no cost to the migrant worker.

Q: What are the consequences, if any, if the migrant worker pays for the premium of the compulsory
insurance coverage:

A: The responsible employees of the manning agent or the foreign principal can be held criminally liable
with a penalty of 6 years and 1 day to 12 years and a fine of Php500,000.00 to Php1,000,000.00. Further,
the licensed recruitment/manning agency shall lose its license and all its directors, partners, proprietors,
officers and employees shall be perpetually disqualified from engaging in the business of recruitment of
overseas workers.

Q: What is the period covered by the compulsory insurance policy?

A: The insurance policy shall be effective for the duration of the migrant worker’s employment contract.

Q: After the publication of the recently signed Implementing Rules and Regulations, can the POEA still
issue an Overseas Employment Certificate to a seafarer even without the compulsory insurance policy
being submitted to the POEA ?

A: Yes the Overseas Employment Certificate can still be issued to a seafarer even without the
compulsory insurance policy. The rules and regulations for said compulsory insurance requirement is
still to be drafted and finalized. (Sec. 15, Rule XVI, IRR and Sec. 2, Rule XX, IRR)

Q: After the formulation of the necessary Rules and Regulations of said compulsory insurance
policy, can the seafarer’s application for overseas deployment still be processed with the POEA even
without the compulsory insurance policy? (Sec. 15, Rule XVI, IRR)

A: No, upon issuance of the necessary Implementing Rules and Regulations referred to in Section 15
Rule XVI of the IRR, the certificate of compulsory insurance coverage shall be submitted to the POEA as a
requirement for the issuance of an Overseas Employment Certificate to the seafarer.

c. Qualification of Insurance Provider

Q: Who can be an insurance provider under Section 37-A of the amended law?

A: The insurance cover can be obtained either from a foreign insurance company or from a local insurer
provided said local insurance company is reputable, duly registered with the Insurance Commission,
which are in existence and operational for at least five (5) years, with a net worth of at least Five
Hundred Million pesos (Php500,000,000.00) to be determined by the IC, and with a current year
certificate of authority. Further, under the IRR, the term foreign insurance companies was further
expanded to include “entities providing indemnity cover to the vessel.”

d. Jurisdiction and Period to Resolve Insurance Claims

Q: Where must one file insurance claims?

A: Any person having an insurance claim upon the policy shall present to the insurance company
concerned a written notice of claim together with pertinent supporting documents. (Sec. 37-A, a,b,c,d,e,
AMWA)

Q: What is the period required for an insurance company to resolve a claim?

A: The insurance company shall ascertain the truth and extent of the claim and make payment within
ten (10) days from the filing of the notice of claim.

Q: Which quasi-judicial body or agency can exercise jurisdiction over claims involving the compulsory
insurance coverage?

A: Any question or dispute in the enforcement of any insurance policy issued under Section 37-A shall be
brought before the Insurance Commission for mediation or adjudication.

e. Documents Required in Processing of Insurance Claims

Q: What are the documents that will be required by the insurance provider in the processing of the
claim?

A: The following documents shall be sufficient evidence to substantiate the claim:

1. In case of natural or accidental death – death certificate;

2. In case of accidental death – police or accidental report;
3. In case of permanent disablement – medical certificate;
4. For repatriation under subparagraph (d) of Section 37-A – a certification which states the reason/s
for the termination of the migrant worker’s employment and the need for his or her repatriation shall
be issued by the Philippine foreign post or the Philippine Overseas Labor Office located in the receiving
country;
5. For subsistence allowance benefit under subparagraph € of Section 37-A, the concerned labor
attaché or, in his absence, the embassy or consular official shall issue a certification which states the
name of the case, the names of the parties and the nature of cause of action of the migrant worker.

f. Rules Governing Payment of Money Claims [Sec. 23, Sec. 37-A (f)]

Q: What are the rules governing the payment of money claims under subparagraph (f) of Section 37-
A?

