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Decent Work Country Diagnostics:
Philippines 2017
International Labour Organization

Country Office for the Philippines
October 2017
Decent work country diagnostics:
ii Philippines 2017
Copyright © International Labour Organization 2017

First published 2017
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Decent work country diagnostics: Philippines 2017
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Printed in the Philippines

Foreword iii
Foreword (DOLE)
The national economic blueprint of the Philippines is anchored on “AmBisyon Natin 2040”, with
a long-term vision and aspiration for Filipinos to have decent jobs that bring sustainable income,
including opportunities for entrepreneurship.
The government, under the leadership of President Rodrigo Duterte, recognizes the importance of
creating more jobs and remains committed to protecting workers’ rights and welfare. The Department
of Labor and Employment (DOLE) is at the forefront to help achieve this goal, as a shared responsibility
with employers and workers in the country.
A comprehensive analysis and assessment of the decent work situation in the Philippines is vital to
gauge where we are and what needs to be done. The DOLE has thus collaborated with the International
Labour Organization (ILO) in the conduct of the Decent Work Diagnostics and consultation with
partners and stakeholders. The collaboration supports the country’s commitment to have decent jobs
for all.
Findings of the Diagnostics will further contribute to attaining the DOLE’s Eight-Point Labor and
Employment Agenda and to achieving President Duterte’s vision for workers and their families, as
well as employers.
Let me acknowledge all the work done to complete the Diagnostics. We have identified priorities as
well as challenges, and now we have opportunities ahead of us to find solutions and to work together
towards decent jobs for all Filipinos.
Mabuhay tayong lahat!
Silvestre H. Bello III

Secretary
Department of Labor
and Employment (DOLE)
iv Philippines 2017
Foreword (ILO)
The Decent Work Country Diagnostics presents labour market trends, conditions and challenges in the
Philippines. The Diagnostics offers a well-informed and comprehensive narrative of growth and decent
work situation.
Decent work reflects people’s aspirations for a better life as it drives economic growth and sustainable
development, reduces poverty and contributes to achieving the Sustainable Development Goals (SDG).
Promoting full and productive employment, extending social protection, guaranteeing rights at work
and ensuring social dialogue are key pillars of decent work.
Indicative priorities and challenges from the Diagnostics will serve as input to the Decent Work Country
Programme (DWCP), the Future of Work initiative of the ILO and the Common Country Assessments
(CCA) of the United Nations Development Action Framework (UNDAF). The Diagnostics will also
provide information for national development plans and strategies.
The ILO Country Office for the Philippines congratulates the Department of Labor and Employment
(DOLE) for producing the Diagnostics. Of course, this will not be possible without key inputs, comments
and contributions from our constituents – government, workers’ and employers’ organizations as well
as partners and stakeholders who participated in dialogue and consultations. Their voices matter in
validating the Diagnostics, in identifying priorities and challenges, and in building consensus to ensure
decent work for all.
More than a report, the Diagnostics is a tool to guide us on what needs to be done. It is a crucial step
in the continuing journey to support national efforts geared towards achieving economic growth and
sustainable development through decent work.
Khalid Hassan
Director
International Labour Organization (ILO)
Country Office for the Philippines
Contents
v
Contents
Foreword iii
List of tables viii
List of figures x
Acknowledgements xii
Abbreviations xiii
Executive summary xvi
Introduction 1
A. The national development framework for inclusive growth 3
B. Decent work for shared prosperity and elimination of poverty and
inequality 6
Section I. Overall setting 10
A. Demographic structure and dynamics 11
A.1 Age and sex demographics 11
A.2 Education, health and human development 11
A.2.1 Opportunities and access to education and technical-vocational
training 13
A.2.2 Provision of and access to health services 14
A.3 Budget allocation and challenges 14
B. Structure and performance of the economy 16
B.1 GDP growth and contributions by sector 16
B.2 Employment growth lags behind GDP growth 19
B.3 Sectoral shares in GDP and employment 19
B.4 National revenues, capital formation and investment attractiveness 20
Section II. Employment by status, informal employment and
the working poor 23
A. Labour force participation 25
B. Employment, unemployment and underemployment 25
B.1 Employment trends and patterns 25
B.2 Quality of employment 26
B.2.1 Formal sector employment and precarious employment increasing 27
B.2.2 Underemployment and informal and vulnerable employment. 29
B.3 Unemployment 30
B.4 A distinct problem NEET 32
C. Sectoral and enterprise performance in creating employment 32
C.1 Performance of the economic sectors 32
C.1.1 The dilemma of job-slow growth 32
C.1.2 Sectoral challenges 33
C.1.2.1 Transforming the agriculture sector 33
C.1.2.2 Reviving industry and manufacturing 34
C.1.2.3 Balancing and sustaining gains in services 35
C.2 Performance of enterprises 36
C.2.1 MSMEs: Dominant but weak 36
C.2.2 Enterprise challenges and constraints 37
D. Inclusiveness of growth 38
D.1 Growth inadequate to create enough decent work 38
vi Philippines 2017
D.2 Quality of employment 39

D.3 Poverty incidence and inequality are being reduced but remain
significant 41
D.4 Medium term projections: Employment growth and poverty reduction 43
E. Accelerating growth across sectors and in enterprises 44
F. Gearing up for a just transition toward sustainable development 46
Section III. Fundamental principles and rights at work
and international labour standards 50
A. The Philippine constitution and international labour standards 51
B. Work to be abolished 51
B.1 Forced labour 51
B.2 Child labour 53
C. Non-discrimination and equality of opportunity, access and treatment in
employment 55
C.1 Policy and legal framework 55
C.2 Policy performance and outcomes 56
C.2.1 Wide sex gap in labour force participation 56
C.2.2 Employment opportunities and access tend to be skewed
against women 57
C.2.3 Sex-based occupational segregation in wage and salary employment 58
C.2.4 Sex-based wage gap and differences in working hours 59
C.3 Call for additional legal measures and judicial developments 60
D. Freedom of association and the right to self-organization and collective
bargaining 63
D.1 Policy and legal framework 63
D.1.1 Private sector labour relations 63
D.1.2 Public sector labour relations 64
D.2 Policy performance and outcomes 66
D.3 Related issues: Security of tenure and dispute resolution 68
D.4 Issues and challenges 72
Section IV. Decent working conditions and occupational
safety and health 76
A. Working hours 77
B. Wages 77
B.1 Growth in real average wage is slow 77
B.2 Low paid employment 79
B.3 Minimum wage and its effects 80
B.4 Issues and challenges 81
C. Occupational safety and health standards 83
C.1 Policy and legal framework 83
C.2 Policy performance 85
D. The inspectorate 86
D.1 Authority and administrative capacity 86
D.2 Policy performance 86
E. The future of work: New frontiers on rights at work 89
Contents
vii
Section V. Social protection 91

A. Policy and legal framework; expenditure programme 93
B. Social insurance 94
B.1 Coverage and membership 94
B.2 Contributions, benefits and claims 95
C. Active labour market interventions 97
C.1 Programmes, resource allocation and performance 97
D. Social welfare 99
D.1 Programmes, resource allocation and performance 99
E. Social safety nets: Disaster preparedness and mitigation 100
F. Issues and challenges 101
Section VI. International labour migration 105
A. International migration 107
B. OFWs: Policy and legal framework 108
C. Deployment of OFWs 109
C.1 Skills profile of OFWs 113
C.1.1 Sea-based OFWs 113
C.1.2 Land-based OFWs 114
C.2 Services and assistance to OFWs; continuing and new concerns 116
D. Inward migration 118
E. From overseas employment to migration and development 119
Section VII. Social dialogue 121
A. Policy and institutional framework 123
A.1 Mechanisms outside the enterprise 123
A.2 Enterprise-level mechanisms 125
B. Policy performance, outcomes and issues 126
B.1 Tripartism and social dialogue outside the enterprise 126
B.2 Social dialogue within the enterprise 127
C. Tripartism, social dialogue and inclusive growth 129
Concluding note 131

Glossary of terms 141
References 149
viii Philippines 2017
List of tables
Table 1. Philippine human development index 12
Table 2. Selected health indicators 12
Table 3. Expenditure programme on education and health 13
Table 4. Education and health service facilities, 2015 15
Table 5. Gross Domestic Product and per capita GDP 17
Table 6. Expenditure shares in GDP 17
Table 7. Capital formation and wage share 20
Table 8. Gross fixed capital formation as per cent of GDP 22
Table 9. Net foreign direct investments flows 22
Table 10. Labour force participation rate by sex and age group 25
Table 11. Precarious employment in establishments, 2014 27
Table 12. Employees in precarious work by sex, sector and category of employee 28
Table 13. Discouraged unemployed by sex and age group 32
Table 14. GDP, employment, elasticity and labour productivity, 2011-2015 33
Table 15. Distribution of establishments and employment 36
Table 16. Sectoral distribution of establishments and employment, 2014 37
Table 17. Compliance by banks with mandatory loan allocations for MSMEs 38
Table 18. Working poverty by sex, sector and class of worker 39
Table 19. Underemployment, vulnerable, precarious and informal
employment by industry, 2015 40
employment by region, 2015 41
Table 21. Poverty incidence among families, real average annual
family income and Gini Coefficient 42
Table 22. Poverty, underemployment and vulnerable employment by region, 2015 43
Table 23. National labour market aggregates and indicators 44
Table 24. Trafficking in persons 52
Table 25. Economic activity rate of children by sex and age group 54
Table 26. Key employment indicators 57
Table 27. Female share in occupational employment 58
Table 28. Gender wage gap by major occupation group 59
Table 29. Union density rates 66
Table 30. Collective bargaining coverage rates 66
Table 31. Disposition of med-arbitration cases 67
Table 32. Cases handled by the National Labor Relations Commission 69
Table 33. Average time to dispose NLRC cases on termination of employment:
2010-2011 70
Table 34. Cases handled by the National Conciliation and Mediation Board 71
Table 35. Average real daily basic pay by major occupation group 78
Table 36. Average real daily basic pay and proportion of low paid employees
by category of employee 79
Table 37. Minimum wage earners 81
Table 38. Establishments with safety and health committee and health
and safety personnel 85
Table 39. Violation rates on selected standards 87
Table 40. Disposition of labour standards cases 88
Table 41. Expenditure programme on social protection 94
Table 42. Contributions, benefits and claims under social insurance 96
Table 43. Average monthly pension 96
List of tables
ix
Table 44. Top ten most availed TVET courses, 2013 98

Table 45. CCT target, 2008-2015 100
Table 46. Overseas Filipinos cash remittances by type of worker 108
Table 47. Outflow of nationals for employment 111
Table 48. Intra-ASEAN labour migration 113
Table 49. Deployed land-based OFWs by top ten occupational categories, new hires 114
Table 50. Repatriated OFWs 117
Table 51. Alien employment permits by major occupation group 118
Summary table. Selected statistics on decent work, Philippines 139
x Philippines 2017
List of figures
Figure 1. Snapshot of the labour and employment challenge, 2015 8
Figure 2. Total population by age group 11
Figure 3. Working age population by highest educational attainment 14
Figure 4. Enrollment, graduates, assessed and certified under TVET 16
Figure 5. Sectoral shares in GDP 17
Figure 6. GDP and employment growth 19
Figure 7. Sectoral shares in employment 19
Figure 8. GDP and employment sectoral shares 20
Figure 9. Employment-to-population-ratio by sex and age group 26
Figure 10. Employment by class of worker 26
Figure 11. Underemployment rate by sector and sex 30
Figure 12. Unemployment rate by sex and age group 30
Figure 13. Unemployment rate by educational attainment 31
Figure 14. Reasons why vacancies are hard to fill 31
Figure 15. Youth not in employment, education or training (NEET) 32
Figure 16. Informal, precarious and vulnerable employment and
underemployment by sector, 2015 40
Figure 17. Economic growth and reduction in poverty incidence
of families by region 42
Figure 18. Incidence of child labour by age group, 2011 54
Figure 19. Working children not in school by sex and age group 55
Figure 20. Female share in sectoral employment 57
Figure 21. Female share in class of worker employment 58
Figure 22. Employed by weekly hours of work 59
Figure 23. Trade union and collective bargaining structure in the private sector 64
Figure 24. Proportion of employed with excessive hours by sector
and category of employee 77
Figure 25. Average real daily basic pay and GDP growth 78
Figure 26. Average daily basic pay by sector 79
Figure 27. Proportion of low-paid employees 80
Figure 28. Wage and salary workers in private establishments
receiving above minimum wage 81
Figure 29. Minimum wage rates (MWRs) above poverty threshold (PT) 82
Figure 30. Percentage of wage orders issued with exemption provision and ratio
of exemptible categories to wage orders with exemption provision 82
Figure 31. Establishments that applied, and granted exemption
from the wage order 83
Figure 32. Incidence of non-fatal occupational injuries and occupational diseases 85
Figure 33. Labour law compliance officers 86
Figure 34. Establishments covered and assessed 87
Figure 35. Proportion of social security system contributing members 95
Figure 36. Average monthly retirement pension and per capita poverty threshold 97
Figure 37. Workers assisted through labour market interventions, 2005-2015 98
Figure 38. PESOs and jobs fairs performance 99
Figure 39. Proportion of population affected by natural disasters 100
Figure 40. Stock estimate of overseas Filipinos by world region 107
Figure 41. Deployed overseas Filipino workers 110
Figure 42. OFWs by sex 110
Figure 43. OFWs by sex and age group 110
List of figures
xi
Figure 44. Deployed land-based workers, rehires and new hires 111
Figure 45. Land-based OFWs by country of destination 111
Figure 46. OFWs by sex and major occupation group 114
Figure 47. OWWA membership 116
Figure 48. OFWs with HIV by sex 117
Figure 49. Returning OFWs by sex, country and reason 117
Figure 50. Alien employment permits by nationality 118
xii Philippines 2017
Acknowledgements
The ILO Country Office for the Philippines (CO-Manila) would like to acknowledge the Department of
Labor and Employment (DOLE) for their initial analysis and the national consultants, Atty Benedicto Ernesto
Bitonio and Ms Maria Teresa Peralta for their insights and substantial work in bringing the paper in its final
form.
The Decent Work Diagnostics substantially benefitted from invaluable support and collaboration within
the ILO. This included guidance from the Regional Programme Service Unit in Bangkok. Our thanks to the
Specialists of the ILO Decent Work Team in Bangkok and ILO Manila as well as the Development Cooperation
Project Managers and Programme staff for their valuable information and comments covering statistics,
employment, international labour standards, labour relations, child labour, labour inspection, occupational
safety and health, migration, gender, skills, enterprise development and green jobs.
Abbreviations
xiii
Abbreviations
ADB Asian Development Bank
AEP Alien Employment Permit
ALMPs Active Labour Market Programmes
ARMM Autonomous Region of Muslim Mindanao
ASEAN Association of Southeast Asian Nations
BFOQ Bona Fide Occupational Qualification
BLR Bureau of Labor Relations
BPO Business Process Outsourcing
BSP Bangko Sentral ng Pilipinas
CBA Collective Bargaining Agreement
CCT Conditional Cash Transfer
CEACR Committee of Experts on Application of Conventions and Recommendations
CFO Commission on Filipinos Overseas
CNA Collective Negotiation Agreement
CSC Civil Service Commission
CSF Credit Surety Fund
DepEd Department of Education
DeWS Decent Work Statistics
DILP DOLE Integrated Livelihood Programme
DOLE Department of Labor and Employment
DSWD Department of Social Welfare and Development
ECC Employees’ Compensation Commission
ECP Employees’ Compensation Programme
ENR Environment and Natural Resources
EPR Employment-to-working age Population Ratio
FDI Foreign Direct Investments
FIES Family Income and Expenditure Survey
GDP Gross Domestic Product
GIP Government Internship Programme
GOCCs Government-Owned or Controlled Corporations
GSIS Government Service Insurance System
HDI Human Development Index
HDMF Home Development Mutual Fund (Pag-IBIG Fund)
HSWs Household Service Workers
IACAT Inter-Agency Council Against Trafficking
ILO International Labour Organization
IMF International Monetary Fund
ITBPM Information Technology and Business Process Management
ITCs Industry Tripartite Councils
IPs Indigenous Peoples
KSA Kingdom of Saudi Arabia
LFS Labour Force Survey
LFPR Labour Force Participation Rate
LGUs Local Government Units
LLCOs Labour Laws Compliance Officers
LLCS Labour Laws Compliance System
LMCs Labour Management Councils
MDG Millennium Development Goal
MCCT Modified Conditional Cash Transfer
MSMEs Micro, Small and Medium Enterprises
xiv Philippines 2017
MWRs Minimum Wage Rates

NAPC National Anti-Poverty Commission
NCMB National Conciliation and Mediation Board
NCR National Capital Region
NEET Not in Employment, Education or Training
NGAs National Government Agencies
NLRC National Labor Relations Commission
NRCO National Reintegration Center for Overseas Filipino Workers
NTIPC National Tripartite Industrial Peace Council
NWPC National Wages and Productivity Commission
OECD Organization for Economic Cooperation and Development
OFWs Overseas Filipino Workers
OHAT Outpatient HIV/AIDS Treatment
OSH Occupational Safety and Health
OSHC Occupational Safety and Health Center
OSHS Occupational Safety and Health Standards
OWWA Overseas Workers Welfare Administration
PPP Pantawid Pamilya Program
PDP Philippine Development Plan
PEPM Philippine Employment Projection Model
PESOs Public Employment Service Offices
PEZA Philippine Economic Zone Authority
PHIC Philippine Health Insurance Commission
PhilHealth National Health Insurance Corporation
PLEP Philippine Labor and Employment Plan
PNP Philippine National Police
POEA Philippine Overseas Employment Administration
POLOs Philippine Overseas Labor Offices
PSA Philippine Statistics Authority
PSLMC Public Sector Labor Management Council
PT Poverty Threshold
RTIPCs Regional Tripartite Industrial Peace Councils
RTWPBs Regional Tripartite Wage and Productivity Boards
SEC Standard Employment Contract
SDGs Sustainable Development Goals
SLP Sustainable Livelihood Programme
SOC Survey on Children
SPES Special Program for the Employment of Students
SSC Social Security Commission
SSS Social Security System
STCWS Standards of Training, Certification and Watchkeeping for Seafarers
SUCs State Universities and Colleges
SY School Year
TESDA Technical Education and Skills Development Authority
TIPC Tripartite Industrial Peace Council
TVAAC Tripartite Voluntary Arbitration Advisory Council
TVET Technical-Vocational Education and Training
UN United Nations
UN-CEDAW United Nations Convention on the Elimination of Discrimination Against
Women
UNESCAP United Nations Economic and Social Commission for Asia and the Pacific
VCGPs Voluntary Codes of Good Practices
WB World Bank
Abbreviations
xv
Executive
summary
ngcal
R. Caba
©ILO
xviii Philippines 2017
The Report diagnoses the situation,

issues and challenges on labour and
employment in the country in relation to
the overall goal of achieving sustainable and
inclusive growth. As a main premise, massive
creation of decent work is an essential pre-
condition to inclusive growth. Relatively
strong economic growth over the last decade
was not inclusive as it did not translate to
massive creation of decent work and therefore
had limited effect on reduction of poverty and
inequality. Many policies, laws and institutions
aligned with international labour standards
are already in place but there are gaps in
implementation and enforcement. Attention
©ILO should also be given to policy areas where
laws and institutions already exist but may
be insufficient or need revision or updating,
as well as areas where there are yet no laws or
institutions effectively in place. To help focus on
labour and employment issues, a new national
decent work agenda based on the development
framework of the Constitution and supportive
of the new national development directions of
the administration’s “0 + 10” socio-economic
agenda, the medium-term Philippine
Development Plan (PDP 2017-2022) and the
long-term AmBisyon Natin 2040 as well as
the Sustainable Development Goals (SDGs) is
needed.
Realizing decent work and inclusive

growth must consider multiple factors.
Particularly crucial are overall factors like the
country’s constrained capacity to produce due
to inadequate infrastructure, support facilities
©ILO J. Fortin and high costs of doing business, a pattern
of “job-slow” growth and the structural
disconnect between Gross Domestic Product
(GDP) growth and employment growth,
skills and job mismatches, low productivity
especially in agriculture and in Micro, Small
and Medium Enterprises (MSMEs), and the
extent and depth of the problems of inequality,
vulnerability and poverty.
Executive summary
xix
Equally important factors are the increasing population and shifting demographics which,
with strategic management, can yield potential demographic dividends. For this purpose, human
capital development with the core components of education, training and health are indispensable.
More urgent attention should likewise be given to a working age population with relatively low labour
force participation rate persistently skewed against women, a relatively high dependency ratio, the
profile of the employed dominated by young, low-skilled and low-paid or underemployed workers, the
precarious and vulnerable nature of many forms of employment especially in the informal sector and
among women and the youth, labour underutilization and underemployment.
On fundamental principles and rights at work, these are generally recognized in national law.
But there is room for improvement in the implementation, enforcement and possible enhancement
of policies and laws against child labour and forced labour, as well as of policies and laws on non-
discrimination and equality of opportunity, access and treatment, and freedom of association
and collective bargaining. The national policy framework on freedom of association and collective
bargaining, in particular, may need to be reviewed and modernized considering the declining trade
union density and collective bargaining coverage rates and the emergence of new work arrangements.
There are also policy gaps in the sense that the application of fundamental principles and rights tend to
be focused on formal employment and effectively exclude the informal sector.
On general labour standards, Occupational Safety and Health (OSH) and other social legislations,
the subject matter and scope of national laws are generally aligned with international labour standards.
As in fundamental principles and rights, there is also room for improvement in their implementation
and enforcement including, particularly, the need to continuously enhance the administrative capacity
of the inspectorate. These standards also have effective application only to the formal sector. On
specific issues, determination of incidence of excessive working hours, the effectiveness of the wage-
setting mechanism, instances of occupational and sex-based segregation and differentiation in pay,
opportunity and treatment, and lack of security of tenure and precarious employment especially in
light of the rising incidence of non-regular or non-standard forms of employment that increasingly
appears to characterize new and future work arrangements are key challenges.

