COVID-19 Adjustment Measures Program (CAMP) and Small Business Wage Subsidies (SBWS)

May 4, 2020

PEZA MEMORANDUM CIRCULAR NO. 027-20

 

This is to inform all PEZA registered enterprises on the status of implementation of the Department of Labor and Employment (DOLE) COVID-19 Adjustment Measures Program (CAMP) benefits and the Small Business Wage Subsidy (SBWS) program under the Department of Finance (DOF).

According to the DOF: The DOLE CAMP was planned as a one-time initial support to affected Filipino workers. However, as the COVID-19 pandemic persists, the number of DOLE CAMP applications has significantly increased. Although the government does not have enough resources for its initial set of programs to fight the corona virus (COVID-19), these funds are not unlimited. The government has to ensure that the subsidy is delivered to the most vulnerable sectors first. With this, the government has decided to pursue a broader, more targeted program called the "Small Business Wage Subsidy" (SBWS) program. HTcADC

Eligible PEZA locators may still apply for the SBWS on their employees' behalf, but their previous CAMP applications do not necessarily translate to eligibility for the SBWS. The SBWS program aims to support the employees of small business under either Category A (non-essentials), which are forced to stop operations (i.e., temporary closure or suspension of work), or Category B (quasi-essentials), which are allowed to operate a skeletal force. PEZA locators or export companies can apply under the SBWS for their employees if they meet the criteria above and if they are not part of the BIR's Large Taxpayer Service (LTS) list, among other requirements.

If eligible, PEZA workers who have already received assistance of 5,000 pesos from CAMP may still receive support under the SBWS. They will receive the first SBWS tranche in full: 5,000 to 8,000 pesos, depending on the regional minimum wage of their place of work, from May 1 to 15. For the second tranche, they will receive the difference (SBWS assistance minus the 5,000 pesos they received from CAMP). This ensures they will receive the same total amount in subsidy as non-CAMP beneficiaries.

In addition, the Philippine government's economic team is crafting a recovery and stimulus plan for the domestic economy, which is among the four pillars of the Duterte administration's socioeconomic strategy against COVID-19. These four pillars include the emergency support for the poor and other vulnerable groups, continuously mobilizing resources needed to fight the pandemic, and fiscal and monetary actions to fund emergency and medium-term initiatives as well as infuse liquidity to keep the economy afloat amid the global health crisis.

For more details on SBWS program, please visit https://sites.google.com/dof.gov.ph/small-business-wage-subsidy or https://bit.ly/2VhThFE. CAIHTE

(SGD.) BGEN. CHARITO B. PLAZA MNSA, PhDDirector General