A: The rules are as follows:

1. After a decision has become final and executory or a settlement/compromise agreement has been
reached between the parties at the NLRC, an order shall be released mandating the respondent
recruitment/manning agency to pay the amount adjudged or agreed upon within thirty (30) days;
2. The recruitment/manning agency shall then immediately file a notice of claim with its insurance
provider for the amount of liability insured, attaching therewith a copy of the decision or compromise
agreement;
3. Within ten (10) days from the filing of notice of claim, the insurance company shall make payment
to the recruitment/manning agency the amount adjudged or agreed upon, or the amount of liability
insured, whichever is lower. After receiving the insurance payment, the recruitment/manning agency
shall immediately pay the migrant worker’s claim in full, taking into account that in case the amount of
insurance coverage is insufficient to satisfy the amount adjudged or agreed upon, it is liable to pay the
balance thereof;
4. In case the insurance company fails to make payment within ten (10) days from the filing of the
claim, the recruitment/manning agency shall pay the amount adjudged or agreed upon within the
remaining days of the thirty (30)-day period, as provided in the first subparagraph hereof;
5. If the worker’s claim was not settled within the aforesaid thirty (30)-day period, the
recruitment/manning agency’s performance bond or escrow deposit shall be forthwith garnished to
satisfy the migrant worker’s claim;
6. The provision of compulsory worker’s insurance under shall not affect the joint and solidary liability
of the foreign employer and the recruitment/manning agency under Section 10 of the amended law;
7. Lawyers for the insurance companies unless the latter is impleaded, shall be prohibited to appear
before the NLRC in money claims cases under Section 37-A of the amended law.

g. Effect of Payment Made under the Amended Law vis-à-vis the Claim of Seafarers Under the
Provisions of the POEA Standard Employment Contract or Collective Bargaining Agreements

Q: What is the effect, if any, on the claim of the seafarer under the provisions of the POEA Standard
Employment Contract or Collective Bargaining Agreements upon receipt by the seafarer or his
beneficiary of the benefits enumerated in the amended law?

A: On the assumption that the claim is compensable under the provisions of the POEA Standard
Employment Contract or Collective Bargaining Agreement, the amounts provided in (a), (b) and (c) of
Section 37-A of the amended law shall form part of and be deducted from whatever benefits the
seafarer may be entitled to under the provisions of the POEA Standard Employment Contract or
Collective Bargaining Agreement.. (Sec. 7 Rule XVI, IRR)

III. APPLICATION OF THE AMENDED LAW

Q: Does the amended law have retroactive application?

A: No, because the amended law does not contain a provision stating that it can be applied
retroactively. This is in accordance with Article 4 of the Philippine Civil Code which states that “Laws
shall have no retroactive effect, unless the contrary is provided”.

In the country, former president Gloria Macapagal-Arroyo designated in 2006 December 3 as

"International Day of Persons with Disabilities in the Philippines." The National Council for the Welfare
of Disabled Persons (now called the National Council on Disability Affairs, or NCDA) was tasked as lead
agency for all activities related to this celebration.

Republic Act 7277, or the Magna Carta for Disabled Persons, defined PWDs as "those suffering from
restriction of different abilities, as a result of a mental, physical or sensory impairment, to perform an
activity in the manner or within the range considered normal for a human being."
Based on the 2010 Census, there are 1,443,000 PWDs comprising 1.57% of the total population, in the
country. In the 2013 elections, there were around 365,000 registered PWD voters.

What benefits are they entitled to based on legislation and government proclamations? Here's what we
found.

20% discount on:

 hotels and similar lodging establishments, restaurants and recreation centers

 theaters, cinema houses, concert halls, circuses, carnivals and other similar places of culture,
leisure and amusement
 medicines in all drugstores
 medical and dental services, including diagnostic and laboratory fees, in all government facilities
(subject to guidelines to be issued by DOH in coordination with PhilHealth
 medical and dental services, including diagnostic and laboratory fees, and professional fees of
attending doctors in all private hospitals and medical facilities (in accordance with the rules and
regulations to be issued by DOH in coordination with PhilHealth)
 domestic air and sea travel
 public railways and bus fare
 skyways and expressways toll fees (for PWD owning a vehicle)