On social protection, the country’s social protection programme is comprehensive and sufficiently
institutionalized. Increase in the national expenditure programme for social protection, access to
social protection programmes, and actual number of beneficiaries over the years are notable. The main
challenges are adequacy and sustainability of benefits, as well as finding the proper complementary mix
of passive and active labour market interventions so as not to destroy work incentives, streamlining of
fragmented programmes to maximize impacts, and improving preparedness for climate change and
other risks.
On international labour migration, the push and pull factors for outward labour migration
remain strong. While the policy and regulatory framework already covers the full cycle of overseas
labour migration, implementation and enforcement need to be improved. A key concern, likewise,
is the profile of Overseas Filipino Workers (OFWs) which continues to be dominated by low-skilled
categories and occupations many of which are in the 3-D (dirty, dangerous and demanding) where
workers, particularly women, face higher risks. Looking forward, there is also a need for a re-examination
of international labour migration policy from one focused on overseas employment and welfare to a
more comprehensive migration and development perspective, especially in light of regional and global
movement of professionals and highly-skilled workers.
xx Philippines 2017
On social dialogue and tripartism,

the country has functioning social dialogue
and tripartite mechanisms. It should continue
to expand the space for social dialogue
by including non-traditional sectors and
coming up with substantive outputs or
recommendations based on consensus on
broader social and economic policy areas and
issues that affect labour and employment.
Formulation of the new decent work agenda
is an opportunity for current social dialogue
mechanisms and processes to expand and
further mature.
©ILO M. Rimando
A new national decent work
agenda will help focus development efforts
on achieving growth with employment,
employment with rights, and social protection
for all, appropriately aligned with the larger
agendas of PDP 2017-2022 and AmBisyon
2040. Toward this, several practical initial steps
can be taken by the social partners and other
stakeholders, such as identifying and acting on
policy as well as implementation, enforcement
and coordination gaps; giving more attention
to the informal sector and special groups of
workers, particularly those in the informal
sector and other vulnerable groups, such as
persons in domestic work, children at work,
persons with disabilities and workers exposed
to the risks of disasters, conflicts and distressed
conditions; continuously balancing regulatory
and facilitative or allocative interventions
in the labour market; aiming for reforms
that are productivity-enhancing, adaptive
and transformative; correcting institutional
©ILO M. Rimando weaknesses and failures, particularly perceived
weaknesses in the labour dispute resolution
system; and setting up an integrated decent
work information management system that
links quantitative and qualitative data on
outputs, outcomes and impacts, and enable
more effective monitoring, evaluation and
analysis of policies, laws and programmes.
The agenda may be organized around four
central points of action, namely supply side
measures to improve the economy’s capacity
to produce, particularly in continuously
developing and optimizing the utilization
Executive summary
xxi
of human resources for productive and

remunerative work; demand side measures to
create adequate opportunities for and equal
access to productive, remunerative and decent
work within the domestic economy; social
protection measures to provide a balanced,
accessible and effective mix of active and
passive labour market measures and social
programmes; and institutional and governance
measures consisting of appropriate policies,
laws and governance mechanisms to ensure
that the rights and opportunities of workers,
employers and all stakeholders are not only
recognized but effectively realized.
©ILO
©ILO M. Fossat
Introduction
rozet
M. C
©ILO
3 Philippines 2017
A. The national development framework

for decent work and inclusive growth
1. The 1987 Philippine Constitution

provides the State’s fundamental
development framework for decent
work and inclusive growth with wide-
ranging policy goals, among which
are:
• A just and dynamic social order

that will ensure the prosperity
and independence of the nation
and free the people from poverty
through policies that provide
adequate social services, full
employment, a rising standard of
INTRODUCTION living, and an improved quality of
life for all.1
A. The national development framework for decent work and inclusive growth
• A more equitable distribution of
1. The 1987 Philippine Constitution provides the State’s fundamental
opportunities, development
income, and wealth;
framework for decent work and inclusive growth with wide-ranging policy goals, among
a sustained increase in the amount
which are:
©ILO M. Crozet
of goods and services produced
by the nation for the benefit of
• A just and dynamic social order that will ensure the prosperity and independence of
the people; and an expanding
the nation and free the people from poverty through policies that provide adequate
social services, full employment, a rising standard ofproductivity asimproved
living, and an the key to raising
quality
of life for all. 1 the quality of life for all, especially
the under-privileged.2
• A more equitable distribution of opportunities, income, and wealth; a sustained
• Industrialization
increase in the amount of goods and services produced andbenefitfull
by the nation for the
employment based
of the people; and an expanding productivity as the key to raising the quality on ofsound
life
for all, especially the under-privileged. 2 agricultural development and
agrarian reform, through industries
• Industrialization and full employment based on sound thatagricultural
make fulldevelopment
and efficientanduse
agrarian reform, through industries that make full of andhuman and
efficient usenatural resources,
of human and
and which are competitive
natural resources, and which are competitive in both domestic and foreign markets; in both
and protection of Filipino enterprises against unfairdomestic
foreign and foreign markets;
competition and tradeand
practices. 3
ra protection of Filipino enterprises
against unfair foreign competition
• Social justice in all phases of national development.and
©ILO M. Rimando 4
trade practices.3
• Protection and promotion of the rights and welfare• of

Social justiceworkers,
all Filipino in all local
phases
and of
national development.
overseas, including the preferential use of Filipino labour. 5 4
2. These goals have the same substance as the UN Sustainable Development Goals (SDGs) 6
and the ILO’s decent work and future of work initiatives.
1
1987 Constitution, ART. II, Section 9.
2
Idem, ART. XII, Section 1.
3
Idem.
4
Idem, ART. II, Section 10.
5
Idem, Section 19 in relation to ART. XIII, Section 3 and ART. XII, Section 12.
6UN General Assembly Resolution, “Transforming our world: the 2030 Agenda for Sustainable Development,” A/RES/70/1 (2015), at
http://www.un.org/ga/search/view_doc.asp?symbol=A/RES/70/1&Lang=E, p. 14. The 17 SDG goals are:

A. The national development framework for decent work and inclusive growth
Introduction
4
1. The 1987 Philippine Constitution provides the State’s fundamental development
framework for decent work and inclusive growth with wide-ranging policy goals, among
• which
Protection
are: and promotion of the rights and welfare of all Filipino workers, local and overseas,
including the preferential use of Filipino labour.5
• A just and dynamic social order that will ensure the prosperity and independence of
2. These goals have the
the nation andsame
free substance
the peopleasfrom the UN
povertySustainable
through Development Goals (SDGs)
policies that provide adequate 6
and
the ILO’s decent
social work and
services, fullfuture of workainitiatives.
employment, rising standard of living, and an improved quality
of life for all. 1
• The SDGs envision inclusive growth as one that “will only be possible if wealth is shared
•andAincome inequality distribution
more equitable is addressed” of inopportunities,
the context of “dynamic,
income, and sustainable, innovative
wealth; a sustained
and people-centered economies, promoting youth employment and women’s economic
increase in the amount of goods and services produced by the nation for the benefit
empowerment,
of the people; in and
particular, and decent
an expanding work forasall,
productivity ” key
the7
and to
specifically
raising theone that of
quality willlifeend
2
poverty (Goal 1); promote full and productive employment and decent work for all (Goal
for all, especially the under-privileged.
8); and reduce inequality (Goal 10).8
•• Industrialization
The SDGs envision and inclusive
full employment
growth as basedoneonthatsound
“willagricultural development
only be possible if wealthand is
agrarian reform, through industries that make full and efficient
• Decent work is quality employment, or work that is productive and delivers a fair income,
shared and income inequality is addressed” in the context of use
“dynamic, of human
sustainable, and
natural
security in resources,
the workplace
innovative and and
which
and people-centered are competitive
social protection
economies, inpromoting
for both domestic
families, better and foreignfor
prospects
youth employment markets;
personal
and
and protection of Filipino enterprises against unfair foreign competition
development 3and social integration, freedom for people to express their concerns, organize
women’s economic empowerment, in particular, and decent work for and
all,” 7trade
and
practices.
and specifically
participate inone ra
thethat
decisions
will endthatpoverty
affect their
(Goal lives,
1); and equality
promote fullofand
opportunity
productive and
8
treatment for all women and men. Its strategic pillars are 4job creation, rights at work, social
employment and decent work for all (Goal 8); and reduce inequality (Goal 10).
•protection
Social and
justice in all
social phases with
dialogue, of national
genderdevelopment.
equality as a cross-cutting objective.9
• Decent work is quality employment, or work that is productive and delivers a fair
• Protection and promotion of the rights and welfare of all Filipino workers, local and
3. In both income,
nationalsecurity in the workplace
and international and social
contexts, massiveprotection
creationforof5families, better enables
decent work prospects the
overseas,
forofpersonalincluding the preferential
development and social use of Filipino
integration, labour.for people to express their
freedom
realization shared prosperity, improved quality of life and reduction of poverty and inequality.
concerns,
It is therefore organize and
a precondition to participate in the decisions that affect their lives, and equality
inclusive growth. 6
2. These ofgoals have theand
opportunity same substance
treatment forasall
thewomen
UN Sustainable
and men.Development
Its strategic Goals
pillars(SDGs)
are job
and the ILO’srights
creation, decentatwork
work,and future
social of work and
protection initiatives.
social dialogue, with gender equality
4. The country’s official development 9plan for inclusive growth is the new PDP,10 which has a
as a cross-cutting objective.
six-year medium term phase from 2017 to 2022 (PDP 2017-2022) and 25-year long term phase
1
1987 Constitution, ART. II, Section 9.
3.
2 In both
Idem, ART. national
XII, Section 1. and international contexts, massive creation of decent work enables the
3
Idem. realization of shared prosperity, improved quality of life and reduction of poverty and
4
Idem, ART. II, Section 10.
5 inequality.
Idem, Section It is
19 in relation therefore
to ART. a precondition
XIII, Section to inclusive
3 and ART. XII, Section 12. growth.
6UN General Assembly Resolution, “Transforming our world: the 2030 Agenda for Sustainable Development,” A/RES/70/1 (2015), at
http://www.un.org/ga/search/view_doc.asp?symbol=A/RES/70/1&Lang=E, p. 14. The 17 SDG goals are:
4. GoalThe 1. Endcountry’s
poverty in all official development plan for inclusive growth is the new PDP, 10 which
its forms everywhere
Goalhas a six-year
2. End medium
hunger, achieve term
food security andphase
improvedfrom 2017
nutrition to 2022
and promote (PDPagriculture
sustainable 2017-2022) and 25-year long
Goal 3. Ensure healthy lives and promote well-being for all at all ages 11
Goalterm phase
4. Ensure inclusivedubbed
and equitable asquality
AmBisyon
education andNatin
promote2040. Theopportunities
lifelong learning objectivefor allis to translate the
Goaladministration’s
5. Achieve gender equality “0and+empower
10-point socio-economic
all women and girls agenda” 12 into strategies, policies,
Goal 6. Ensure availability and sustainable management of water and sanitation for all
Goalprogrammes,
7 Ensure access to and activities
affordable, built onandthe
reliable, sustainable modernthree
energy pillars
for all of “Malasakit” or enhancing the
Goalsocial
8. Promote fabric,“Pagbabago” or reducing
sustained, inclusive and sustainable economic growth, inequality, andemployment
full and productive “Kaunlaran”and decentor
workincreasing
for all
Goal 9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
Goalpotential growth,within
10. Reduce inequality to be
and supported
among countriesby a strong foundation in national peace and security,
Goalstrategic and accelerated infrastructure
11. Make cities and human settlements development,
inclusive, safe, resilient and sustainableresiliency, and ecological integrity.
Goal 12. Ensure sustainable consumption and production patterns
GoalThe ultimate
13. Take goal
urgent action is inclusive
to combat climate change growth with a prosperous, healthy, high trust and
and its impacts
Goalpredominantly middle class society whereresources
14. Conserve and sustainably use the oceans, seas and marine no onefor is poor, development
sustainable and a smart, innovative and
Goal 15. Protect, restore and promote sustainable use of terrestrial ecosystems,
13 sustainably manage forests, combat desertification, and
globally competitive knowledge economy.
halt and reverse land degradation and halt biodiversity loss
Goal 16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective,
accountable and inclusive institutions at all levels
Goal 17. Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development
7
Idem, paragraph 27, p. 8.
8
These are supported by other goals, specifically ensuring inclusive and equitable quality education and promote lifelong learning opportunities 3
for all (Goal 4), achieving gender equality and empower all women and girls (Goal 5), building resilient infrastructure, promoting inclusive
and sustainable industrialization and fostering innovation (Goal 9), and promoting peaceful and inclusive societies that provide access to
justice for all and building effective, accountable and inclusive institutions at all levels (Goal 16).
9
http://www.ilo.org/global/topics/decent-work/lang--en/index.htm.
10
Reformulated at six-year intervals at every change of political administration. The lead agency in preparing the PDP is the National Economic
Development Authority (NEDA). PDP 2011-2016, supported by the Philippine Labor and Employment Plan (PLEP) 2011-2016 had good
governance and anti-corruption as overarching themes and aimed for the primary goal of attaining inclusive growth with three broad strategies
- a high and sustained economic growth that provides productive and decent employment opportunities; equal access to development
opportunities across geographic areas and across different income and social groups to ensure that economic growth and opportunities translate
to poverty reduction; and implementation of effective and responsive social safety nets to assist those adversely affected by rapid economic
growth.
11
Executive Order No. 5, signed by President Rodrigo Duterte on 11 October 2016.
12
First presented at the Davao Business Forum, 20 June 2016 as the 10-point socio-economic agenda. The ten items are: (a) Continuing and
maintaining current macroeconomic policies, including fiscal, monetary, and trade policies; (b) Instituting progressive tax reform and more
effective tax collection, indexing taxes to inflation; (c) Increasing competitiveness and ease of doing business; (d) Accelerating annual
shared and income inequality is addressed” in the context of “dynamic, sustainable,
innovative and people-centered economies, promoting youth employment and
Decent work countryeconomic
diagnostics:
5 Philippineswomen’s 2017
empowerment, in particular, and decent work for all,” 7 and
specifically one that will end poverty (Goal 1); promote full and productive
employment and decent work for all (Goal 8); and reduce inequality (Goal 10). 8
dubbed as AmBisyon Natin 2040.11 The objective is to translate the administration’s “0 + 10-point
• Decent work
socio-economic agenda” 12
is quality intoemployment,
strategies, policies, or workprogrammes,
that is productive and activities
and delivers built aon fairthe
three pillars of “Malasakit” or enhancing the social fabric,“Pagbabago” or reducing inequality,
income, security in the workplace and social protection for families, better prospects
and “Kaunlaran”for personal or development
increasing potential and social integration,
growth, freedom forbypeople
to be supported a strong to express
foundation their in
concerns, organize and participate in the decisions
national peace and security, strategic and accelerated infrastructure development, resiliency, that affect their lives, and equality
and ecological of opportunity
integrity.and Thetreatment
ultimate goal for all women growth
is inclusive and men. with Itsastrategic
prosperous, pillars are job
healthy, high
5. trustThe creation,
anditemspredominantly rights
under the “0 at work,
middle social protection
class9 society
+ 10 agenda” expectedwhere and
tono havesocial
onethe dialogue,
is most
poor, direct with
and a and smart,gender equality
innovative
positive impact and
as acreation
cross-cutting objective.
globally competitive knowledge economy.
on the of more and better job13 and employment opportunities are investing in
human capital development; accelerating annual infrastructure spending; promoting rural

