Tax breaks pushed for businesses hiring seniors, PWDs

Tax breaks pushed for businesses hiring seniors, PWDs
City Government of Davao 
Published on

BUSINESSES that hire senior citizens and persons with disabilities (PWDs) could soon receive tax incentives under a proposed ordinance filed by Davao City Councilor Lorenzo Benjamin Villafuerte.

Villafuerte, chair of the City Council's Committee on Social Services, said he hopes to have the measure approved before the observance of the National Disability Prevention and Rehabilitation (NDPR) Week, with support from the executive department.

The proposed ordinance would grant tax deductions to businesses that employ senior citizens and PWDs, encouraging more companies to expand inclusive hiring.

"This will be a deduction from the tax. We are exploring whether or not this would be gross sales minus the salaries of PWDs, which would be the basis of our deduction, or flat rates, kaltas gyud nato ang businesses tax mismo, maybe 10 percent or lower than that, depending on the number of senior citizens and PWDs they would hire (This will be a deduction on the tax. We are still exploring whether the deduction should be based on gross sales minus the salaries paid to PWD employees or through a flat-rate reduction in the business tax itself, maybe 10 percent or even lower, depending on how many senior citizens and PWDs a business hires)," Villafuerte said during the Pulong-Pulong sa Dabawenyos on June 30 at the Sangguniang Panlungsod.

He said the City Council is still studying the most appropriate incentive scheme before finalizing the ordinance.

Villafuerte said two committee hearings have already been held, with another scheduled to determine the tax incentives businesses may receive. Representatives from the City Treasurer's Office, City Legal Office, and the Persons with Disability Affairs Office (PDAO) are expected to participate.

He said the ordinance is intended to strengthen the city's Special Employment Program for Senior Citizens and PWDs, which has already provided jobs for several beneficiaries.

Villafuerte also encouraged employers to go beyond the minimum hiring requirements set by law by opening more employment opportunities for senior citizens and PWDs.

Under Republic Act No. 10524, or the Magna Carta for Persons with Disabilities, government agencies and private companies are encouraged to reserve at least one percent of their positions for qualified PWDs.

Meanwhile, Republic Act No. 9994, or the Expanded Senior Citizens Act, provides that senior citizens who remain willing and able to work should be given access to employment information and job-matching services.

Earlier, the Public Employment Service Office (Peso)-Davao City reported that about 70 senior citizens joined the second batch of beneficiaries under the city's Senior Citizens Work Opportunity Ordinance beginning Jan. 15, 2026. Their deployment ended in April, making way for the program's third batch.

The initiative was first proposed during a privilege speech in October 2023 and later institutionalized through the Senior Citizens Work Opportunity Ordinance. It aims to help senior citizens and PWDs earn income, remain active, and continue contributing to their communities.

The Social Welfare Operations Division estimates that Davao City has about 170,000 senior citizens. RGP

SunStar Publishing Inc.
www.sunstar.com.ph