5% discount on:

 basic necessities (rice, corn, bread, fresh, dried and canned fish and other marine products,
fresh pork, beef and poultry meat, fresh eggs, fresh and processed milk, infant formulas, fresh
vegetables, root crops, coffee, sugar, cooking oil, salt, laundry soap, detergents, firewood,
charcoal, candles and other commodities as maybe classified by the DTI and the DA)
 prime commodities (fresh fruits, dried, processed and canned pork, beef and poultry, meat,
dairy products not falling under basic necessities, noodles, onions, garlic, diapers, herbicides,
poultry, swine and cattle feeds, veterinary products for poultry, swine and cattle feeds,
veterinary products for poultry, swine and cattle, paper, school supplies, nipa shingle, plyboard,
construction nails, batteries, electrical supplies, light bulbs, steel wire and other commodities
that may be classified by DTI and DA)

NOTE: Total amount of said purchase should not exceed P1,300 per calendar week without carry over of
the unused amount

Employment Opportunities:

 all government agencies, offices or corporations shall reserve at least 1% of all positions for
PWDs
 private corporations with more than 100 employees are encouraged to reserve at least 1% of all
positions for PWDs

Other Privileges:

 express lanes in all commercial and government establishments

  accessible biometrics registration and voting precincts
 designated PWD-friendly public attorneys
 educational assistance to pursue primary, secondary, tertiary, post tertiary, as well as vocational
or technical education in both public and private schools
 protection against verbal and non-verbal ridicule and vilification
 P15,000 worth of benefits to qualified PhilHealth members or dependents in need of lower limb
prosthesis
 establishment of a Persons with Disability Affairs Office (PDAO) in every province, city and
municipality
 accessible website of all government agencies

To avail of these privileges and perks, a PWD should secure and present a PWD ID. Details on
registration and application may be found here.

Problems

But despite all these perks, NCDA claims that PWDs still encounter problems such as poverty and
discrimination.

Months ago, photos of a disabled person and a dog denied access to a mall became viral. The incident
turned out to be a simple misunderstanding, but it raised the issue of whether private establishments
are considerate of the needs of PWDs.

Moreover, in the 2013 elections – considered to be more PWD-inclusive compared to past elections –
only 82,000 out of the 365,000 registered PWD voters were able to cast their votes.

Many establishments still lack ramps, functioning elevators, and necessary facilities. Also, oppportunities
are lost because of lack of proper funding for PWD programs.

In a dialogue, NCDA director Carmen Reyes Zubiaga said that PWDs are "not asking the government for
special treatment, but only for them to address our reasonable accommodation.” – Rappler.com

Recto: Why the delay in implementing VAT exemption for PWDs?

The Senate Minority Leader says 7 months since the law was signed, concerned government agencies
have yet to promulgate its implementing rules and regulations

MANILA, Philippines – "Like a new car which sits in the garage but can't be driven out yet."

This was how Senate Minority Leader Ralph Recto described the status of Republic Act 10754, the law
that exempts persons with disabilities (PWDs) from value added tax (VAT) payment. The law, passed in
March, has no implementing rules and regulations (IRR) until now, according to the senator.

President Benigno Aquino III signed RA 10754, which amends Magna Carta for Disabled Persons, last
March 23.

Under RA 10754, PWDs will be VAT-exempt on the following:

  Land transportation, domestic air and sea travels
 Fees and charges for medical and dental services, including diagnostic and laboratory fees
 Professional fees of attending doctors in all government facilities and private hospitals and
medical facilities
 Cost of medicines
 Funeral and burial services
 Fees and charges in hotels, restaurants and recreation centers
 Admission fees in theaters, cinema houses, concert halls, and other similar places of culture,
leisure, and amusement

Aside from the VAT exemption, the law also grants a P25,000-annual income tax deduction to relatives
within the 4th civil degree of consanguinity or affinity, who are caring for and living with a PWD.

In a statement on Thursday, October 27, Recto appealed to concerned government agencies to come
out with the IRR, as it has been 7 months since the law was signed.