3. In both national and international contexts, massive creationand of decent ofwork
doingenables the
5. Theand items value
under chainthe development;
“0 + 10 agenda” increasing
expectedcompetitiveness
to have the most direct ease and positive business;
impact on
realization science, of sharedtechnology
prosperity,and improved quality artsof tolife and reduction of andpoverty and
the promoting
creation ofItmore
inequality. is and better
therefore a job and
precondition
theemployment
creative
to inclusive
enhance
opportunities
growth.
innovation
are investing creative
in human
capacity;
capital and improving
development; accelerating socialannual
protection programmes.
infrastructure spending; promoting rural and value
4. chain
6. The development;
Within country’s
PDP 2017-2022
increasing
official competitiveness
development
and AmBisyon plan for and
Natin
ease of growth
inclusive doing business;
2040, the Department is the new promoting
PDP,
of
10 science,
Laborwhich and
technology
has a six-year and the creative
medium termartsphase
to enhance innovation
fromeight-point
2017 to 2022 and
(PDP creative
2017-2022) capacity; and and25-year improving
long
Employment (DOLE) 14 has its own agenda for labour and employment
socialterm protection
phaseofdubbedprogrammes. as AmBisyon Natin 2040.The 11
The objective is effective
to translate the
supportive decent work and inclusive growth. priorities 12
include policies
administration’s “0 + 10-point socio-economic
and measures to address unemployment and underemployment, full respect of labour agenda” into strategies, policies,
6. Within PDP 2017-2022
programmes,
standards and and and AmBisyon
activities
the fundamental built Natin
on
principlesthe and 2040,
threerightsthe
pillarsDepartment
of “Malasakit”
at work, of Labor
strengthened or and Employment
enhancing
protection the
and
(DOLE)social 14
has its own
fabric,“Pagbabago” eight-point or agenda
reducing for labour
inequality,
security of OFWs, and enhanced workers’ social protection and welfare programmes to and employment
and “Kaunlaran” supportive
or of
increasing decent
work beand
potential inclusive
pursued growth, growth.
through to beworkers’The priorities
supported includefoundation
by aemployers’
and strong effective policies
in national
participation, and measures
peace
tripartism and to social
address
andsecurity,
unemployment
strategic
dialogue. and and underemployment,
accelerated infrastructure full respect
development, of labour
resiliency,standards and and
ecologicalthe fundamental
integrity.
principles
The ultimate and rights goalat is work, strengthened
inclusive growthprotection
with a prosperous, and securityhealthy, of OFWs, high andtrustenhanced
and
7. workers’ social
predominantly protection
middle and
class
The realization of PDP 2017-2022 and AmBisyon welfare
society programmes
where no one to
is be
poor, pursued
and a through
smart,
Natin 2040 will be framed by the workers’
innovative and and
employers’
globallyparticipation,
challenges, competitive
opportunities tripartism
knowledge and and social dialogue.
economy.
dynamics
13
of a world in a continuous state of
transformation. Driving transformation are demographic shifts, climate change,
7. Thetechnological
realization of innovation,
PDP 2017-2022 profoundand AmBisyon
changes inNatin 2040 will
the nature, be framedand
organization by the challenges,
processes of
opportunities and dynamics of apoverty
world in a prosperity,
continuous state of transformation. Driving
7
Idem, paragraph 27, p. 8.
8
These arework,
supportedshifting contours
by other goals, of
specifically ensuring and
inclusive and equitable quality education growing
and promote inequality,
lifelong learningeconomic
opportunities
for transformation
stagnation
all (Goal 4), achievingand arethe
gender demographic
changing
equality and empower shifts,
character climate
all women girlschange,
ofandproduction technological
and
(Goal 5), building employment. innovation,
Allpromoting
resilient infrastructure, profound
stakeholders
inclusive
changes inbuilding
the nature, organization andinstitutions
processes of ofwork, shifting
in ordercontoursto steer of its poverty and
and sustainable industrialization and fostering innovation (Goal 9), and promoting peaceful and inclusive societies that provide access to
justice forare thus
all and required
effective,to imagine
accountable andthe long-term
inclusive future
at all levels work
(Goal 16). evolution
9
10
prosperity, growing inequality, economic stagnation and the changing character of production
in the direction of social justice,
http://www.ilo.org/global/topics/decent-work/lang--en/index.htm. amidst widespread anxiety about whether the future will
Reformulated at six-year intervals at every change of political administration. The lead agency in15preparing the PDP is the National Economic
andproduce
Development employment. greater
Authority (NEDA). AllPDPstakeholders
polarization
2011-2016,within
supportedarebythus
and between
the required
Philippine to Employment
countries.
Labor and imagine the(PLEP)
The transformation
Plan long-term
2011-2016 future
will good of
hadalso
16
work in order to steer its evolution in the direction of social justice, amidst widespread
governance haveand to be guided
anti-corruption as by the
overarching principles
themes and of
aimed “just
for the transition”
primary goal of toward
attaining sustainable
inclusive
- a high and sustained economic growth that provides productive and decent employment opportunities; equal access to development
growth with development,
three broad strategies
anxiety
which
opportunities about
across includeswhether
geographic areas andthe
creating acrossfuture
a green,
different will carbon-neutral
income produce
and social groupsgreater polarization
economy
to ensure that economic andgrowth within
conserving and natural
and opportunities between
translate
to poverty resources.
reduction; and implementation of effective and responsive social safety nets to assist those adversely affected by rapid economic
growth.
11
Executive Order No. 5, signed by President Rodrigo Duterte on 11 October 2016.
B.
12
Decent
First presented work
at the Davao for shared
Business Forum, prosperity
20 June 2016 as and elimination
the 10-point of agenda.
socio-economic poverty and
The ten itemsinequality
are: (a) Continuing and
maintaining current macroeconomic policies, including fiscal, monetary, and trade policies; (b) Instituting progressive tax reform and more
effective tax collection, indexing taxes to inflation; (c) Increasing competitiveness and ease of doing business; (d) Accelerating annual
8. On spending
infrastructure the back of sound
to account macro-economic
for 5 per cent fundamentals,
of GDP, with Public-Private strong
Partnerships playing domestic
a key role; consumption
(e) Promoting rural and value
chain development toward increasing agricultural and rural enterprise productivity and rural tourism; (f) Ensuring security of land tenure to
encourage investments, and addressing bottlenecks in land management and titling agencies; (g) Investing in human capitalcontinued
fueled by remittances from OFWs and other Filipino migrants, and the development,
includingexpansion of Business
health and education systems, and Process Outsourcing
matching skills and training; (h) (BPO), the Philippines’
Promoting science, technology, and theGDP grew
creative arts to by an
enhance
innovation and creative capacity; (i) Improving social protection programmes, including 17 the government's Conditional Cash Transfer
average of 6 per cent annually from 2011 to 2015 and by 6.8 per cent
programme; and (j) Strengthening implementation of the Responsible Parenthood and Reproductive Health Law. “0 + 10” incorporates peace in 2016.
and orderContinued growth
as “ground zero,” in GDP
or the essential is forecast
foundation for all theby the World Bank (WB) at 6.9 per cent in 2017, 7
ten items.
13
Secretary Ernesto Pernia, National Economic Development Authority, “Next Philippine Development Plan to focus on long term aspirations
of Filipinos,” at http://www.neda.gov.ph/2016/11/28/next-ph-development-plan-to-focus-on-long-term-aspirations-of-filipinos/
14
Based on the statement of DOLE Secretary Silvestre Bello III given in his confirmation hearing at the Commission on Appointments,
12 October 2016. The agenda reiterates the speech of the DOLE Secretary delivered at the 37th National Conference of Employers, 13 July 4
2016. Under this agenda, DOLE plans to take the following specific actions: (1) create one-stop shop centers for overseas Filipino workers
OFWs (OSSCOs), set up of DOLE 24/7 hotline, and streamline processes for frontline services; (2) develop Human Resource Development
(HRD) roadmaps to support industry roadmaps aimed at creating employment opportunities, and strengthening of public employment
facilitation services through Public Employment Service Offices (PESOs); (3) strict enforcement of labour standards including the law
on security of tenure through labour inspection, industry self-regulation and voluntary compliance; (4) effect summary closures, strengthen
and expand the capacity of Philippine Overseas Labor Offices (POLOs), strengthen re-integration programmes and other forms of assistance
for OFWs and their families, and adopt measures and mechanisms to protect and promote the welfare and interest of OFWs at every stage of
the migration cycle from recruitment to deployment to re-integration; (5) ensure access to programmes, adequacy of benefits, source of
funding, and sustainability of social protection programmes; (6) develop means to enhance collective bargaining and other forms of labour-
management participation including tripartism and social dialogue; (7) reduce and eventually eliminate case backlogs; simplify rules of
procedure including adoption of summary procedures for certain cases; and rationalize the stages of dispute resolution; and (8) recognize and
the right of workers to participate in policy and decision-making processes directly affecting them and of employers to reasonable returns on
investments and to expansion and growth.
15
See International Labour Organization (ILO), “The future of work we want: a global dialogue,” http://www.ilo.org/global/topics/future-of-
work/dialogue/lang--en/index.htm, downloaded 30 March 2017.
16
International Labour Organization, Guidelines for a just transition towards environmentally sustainable economies and societies for all
(2015), http://www.ilo.org/wcmsp5/groups/public/---ed_emp/---emp_ent/documents/publication/wcms_432859.pdf
Introduction
6
countries.15 The transformation will

also have to be guided by the principles
5. The items under the “0 + 10 agenda” expected to have the most direct and positive impact
of “just transition”16 toward sustainable
on the creation of more and better job and employment opportunities are investing in
development, which includes creating
human capital development; accelerating annual infrastructure spending; promoting rural
a green, carbon-neutral economy and
and value
per cent in chain development;
2018resources.
and 6.7 per centincreasingin 2019, 18competitiveness
and by the Asianand ease of doing
Development Bank business;
(ADB)
conserving
promoting natural
science, technology and the creative arts to
19 enhance innovation and creative
at 6.4 per cent in 2017 and 6.6 per cent in 2018. The Organization for Economic
capacity;
Cooperation andand improving
Development social protection programmes. Center estimates a 5.7 per cent
(OECD) Development
B. Decent work for shared prosperity and
elimination average
of poverty annualand growth
inequality between 2016 and 2020. Nevertheless, the key questions remain:
6. Within
Will thisPDP growth 2017-2022
bring14about andmassiveAmBisyon Natinof 2040,
creation decentthe work? Department
Will it beofinclusiveLabor and and
Employment
sustainable? (DOLE) has its own eight-point agenda for labour and employment
8. On supportivethe backof decent of sound work and macro- inclusive growth. The priorities include effective policies
economic
and measures fundamentals,
to address strong
unemployment andunderemployment,
underemployment,poverty, full respect of labour
9. domesticAmidst economic
consumption growth, fueled unemployment,
by inequality and
standards and the fundamental principles and rights
substantial economic and social inequality and exclusion persist. The themes are familiar:at work, strengthened protection and
remittances
security offrom OFWs, OFWs and otherworkers’ social protection and welfare programmes to
and enhanced
Filipino
be A migrants,
pursued and
through the continued
workers’ and
•
expansion fast-growing population
of Business Process that hasemployers’
reached around participation,
101 million, tripartism and social
almost two-thirds of
dialogue.
which is of working age.
Outsourcing (BPO), the Philippines’
7. GDP Thegrew by an average
realization of PDP of 62017-2022
per cent and AmBisyon Natin 2040 will be framed by the
• One-third
annually from 2011of theto working
2015 andage population that do not participate in the labour force,
bydynamics
challenges,
with women opportunities
accounting and
17
for a disproportionately of a world large share.in a continuous state©ILO ofJ. Bobot Go
6.8 per cent in 2016. Continued
transformation. growth
Driving transformation are demographic shifts, climate change,
in GDP is forecast by the World Bank
technological innovation, profound changes in the nature, organization and processes of
(WB) • atA 6.9 labour perforce
cent that continues
in 2017, perto grow faster than the economy can create jobs.
work, shifting contours of 7poverty and prosperity, growing inequality, economic
centstagnation
in 2018 and and6.7the perchanging
cent in 2019, 18
character of production and employment. All stakeholders
andare• Wage
by thus
the Asian and salary
Development employment Bank that has been growing modestly, but with more than
required to imagine the long-term future of work in order to steer its evolution
(ADB) six million
atdirection
6.4 per of private
cent insector
2017 employees
and (34 per cent) in precarious employment who
in the social justice, amidst widespread anxiety about 20 whether the future will
cannot effectively exercise or enjoy their full legal rights.
6.6 per cent in
produce 2018. polarization
greater 19
The Organization 15
within and between countries. The transformation will also
for have Economic
to be guided Cooperation
by the principles and of “just transition” 16 toward sustainable development,
•which At least 38 per cent of employed in the informal sector, characterized by high levels
Development (OECD)
includes creating estimatesa green, a carbon-neutral economy and conserving natural
of vulnerability, particularly among the self-employed and unpaid family workers,
5.7 resources.
per cent average annual growth
and with limited labour rights and social protection coverage.
between 2016 and 2020. Nevertheless,
B.the Decentkey questionswork forremain: sharedWill this and elimination of poverty and inequality
prosperity
• Low productivity across sectors, chronically so in agriculture especially in the past
growth bring about massive creation
On ten
8. of decent years.
thework? back of Willsound it bemacro-economic
inclusive fundamentals, strong domestic consumption
and sustainable?
fueled by remittances from OFWs and other Filipino migrants, and the continued
•expansion
Persistently high unemployment and
of Business Process Outsourcing (BPO), the Philippines’ underemployment rates at GDP 6-8 per grewcentbyand an
18-23 per cent. 17
9. Amidst average of economic
6 per cent growth,
annually from 2011 to 2015 and by 6.8 per cent in 2016.
unemployment, underemployment,
Continued growth in GDP is forecast by the World Bank (WB) at 6.9 per cent in 2017, 7
• Poverty incidence of the population at over 20 per cent in 2015.
poverty, inequality and substantial
economic and social inequality and
14
Based on the statement of DOLE Secretary Silvestre Bello III given in his confirmation hearing at the Commission on Appointments,
10.October
12 From theagenda
2016. The standpoint
reiterates theofspeech
decentof the work and the
DOLE Secretary future
delivered 37th work,
at the of shared prosperity
National Conference of Employers, 13and July
exclusion persist.
DOLE The plans to themes are specific actions: (1) create one-stop shop centers for overseas Filipino workers
for growth with(2)employment, employment
2016. Under this agenda, take the following
elimination up ofof poverty andand inequality rest on
familiar: tosetsupport
OFWs (OSSCOs), DOLE 24/7 hotline, streamline processes frontline services; develop Human Resource Development
with rights, and
(HRD) roadmaps social
industry protection
roadmaps for all.
aimed at creating 21
Achieving
employment these
opportunities, andobjectives
strengthening ofmustpublicstart from
employment
facilitation services through Public Employment Service Offices (PESOs); (3) strict enforcement of labour standards including the law
a comprehensive assessment of theself-regulation
state of labour andcompliance;
employment insummary
the country
closures,(Figure
and• A thefast-growing population Labor that
on security of tenure through labour inspection, industry and voluntary (4) effect strengthen
expand1), and a diagnosis
capacity of Philippine of the specific
Overseas Officesproblems, issuesre-integration
(POLOs), strengthen and challenges
programmesthat willforms
and other thenof assistance
enable
for OFWshas reached
and their families, around 101
and adopt measures million,
and mechanisms to protect and promote the welfare and interest of OFWs at every ©ILO R. Dela Cruz
stage of
stakeholders to formulate a specific, results-based, goal-oriented national decentsourcework
almost two-thirds ofthewhich isof of
the migration cycle from recruitment to deployment to re-integration; (5) ensure access to programmes, adequacy of benefits, of
funding, agenda aligned
and sustainability with
of social protection goals
programmes; PDP 2017-2022
(6) develop and AmBisyon
means to enhance Natinand
collective bargaining 2040.
other forms of labour-
management working age.including tripartism and social dialogue; (7) reduce and eventually eliminate case backlogs; simplify rules of
participation
procedure including adoption of summary procedures for certain cases; and rationalize the stages of dispute resolution; and (8) recognize and
the right of workers to participate in policy and decision-making processes directly affecting them and of employers to reasonable returns on
investments and to expansion and growth.
15
See International Labour Organization (ILO), “The future of work we want: a global dialogue,” http://www.ilo.org/global/topics/future-of-
16
17
Highest among the ASEAN-5 countries, i.e., Indonesia, Malaysia, the Philippines, Thailand and Viet Nam.
18
http://data.worldbank.org/country/philippines
5
19
https://www.adb.org/countries/philippines/economy
20
Based on 2015 Labor Force Survey, Philippine Statistics Authority (PSA).
21
Some of these are now embedded in specific parts and chapters of PDP 2017-2022, with Parts III (Inequality reducing transformation), IV
(Increasing growth potential), and VI (Foundations for sustainable development)
7 Philippines 2017
©ILO Joseph Fortin

Introduction
8
• One-third of the working age population that do not participate in the labour force, with
women accounting for a disproportionately large share.
18
perlabour
• A cent inforce
2018that
andcontinues
6.7 per cent
to grow faster and
in 2019, thanbythethe Asian Development
economy Bank (ADB)
can create jobs.
19
at 6.4 per cent in 2017 and 6.6 per cent in 2018. The Organization for Economic
Cooperation and Development (OECD) Development Center estimates a 5.7 per cent
• Wage and salary employment that has been growing modestly, but with more than six
average annual growth between 2016 and 2020. Nevertheless, the key questions remain:
million private sector employees (34 per cent) in precarious employment who cannot
Will this growth bring about massive creation of decent work? Will it be inclusive and
effectively exercise or enjoy their full legal rights.20
sustainable?
9. • At least economic
Amidst 38 per cent of employed
growth, in the informal
unemployment, sector, characterized
underemployment, poverty, by high levels
inequality andof
vulnerability, particularly
substantial economic amonginequality
and social the self-employed and persist.
and exclusion unpaidThe
family workers,
themes and with
are familiar:
limited labour rights and social protection coverage.
• A fast-growing population that has reached around 101 million, almost two-thirds of
• Lowwhich
productivity across sectors,
is of working age. chronically so in agriculture especially in the past ten years.
• Persistently
• One-third high
of unemployment
the working ageand underemployment
population that do notrates at 6-8 per
participate centlabour
in the and 18-23 per
force,
cent.with women accounting for a disproportionately large share.
• Poverty incidence
• A labour forceof thecontinues
that population at overfaster
to grow 20 per cent
than theineconomy
2015. can create jobs.
10. From• the standpoint

Wage of decent
and salary work and
employment thehas
that future
beenofgrowing
work, shared prosperity
modestly, andmore
but with elimination
than
of poverty and inequality rest on growth with employment, employment
six million private sector employees (34 per cent) in precarious employment who with rights, and
social protection for all.exercise
cannot effectively 21
Achieving these
or enjoy theirobjectives
full legal must
rights.start from a comprehensive
20
assessment of the state of labour and employment in the country (Figure 1), and a diagnosis
of the
• specific
At leastproblems,
38 per centissues and challenges
of employed in the that will then
informal enable
sector, stakeholders
characterized to formulate
by high levels
a specific, results-based, particularly
of vulnerability, goal-oriented national
among the decent work agenda
self-employed alignedfamily
and unpaid with the goals of
workers,
PDP 2017-2022
and withand AmBisyon
limited labour Natin
rights 2040.
and social protection coverage.
Figure 1. Snapshot of the labour and employment challenge, 2015
• Low productivity across sectors, chronically so in agriculture especially in the past
ten years.
• Persistently high unemployment and underemployment rates at 6-8 per cent and
18-23 per cent.
• Poverty incidence of the population at over 20 per cent in 2015.
10. From the standpoint of decent work and the future of work, shared prosperity and
elimination of poverty and inequality rest on growth with employment, employment
with rights, and social protection for all.21 Achieving these objectives must start from
a comprehensive assessment of the state of labour and employment in the country (Figure
1), and a diagnosis of the specific problems, issues and challenges that will then enable
stakeholders to formulate a specific, results-based, goal-oriented national decent work
agenda aligned with the goals of PDP 2017-2022 and AmBisyon Natin 2040.
Source: Philippine Statistics Authority, Labor Force Survey.
SECTION
18 I. OVERALL SETTING
19
20
A.21Based
Some
on 2015 Labor Force Survey, Philippine Statistics Authority (PSA).
Demographic structure
of these are now embedded andparts
in specific dynamics
and chapters of PDP 2017-2022, with Parts III (Inequality reducing transformation), IV
(Increasing growth potential), and VI (Foundations for sustainable development)
A.1 Age and sex demographics
11. About 38 per cent of the total population are in the three most urbanized and 6
Section I.
Overall
setting
ot G o
J. Bob
©ILO
11 Philippines 2017
A. Demographic structure and dynamics

Figure 1. Snapshot of the labour and employment challenge, 2015
A.1 Age and sex demographics
Figure 2. Total population by age group
11. About 38 per cent of the total population(in areperin cent)
the three most urbanized and industrialized
regions – Region IV-A (CALABARZON), National Capital Region (NCR) and Region
80.0 2.50III.22 The
population
60.0 is evenly distributed between the sexes. While about 68 per cent (69.3 2.00 million) of
the population is 15 years old and over, it remains dominantly young with 51 per cent below 1.50
40.0
25 years old and 32 per cent below 15. The population grew by a cumulative 32 per1.00 cent since
2000 - 1.9 per cent annually from 2000 to 2010 and by 1.73 per cent from 20100.50
20.0 to 2015.23
Growth 0.0 in working age population slowed down from almost 3 per cent in 2000 0.00to about
1.5 per cent starting in 2014 (Figure 2). Between 2015 and 2020, slower annual growth of about
2000 2010 2015 2020 2025
1.59 per cent is Lessprojected.

