Philippines: $20 monthly pension for every senior on top of $2,000 for every centenarian? How much it would cost

Manila: A proposed bill granting all senior citizens in the Philippines a monthly "social pension" has gained renewed attention. 

Under the measure, indigent seniors would receive Php1,000 (about $20) per month, while non-indigents would initially get Php500. Within five years, the bill aims to provide at least Php1,000 monthly to all elderly Filipinos.

On Monday, around 5,000 members of senior citizens' organizations gathered at the Senate for a prayer rally, urging lawmakers to prioritize the bill's passage.

The Philippines has a pension system for both private sector (Social Security System) and government workers (Government Service Insurance System, GSIS).

But the Asian country has no universal pension for its elderly population not covered by either SSS or GSIS.

House Bill 10423

In May 2024, the House of Representatives approved House Bill 10423 on its third and final reading. 

This measure seeks to expand the social pension under Republic Act 7432 to include all Filipinos aged 60 and above.

Stalled in the Senate

However, the counterpart Senate bill, filed by Senator Risa Hontiveros in 2022, has remained stalled at the committee level.

FACT FILE:

As of March 2024, the number of senior citizens in the Philippines was estimated to be around 4.4 million.

This is based on the number of senior citizens who had registered with the National Commission of Senior Citizens (NCSC).

HOW TO ESTABLISH INDIGENCY: For someone to be considered an "indigent", an "indigency certificate" must be issued by the Punong Barangay (Village Captain), where the person resides.

Failed legislation in 19th Congress?

United Senior Citizens (USC) Party-list Representative Milagros Aquino-Magsaysay voiced concerns over delays, stating that failure to pass the bill in the current 19th Congress would require the measure to be refiled in the next session.

“We urge the Senate to act swiftly. We only have until February 7 to pass this much-needed intervention,” Magsaysay said in a statement.

Funding and adjustments

Representative Stella Quimbo, the bill’s sponsor in the House, also joined the rally. She identified potential funding sources for the expanded pension programme and emphasised its importance to the senior citizen community.

The measure further requires the Department of Social Welfare and Development (DSWD) to review and adjust the pension every two years to align with economic changes.

Optional participation

The bill allows seniors to waive or opt out of the programme if they do not wish to receive the pension. 

Magsaysay acknowledged the programme's costs but argued that its benefits would outweigh the expenses.

“While not cheap, the universal social pension will help senior citizens become healthier and more productive,” she explained.

Rallying for support

Senior citizens at the rally echoed the sentiment, urging the Senate to prioritise the welfare of the elderly. They highlighted the need for the pension as a safety net to address rising costs of living and healthcare expenses.

The passage of the universal social pension bill is seen as a critical step toward ensuring a more secure and dignified life for the nation’s elderly population.