Gov't may Spend P6B for Unemployment Insurance

MANILA, Philippines - The government may spend at least P6 billion to provide financial assistance to those rendered jobless by the global financial crisis.

Manila must be prepared to provide unemployment insurance to an estimated 100,000 to 200,000 Filipinos facing the prospect of joblessness, Socioeconomic Planning Secretary Ralph Recto told reporters on Monday.

The unemployment insurance proposal will be formally submitted during this coming Tuesday’s cabinet meeting to be held in Pangasinan, Recto, also the director general of the National Economic and Development Authority (NEDA), said.

The Social Security System could provide unemployment insurance since those expected to lose their jobs were from the private sector, Recto said.

Financial assistance could last up to six months and unemployed individuals could personally file their claims in SSS offices.

Under the scheme, beneficiaries could receive a monthly allowance of between P5,000 to P10,000, depending on the number of beneficiaries, Recto said.

“Details would still have to be threshed out by the SSS board. This still needs a lot of discussion," he said.

If the SSS will be unable to shoulder the amount needed for the program, the national government should be ready to pay for the insurance, Recto said.

"I think we can afford this," he said, adding that the government must be able to implement “social protection" for its citizens.

“If you're saving for your retirement and in the event you lose your job, there is some assistance. This is social security...This is what social protection means," he said.

"There will be more job losses (now) than during the Asian financial crisis," he said.

During the 1997 financial crisis, about 80,000 Filipinos lost their jobs, while the under the current global meltdown, around 200,000 workers may face unemployment.

Recto also said the second round effect of the financial crisis may be the displacement of Filipino seafarers.

Declining global trade may prompt cargo companies to lay off seafarers, he said.

An estimated 50,000 Filipino seafarers are currently working onboard Japanese-owned vessels. Japan is the largest Filipino seafarer employer. - GMANews.TV

Original Article Source: GMANews.TV