than 15
24
15By
- 24 2025, 25
the-54 share 55+
of those 15-64
below working
65+ age isgrowth
Annual seenrateto go down to
29 per cent; in spite of slower growth, the share of the working age population is still projected to
go up to 71 Philippine
Sources: per cent. Statistics
These shifts, expected
Authority, to continue
Population Censusesover
(2000the
andlonger term,
2010) and 2010creates
Census- a potential
based Population Projections (rest of the years).
for a demographic dividend as it will bring down the age dependency ratio, making it possible 25
for the economy to re-allocate resources from those below working age toward increasing the
productive capacity of the working age population.
A.2 Education, health and human development
Figure 2. Total population by age group
Source: Philippine
12. To enable the working age Statistics Authority, (in Force
Labor
population per cent)
become Survey.
productive members of the labour force,
80.0total human development with the core elements of education, training and health 2.50 is key.
This is guided by explicit State policies to protect and promote the right of all citizens
60.0 2.00 to
SECTION quality I. OVERALL
education atSETTINGall levels 26 and to adopt an integrated and comprehensive1.50 approach
40.0to health development where essential goods, health and other social services are
1.00
A. 20.0available
Demographic 27
to all structure
at affordable andcost.
dynamics
0.50
0.0A.1Age and sex demographics 0.00
13. The Human 2000
Development 2010
Index (HDI) assesses a country’s
2015 2020
long-term 2025
progress in three
11. Aboutdimensions:
basic 38 per cent of and
a long the healthy
total population
life, accessare in the three
to knowledge andmost
a decenturbanized
standardand of
Less than 15 regions
industrialized 15 - 24– Region 25 -54 IV-A55+(CALABARZON),
15-64 65+ Annual growth
National rate
Capital Region
living, measured by life expectancy, mean years of education among the adult population,
(NCR)
and and to
access Region III. 22and
learning Theknowledge
populationbyis expected
evenly distributed between the
years of schooling forsexes.
children Whileof
Sources: Philippine Statistics Authority, Population Censuses (2000 and 2010) and 2010 Census-
about 68
school-entry per cent (69.3
age (Table
based Population
million)
28
1). The
Projections
of the
(restexperience
population is 15 years old and over,
of the years).of the Philippines shows that education and
it remains
dominantly
health young with
are positively 51 per cent
correlated withbelow
income 25opportunity
years old and and32reduction
per cent of below
poverty15. Theand
population grew by a cumulative 32 per cent since 2000
inequality (Table 2). There is also a direct relationship between mean years of schooling - 1.9 per cent annually from
A.2 Education,
2000 health
to 2010 and by
and human 1.73 development
per of cent from 2010 to 2015. 23
Growth in cent
working age
A.2and income
Education, perhealth
capita.and One year
human additional
development schooling resulted in 26 per increase
population
in income per slowed
capitadown
between from1990 almostand3 2000,
per cent
andin31 2000per to about
cent 1.5 per
between centand
2005 starting
2014.in
12. To enable the working
2014 (Figure age population
2). Between 2015 and become2020, slowerproductive
annualmembers
growth ofofaboutthe labour
1.59 per force,
centtotal
is
12. human
To enable the24working
development with age
the population
core elements become
of productive
education, members
training and of the
health is labour
key. This force,
is guided
projected.
14.total
Overall, the By 2025, HDI
country’s the share of those showbelownominal
workingimprovements
age is seen toand go down to 29gaps per
human
by explicit Statedevelopment
policies to withperformance
protect theand core elements
promote the of education,
right of all training
citizens to quality
persistent
and health is key.at all
education
cent;
over in spite
the last of slower
three decades,growth, the share
underscoring of the working age population is still projected
This
levels is guided by explicit State policies to protectthe andimportance
promote to theof continuing
right of strategic
all citizens to
to26goand
upto
investments to adopt
71inper an
the integrated
cent.
areas These
of and comprehensive
shifts,
26 education expected
and health approach
to continue
as a means health
over the tolonger development
reduce term, creates
poverty where
anda
quality
essential education
goods, at
health all levels
and other and
social to adopt
services an integrated
are available and
to allcomprehensive approach
potential forThea demographic dividend asslightly
it will bring down theatage
affordable
ofdependency cost.countries
27
ratio, 25
to inequality.
health development country’swhere HDI is now
essential above
goods, health the
andmedian
other social 0.63services
for are
making it under
classified possible the for
mediumthe economy
development
27 to re-allocate
group butresources fromthe
is still below those below
average of working
0.71 for
available to all at affordable cost.
age toward
countries inincreasing
East Asia and the productive
the Pacific.capacity of the working age population.
13. The Human Development Index (HDI) assesses a country’s long-term progress in three
basic dimensions: a long and healthy life, access to knowledge and a decent standard of
living, measured by life expectancy, mean years of education among the adult population,
22
23
and
2015 access
Census, tooflearning
PSA. As 2015, Regionand
IV-A knowledge by14.41
had a population of expected
million, NCRyears of schooling
12.88 million, for
and Region III children
11.22 million. of
2015 Census, PSA. 28
24 school-entry age (Table 1). The experience of the Philippines shows that education
The 2010 Census-based population projections utilized the Cohort-Component Method. This methodology is based on the future trends in
and
health
fertility, areandpositively
mortality migration. Thecorrelated with income
three series of population opportunity
projections, and reduction
namely, the low, medium ofarepoverty
and high series, based on theand
above-
mentioned assumptions
inequality adopted.2). There is also a direct relationship between mean years of schooling
(Table
25
Age dependency ratio refers to ratio between children (less than 15 years old) and the elderly (65 years old and over) to the economically
and income
productive per capita.
population (15-64 years old).One year of additional schooling resulted in 26 per cent increase
26
1987 Philippine Constitution, ART. XIV, Sections 1 to 9.
in income per capita between 1990 and 2000, and 31 per cent between 2005 and 2014.
27
28
Idem, ART, XIII, Section 11. 7
UNDP, 2015.
14. Overall, the country’s HDI performance show nominal improvements and persistent gaps
8
over the last three decades, underscoring the importance of continuing strategic
Section I.
Overall setting 12
13. The Human Development Index (HDI) assesses a country’s long-term progress in three basic
dimensions: a long and healthy life, access to knowledge and a decent standard of living,
measured by life expectancy, mean2.years
Figure Totalofpopulation
education among
by agethe adult population, and access
group
to learning and knowledge by expected (in years of schooling
per cent) for children of school-entry age
(Table80.0
1). The experience of the Philippines shows that education and health are2.50
28
positively
correlated with income opportunity and reduction of poverty and inequality (Table2.002). There
60.0
is also a direct relationship between mean years of schooling and income per capita. One year
1.50
of additional
40.0 schooling resulted in 26 per cent increase in income per capita between 1990 and
1.00
2000,20.0
and 31 per cent between 2005 and 2014.
0.50
0.0
14. Overall, the country’s
2000
HDI performance
2010
show2015
nominal improvements
2020
persistent0.00gaps over
and2025
the last three decades, underscoring the importance of continuing strategic investments in the
Less than 15 15 - 24 25 -54 55+ 15-64 65+ Annual growth rate
areas of education and health as a means to reduce poverty and inequality. The country’s HDI is
nowSources:
slightlyPhilippine
above the median
Statistics of 0.63Population
Authority, for countries classified
Censuses under
(2000 and theand
2010) medium
2010 Census- development
group but isbased
still Population
below theProjections
average of(rest0.71offor countries
the years). in East Asia and the Pacific.
Table 1. Philippine human development index

A.2 Education, health and human development
Life
Expected years Mean years GNI per capita
expectancy HDI value
12. of schooling
age population of schooling (2011 members
PPP$)
YearTo enable the working
at birth become productive of the labour force,
1980total human
62.2development with 10.3 the core elements
5.4 of education,4 410training and health
0.557 is key.
1985This is guided
63.8 by explicit State10.526 policies to protect
6.2 and promote
3 487the right of all citizens to
0.565
1990quality education
65.3 at all levels
10.8 and to adopt
6.6an integrated and
3 962 comprehensive approach
0.586
1995to health66.1
development where 10.8 essential goods,
7.1 health and
4 111other social 0.598
services are
27
2000available to
66.7 all at affordable cost.
11.4 7.6 4 994 0.623
2005 67.2 11.6 7.9 6 058 0.640
13.
2010The Human 67.7Development11.3 Index (HDI) assesses
8.2 a country’s long-term progress
7 478 0.654 in three
2011basic dimensions:
67.8 a long and
11.3healthy life, access
8.4 to knowledge
6 853and a decent standard of
0.653
2012living, measured
67.9 by life expectancy,
11.3 mean years
8.5 of education among the adult
7 166 population,
0.657
2013and access68.1to learning and 11.3
knowledge by 8.7 expected years7of598 schooling for0.664
children of
2014school-entry
68.2 age (Table 1).11.328 8.9 7 915 0.668
The experience of the Philippines shows that education and
health
Source: areNations,
United positively correlated
Human with
Development income
Report. opportunity and reduction of poverty and
inequality (Table 2). There is also a direct relationship between mean years of schooling
and income per capita. One year of additional schooling resulted in 26 per cent increase
Table 2.1990
in income per capita between Selected healthand
and 2000, indicators
31 per cent between 2005 and 2014.
2015 MDG
Indicator 1990 baseline 2013
14. Overall, the country’s HDI performance show nominal improvements and target
persistent gaps
Infant mortality
over rate three decades, underscoring the 57
the last importance of23continuing19 strategic
Under 5 mortality rate
investments in the areas of education and health80as a means to31 reduce poverty
27 and
Maternal mortality ratio 209 221 52
inequality. The country’s HDI is now slightly above the median of 0.63 for countries
classified under the medium development group but is still(2011 data)
below the average of 0.71 for
Prevalence of underweight children below 5
countries in East Asia and the Pacific. 26.5 21.5 13.3
(1992 data) (2015 data)
Proportion of births attended by skilled
58 87 100
health personnel
Source: Philippine Statistics Authority, MDG Watch.
A.2.1 Opportunities and access to education and technical-vocational training
15. The State’s policy is to provide universal access to basic education and training for
26
children of school age and adults29 and give the highest budgetary priority to education.30
1987 Philippine Constitution, ART. XIV, Sections 1 to 9.
27
Idem,Toward
ART, XIII, these ends, the budget for education has more than doubled between 2014 and
Section 11.
28
2017 and now represents 19 per cent of the total budget (Table 3) although it is still a
UNDP, 2015.
very small percentage of GDP. Access to education is also improving. In 2015, school 8
participation or net enrolment ratio of those between 5 to 15 years was 74 per cent in
13 Philippines 2017
A.2.1 Opportunities and access to education and technical-vocational training

Table 1. Philippine human development index
15. The State’s policy is to provide universal access to basic education and training for children
Life per cent in29 2015 from 45 per cent in 2000. About 60.4 per cent of 30women
of school
rate is age
57.9 and adults Expected
and give the highest
years Mean yearsbudgetaryGNIpriority
per capita to education. Toward
expectancy 32HDI value
these of schooling of schooling (2011 PPP$)
Yearends, at thebirth
budget for education has more than doubled between 2014 and 2017 and now
compared to 55.4 per cent of men completed their secondary schooling.
represents
1980 1962.2
per cent of the total10.3 budget (Table 5.43) although it 4is410
still a very small percentage
0.557
of1985
GDP. Access63.8 Table 3. Expenditure
to education is 10.5 programme
also improving. In on education and health
6.22015, school participation
3 487 or net
0.565enrolment
ratio Expenditure programme 2014 2015 2016 2017
1990of those between
65.3 5 to 15 years was 74 per cent6.6
10.8 in kindergarten,3 91962per cent in elementary
0.586 and
68 per Amount (Php
cent in66.1 billion) education. In secondary education, girls had higher net enrolment
secondary
1995 10.8 7.1 4 111 0.598
Education 284.300 387.451 490.628 637.774
ratio
2000at 73 per cent66.7 than boys at 64 per cent.31 In School
11.4 7.6 Year (SY) 42015-2016,
994 teacher-to-student
0.623
Health 89.011 109.257 125.353 146.178
ratios
2005 in the public67.2 elementary11.6 and secondary 7.9 schools stood at 1:33 and 1:25,0.640
6 058 respectively,
% of National budget
slightly
2010 improving from 1:36 and 1:27 in 14.08
Education
67.7 11.3 SY 2014-2015.
8.2 The adult secondary
16.05
7 478
16.34 school 19.04 graduation
0.654
rate
2011 israte
57.9 per cent
67.8 in 2015 from 45
11.3 per cent
is 57.9 per cent in 2015 from 45 per 4.41
Health in 2000.
8.4 About
cent in 2000. About 60.46per
853
4.52 60.4 per centcent
4.18of women compared
of women
0.653
4.36
to 55.4
2012 per
% of GDP
compared cent
67.9
to of
55.4 men
per completed
cent of 11.3
men their secondary
completed their8.5 schooling.
secondary 327 166
schooling. 32 0.657
2013 68.1 11.3 8.7 7 598 0.664
Education 2.25 2.91 3.40 …
2014 Table 3. Expenditure programme
68.2 11.3
0.70 on education
8.9
0.82 and health0.87
7 915 0.668
Health …
Expenditure
Source: programme
United Nations, Human Development2014 Report. 2015 2016 2017
Amount (Php billion)
Sources:Department of Budget and Management; Philippine Statistics Authority, National
Accounts of the Philippines. 284.300
Education 387.451 490.628 637.774
Health 89.011 109.257 125.353 146.178
% of National budget Table 2. Selected health indicators
16. Over 90 per cent of adults aged 25-64 years old were functionally literate, with women
Education 14.08 16.05 16.34 33 2015 MDG
19.04
Indicator
posting
Health
a slightly higher rate (91.7 4.41 19904.52
per cent) baseline
than men (88.7
4.18
per2013
cent). Over 43.8 per
4.36 target
cent of(about 28.5 million) reached or completed secondary education, 26.2 per cent
Infant%mortality
GDP rate 57 23 19
tertiary (about 17 million), 24 per2.25
Education cent primary
2.91 (15.6 million),
3.40 and 4.2…per cent post-
UnderHealth
5 mortality rate 80 31 27
secondary (about 2.7 million). More
0.70 men had 0.82secondary0.87
schooling while … more women
Maternal mortality ratio 209 221 52
reached tertiary level.
Sources:Department of BudgetLess than 2 perPhilippine
and Management; cent ofStatistics
the total working
(2011population
Authority, National
data) (1.3 million)
Accounts of the Philippines.
were certified, job-ready
Prevalence of underweight children below 5 Technical-Vocational Education
26.5 and21.5 Training 13.3(TVET)
16. graduates.
16. Over 90
Over per
90 per The
centproportion
cent of adults
of adults of those
aged
aged reaching
25-64
25-64 old secondary,
yearsyears (1992 data) post-secondary
old functionally
were were (2015
functionally
literate,data) and tertiary levels
literate,
with women with women
in relation
Proportion to
postingofa births those with
attended
slightly primary
(91.7 per cent) than men (88.7 per cent). Over3343.8 persince 2011
by skilled
higher rate level schooling has been improving
33 slightly
posting
(Figure
cent
a (about
slightly
3). 28.5 higher rate (91.7 per cent) than men58 (88.7 per cent).
million) reached or completed secondary education, 26.2 per cent
87 Over 43.8 100 per cent
health personnel
(about 28.5 million) reached or completed secondary education, 26.2
tertiary (about 17 million), 24 per cent primary (15.6 million), and 4.2 per cent post- per cent tertiary (about
Source: Philippine Statistics Authority, MDG Watch.
17 million),
secondary24 per cent
(about primaryMore
2.7 million). (15.6
menmillion), andschooling
had secondary 4.2 per while
cent more
post-secondary
women (about
2.7 million). More level.
reached tertiary men had secondary
Less than schooling
2 per cent of the totalwhile more
working women(1.3
population reached
million)tertiary level.
LessA.2.1
were Opportunities
than 2certified,
per centjob-readyandtotal
of the access to education
working and
population
Technical-Vocational technical-vocational
(1.3 million)
Education and Training training job-ready
were (TVET)
certified,
graduates. The proportion of those reaching secondary, post-secondary and tertiary levels
Technical-Vocational Education and Training (TVET) graduates. The proportion of those
in relation
15.reaching
The State’s to policy
those withis primary
to providelevel universal
schooling has been improving slightly sinceand
2011
secondary,
(Figure 3). post-secondary and tertiaryaccess
levels into relation
basic education
to those with training
primary for
level
children of school age and adults and give the highest budgetary priority to education.30
29
schooling has been improving slightly since 2011 (Figure 3).
Toward these ends, the budget for education has more than doubled between 2014 and
2017 and now represents 19 per cent of the total budget (Table 3) although it is still a
very small percentage of GDP. Access to education is also improving. In 2015, school
participation or net enrolment ratio of those between 5 to 15 years was 74 per cent in
kindergarten, 91 per cent in elementary and 68 per cent in secondary education. In
secondary education, girls had higher net enrolment ratio at 73 per cent than boys at 64
per cent. 31 In School Year (SY) 2015-2016, teacher-to-student ratios in the public
elementary and secondary schools stood at 1:33 and 1:25, respectively, slightly
improving from 1:36 and 1:27 in SY 2014-2015. The adult secondary school graduation
29
1987 Constitution, Art. XIV, Sec. 2.
30
Idem, Sec. 5.
31
Department of Education, 2015 Enhanced Basic Education Information System (EBEIS). The K to 12 Programme under Republic Act No.
10533, or the Enhanced Basic Education Act of 2013 covers Kindergarten and 12 years of basic education (six years of primary education,
four years of Junior High School, and two years of Senior High School [SHS]) to provide sufficient time for mastery of concepts and skills,
develop lifelong learners, and prepare graduates for tertiary education, middle-level skills development, employment, and entrepreneurship.
32
Adult secondary-school graduation rate refers to total adults who have completed high school education as a percentage share of total adult
household population 25 years old and over (PSA data).
33
9
2013 estimate.
32
Adult secondary-school graduation rate refers to total adults who have completed high school education as a percentage share of total adult 10
household population 25 years old and over (PSA data).
Section I.
Overall setting 14
Figure 3. Working age population by highest educational attainment
Figure 3. Working age population by highest educational attainment
(in per cent)
(in per cent)
100.0 3.0
100.0 3.0
80.0 2.5
80.0 2.5
2.0
60.0 Figure 3. Working age population by highest educational attainment 2.0
60.0 1.5
40.0 1.5
40.0 1.0
20.0
(in per cent) 1.0
0.5
20.0
100.0 0.5 3.0
0.0 0.0
0.0 2000 2005 2010 2011 2012 2013 2014 2015 0.0 2.5
80.0
2000 2005 2010 2011 2012 2013 2014 2015
2.0
60.0 No schooling Primary Secondary Post secondary Tertiary Annual growth rate
No schooling Primary Secondary Post secondary Tertiary Annual growth rate 1.5
40.0
Note: Before 2012, data for post-secondary education was included in tertiary. 1.0
20.0 Before
Note:
Source: 2012,Statistics
Philippine data for post-secondary
Authority, Laboreducation was included in tertiary.
Force Survey. 0.5
0.0 0.0
A.2.2 A.2.2 Provision2000 2005 to health
of and access 2010 services
2011
Provision of and access to health services 2012 2013 2014 2015
A.2.2 Provision of and access to health services
No schooling Primary Secondary Post secondary Tertiary Annual growth rate
17. On health, the policy and legal framework for affording universal health care is
17. 17.
On health, the policy
On health, and legal
the through
policy and framework
legal health for affording
framework universaluniversal
for affording health care is institutionalized
health
institutionalized a national insurance programme. 34
For wage andcare
salaryis
through
Note: a national
Before 2012,health
institutionalized
workers,
data
the programmethrough insurance
for post-secondary
a national
isAuthority,
tied to the
programme.
education
health For
insurance
Government
wage
34was included
and
programme. salary
34
in tertiary. workers,
Service Insurance System (GSIS)salary
For wage the
and programme
and
is tied to
Source:the
workers, Government
Philippine
the Statistics
programme Service
is tied Insurance
to Labor
the System
Force
Government (GSIS)
Survey.
Service
the Social Security System (SSS) for public and private sector employees. Through State and the
Insurance Social
SystemSecurity
(GSIS) System
and (SSS)
for public andthe
the Social
subsidies, private
Security
programmesector
Systemalso employees.
(SSS) aims forto Through
public State services
andhealth
provide private subsidies, to the
sector employees. programme
the entire Through
population,also aims to
State
provide
A.2.2 health
subsidies,
including services
the
Provision
those programme
in of toand
the the alsoentiresector
access
informal aims topopulation,
to provide
health including
health
andservices
generally the those
services poor in
to andthe
the entire informal sector
population,
marginalized. 35
35
and
generally the poor
including
Significant those and in
progress in marginalized.
the informal
providing the poor 35
Significant
sector and
with accessprogress
generally thein providing
to health poor and
services has thebeenpoormade
marginalized. with access
Significant
17.to health lastprogress in providing the framework
poorchallenges
with access to health services has been made
On
over services
health,
the hasdecades,
the
two been
policy made
and over
legal
but substantial the last two decades,
for but
Thesubstantial
affording
remain. universal
country challenges
is in health
deficit remain.
care
of is
over the last two decades, but substantial challenges remain. The country
34 is in deficit of
Theinstitutionalized
country
its is in deficit
millennium
its millennium
throughof itsamillennium
development
development
national
goals of health
goals
development
reducing
ofthereducing
insurance goals
infant mortality
infant mortality
of reducing
programme. and maternal
and maternal
Forinfant
wage mortality
and salary
mortality
mortality
and
maternal
workers,
and mortality and
the programme
malnutrition,
and malnutrition,
and malnutrition,
of
andonly
is tied
increasing
of increasing
to theand of increasing
Government
proportion
the ofproportion
of the proportion
Service
birth
of birth
Insurance
attended
attended by of
by System birthhealth
trained
trained attended by
(GSIS)
health and
personnel.
trained
the health
Social In 2013,
personnel.
Security In
System around
2013,(SSS) only half
for around
public thehalf
and 37,436
of the
private barangays
37,436
sectorbarangaysacross
employees. the country
across
Throughthe country
State
personnel.
had health In 2013,(Table
stations only 4). aroundThe half
ratio of
of the
public37,436
health barangays
workers across
to total the country
population
hadsubsidies,
health
had low, stations
health the (Table
programme
stations (Table4). Thealso
4). sixratio
aimsratio
The of
to public
provide
of17publichealth
health
healthworkers
services
workers totototal
tothe population
entire
total was low,
population,
population
was
including with
those three
in doctors,
the informal nurses,
sector and midwives
generally and the209poor health and workers per 36 35
marginalized.
with100,000
threelow,
was doctors,
with
persons. six
three
36 nurses,
doctors, 17 midwives
six nurses, and17 209 health
midwives workers
and 209 per 100,000
health workers persons.
per
Significant progress
100,000 persons. 36 in providing the poor with access to health services has been made
over the
A.3 Budget last twoand decades, but substantial challenges remain. The country is in deficit of
A.3 allocation
Budget allocation challenges
and challenges
its
A.3millennium development
Budget allocation goals of reducing infant mortality and maternal mortality
and challenges
and
18. Delivery
18. Deliverymalnutrition,
of adequate
of adequate and
basic of
basic increasing
education
educationand andthehealth
proportion
health services
servicesofisisbirth
aakey attended
key isby
goal.It It
goal. is trained health
noteworthy
noteworthy that
18. personnel.
Delivery of adequate
Inhas2013, basic
hasonly education and health services is a key goal. It is noteworthy
the government
that the government backed thisaround
backed upthis
by up half of the increasing
significantly 37,436
by significantly barangays
increasingthe budgets across
the budgets for for theboth
both country
education
that health
had the government
stations has backed
(Table this
4).theThe upratio
by significantly
of public increasing
health the budgets
workers totalforpopulation
to percentages both
and education
health. Although
education
and
and theAlthough
health.
health. increased
Although budget
the
increasedrepresent
increased
budget
budget only nominal
represent
represent
only
only percentages
nominal
nominal of the national
percentages
was
of thelow, with
national three
budget doctors,
and GDP andsix nurses,
there 17 midwives and 209 health workers
its perold
budgetof and
the GDP and
national 36thereand
budget remains
GDP many
and oldremains
there and new
remains
many
many
old and its
challenges,
old and
newimpacts
new
challenges, in meeting
challenges, its
100,000 persons.
and impacts
new
impacts
in meeting old and new challenges can be optimized through efficient and
challenges
in meetingcanoldbe andoptimized
new through can
challenges efficient
be and effective
optimized through budget
efficientexecution
and and
effective budget execution and implementation.
implementation.
effective budget execution and implementation.
A.3 Budget allocation and challenges
18.Republic
34 Delivery
Act No. 7825,ofAnadequate
Act Institutingbasic education
the National andProgram
Health Insurance health services
for All is a askey
Filipinos (1995), goal.
amended It is noteworthy
by Republic Act No.
34
9241Republic
(2004).Act No. 7825, An Act Instituting the National Health Insurance Program for All Filipinos (1995), as amended by Republic Act No.
35
9241
that
(2004).
Section
the government has backed this up by significantly increasing the budgets
2, RA No. 7825 provides: “Declaration of Principles and Policies. – Section II, Article XIII of the 1987 Constitution of the Republic
for both
35
of Sectioneducation and health. Although the increased budget represent only nominal percentages
2, RA
the Philippines No. 7825
declares provides:
that the “Declaration
State shall of
adopt Principles
an and
integrated Policies.
and – Section
comprehensive II, Article
approach XIII
to of the
health 1987 Constitution
development which of the
shall Republic
endeavor
toof make
the Philippines declares that theand
State shallsocial
adoptservices
an integrated and comprehensive approach to healthcost.
development which
the shall
needsendeavor
to make ofessential
essential
underprivileged,
goods, health
thesick,
national
goods, health
elderly, budget other
and other
disabled, women, and
social GDP available
services shall
and children available
to all the people
andbe recognized.
there remains
to all theLikewise,
at affordable
people atitmany
affordable old
shall be the cost.
Priority of
and
policy of thenew
Priority State needs
of the
of thetochallenges,
provideoffree
the its
impacts
underprivileged,
medical
36
medical
sick,in meeting
elderly,
care to paupers.”
care which
to paupers.”
old
disabled, women, and new
and children challenges
shall can
be recognized. Likewise, be optimized
it shall be the policy ofthrough
the State to efficient
provide free and
As of 2000, is the latest available figure.
36
As of effective
2000, which isbudget execution
the latest available figure. and implementation.
11
11
34
Republic Act No. 7825, An Act Instituting the National Health Insurance Program for All Filipinos (1995), as amended by Republic Act No.
9241 (2004).
35
Section 2, RA No. 7825 provides: “Declaration of Principles and Policies. – Section II, Article XIII of the 1987 Constitution of the Republic
of the Philippines declares that the State shall adopt an integrated and comprehensive approach to health development which shall endeavor
to make essential goods, health and other social services available to all the people at affordable cost. Priority of the needs of the
underprivileged, sick, elderly, disabled, women, and children shall be recognized. Likewise, it shall be the policy of the State to provide free
medical care to paupers.”
36
As of 2000, which is the latest available figure.
11
15 Philippines 2017
Table 4. Education and health service facilities, 2015

