SHOULD WE HIRE A SENIOR CITIZEN?
In an article posted in Philstar, Director Dominique Tutay of DOLE’s Bureau of Local Employment revealed that the employment of seniors has increased the past years. She said that based on statistics, an improvement can be seen in the number of employed senior citizens.From 1.5 million in 2013 and 1.6 million in 2017, it went up to 1.8 million in 2018.
Recently, fast food chains had been employing senior citizens as part of their crew members. Many businesses and state universities are also hiring senior citizens as part of their workforce. Thus, is it a good idea to hire senior citizens?
Seniors citizens have a broad-based career background. This enables them to bring a wide variety of experience to their roles. Moreover, the law grants additional benefits to employers who hires senior citizens.
RA 9994 or the Expanded Senior Citizen’s Act defines Senior Citizen as any resident citizen of the Philippines at least sixty (60) years old. One of the objectives of the Expanded Senior Citizen’s Act is to motivate and encourage the senior citizens to contribute to nation building. To be able to achieve this objective, the state offers incentives to private companies who will employ senior citizens.
Expanded Senior Citizen’s Act grants private entities additional deduction from their gross income, to wit:
Private entities that will employ senior citizens as employees, upon the effectivity of this Act, shall be entitled to an additional deduction from their gross income, equivalent to fifteen percent (15%) of the total amount paid as salaries and wages to senior citizens, subject to the provision of Section 34 of the NIRC, as amended: Provided, however, That such employment shall continue for a period of at least six (6) months: Provided, further, That the annual income of the senior citizen does not exceed the latest poverty threshold as determined by the National Statistical Coordination Board (NSCB) of the National Economic and Development Authority (NEDA) for that year.
Thus, private entities that will employ senior citizen shall be entitled to an additional 15% deduction from their gross income provided that the employment of the senior citizen continued for at least six months, and provided further that the annual income of the senior citizen does not exceed the latest poverty threshold.
With such income tax deduction, and having in your team a potentially experienced employee, hiring senior citizens beckons a welcomed opportunity.