The IRR, he said, is the "missing link in [the law's] full implementation."

Recto also refused to give in to a "conspiracy theory" that the IRR is "being deliberately withheld due to
the plan of the government's economic managers to repeal all tax discounts of PWDs."

RA 10754 mandates the Department of Social Welfare and Development (DSWD) to promulgate the IRR,
in consultation with the Department of Health, the Department of Finance, and the National Council on
Disability Affairs (NCDA).

It is stated in the provisions of the law that the failure of these agencies to promulgate the IRR does not
prevent the implementation of the law.

But Recto said entities affected by the law, like drug stores, consider the IRR a requisite before providing
discounts for PWDs' purchases.

The senator noted, however, that the law merely grants PWDs with the benefits already enjoyed by
seniors – an "existing template" and a "tried system already in place."

"So we're not starting from scratch…. From points of sale sa [in] stores, may sistema na [there's a
system already]," he added.

Despite the "automatic implementation clause" in the law, Recto said nothing can replace a set of
written rules for clear implementation.

According to a post on the NCDA website, DSWD and NCDA held a national consultation on the IRR of RA
10754 last September 13.

During the consultation, they clarified issues, such as the classification of disabilities, the computation of
the VAT exemption, and the 20% discount in the Magna Carta for Disabled Persons, and the issuance of
a PWD ID as proof of entitlement, among others. – Jee Y. Geronimo/Rappler.com
WDs push for automatic PhilHealth coverage

The National Council on Disability Affairs says outpatient services should also be included in the
coverage

UNIVERSAL HEALTH. Persons with disabilities call for automatic PhilHealth coverage for their sector. File
photo by George Moya/Rappler

MANILA, Philippines – A recent study released by the International Labor Organization (ILO) found that
half of the world's population lacks adequate social protection – something that rings true especially for
persons with disabilities (PWDs).

In celebration of the International Day for PWDs, the National Council on Disability Affairs (NCDA) called
on the government to expand the social protection given to the sector, particularly in terms of health
coverage.

"Social protection is very inadequate for PWDs. We are pushing for automatic PhilHealth membership,"
said NCDA Executive Director Carmen Zubiaga on Monday, December 4.

"The PhilHealth services should also include an annual checkup, because PhilHealth only covers
inpatient services. You first have to be admitted before you can be treated. It also has to have
outpatient services like x-ray and laboratory," she added.

PWDs are already entitled to this benefit under Republic Act No. (RA) 7277 or the Magna Carta for
PWDs. But Zubiaga said the law still needs a memorandum circular approved by the PhilHealth Board,
which would set the implementing guidelines. (FAST FACTS: What persons with disability are entitled to)

Inclusivity

Aside from the universal health coverage, advocates are also pushing for the establishment of a Persons
with Disability Affairs Office (PDAO) in each city or municipality as stated in RA 10070. (READ: LGU
empowers persons with autism through employment)

InciteGov program manager Niño Versoza said most LGUs have failed to comply with the law. Instead of
having a PDAO in their area, they simply designate PWD-related tasks to a specific person.

"Having two people attend to PWD affairs is already big manpower [if you look at the trend in LGUs].
There are really areas where there is no person designated to cater to the needs of the PWDs. This is
especially in rural areas where PWDs become more vulnerable," he said.

A PDAO does not only assist PWDs in an area, but also coordinates with them so they would be involved
in local planning. (READ: Here's how you can apply for a PWD ID)

"If there's no general assembly, you have weaker programs for PWDs because they are not convened
and you can't see their demands," said Versoza.
During Monday's celebration, Bureau of Local Government Supervision Director Odilon Pasaraba of the
Department of the Interior and Local Government (DILG) committed to auditing LGUs which haven't
complied with the law. He also said that they already released a memorandum circular to help organize
PWDs.

A gray area, however, is whether the DILG will incentivize or penalize LGUs.

Accessibility

The NCDA, together with Global Electric Transport (GET) Philippines, also launched a model of PWD-
friendly public transportation. (READ: Tricycles for the disabled a dream come true in Marikina)

Transportation Secretary Arthur Tugade said this would be part of the government's public utility vehicle
(PUV) modernization program, according to Zubiaga.