Public and Average
Poverty private Average population
Government Barangay
Total GRDP incidence elementary population per
Region and private health
population growth of the and per barangay
hospitals stations
population secondary barangay health
Table 4. Education and health service facilities, 2015
schools station
Philippines Public and Average
Number 101 million Poverty private
62 618 1 195 19 622 Average2 399 population
5 187
Government Barangay
Percent Total GRDP 5.9
100.0 incidence21.6 elementary
100.0 100.0 100.0population per
Region and private health
NCR population growth6.6
12.8 of the and
3.9 5.1 13.4 per
2.4 7 611barangay27 206
hospitals stations
CAR 1.7 population
3.7 19.7secondary 3.4 1.9 barangay
3.3 1 485health 2 758
Region I 5.0 5.0 13.1schools 5.9 7.2 5.9 1 547station 4 356
Philippines
Region II 3.4 3.7 15.8 4.9 4.9 6.3 1 499 2 793
Number
Region III 101 million11.1 5.3 11.2 62 618 9.1 1 195 14.119 622 10.0 2 399
3 638 5 187
5 737
Percent
Region IV-A 100.014.3 5.95.9 21.69.1 100.0
11.3 100.017.4 100.0 11.5 3 482 6 550
NCR
Region IV-B 12.82.9 6.61.7 3.9
24.4 5.14.0 13.41.9 2.44.3 7 611
2 157 27 206 3 594
CAR
Region V 1.75.7 3.78.4 19.7
36.0 3.47.0 1.94.3 3.35.9 1 485
1 682 2 758
5 040
Region
RegionI VI 5.07.5 5.08.3 13.1
22.4 5.98.4 7.25.2 5.9
10.5 1 547
1 877 4 356
3 693
Region
RegionII VII 3.47.3 3.74.8 15.8
27.6 4.97.7 4.94.8 6.39.6 1 499
2 176 2 793
3 962
Region III
Region VIII 11.1 4.4 5.33.9 11.2
38.7 9.17.1 14.13.6 10.0 4.2 3 638 997 5 737
5 265
Region
RegionIV-AIX 14.33.6 5.97.2 9.1
33.9 11.34.4 17.43.7 11.53.6 3 482
2 085 6 550
5 335
Region
RegionIV-BX 2.94.6 1.75.5 24.4
36.6 4.05.1 1.95.4 4.35.5 2 157
2 358 3 594
4 395
Region
RegionV XI 5.74.8 8.47.9 36.0
22.0 7.04.1 4.34.5 5.95.2 1 682
4 249 5 040
4 826
Region
RegionVI XII 7.54.5 8.33.3 22.4
37.3 8.44.4 5.24.7 10.55.7 1 877
3 879 3 693
4 175
Region
CaragaVII 7.32.6 4.84.2 27.6
39.1 7.73.7 4.81.4 9.64.0 2 176
1 999 3 962
3 349
Region
ARMM VIII 4.43.7 3.9 -0.8 38.7
53.7 7.14.2 3.61.6 4.22.1 997
1 464 5 265
8 348
Region IX 3.6 7.2 33.9 4.4 3.7 3.6 2 085 5 335
Sources: Philippine4.6
Region X
Statistics5.5
Authority;36.6
Department of5.1Education and5.4
Department
5.5
of Health.
2 358 4 395
Region XI 4.8 7.9 22.0 4.1 4.5 5.2 4 249 4 826
For both
Region For education
XII 4.5 and3.3
both education health, budget execution
37.3 budget
and health, 4.4 should
execution ensure
4.7
should equal
ensure access
5.7 equal to facilities
3access
879 4 175and
to facilities
services
Caraga andacross regions.
services Except
2.6across 4.2 for39.1
regions. Regions
Except forIII,Regions
IV-A, VIII,
3.7 andIV-A,
the Visayas
1.4 4.0 regions,
V and 1 999the proportions
the Visayas 3 349 the
regions,
of elementary and
ARMM 3.7secondary
-0.8 schools
53.7 were below 4.2 6 per cent.1.6 On 2.1the other
proportions of elementary and secondary schools were below 6 per cent. On the other hand, while
1 464 8 348it is
logicalPhilippine
Sources: that there
hand, while are more
Statistics
it is private
Authority;
logical and government
Department
that there areofmore hospitals
Education andand
private ingovernment
the more
Department developed
hospitalsand
of Health. densely
in the more
populated regionsand
developed such as NCRpopulated
densely and Regions III and
regions suchIV-A,as theNCR data
andindicate
Regions thatIIIbarangay
and IV-A, health
the
stations
Fordataareindicate
both inadequate
education even to meet
and health,
that barangay healththe
budget needsare
execution
stations of inadequate
these regions.
should ensure
even Forto example,
equal access
meet the needs NCR of
to hasthese
facilities the
highest population
andregions.
servicesFor unserved
across regions.
example, by
NCRbarangay
Excepthas for
thehealth
Regions
higheststations.
III, Regions
IV-A,
population V and IIIthe
unservedandVisayas
IV-A account
regions,for
by barangay thethe
health
most number
stations.ofRegions
proportions barangay
of IIIhealth
elementary and
and IV-Astations
secondarybut their
account high
schools
for the population
were
most numberdensity
below 6 per likewise
cent.
of barangay On limitstations
the
health access
other
as evidenced
hand, whileby the
it is average
logical population
that there arebeing
more served
private by andeach
but their high population density likewise limit access as evidenced by the average barangay
government health
hospitals station.
in theThe same
more
problems
developed becomebeing
population and even more
denselyservedpronounced
populated with respect
regions
by each barangay such as
health to station.
NCR the regions
and The with
Regions sametheIII highest poverty
and
problems IV-A, the
become
incidence
data such
indicate as Autonomous
that barangay Region
health of Muslim
stations are Mindanao
inadequate
even more pronounced with respect to the regions with the highest poverty incidence (ARMM)
even to and
meet Regions
the needs V and
of VIII.
these
regions. For example, NCR has the highest population
such as Autonomous Region of Muslim Mindanao (ARMM) and Regions V and VIII. unserved by barangay health
stations.
19. On education, Regions
shifting IIIage
anddemographics
IV-A account has, for the mostbeen
as has number of barangay
noted, the potential health stations
upsides of a
but their high
demographic dividend population
and of density down
bringing likewise the limitdependency
age access as ratio.
evidenced PDP by the average
2017-2022 devotes
19. On education, shifting age demographics has, as has been noted, the potential upsides of
population
an entire chapter being served by the
to emphasize each barangaytaking health advantage
station. The sameupsideproblems become
a demographic dividend and ofurgency
bringingofdown the age dependency of this ratio. PDP but 2017-2022
that it will
not even more pronounced
bedevotes
realized within a with
short respect
period if noto strategic
the regions with the
measures arehighest
an entire chapter to emphasize the urgency of taking advantage of this upside thetaken. 37poverty incidence
Acceleration of but
such
dividend as Autonomous Region
only if of Muslim Mindanao (ARMM) and andRegions V andyouth VIII.have
thatwill comenot
it will about
be realized the current
within under
a short 15 population
period if no strategic the working
measures are taken. 37
the requisite
Accelerationeducation,
of thetraining,
dividendaccess
will come to health
about services
only if the and opportunities
current to make them
under 15 population and
19.productive
Onthe contributors
education,
working youthtohave
shifting the the
age economy.
demographics
requisite Buteducation,
inadequatetraining,
has, as has investments
been accessintothese
noted, the potential areas
health as welland
upsides
services of as
in job-creating
a demographic
opportunities infrastructure
dividend
to makeand canofaggravate
them bringing
productive labour
down underutilization
the age dependency
contributors and canPDP
ratio.
to the economy. instead
But result in a
2017-2022
inadequate
demographic
devotes anburden.
investments entire in chapter
these areasto emphasize
as well asthe in urgency
job-creating of taking advantagecan
infrastructure of aggravate
this upsidelabourbut
37
that it will not be realized within a short
underutilization and can instead result in a demographic burden.period if no strategic measures are taken.
Acceleration
20. Tracking education of the
anddividend
training will come about
outcomes – and only their ifcorrelation
the currentwith under 15 population
quality of employment and
and the working youth have the requisite education, training,
access – demands more urgent attention. About 75 per cent of the working age population access to health services and
37
See Chapter 13, PDP 2017-2022.
opportunities
reached either elementary, to make them secondaryproductive contributors level
or post-secondary to theeducation,
economy.while But inadequate
drop-outs or
school leavers still constitute approximately 8.8 per cent of those between 5 to 17 and labour
investments in these areas as well as in job-creating infrastructure can aggravate 22.9 per12
underutilization and can instead result in a demographic
cent of those between 15 to 17. This means that majority of the working population and the burden.
37
See Chapter 13, PDP 2017-2022.
12
working age population reached either elementary, secondary or post-secondary level
education, while drop-outs or school leavers still constitute approximately 8.8 per cent
of those between 5 to 17 and 22.9 per cent of those between 15 to 17. This Section I.
majority of the working population and the labour force do not possess adequate
means that
Overall setting 16
educational qualifications and can be absorbed only in low-skilled and low-paid jobs. On
the other
labour forcehand,
do notwhile the output
possess adequate of educational
technical and vocational and
qualifications education
can behas increased
absorbed only in
because of training grants and subsidies, about 20 per cent of those who
low-skilled and low-paid jobs. On the other hand, while the output of technical and vocational enroll under
Technicalhas
education Education
increasedand SkillsofDevelopment
because training grantsAuthority (TESDA)
and subsidies, aboutprogrammes
20 per cent ofdo not who
those
complete their courses, while only 38
about one-half of those enrolled eventually getthe
enroll under the Technical Education and Skills Development Authority (TESDA) programmes
8,965 (26.8 per cent) from 15 to 24 . The increase in HIV cases is illustrative of
certified
do not
country’s(Figure
complete 4). Without
their courses,
vulnerability relevant
notwhile
onlyonly qualifications
aboutbut
to HIV one-half and skills
also toof other upgrading
those enrolled
pandemics – and
eventually
that havewithout
getcaused
certified
the attendant
global alarm improvement
in recent in
years, quality
such asof jobs
SARS being
and generated
the MERS-CoV. – occupational
(Figure 4). Without relevant qualifications and skills upgrading – and without the attendantThis mobility
vulnerability is
will be
improvement limited and the low-skilled
in quality of jobs
increased exponentially by being
the large and
generated even
volume– of semi-skilled
occupational
OFWs. Given will
mobilitybe at risk
willcountry
that the of
be limitedbeing
andofthe
is one
consigned
the most to low-quality
disaster-prone and low-paid
countries in work
the for
world,their entire
natural working
calamities lives.
low-skilled and even semi-skilled will be at risk of being consigned to low-quality and low-paid
also pose substantial
work for their
health risksentire working
especially lives.
in low-lying, densely populated and remote areas.
B. Structure
Figureand performance
4. Enrolment, of the economy
graduates, assessed and certified under TVET
2,500,000 100.0
B.1 GDP growth and contributions by sector
2,000,000 80.0
1,500,000 60.0
23. The economy posted moderate to solid GDP growth from 2000 to 2015 (Table 5). Except
1,000,000
in 2011, annual GDP growth was consistently above 4 per cent. From 2012 to40.02016, GDP
500,000 ranged from 5.9 per cent to 7.1 per cent. Per capita GDP20.0also grew
growth
proportionately.
- -
2005 2010 2011 2012 2013 2014
Table
Enrollment 5.Graduates
Gross Domestic ProductCertified
Assessed and per capita GDP
Certification rate
(at constant prices)
Indicator 2000
Source: Technical Education and Skills2005 2010
Development Authority. 2011 2012 2013 2014 2015
GDP (Php billion) 3 581 4 481 5 702 5 910 6 305 6 751 7 170 7 594
21. Across
21. Across the board, education
Agriculturethe board, education 500 and 597 and training
training need need
663 to be680to be modernized
modernized699 and 707and re-focused
re-focused to
719to optimize
720
impact. National school
optimize
Industry impact. curricula,
National
1 234 teaching
school
1 465 methods,
curricula,
1 860 professional
1 894 2 031 qualifications,
teaching methods,
2 219 and skills
professional
2 391 and
2 536
licensing
Service standards
qualifications, andneed toand
skills
1 847 be continuously
licensing
2 419 upgraded
3standards
179 andtobenchmarked
3need
336 be continuously
3 575 to regional
3 825 4 060 and
upgraded 4global
and 338
standards.
Growth
benchmarkedTheretois an
rate (%) urgent
regional
4.4need to4.8
and global address shortages
standards.
7.6 of
3.7properly6.7
There trained7.1
is an urgent teachers,
need classrooms,
to address
6.2 5.9
textbooks
shortages
Agriculture and
of instructional
properly materials
trained
3.4
teachers,including
classrooms,internet
2.2full implementation
-0.2 connectivity.
textbooks and
2.6 of the2.8 The full
instructional
1.1 implementation
materials
1.7 now 0.1
of the K
including
Industry to 12 programme
internet now
connectivity. requires
The the last two years of secondary
K to 12schooling
programme (senior high
6.5 of secondary
4.2 11.6 1.9 7.3 school)9.2to incorporate
7.8 6.0
school) to incorporate technical and vocational courses; Department of Education (DepEd)
requires the last two years schooling (senior high
Service 3.3 5.8 7.2 4.9 7.1 7.0 6.2 6.8
and TESDAand
technical need to ensurecourses;
vocational the courses they offerofare
Department not redundant
Education (DepEd) andand
areTESDA
responsiveneedto the
GDPtoper capitathe
(Php) 46they
630 offer 52 561
are not61redundant
570 62and
332 are65 332 68 746to the71 790 of the
74 770
needs of the economy.
ensure courses responsive needs
Growth rate
economy. 4.4 2.7 5.8 1.2 4.8 5.2 4.4 4.1
22. On health, increased
Source: Philippine preparedness
Statistics Authority, NationalforAccounts
pandemics and natural disasters present an additional
of the Philippines.
22. challenge
On health, for health authorities. HIV cases increased from
increased preparedness for pandemics 2,349 indisasters
and natural 2011, 7,829 in 2015,
present an to
24.3,063 in the challenge
Driven
additional byfirst four months
the retail and of 2016.
wholesale
for health andSince 1984,
BPO
authorities. HIV the number
sub-sectors,
cases of reported
services
increased expanded casesinhas
from 2,349 its GDP reached
share
2011,
33,419. Around 92 per cent (30,865) of these cases involved men; 4,182 (12.5 per cent)ofwere
to
7,829 almost
in 60
2015, per
to cent
3,063 inin2015.
the Industry
first four had
monthsabout
of one-third
2016. with
Since manufacturing,
1984, the number fueled
OFWs, of cases
primarily
reported whom 3,510
byhas (83.9 33,419.
electronics
reached per cent)
products, were
Around men.
accounting
92 per More
forthan
cent abouthalfone-fourth
(30,865) (17,096
of these or 51.2total
of
cases per GDP.
cent) of
involved
the cases involved
Agriculture’s
men; 4,182 persons
(12.5share aged
dropped
per cent) from
wereto 9.5 25
OFWs, perto 34
cent
of .and 3,510
whom 8,965 (83.9
(26.8 per
per cent)
cent) were
frommen. 2438. The
15 toMore
increase
than half in(17,096
HIV cases is illustrative
or 51.2 per cent) ofof the country’s
the cases vulnerability
involved persons not
agedonly
fromto25HIV butand
to 34 also to
Figure 5. Sectoral shares in GDP
other pandemics that have caused global alarm in recent years, such as SARS and the MERS-
CoV. This vulnerability is increased exponentially by the large volume of OFWs. Given that the
(in percent)
country is one of the most disaster-prone countries in the world, natural calamities
100.0 also pose
12.0
80.0
substantial
60.0
health risks especially in low-lying, densely populated and remote areas.7.0 13
40.0
2.0
B. Structure20.0
and performance of the economy
0.0 -3.0
2000 2005 2010 2011 2012 2013 2014 2015
B.1 GDP growth and contributions by sector
Agriculture Industry Services
23. The economy posted Growth

