A BILL expanding unemployment insurance and aiding displaced workers to find new work was filed this week, as growing tensions in the Middle East threaten employment abroad and within the Philippines.
“We have seen the effects of global crises on Filipino workers everywhere, from forced repatriations to massive layoffs due to economic losses,” said Cong. Nathaniel “Atty. Nat” M. Oducado of the 1Tahanan Party List has filed House Bill No. 8586, or the “Expanded Unemployment Insurance and Employment Reintegration Act.
“This measure ensures that when Filipino workers lose their jobs through no fault of their own, the government stands firmly behind them with meaningful and timely support,” he continued.
HB 8586 aims to strengthen income protection for displaced Filipino workers and reinforce the country’s resilience amid global economic disruptions, expanding unemployment insurance coverage from two (2) months to four (4) months.
The payout from the insurance coverage shall be 50 percent of the member’s average monthly salary.
“Two months of partial income is simply not enough in an economy where job matching and retraining can take time, especially as geopolitical tensions abroad threaten fuel prices, supply chains, and domestic business stability,” Oducado emphasized.
The bill also reduces the required contributions from 36 months to 24 months, while maintaining the 12-month contribution requirement within the 18 months prior to involuntary separation.
“Our workers should not be penalized by technical limits when national emergencies, global conflicts, or government-mandated measures force enterprises to scale down or shut their doors,” Oducado added. “These are not dole-outs or hand-outs, but a social safety net for SSS members who regularly pay their contributions.”
Oducado assured the public that to avail of the coverage, beneficiaries must actively seek employment, register with Public Employment Service Offices, and participate in job search assistance, skills training, or re-skilling programs to facilitate rapid reintegration into the labor market.
The measure also retains the safeguard that an unemployed person may only avail of the benefit once every three years, but provides exceptions when one lost his job due to formally declared public health emergencies or “policy-related economic disruptions that cause significant business contraction, closure, or workforce reduction.”