"In most countries, PWD-accessible public transportation is automatic. But here, it slips through the
cracks... When we met with [the NCDA], they explained to us their daily plight. Their biggest plight is
mobility," said GET Philippines president Freddie Tinga.

"They don't want to be assisted. So if you can give them direct access to a vehicle that won't require
help from others, it's going to be a perfect solution," he added. – Rappler.com

ADDITIONAL BENEFITS

I. At least 20% Discount and VAT exemption on the following:

Note: The sale of goods and services for the exclusive use and enjoyment or availment of the PWD

1. Fees and charges relative to the utilization of all services in hotels and similar lodging
establishments; restaurants and recreation centers;
2. Admission fees charged by theaters, cinema houses, concert halls, circuses, carnivals and
other similar places of culture, leisure and amusement;
3. Purchase of medicines in all drugstores
4. Medical and dental services including diagnostic and laboratory fees such as, but not
limited to, x-rays, computerized tomography scans and blood tests, and professional fees
of attending doctors in all government facilities
5. Medical and dental services including diagnostic and laboratory fees, and professional
fees of attending doctors in all private hospitals and medical facilities
6. Fare for domestic air and sea travel
7. Actual fare for land transportation travel such as, but not limited to, public utility buses
or jeepneys (PUBs/PUJs), taxis, asian utility vehicles (AUVs), shuttle services and public
railways, including light Rail Transit (LRT), Metro Rail Transit (MRT) and Philippine
National Railways (PNR)
8. Funeral and burial services for the death of the PWD.
  The person who shouldered the funeral and burial expenses shall claim the discount upon
the presentation of the death certificate of the deceased PWD.
 Expenses include purchase of casket or urn, embalming, hospital morgue, transport of the
body to intended burial site in the place of origin.
 It excludes obituary publication and the cost of the memorial lot.

II. Educational Assistance for PWD

 Includes primary, secondary, tertiary, post tertiary, as well as vocational or technical

education, in both public and private schools.
 How: Scholarships, grants, financial aids, subsidies and other incentives to qualified PWD,
including support for books, learning materials, and uniform allowance to the extent
feasible
 Requirement: PWD shall meet the minimum admission requirements

III. Continuance of Social Security Benefits

 To the extent practicable and feasible, the continuance of the same benefits and
privileges given by the GSIS, SSS, and Pag-IBIG, as the case may be, as are enjoyed by
those in actual service.

IV. Special Discounts on Purchase of Basic Commodities

 To the extent possible, the government may grant special discounts in special programs
for PWD on purchase of basic commodities, subject to the guidelines to be issued by DTI
and DA;

V. Express lanes / priority lanes

 Provision of express lanes for PWD in all commercial and government establishments; in
the absence thereof, priority shall be given to them.

REQUIREMENTS TO AVAIL SAID BENEFITS

1. Must be a Filipino citizen (natural-born or naturalized may avail since the law does not
distinguish)
2. Submission of any of the following as proof:

 An identification card issued by the city or municipal mayor or the barangay captain of
the place where the PWD resides,
 The passport of the PWD concerned, or
 Transportation discount fare Identification Card (ID) issued by the National Council for
the Welfare of Disabled Persons (NCWDP)
TAX TREATMENT OF DISCOUNT

 Tax deduction from the gross income of the establishment for the same taxable year that
the discount is granted.

PWD as DEPENDENTS FOR PURPOSES OF ADDITIONAL PERSONAL EXEMPTION FOR INDIVIDUAL

TAXPAYERS

Taxpayers caring for and living with PWDs may treat them as dependents and claim additional
personal exemption of P25,000. This is subject to the provision of NIRC that qualified dependents
shall not exceed four (4).

 Requisites for PWD to be considered as a dependent:

1. Within the fourth civil degree of consanguinity or affinity to the taxpayer

2. Regardless of age
3. Not gainfully employed and chiefly dependent upon the taxpayer
4. Under the care and living with the taxpayer