moderatein agriculture Growth in industry
to solid GDP growth from Growth 2000 intoservices
2015 (Table 5). Except in
2011, annual
Source: GDP growth
Philippine Statisticswas consistently
Authority, Nationalabove
Accounts4 per cent.
of the From 2012 to 2016, GDP growth
Philippines.
ranged from 5.9 per cent to 7.1 per cent. Per capita GDP also grew proportionately.
38
Department of Health-Epidemiology Bureau, April 2016.
14
23. The
23. Theeconomy
economyposted
postedmoderate
moderatetotosolid
solidGDP
GDPgrowth
growthfrom
from2000
2000toto2015
2015(Table
(Table5).5).Except
Except
inin2011,
Decent
2011, annual
workannual
country
GDP growthwas
diagnostics:
GDP growth wasconsistently
consistentlyabove
above44per
percent.
cent.From
From2012
2012toto2016,
2016,GDP
GDP
17 Philippines
growth
growth 2017ranged from 5.9 per cent to 7.1 per cent. Per capita
ranged from 5.9 per cent to 7.1 per cent. Per capita GDP also grewGDP also grew
proportionately.
proportionately.
Table5.5.Gross
Table GrossDomestic
DomesticProduct
Productand
andper
percapita
capitaGDP
GDP
(atconstant
(at constantprices)
prices)
Indicator
Indicator 2000
2000 2005
2005 2010
2010 2011
2011 2012 2013
2012 2013 2014
2014 2015
2015
GDP (Php billion)
GDP (Php billion) 3 581
3 581 4 481
4 481 55702
702 5 910
5 910 6 305
6 305 6 751
6 751 77170
170 77594
594
Agriculture
Agriculture 500
500 597
597 663
663 680
680 699
699 707
707 719
719 720
720
Industry
Industry 11234
234 11465
465 11860 860 11894
894 22031 031 22219219 22391 391 22536
536
Service
Service 11847
847 22419
419 33179 179 33336
336 33575 575 33825825 44060 060 44338
338
Growth rate
Growth rate (%)(%) 4.4
4.4 4.8
4.8 7.6
7.6 3.7
3.7 6.7
6.7 7.1
7.1 6.2
6.2 5.9
5.9
Agriculture
Agriculture 3.4 2.2 -0.2 2.6 2.8 1.1 1.7 0.1
3.4 2.2 -0.2 2.6 2.8 1.1 1.7 0.1
Industry
Industry 6.5 4.2 11.6 1.9 7.3 9.2 7.8 6.0
6.5 4.2 11.6 1.9 7.3 9.2 7.8 6.0
Service
Service 3.3
3.3 5.8
5.8 7.2
7.2 4.9
4.9 7.1
7.1 7.0
7.0 6.2
6.2 6.8
6.8
GDPper
GDP percapita
capita(Php)
(Php) 46
46630
630 52 52561
561 61 61570
570 62332
62 332 65 65332
332 6868746
746 71 71790
790 74770
74 770
Growthrate
Growth rate 4.4
4.4 2.7
2.7 5.8
5.8 1.2
1.2 4.8
4.8 5.2
5.2 4.4
4.4 4.1
4.1
Source: Philippine Statistics Authority, National Accounts of the Philippines.
24. Driven
Drivenbybythe
theretail
retailand
andwholesale
wholesaleand
andBPO
BPO sub-sectors,services
services expandedits
its GDPshare
share
24. Driven
24. by the retail and wholesale and BPO sub-sectors,
sub-sectors, services expanded
expanded itsGDP
GDP share to
to almost 60 per cent in 2015. Industry had about one-third with manufacturing, fueled
almost 60 per
to almost 60cent
per in 2015.
cent Industry
in 2015. had about
Industry one-third
had about with manufacturing,
one-third fueledfueled
with manufacturing, primarily
primarily by electronics products, accounting for about one-fourth of total GDP.
GDP.
byprimarily
electronics
by products,
electronicsaccounting
products,for about one-fourth
accounting for aboutof one-fourth
total GDP. of
Agriculture’s
total share
Agriculture’s share dropped to 9.5 per cent .
dropped to 9.5 per cent.
Agriculture’s share dropped to 9.5 per cent .
Figure5.5.Sectoral
Figure Sectoralshares
sharesininGDP
GDP
(in percent)
(in percent)
100.0 12.0
100.0 12.0
80.0
80.0 7.0
60.0 7.0
60.0
40.0
40.0 2.0
20.0 2.0
20.0
0.0 -3.0
0.0 -3.0
2000 2005 2010 2011 2012 2013 2014 2015
2000 2005 2010 2011 2012 2013 2014 2015
Growth in agriculture Growth in industry Growth in services

25. In terms of expenditure shares, the economy has been led by household consumption
25.
38
38
Inwith
terms
Department
Department of expenditure
ofmore than 70 per
Health-Epidemiology
of Health-Epidemiology shares,
Bureau,
Bureau, Aprilthe
centAprilof economy
GDP
2016.
2016. hasgovernment
while been led by household
consumption consumption with more
averaged around
than 70 per
10 per centcent of GDP
(Table whileshare
6). Export government consumption
has consistently been averaged
lower than around
imports10 through
per centthe
(Table
14
6). Export share has consistently been lower than imports through the years. Notably, the shares
years. Notably, the shares of these two expenditures which were at more than 50 per 14
cent
ofinthese
2000 two expenditures
have which were
fallen significantly in at moreThe
2015. thancombination
50 per cent of
in consumption-led
2000 have fallen significantly
growth
in 2015. The combination of consumption-led growth particularly by households and
particularly by households and foreign remittances, weak capital formation, foreign
more
remittances,
imports andweak less capital
exportsformation, more imports
are both causative and less exports
and symptomatic of lowareproductivity
both causative
and and
symptomatic of low productivity and weak job creation.
weak job creation.
Table 6. Expenditure shares in GDP

(in per cent)
Type of Expenditure 2000 2005 2010 2011 2012 2013 2014 2015
Household final consumption 72.2 75.0 71.6 73.5 74.2 73.4 72.5 73.8
Government consumption 11.4 9.0 9.7 9.7 10.8 10.8 10.5 11.0
Capital formation 18.4 21.6 20.5 20.5 18.2 20.0 20.5 20.6
Exports 51.4 46.1 34.8 32.0 30.8 28.0 28.8 28.2
Less: Imports 53.4 51.7 36.6 35.7 34.1 32.2 32.4 33.5
B.2 Employment growth lags behind GDP growth
26. A recurrent theme in the economy is that GDP growth does not always translate to
Section I.
Overall setting 18
©ILO Imagic
©ILO M. Crozet
Less: Imports 53.4 51.7 36.6 35.7 34.1 32.2 32.4 33.5
19 Philippines 2017
26. A recurrent theme in the economy is that GDP growth does not always translate to
26. Aemployment growth
recurrent theme (Figure
in the economy6). From
is that2000
GDPtogrowth
2015, does
GDPnot grew by antranslate
always annual to
average of
employment
5.1 per cent while employment grew by only 2.3 per cent. In years with relatively
growth (Figure 6). From 2000 to 2015, GDP grew by an annual average of 5.1 per cent while higher
GDP growthgrew
employment (for by
example,
only 2.32010, 2012, In
per cent. 2013),
yearsthere
withwas lower higher
relatively employment growth (for
GDP growth
although underemployment went down. In years with relatively lower
example, 2010, 2012, 2013), there was lower employment growth although underemployment GDP growth
(2005,
went 2011,
down. In 2014), thererelatively
years with was higherloweremployment
GDP growth growth
(2005,but underemployment
2011, 2014), there wasalso
higher
went up.
employment growth but underemployment also went up.
Figure 6. GDP and employment growth
(in per cent)
8.0
6.0
4.0
2.0
0.0
2000 2005 2010 2011 2012 2013 2014 2015
-2.0
GDP Employment
Sources:Philippine Statistics Authority, National Accounts of the Philippines and Labor Force
Survey.
B.3 Sectoral
B.3 Sectoral shares shares
in GDPinand
GDP and employment
employment (Figures
(Figures 7 and 8)
7 and 8)
27. Totalemployment
27. Total employmentreached
reached 38.741
38.741 million
million inin2015.
2015.Services
Servicesaccounted
accountedforfor
54.754.7
per per
cent,cent,
agriculture for 29.2 per cent, and industry for 16.2 per cent. Preliminary figures in 2016
agriculture for 29.2 per cent, and industry for 16.2 per cent. Preliminary figures in 2016 show
show
that thatemployment
total total employment has reached
has reached 40.83740.837 million,
million, of which
of which the share
the share of services
of services further
expanded to 55.7 per cent, agriculture decreased to 26.8 per cent, and industry increased to
further expanded to 55.7 per cent, agriculture decreased to 26.8 per cent, and industry
17.5 per to
increased cent.
17.5 per cent.
15
Figure 7. Sectoral shares in employment
(in per cent)
100.0 9.0
80.0 6.0
60.0 3.0
40.0 0.0
20.0 -3.0
0.0 -6.0
2000 2005 2010 2011 2012 2013 2014 2015

28. 28. The disconnectbetween

The disconnect betweenGDP
GDPandandemployment
employmentgrowth
growthis isdue
duetotostructural
structural causes.The
causes. The most
most productive sector – industry - accounts for one-third of GDP but only has 16
productive sector – industry - accounts for one-third of GDP but only has 16 per cent of totalper
cent of total The
employed. employed. The least–productive
least productive agriculture––agriculture – accounts
accounts for less than for lesscent
10 per thanof10 per but has
GDP
cent of GDP
30 per cent but has employed.
of total 30 per cent of total employed.
Figure 8. GDP and employment sectoral shares

(in per cent)
60.0
GDP Employment
40.0
20.0
28. The disconnect between GDP and employment growth is due to structural causes. The
most productive sector – industry - accounts for one-third of GDP but only has 16 per
cent of total employed. The least productive – agriculture – accounts for less than 10Section
per I.
cent of GDP but has 30 per cent of total employed. Overall setting 20
Figure 8. GDP and employment sectoral shares

(in per cent)
60.0
furtherGDPexpanded to 55.7 per cent, agriculture decreased to 26.8 per cent, and industry
Employment
increased
40.0 to 17.5 per cent.
20.0 Figure 7. Sectoral shares in employment

(in per cent)
0.0
100.0 9.0
80.0 6.0
60.0 3.0
2000 2005 2010 2015
40.0 0.0
20.0
Sources:Philippine Statistics Authority, National Accounts of the Philippines and Labor Force -3.0
0.0
Survey. -6.0
2000 2005 2010 2011 2012 2013 2014 2015
29. The disconnect also reflects regional disparities. Services and industry have higher shares
29. toThe disconnect Agriculture
also reflects Industry Services
GDP and employment in regional
the moredisparities.
developedServices and industry
and urbanized havenamely
regions, higher shares
the NCR,
to GDP and employment Growth
in in
the agriculture
more Growth
developed in industry
and urbanized Growth in
regions, services
namely the NCR,
Central Luzon, CALABARZON and Central Visayas. These same regions also account for
44Central Luzon,
per cent
Source:
CALABARZON
of total employment.
Philippine
39 and Central Visayas. These same regions also account
Agriculture
Statistics Authority, has aSurvey.
39 Labor Force higher employment share than services
for 44 per cent of total
in five regions; it has higher employment. Agriculture has a higher employment share than
40 share than the national average agriculture share (29.2 per cent)
40
services in five regions;Thus,itGDPhas more
higherproductive
share thaneconomic
the national averageconcentrated
agriculture share
28.in(29.2
eight other
Theper regions.
disconnect 41
between
cent) in eight
the
other regions. and employment
41
Thus, the more growth issectors
due toare
productive causes.inare
structuralsectors
economic
small
The
pockets
mostofproductive
developedsector
and urbanized
– industry areas surrounded
- accounts by largeof
forurbanized
one-third agricultural
GDP areashas
but only of relatively
16 per
concentrated in small pockets of developed and areas surrounded by large
low cent
productivity.
of total employed. The least productive – agriculture – accounts for less than 10 per
agricultural areas of relatively low productivity.
cent of GDP but has 30 per cent of total employed.
B.4 National B.4revenues,
Nationalcapital formation
revenues, capitaland investment
formation and attractiveness
investment attractiveness
30. GDP
39
share of national
Share to total employment: Metro Manila
30. GDP share Figureat 12.38.
government perGDP andLuzon
revenues
cent, Central employment
barely sectoral
changed
at 10.7 per cent,
from
CALABARZON shares
15.3 per cent in 2000
at 13.1 per cent, and Central
to
Visayas at 8.3 per cent. Based on of
2015national
data. government revenues barely changed from 15.3 per cent in 2000
15.8 per (in per cent) payments
40
Agricultural to cent
share 15.8
to in
regional 2015
cent (Table
peremployment:
in 2015
ARMM 7).(Table
Debt
(69.4 service
7).
per cent), Debt interest
Regions service
II (54.4 per interest still
payments
cent), and XII took
(46.1 per a CAR
still
cent), big
took chunk
(48.1 aper
big ofchunk
cent) the
60.0 (44.6 per cent). Based on 2015 data.
41 national
and MIMAROPA
Agricultural of budget
share the
to GDP
regional at
national 14.3
employment:per
budget cent.
at 14.3
Regions This
per
I (31.5 constrained
cent.V This
per cent), (36.7 per government
constrained
Employment
cent), from
government
VI (36.7 per cent), VIIIallocating
(43.7from more
IX (44.4 to
allocating
per cent), key
permore
public
cent), X (38.2 investments
to
40.0
per key
cent), public
XI (33.3like
per capital
investments
cent), and formation,
Caraga like
(35.3 per particularly
capital
cent). formation,
Based on in
2015 infrastructure,
particularly
data. which
in could
infrastructure, have led to
which
more economic
could haveactivities, created
led to more more employment
economic and increased
activities, created the GDP wage
more employment share.16
From
and increased the
2010 20.0
toGDP
2015,wage
GDPshare.
shareFrom
in capital
2010 formation
to 2015, GDPhas share
been uneven,
in capitalwith dips inhas
formation 2011, 2012
been and
uneven,
2014 due to dips
with austerity measures
in 2011, 2012 andand policy
2014 duegridlocks that slowed
to austerity down
measures andgovernment spending
policy gridlocks that
0.0
in infrastructure.
slowed down As agovernment
result, GDPspending
wage sharein remained more As
infrastructure. or less at theGDP
a result, same wage
level. share
One
inference that can
remained be drawn
more or less isat that the economy
the same level. Onenow appears that
inference to be
cannear full potential
be drawn in
is that the
generating wage now
economy employment.
appears to be 2000near full
2005potential
2010 in
2015 generating wage employment.
Table
Sources:Philippine Statistics 7. Capital
Authority, Nationalformation and
Accounts of the wage share
Philippines and Labor Force
Indicator Survey. 2000 2005 2010 2011 2012 2013 2014
2015
Capital formation, at
29. constant 2000 prices
The disconnect also reflects regional disparities. Services and industry have higher shares
to GDPrate
Growth and(%)
employment in1.1the more
3.0 developed
31.6 and
2.8 urbanized
-4.3 regions,
27.9 namely5.2the NCR,
15.1
Central
% of GDP Luzon, CALABARZON18.4 21.1and Central
20.8 Visayas.
20.6 These
18.5 same regions
22.1 also
21.9 account
23.8
for 44 per cent of total employment. 39 Agriculture has a higher employment share than
Wage sharein
services infive
GDPregions;
(%) 4026.2
it has 27.7 35.0
32.2 than
higher share 35.0 average
the national 34.7 agriculture
34.8 35.1
share
41
(29.2
Note: per
Datacent) in eight
from 2010 basedother regions.
on 2008 Thus,
SNA. Thus, data the more productive
not strictly economic
comparable with sectors
earlier years are
which
were based on the 1968 SNA.
concentrated in small pockets of developed and urbanized areas surrounded by large
agricultural areas of relatively low productivity.
31. A comparison of the GDP share of gross fixed capital formation of ASEAN countries
indicates that, with the exception of Cambodia for which no data is available, the
39
Share to total employment: Metro Manila at 12.3 per cent, Central Luzon at 10.7 per cent, CALABARZON at 13.1 per cent, and Central
Philippines has the lowest share and has hardly moved from 2010 to 2015 (Table 8).
Visayas at 8.3 per cent. Based on 2015 data.
40
Agricultural share to regional employment: ARMM (69.4 per cent), Regions II (54.4 per cent), and XII (46.1 per cent), CAR (48.1 per cent)
41 Table 8. Gross fixed capital formation as per cent of GDP
and MIMAROPA (44.6 per cent). Based on 2015 data.
Agricultural share to regional employment: Regions I (31.5 per cent), V (36.7 per cent), VI (36.7 per cent), VIII (43.7 per cent), IX (44.4 per
cent), X (38.2 Country 2010
per cent), XI (33.3 per cent), and Caraga (35.3 2011
per cent). Based2012
on 2015 data. 2013 2014 2015
Brunei Darussalam 23.5 25.9 32.8 39.5 27.2 35.0
Cambodia 16.2 16.0 15.1 18.9 20.9 .. 16
Indonesia 31.0 31.3 32.7 32.0 32.6 33.2
21 Philippines 2017
© ILO J. Bobot Go
© ILO R. Dela Cruz
© ILO D. Respall
Wage share in GDP (%) 26.2 27.7 32.2 35.0 35.0 34.7 34.8 35.1
Note: Data from 2010 based on 2008 SNA. Thus, data not strictly comparable with earlier years which
Section I.
were based on the 1968 SNA.
Source: Philippine Statistics Authority, National Accounts of the Philippines. Overall setting 22
31. A
31. A comparison
comparisonof the GDP
of the GDPshare of gross
share fixedfixed
of gross capital formation
capital of ASEAN
formation countries
of ASEAN indicates
countries
indicates that, with the exception of Cambodia for which no data is available,
that, with the exception of Cambodia for which no data is available, the Philippines has the the
Philippines
lowest hashas
share and thehardly
lowestmoved
share and
fromhas hardly
2010 moved
to 2015 from
(Table 8).2010 to 2015 (Table 8).
Table 8. Gross fixed capital formation as per cent of GDP
Country 2010 2011 2012 2013 2014 2015
Brunei Darussalam 23.5 25.9 32.8 39.5 27.2 35.0
Cambodia 16.2 16.0 15.1 18.9 20.9 ..
Indonesia 31.0 31.3 32.7 32.0 32.6 33.2
Malaysia 22.4 22.2 25.4 26.5 26.0 26.2
Myanmar 22.9 29.2 29.9 31.5 31.7 34.7
Philippines 20.5 18.7 19.6 20.6 20.6 21.4
Singapore 26.1 25.6 26.8 27.9 26.5 25.5
Thailand 24.0 25.8 27.0 25.4 24.8 24.9
Vietnam 32.6 26.8 24.2 23.6 23.8 24.7
Source: ADB's Statistical Database System (https://sdbs.adb.org/sdbs/
32. The
32. The flow
flow of of
netnetforeign
foreigndirect
directinvestments
investments(FDI)(FDI) increased
increased from
from $3.737
$3.737 billion
billion in
in 2013
2013 to
to $5.835 billion in 2015 (Table 9). However, FDIs accounted for only 2 per cent
$5.835 billion in 2015 (Table 9). However, FDIs accounted for only 2 per cent of GDP in 2014 of GDP
in 2015.
and 2014 The
andPhilippines
2015. The lags
Philippines
behind thelagsFDI
behind
flowsthe FDIoriginal
of the flows of the original
ASEAN membersASEANand Viet
members and Viet Nam due mainly to poor physical infrastructure, high electricity
Nam due mainly to poor physical infrastructure, high electricity costs and high costs of doing costs
and high
business in costs
generalof including
doing business in general
red tape, contractincluding red tape,
enforcement, rulecontract enforcement,
of law issues rule
and perceptions
of law issues and perceptions of corruption. It is noteworthy that in relation to
of corruption. It is noteworthy that in relation to the original ASEAN members and Viet Nam,the original
ASEAN members and Viet Nam, there is a direct correlation between capital formation
there is a direct correlation between capital formation and investment attractiveness.
and investment attractiveness.
Table 9. Net foreign direct investments flows
(in million US$)
Country 2013 2014 2015
Phi l i ppi nes 3 737 5 740 5 835 17
Indones i a 23 282 25 121 20 054
Ma l a ys i a 11 295 10 619 10 963
Si nga pore 66 060 68 457 65 328
Tha i l a nd 14 416 6 057 7 087
Vi etna m 8 900 9 200 11 800
Note: The BSP adopted the Balance of Payment, 6th edition (BPM6) compilation framework effective
22 March 2013, thus earlier data not comparable.
Source: Bangko Sentral ng Pilipinas.
SECTION II. EMPLOYMENT BY STATUS, INFORMAL EMPLOYMENT AND THE

WORKING POOR
A. Labour force participation
33. In 2016, about 68.1 million or 68 per cent of the population are at the working age of
15 years old. Forty-three million were in the labour force, or a labour force participation
rate (LFPR) of 63 per cent. The labour force is concentrated in the developed and
urbanized regions. NCR, CALABARZON and Region III have 38 per cent of the labour
force. 42 Together with Region VI (West Visayas) and Region VII (Central Visayas), 43
they accounted for 53 per cent of the total.
34. In the last decade, overall LFPR slightly declined, but slightly increased in the prime age
group between 25 and 54 years old. In 2015, the share of the 15 to 24 age cohort hit its
lowest in the past decade (Table 10). In terms of sex distribution, more men than women
participate in the labour force. Only one out of two women compared to over three out
of four men are in the labour force, equivalent to a sex gap of over 27 percentage points.
The gap was widest in the prime age group from 25 to 54 years old at 33 percentage
points as LFPR was highest among men at 94 per cent and women at about 61 per cent.
Section II.
Employment by
status, informal
employment and
the working poor
ando
M. Rim
©ILO
SECTION II. EMPLOYMENT BY STATUS, INFORMAL EMPLOYMENT AND THE
WORKING
Decent work POOR
country diagnostics:
25 Philippines 2017
A.
33. Labour
In 2016,force participation
about 68.1 million or 68 per cent of the population are at the working age of
15 years old. Forty-three million Table 9.were Net inforeign direct
the labour investments
force, or a labour flows
force participation
33. In 2016, about 68.1 million or
rate (LFPR) of 63 per cent. The labour(inforce 68 per cent of the
million population
is concentrated
US$) are at
in theworking
the developed age and
of 15 years
B.old.Employment,
Forty-three unemployment
million were in the and
labour underemployment
force, or a labour force participation rate (LFPR) of
urbanized regions. NCR, CALABARZON
Country 2013 and Region 2014III have 38 per cent2015 of the labour
63 perPhi
force. 42 cent. The with
l i ppi
Together labour
nes force VI
Region is 3concentrated
737 Visayas)
(West in theand5 developed
740 VII
Region and urbanized
(Central regions.
5 Visayas),
835 43 NCR,
B.1
CALABARZON Employment trends and patterns
they Indones
accounted forand
i53
a perRegion
centIIIof23have
the282 38 per cent of the
total. 25 labour
121 force. Together
42 20 054 with Region VI
(West Visayas) and Region VII (Central Visayas), they accounted for 53 per cent of the total.
Ma l a ys i a 11 295 43 10 619 10 963
35. In Si nga pore
2016, about 40.84 million 66 060or 94.6 per cent 68of457 the labour force 65were328employed.
34. In the last Tha
decade,
i l a nd
overall LFPR14 slightly
416
declined, but slightly6 057
increased in the 7
prime age
087
34. In Employment
the last decade, distribution
overall LFPR reflects those
slightly of the working
declined, but ageincreased
slightly population in and
the LFPR age
prime – NCR,
group between
Vi etna m 25 and 54 years old. In
8 III
900 2015, the share of
9 200the 15 to 24 age11 cohort
800 44 group
hit its
CALABARZON
between 25 BSP
andadopted
54 and
years Region
old. In10).2015, accounted
the6thshare for
of(BPM6)
the37 per cent of all employment lowest and,
lowest in the
Note: The
past decade the
(Table
Balance of
In terms
Payment,
of sex
edition 45 15 to 24 age
distribution, more
compilation
cohort hit itswomen
meneffective
framework
than in the
together with West Visayas and Central Visayas, have 53 per cent of total employment.
past decade
participate in (Table
the 10).
labour In
force.termsOnlyof sex
one distribution,
22 March 2013, thus earlier data not comparable.out of two more
women men than
compared women
to over participate
three out in the
The overall employment-to-working age population ratio (EPR) was about 60 per cent,
oflabour
four menforce.
Source: areOnly
Bangko in theone
Sentral out of
labour
ng twoequivalent
force,
Pilipinas. women compared to a sex gap to over three
of over 27out of four men
percentage are in the
points.
virtually unchanged since 2005 but with observable patterns and slight shifts in sex
labour
The gap force, equivalent
was widest in thetoprime
a sex gapage ofgroupoverfrom
27 percentage
25 to 54 years points.oldThe at gap was widest in the
33 percentage
and age cohorts (Figure 9). Men had an EPR of over 70 per cent while women had less
primeasage
points LFPRgroup wasfrom 25 toamong
highest 54 yearsmenold at at
9433 perpercentage
cent and women points as at LFPR
about was highest
61 per cent. among
than 50 per cent. Thus, the wide sex gap inINFORMAL
LFPR is replicated among the employed. THEOver in
menwide
SECTION
This at 94II.
perEMPLOYMENT
sex centin
gap and women
LFPR atpersisted
hasBY about
STATUS, 61inperspite
cent.ofThis
more wide sex gap
EMPLOYMENT
women thanin LFPR
menAND has persisted
reaching
75 per cent EPR was POOR
WORKING reported for those from 25 to 54 years old, inching up in 2014 and
spite ofand
college more the women
many than laws men reaching
ensuring equalcollege and the
treatment andmany
accesslawsin ensuring
employment equaland treatment
2015. For the age cohort 15-24, or the youth, it declined slightly in 2015 (37 per cent).
and access in employment and occupation.
occupation.
Table Figure 9. Employment-to-population-ratio
10. Labour force participation rate by sexbyand sexage
andgroupage group
33. In 2016, about 68.1 million or 68 (inper (in
per perofcent)
cent)
cent the population are at the working age of
80.0
Sex and
15age groupold. Forty-three2005
years million 2010
were in the 2011labour2012 force, or2013
a labour2014 2015
force participation
Total rate (LFPR) of 63 per 64.7
70.0 cent. The64.1labour 64.6 force is 64.2 63.9 in the
concentrated 64.6 developed
63.7 and
Men urbanized
60.0 regions. NCR,79.6 CALABARZON 78.5 79.0
and Region 78.5 III have
78.138 per78.6 cent of the77.3 labour
42 43
Womenforce.
50.0 Together with Region 49.9 VI49.7 50.4
(West Visayas) 50.0
and Region 49.9 VII (Central
50.7 50.1
Visayas),
15-24they
40.0
accounted for 53 per 48.0
cent of 45.4
the total.46.7 46.1 45.3 46.1 43.7
25-54 76.6 76.9 77.2 76.9 77.0 77.7 77.3
30.0
34.55+ In the last 2005 decade, overall 201055.0LFPR2011 54.8
slightly 55.0
declined,
2012 54.1
but slightly
2013 53.9
increased
2014 54.4in 54.2 age
the prime
2015
group betweenTotal
Source: Philippine Statistics 25 and 54 years old.
Men Labor Force
Authority, In
Women 2015,
Survey. the share
1 5-24 of the 15
2 5-54to 24 age cohort
5 5+ hit its
lowest in the past decade (Table 10). In terms of sex distribution, more men than women
participate in the labour force. Only one out of two women compared to over three out
B. Employment, unemployment and underemployment
of four men are in the labour force, equivalent to a sex gap of over 27 percentage points.
36. In 2016, 66.6 per cent of total employed (27.194 million) worked full-time or for 40 hours
The gap was widest in the prime age group from 25 to 54 years old at 33 percentage
42
12.8B.1 Employment
per cent, or more
13.9 per cent a
andtrends
week
10.8 per andrespectively,
while
cent patterns
part-time workers
based totaled 13.250 million. Mean hours worked was
on 2016 data.
43
7.8 per cent andpoints as respectively,
7.9 per cent LFPR was highest
based among men at 94 per cent and women at about 61 per cent.
on 2016 data.
recorded at 42.3 per week. Formal sector or wage and salary employment has been
This wide sex gap in LFPR has persisted in spite of more women than men reaching
35. In 2016,collegeabout
increasing.
and40.84
In 2012,million
the many
formalor 94.6
laws
sector peremployment
ensuring cent of the
equal labour
in private
treatment force were employed.
establishments
and access Employment
18 and
outnumbered
in employment
distribution
the informal
occupation. reflects those of the working age population and LFPR – NCR, CALABARZON
sector (self-employed and unpaid family workers) for the first time. In 2015,and
RegionwageIIIemployment
accounted for 37 per cent
accounted for 23of million
all employment
(59.3 per cent)
44
and, together with Westwith
of total employed, Visayas
aboutand
Central Visayas,
17.7 million or
45
Table have
77 10.53
per per cent
cent
Labour in of total
private
force employment.
establishments.
participation rateTheby overall
sex andemployment-to-working
Self-employed workers
age group accounted
age forpopulation
27.6 per ratio cent (EPR) was about in
while employers 60(inperpercent,
own-family
cent)virtually
operated unchanged
business sinceunpaid
and 2005 family
but with
workers
observable had
patterns
Sex and age less than 10
group and slight shiftsper cent each
2005in sex2010(Figure 10).
and age cohorts
2011 (Figure
2012 9).2013 Men had2014 an EPR 2015
of over
70 per cent while women had less64.7
Total than 50 per 64.1cent. Thus,
64.6 the 64.2 wide sex 63.9
gap in LFPR 64.6 is replicated
63.7
among Menthe employed. Over 75 per 79.6cent EPR 78.5 was reported
79.0 for
78.5those 78.1
from 25 78.6 to 54 years77.3old,
inching up in 2014 and 2015. For49.9
Women the age cohort
49.7 15-24, 50.4 or the50.0youth, it49.9declined50.7 slightly in 2015
50.1
(37 per cent).
15-24 48.0 45.4 46.7 46.1 45.3 46.1 43.7
25-54 76.6 76.9 77.2 76.9 77.0 77.7 77.3
55+ 55.0 54.8 55.0 54.1 53.9 54.4 54.2
42
12.8 per cent, 13.9 per cent and 10.8 per cent respectively, based on 2016 data.
43
7.8 per cent and 7.9 per cent respectively, based on 2016 data.
44
45
7.9 per cent and 7.9 per cent respectively, based on 2016 data. 18
19
and age cohorts (Figure 9). Men had an EPR of over 70 per cent while women had less
than 50 per cent. Thus, the wide sex gap in LFPR is replicated among the employed. Over
yearsSection
75 per cent EPR was reported for those from 25 to 54informal II. Employment by status,
employment and the working poor 26
old, inching up in 2014 and
2015. For the age cohort 15-24, or the youth, it declined slightly in 2015 (37 per cent).
Figure 9. Employment-to-population-ratio by sex and age group

(in per cent)
80.0
70.0
60.0
50.0
40.0
30.0
2005 2010 2011 2012 2013 2014 2015
Total Men Women 1 5-24 2 5-54 5 5+
36. InIn2016,
36. 2016,66.6
66.6per
percent
centof
oftotal
total employed
employed (27.194
(27.194 million) worked full-time
million) worked full-time ororfor
for40
40hours
hours or
more a week
or more whilewhile
a week part-time workers
part-time totaled
workers 13.250
totaled million.
13.250 MeanMean
million. hourshours
worked was recorded
worked was
recorded at 42.3 per week. Formal sector or wage and salary employment
at 42.3 per week. Formal sector or wage and salary employment has been increasing. In 2012, has been
increasing.
formal sectorInemployment
2012, formal in sector
privateemployment
establishments in private establishments
outnumbered outnumbered
the informal sector (self-
the informal
employed and sector
unpaid(self-employed
family workers) andforunpaid family
the first time.workers)
In 2015,for
wagetheemployment
first time. In accounted
2015,
for 23 million (59.3 per cent) of total employed, with about 17.7 million or 77 per cent about
wage employment accounted for 23 million (59.3 per cent) of total employed, with in private
17.7 million orSelf-employed
establishments. 77 per cent inworkers
private establishments.
accounted for 27.6Self-employed workers
per cent while accounted
employers in own-
for 27.6 per cent while employers in own-family operated business and unpaid
family operated business and unpaid family workers had less than 10 per cent each (Figure 10). family
workers had less than 10 per cent each (Figure 10).
Figure 10. Employment by class of worker
(in per cent)
100.0 50.0
80.0 40.0
60.0 30.0
40.0 20.0
20.0 10.0
0.0 0.0
2000 2005 2010 2011 2012 2013 2014 2015
Wage and salary workers Employers

Self-employed Unpaid family workers
Employees in pvt. establishments Self-employed and unpaid

44
45
7.9 per cent and 7.9 per cent respectively, based on 2016 data.
B.2 B.2 Quality
Quality of employment
of employment
19
37. Quality of employment or lack of it is another key issue as reflected in the indicators
37. Quality of employment or lack of it is another key issue as reflected in the indicators on
onunderemployment,
underemployment, full-time andand
full-time part-time employment,
part-time employment, working
workinghours, precarious
hours, precarious
employment and vulnerable employment. Full-time employment follows GDP growth
employment and vulnerable employment. Full-time employment follows GDP growth patterns
patterns – high GDP growth increases full-time employment and raises overall
– high GDP growth increases full-time employment and raises overall employment quality.
employment quality. Part-time employment, underemployment and vulnerable
Part-time employment, underemployment and vulnerable employment correspondingly
employment correspondingly decline in times of high GDP growth but increase in times
decline in times of high GDP growth but increase in times of economic slowdown. Extreme
of economic slowdown. Extreme weather disturbances and natural disasters adversely
weather disturbances and natural disasters adversely affect employment, especially agriculture.
affect employment, especially agriculture.
B.2.1 Formal sector employment and precarious employment increasing
38. Formal sector employment is expanding but precarious work among those formally
employed is also increasing. This is manifested in the rise of non-standard or non-regular
forms of employment or “precarious employment,” defined as “short-term or seasonal
or casual job” 46 including some forms of fixed term or project employment contracts,
seasonal employment, and employment through contracting or subcontracting
arrangements. A highly-politicized issue, precarious employment is popularly known
locally as “contractualization,” “endo” or “5-5-5.” 47 As elsewhere, precarious
27 Philippines 2017
B.2.1 Formal sector employment and precarious employment increasing
38. Formal sector employmentFigure 10. Employment

is expanding but precarious by work
class among
of worker those formally employed
39.is also increasing.
Precarious This is manifested
employment is monitored (in
in inthe per
rise of
terms cent)
ofincidence,
non-standard workorstability
non-regular forms of
and security,
100.0 50 50.0
employment
and workers’
80.0
or “precarious employment,” defined as “short-term or seasonal or casual
income. In 2014, it was estimated that almost a million workers of job”
40.0
the 46
including60.0 some forms of fixed term or project employment contracts, seasonal employment,
4.47 million (22 per cent) directly employed in establishments with 20 or more workers
30.0
were in
and employment
40.0
precarious employment
through contracting (Table 11). In addition,arrangements.
or subcontracting there were alsoA622,000 workers
highly-politicized
20.0
employed
issue, precarious
20.0 through contracting
employment is or subcontracting
popularly knownagencieslocally as with fixed term employment
“contractualization, ” “endo”
10.0
contracts.
or “5-5-5.” As2000
0.0 47 About
elsewhere,85 per cent
precarious of those
employment in precarious
is seen2013 employment
as a serious were
threat in private
to the 0.0
rights of
2005 2010 2011 2012 2014 2015
establishments.
workers to security of tenure, labour standards, occupational safety and health, self-organization
Wage and salary workers Employers
and collective bargaining, and social protection. 48
Precarious workers are employed to fill
permanent job needs Table 11.
Self-employed
but are Precarious
denied employment
permanent employee in establishments,
Unpaid family workers
rights. 2014
Worldwide, permanent
Employees in pvt. establishments Self-employed and unpaid
employment across a number of sectors (in 000 hasexcept
shifted pertocent)
precarious jobs through outsourcing,
use Source:
of employment agencies,Authority,
Philippine Total
Statistics Labor ForcePrecarious
and inappropriate
employment
classification of workers as “short-term” or
Survey.
Sector % of total Contractual or
“independent contractors. ”49
employment Total Casual Seasonal
Project-based
B.2 Quality of employment employment
39. Precarious employment is monitored in terms of incidence, work stability and security,
Total 4 472 982 22.0 208 102 672
39. Precarious
andAgriculture
workers’ income. 50
employment is In
monitored
2392014, it in terms
97was estimatedof incidence,
40.6 that 10
almostwork stabilityworkers
a 56
million and security,
32of theand
37.workers’
Quality
4.47 million
Industry of employment
income. In 2014,1 335
(22 or
50 per cent) directly lack of
it was estimated it is
employed
347 another
that key
26.0almost a87
in issue as reflected
million workers
establishments with
22 20 in
or the indicators
of the 238
more 4.47 million
workers on
underemployment,
(22were
per cent)
in precarious
Manufacturing full-time
directlyemployment
employed
1 006 in (Tableand
213 part-time
establishments
11). In21.2 employment,
with 20 64
addition, or more
there wereworking
workers hours,
were in
17also 622,000 precarious
precarious
workers
132
employment
Services and vulnerable
2 898 employment.
538 Full-time
18.6
employment (Table 11). In addition, there were also 622,000 workers employed through
employed through contracting or subcontracting agencies111employment
with 25
fixed follows
term GDP
403
employment growth
contracting
contracts. orAbout
patterns
Note: The – subcontracting
survey high
coveredGDP agencies
growth
establishments
85 per cent with in
increases
employing
of those fixed
20 term employment
full-time
workers
precarious or employment
more.
employment contracts.
and
were in About
raises 85 per
overall
private
Source: Philippine Statistics Authority, Integrated Survey on Labor and Employment.
cent of those in precarious employment were in private establishments.
employment
establishments. quality. Part-time employment, underemployment and vulnerable
employment correspondingly decline in times of high GDP growth but increase in times
40. Across
of economicall establishments
Table 11. Precarious
slowdown. regardless
Extreme of size,
employment
weather the LFS estimates
in establishments,
disturbances and natural thatdisasters
2014 the number of
adversely
employees in precarious
affect employment, especially(in employment almost doubled
000 except per cent)
agriculture. from 3.9 to 7 million between 2000
and 2015 (Table 12). It now accounts for over 30 per
Precarious cent of total employees or wage
employment
and salary Total In private establishments, about one-third of total employees were in
workers.
Sector
B.2.1 Formalemployment sector employment % of precarious
total Contractual or
precarious work. Total and employment
Casual Seasonal increasing
employment Project-based
Total 4 472 982 22.0 208 102 672
38. Formal sector employment
Table 12. is expanding
Employees in but precarious
precarious work by work
sex, among
sector and those formally
Agriculture 239 97 40.6 10 56 32
employed
Industry is also increasing.
1 335 347category26.0
This is of employee
manifested in the
87 rise of non-standard
22 or
238 non-regular
forms
Sex, of
Manufacturing
sector employment
and category of or
1 006 “precarious
employee 213 2000 employment,”
200521.2 2010 64 defined
2011 2012 17as2013
“short-term
2014 132 or seasonal
2015
Propor on of 46 in precarious work ( 28.3
employees 26.2 26.9 27.1 30.4 32.2 30.0 30.7
Services
or casual job” including 2 898 some 538 forms of 18.6fixed term
111 or project 25 employment403 contracts,
Men 30.9 27.720 workers
28.6 28.5 32.5 34.5 32.1 33.2
seasonal
Note:
Women
employment,
The survey and employment
covered establishments employing
23.9 23.5
through
24.1
or contracting
more.
24.7 27.0 28.3
or
26.5
subcontracting
26.5
Source: Philippine Statistics
arrangements. Authority, Integrated
A highly-politicized Surveyprecarious
issue, on Labor andemployment
Employment. is55.8
popularly known
Agriculture 54.0 45.4 46.3 46.8 52.7
47
55.9 57.7
locally
Industry as “contractualization,” 31.9 “endo”
31.4 or
32.3 “5-5-5.”
31.2 35.8 As elsewhere,
38.2 35.3 precarious
37.1
40. Across
40. Across all establishments
Services
employment is seen regardless
all establishments of18.6size,
as aregardless
serious threatthe
of 18.5 toLFS
size, theestimates
19.5
the LFS19.8 ofthat
rights estimates
21.8 the23.1
workers number
that 21.2of employees
to the number
security of in
21.5of tenure,
employees
precarious in precarious
employment
Private household
employment
almost doubled
31.4
almost
from doubled
3.9
23.7 and
from
tohealth,
25.6 7 million 3.928.0
to 7 million
between 30.42000
25.5 self-organization
between
and
28.2 2015 2000
(Table
labour standards, occupational safety and27.9 collective
and 2015
12). bargaining,
ItPrivate (Table
nowestablishment
accounts 12).
for It now
over 30accounts
per cent
32.0 for
48 of over 30
29.4total30.0 per
employeescent
30.0 of
or total
33.8wage employees
and
35.5 salary
33.2 or wage
workers.
34.0 In
and social
Government/government corpora
protection.
on establishments,
10.3
Precarious
11.7 about
workers
12.8 one-third
13.4
are
13.9
employed to fill14.2permanent
14.8employees
13.2
and
private salary workers.
establishments, In private
aboutpermanent
one-third of total employees were24.8of total
in precarious were
work.employment in
job
Ownneeds but are denied
family-operated 26.0 employee rights.21.4
Worldwide, permanent
precarious work. farm or business 21.9 20.7 25.2 21.7 25.9
across a number
Total employees of work
in precarious sectors
(000) has
3 940shifted4 267 to5 precarious
276 5 564 jobs
6 538 through
7 154 6outsourcing,
718 7 040 use of
Men
employment agencies, 2 693
and inappropriate 2 811 3 474 3 640
classification 4 366 4 793
of workersand 4 479 4 726
as “short-term” or
Women Table 12. Employees 1 247in precarious
1 455 1 802 work
1 925 by2 sex,
173 sector
2 361 2 240 2 314
“independent contractors.” 49 category of employee
Agriculture 1 341 1 233 1 522 1 693 2 001 2 131 1 973 1 990
Sex, sector and category of employee
Industry 12000
124 12005
265 12010
432 12011
417 12012
723 12013
935 12014
872 22015
025
Propor on of employees in precarious work ( 128.3
Services 474 126.2
769 226.9
322 227.1
454 230.4
815 332.2
088 230.0
873 330.7
025
46 Men
Private household 30.9
497 27.7
350 28.6
493 28.5
497 32.5
558 34.5
598 32.1
542 33.2
553
PSA’s Labor Force Survey. Precarious employment is usually but not exclusively used in relation to employment in the formal sector, as
Women
Private
distinguished fromestablishment 323.9
vulnerable employment which is usually 323.5
153 used 601 424.1
in relation374 424.7
634
to employment527.0
in534 628.3 526.5
074 sector.
the informal 748 626.5
003
47
Agriculture
Government/government
These terms corpora
are not found in the Labor Code. 54.0
233 45.4
on “Contractualization” 46.3
288 is a loose 46.8
386 coinage 52.7
409 for any 55.9
417employment 55.8
450 contract
401 whose57.7
455duration is fixed
Industry
Own family-operated
in the contract. farm or business
“Endo” is the contraction 31.9
56 The
for end of contract. 31.4
28 32.3
duration 23 31.2
of a fixed 35.8
24term contract
30 is38.2
32
usually 35.3
for 37.1
26five months,
29 thus the
additional coinage “5-5-5” employees.
Services 18.6 18.5 19.5 19.8 21.8 23.1 21.2 21.5
48 Note: Employees
Characterized by uncertaintyinand
precarious
insecurity aswork areduration
to the definedof as wage andmultiple
employment; salarypossible
workersemployers
whose nature of
or a disguised or ambiguous
employmentPrivate householda lack
employment
relationship; is ofshort-term, casual
access to social 31.4 and23.7
or those
protection 25.6
who worked
benefits 25.5different
for
usually associated 28.0 30.4
with employers
employment; 28.2
on pay; 27.9
lowday-to-day
and substantial legal
Private
and practical establishment
obstacles
or to joining abasis.
week-to-week 32.0
trade union and bargaining 29.4 30.0 (See30.0
collectively. 33.8 precarious
ILO, “From 35.5 work 33.2to decent
34.0 work: outcome
document Government/government
to the workers' symposium corpora
on on
policies and 10.3
regulations
Source: Philippine Statistics Authority, Labor Force Survey. 11.7
to combat 12.8
precarious13.4 13.9
employment,” p.14.8
27, 13.2
International 14.2
Labour Organization,
Geneva, Own2012).
family-operated farm or business 26.0 21.9 20.7 21.4 24.8 25.2 21.7 25.9
49
International Labour Rights
Total employees Forum, work
in precarious http://www.laborrights.org/issues/precarious-work.
(000) 3 940 4 267 5 276 5 564 6 538 7 154 6 718 7 040
50
See PSA’s Decent Work Statistics, http://labstat.psa.gov.ph/dews.
Men 2 693 2 811 3 474 3 640 4 366 4 793 4 479 4 726
Women 1 247 1 455 1 802 1 925 2 173 2 361 2 240 2 314 20
21
Agriculture 1 341 1 233 1 522 1 693 2 001 2 131 1 973 1 990
40. Across all establishments regardless of size, the LFS estimates that the number of
employees in precarious employment almost doubled from 3.9 to 7 million between 2000
and 2015 (Table 12). It now accounts for over 30 per centSectionof totalII. employees or wage
Employment by status,
and salary workers. In private establishments, about one-third of total employees
informal employment and the working poorin28
were
precarious work.
Table 12. Employees in precarious work by sex, sector and

category of employee
Sex, sector and category of employee 2000 2005 2010 2011 2012 2013 2014 2015
Propor on of employees in precarious work ( 28.3 26.2 26.9 27.1 30.4 32.2 30.0 30.7
Men 30.9 27.7 28.6 28.5 32.5 34.5 32.1 33.2
Women 23.9 23.5 24.1
51
24.7 27.0 28.3 26.5 26.5
41. Under the Labor Code, regular employment
Agriculture 54.0 45.4 46.3
is presumed
46.8 52.7
while55.9
specific
55.8
forms
57.7
of non-
regular employment 52 are legal.
Industry 31.9 However,
31.4 32.3 employers
31.2 often
35.8 38.2resort
35.3 to non-regular
37.1
Services
employment through short-term18.6or 18.5 period
fixed 19.5 contracts
19.8 21.8 23.1 the21.2
to defeat 21.5
employees’ right
Private household
to regular employment and security 31.4 of23.7
tenure25.6 25.5
and circumvent 28.0 other
30.4labour
28.2 rights.
27.9 In direct
Private establishmentemployment relationships,
or bilateral 32.0 29.4 this30.0 is 30.0
done 33.8 35.5
by improperly 33.2 disguising
34.0 an
Government/government corpora on 10.3 11.7 12.8 13.4 13.9 14.8 13.2 14.2
employment relationship
Own family-operated farm or business
as some
26.0
other
21.9
relationship
20.7 21.4
or improperly
24.8 25.2
categorizing
21.7 25.9
regular
employment
Total as non-regular
employees in precarious work (000) 3 940through
4 267 a5 276 stipulation
5 564 in the
6 538 7 154 employment
6 718 7 040 contract.
Men
Contracting or subcontracting 2 693 2 811
arrangements 3 474 or 3trilateral
640 4 366employment
4 793 4 479relationships
4 726 are
Women
allowed under the Labor Code 1 247
53
but1 455 1 802
are sometimes 1 925misused
2 173 to 2 361 2 240 the2 categories
obscure 314 of
Agriculture 1 341
employment and undermine labour protection. 1 233 1 522 1 693 2 001 2 131 1 973 1 990
Industry 1 124 1 265 1 432 1 417 1 723 1 935 1 872 2 025
Services 1 474 1 769 2 322 2 454 2 815 3 088 2 873 3 025
42. In the
Private public
household sector, the forms497of precarious
350 493 employment
497 558 are598casual,
542 contractual
553 and
Private establishment
co-terminus employment. In 32012,
153 3 601
it was 4estimated
374 4 634that
5 534
of the6 074
total 5914,071
748 6 003
incumbents
Government/government corpora on 233 288 386 409 417 450 401
in the government service, 20,285 (2.2 per cent) were co-terminus, 69,031 (7.6 per cent)455
Own family-operated farm or business 56 28 23 24 5430 32 26 29
were casual and 28,068 (3.1 per cent) were contractual. A common device is the use of
Note: Employees in precarious work are defined as wage and salary workers whose nature of
“job order” contracts, recognized by civil service laws and regulations, 55 where
employment is short-term, casual or those who worked for different employers on day-to-day
persons
areorengaged to dobasis.
week-to-week work that are usually not different from the work performed by regular
employees. They are Authority,
Source: Philippine Statistics often engaged directly
Labor Force as independent contractors with explicit
Survey.
disclaimers on the existence of an employment relationship, or are sourced from agencies
50
See PSA’s who
Decent act
Work as theirhttp://labstat.psa.gov.ph/dews.
Statistics, ostensible employer.As such, they do not get employee benefits.
41. UnderIn the Labor
2012, Code,
there regular
were 206,employment
20 job order51
is presumed
workers.while specific
Local forms of units
government non-regular
21had
employment
138,973 52 are legal.
(67.4 However,
per cent) employers
while national often resort
government to non-regular
agencies had 48,227employment through
(23.4 per cent). 56
short-term or fixed period contracts to defeat the employees’ right to regular employment
43.and Recent
securityregulatory
of tenure and circumvent
action of DOLEother in thelabour
formrights. In direct
of revised or bilateral employment
implementing rules and
relationships,
regulationsthis is done
of the LaborbyCodeimproperly
57
disguising
continues an employment
to prohibit relationship
labor-only contracting andasother
some
other relationship
illicit practices orandimproperly categorizing
curb the incidence regular employment
of short-term employmentas with
non-regular through
more stringent
a stipulation
requirements in the
for employment
registration ofcontract. Contracting
contractors or subcontracting
and subcontractors arrangements
which supply work oror
trilateral
service employment
to principalsrelationships are allowed
under contracting under the Labor
and subcontracting Code but
53
arrangements. Theare sometimes
application
misused to obscure the categories of employment and undermine labour protection.
of this regulatory action, however, is limited to employment under contracting or
subcontracting arrangements or trilateral employment relationships. It does not cover
42. In the publicemployment
bilateral sector, the relationships
forms of precarious employment
where violations are right
on the casual,
to contractual and co-
security of tenure
terminus employment. In 2012, it was estimated that of the total 914,071 incumbents in
through disguised forms of employment or mis-categorization of regular employment
the into short-term
government employment
service, 20,285 has
(2.2become
per cent)more werepronounced
co-terminus, in recent
69,031years.
(7.6 per cent) were
casual and 28,068 (3.1 per cent) were contractual. A common device is the use of “job order”
54
contracts, recognized by civil service laws and regulations,55 where persons are engaged to do
51
Art. 295, Labor Code. Regular employment is where the employee has been engaged to perform activities which are usually necessary or
desirable in the usual business or trade of the employer.
52
Under Art. 295, idem, these include a) employment with a period or term that has been fixed for a specific project or undertaking the
completion or termination of which has been determined at the time of the engagement of the employee (fixed period or project employment);
b) employment where the work or service to be performed is seasonal in nature and the employment is for the duration of the season (seasonal
employment), and c) casual employment. Subject to regulations, employment involving a trilateral relationship through contracting or
subcontracting arrangements is also legal (Arts. 106-109, idem).
53
Idem, Arts. 106-109, now implemented through DOLE Department Order No. 174-17, the new rules and regulations implementing Arts. 106
to 109 of the Labor Code, as amended, issued on 16 March 2017. A “trilateral employment relationship” refers to the relationship in a
contracting or subcontracting arrangement where there is a contract for a specific job, work or service between the principal and the
subcontractor, and a contract of employment between the contractor and its workers. There are three parties involved in these arrangements:
the principal who decides to farm out a job, work or service to a contractor; the contractor who has the capacity to independently undertake
the performance of the job, work or service; and the contractual workers engaged by the contractor to accomplish the job, work or service.
(Sec. 3 [m], D.O. No. 18-A). Though already used in jurisprudence, the phrase “trilateral employment relationship” is no longer used in DOLE
D. O. No. 174-17.
54
Data from the assessment of human resource conducted by the Civil Service Commission, 2012.
55
Civil Service Commission Resolution 02-0790 dated June 5, 2002.
56
57
DOLE D.O. No. 174-17.
29 Philippines 2017
work that are usually not different from the work performed by regular employees. They are
often engaged directly as independent contractors with explicit disclaimers on the existence of
an employment relationship, or are sourced from agencies who act as their ostensible employer.
41.As such,
Underthey do notCode,
the Labor get employee benefits. In512012,
regular employment there were
is presumed while 206, 20 jobforms
specific orderofworkers.non-
44. regular
There is employment
a need for serious dialogue and consensus among all stakeholders, including
Local government units hadare 138,973
legal.(67.4 per cent) while national often government agencies had
52
However, employers resort to non-regular
legislators, onthrough
how56toshort-term
regulate both regular or standard andtonon-regular or non-standard
48,227 (23.4 per cent).
employment or fixed period contracts defeat the employees’ right
forms
to regularof employment,
employment and especially
securitygiven the diametrically
of tenure and circumvent opposed positions
other labour rights.of Inworkers
direct
and employers in the private sector and the differentiated bytreatment between forms an of
43. Recent regulatory
or bilateral
employment action
employment
in of DOLE
the privateassector in the
relationships,
(where form of
this revised
is doneimplementing
the Labor Code
improperly
and jurisprudence rules and
disguisingregulations
do notregularallow
of the Labor Code
employment
disclaimers of
57
continues tosome
relationship
employment prohibit other
relationship) labor-only
relationship
and in contracting
the
or improperly
public and other
sector illicit practices
categorizing
(where CSC rules and
curbexpressly
the incidence
employment
allow of short-term
as non-regular employmentThe
similar disclaimers).
through with objective
a more stringent
stipulation in
of
therequirements
the
employment
dialogue for
canregistration
contract.
include
of contractors
Contracting
formulation and orsubcontractors
of
subcontracting
a cohesive which
policy
53 onsupply
arrangements
regularwork andor service
or trilateral to principals
employment
non-regular forms under
relationships
of contracting
employment
are
allowed
andapplicable under the
subcontracting Labor Code The
arrangements. but are sometimes misused to obscure the categories of
employment toandboth the private
undermine and application
labour public
protection.
of this
sectors. Theregulatory
dialogueaction,can behowever,
guided, is limited
among
to employment
others, by the underdata contracting
and experience or subcontracting
from the Philippine arrangements
setting, the or trilateral
principlesemployment
of equal
relationships.
protection It does
andsector, not cover
non-discrimination,bilateral employment
the principles relationships where
enunciatedareincasual, violations
ILO Recommendation on the right
42.to security
In the public
of tenure through the forms
disguised of precarious
forms of employment
employment or contractual
mis-categorization of and
regular
198, and the employment.
co-terminus need to evolveIna 2012, balanced it andestimated
was flexible policythat ofand
the regulatory
total 914,071 framework
incumbents that
employment
will intoemployment
short-term employment athas become atmore pronounced in recent years. of
in thepromote
government service,and 20,285rights(2.2 work
per andwere
cent) theco-terminus,
same time allow
69,031 the(7.6
evolution
per cent)
existing
were and and
casual future28,068work(3.1 arrangements.
per cent) were contractual. 54
A common device is the use of
44. There is a need for serious dialogue and consensus among all stakeholders, including 55 legislators,
on “job
how order”
B.2.2
contracts,
toUnderemployment
regulate bothrecognized orbystandard
regular informal civil serviceand laws and regulations,
non-regular or non-standard
58 where personsforms of
are engaged to do work thatand are usually not anddifferent
vulnerable from employment
the work performed by regular
employment, especially given the diametrically opposed positions of workers and employers in
employees. They are often engaged directly as independent contractors with explicit
45.the private
disclaimers
sector and theare
The underemployed on the existence
differentiated
those
of an
treatment
wanting
employment
between
additional hours
relationship,
forms of employment
oforwork, whether
are sourced from
in theare
they private
agencies in
sector (where
formal or the Labor
informal Code and Underemployment
employment. jurisprudence do not allow
ranged at disclaimers
18 to 23 per of
cent employment
over the
who act as their ostensible employer. As such, they do not get employee benefits.
relationship)
last 2012,
decade. and in the
It was at public
18.3206,persector
cent (where
in 2016 CSC rules expressly
representing allowworkers.
similar disclaimers).
In there were 20 job order workers. 7.48 Local million
government More units than had
Thehalf
objective
(55.1 ofperthecent
dialogueor can include
4.12 million) formulation
were visibly of underemployed
a cohesive policyworking on regular lessandthannon-
138,973 (67.4 per cent) while national government agencies had 48,227 (23.4 per cent). 56
regular forms of employment applicable to both the private
40 hours a week. By region, underemployment is highest in Region V at 30.3 per cent, and public sectors. The dialogue can
43.be guided,
Recent among
Region X at 27.9
regulatory others, per by
action theofdata
cent, Region
DOLE andVIIIexperience
at 29.7
in the form from
per the
of cent Philippine
revised setting,
and implementing
Caraga (Region the principles
XIII)
rules andat
of equal
27.8 protection
per
regulations cent.
of the andLabor
It non-discrimination,
involves more women
Code 57 continues the principles
to prohibitenunciated
than men labor-onlyincontracting
(Figure 11). ILO Recommendation
Most pronounced
and other in
No. agriculture
198, and the need
where to evolve
almost a
one balanced
in every and flexible
four
illicit practices and curb the incidence of short-term employment with more workerspolicy isand regulatory
underemployed, framework
itstringent
is also that
will requirements
promote employment
significant in industry and rights
for registrationand of atcontractors
services. work and atand
On the otherthesubcontractors
same time allowwhich
hand, vulnerable the evolution
employment
supply work of existing
refers to
or
andthefuture work
proportion arrangements.
of the self-employed and unpaid family
service to principals under contracting and subcontracting arrangements. The application workers to total employment. In
2016, vulnerable employment was at 34.9 per cent.
of this regulatory action, however, is limited to employment under contracting or The less developed regions with large
B.2.2 Underemployment
agricultural
subcontracting sectors and
arrangementsinformal
typically orand
have vulnerable
higher
trilateral employment
incidence
employment
58
of vulnerable
relationships. employment.
It does not cover
bilateral employment relationships where violations on the right to security of tenure
45. Thethrough
underemployeddisguised areforms
Figurethose 11. wanting
of additional
Underemployment
employment hours
rateofby
work,
sector
or mis-categorization whether
and sexthey are
of regular in formal or
employment
informal employment.
into short-term Underemployment
employment (in
has becomeranged per cent)
at 18 to 23 per
more pronounced cent over
in recent years.the last decade. It
was at30.0 18.3 per cent in 2016 representing 7.48 million workers. More than half (55.1 per cent
or 4.12 25.0million) were visibly underemployed working less than 40 hours a week. By region,
underemployment is highest in Region V at 30.3 per cent, Region X at 27.9 per cent, Region
20.0
VIII at 29.7 per cent and Caraga (Region XIII) at 27.8 per cent. It involves more women than
51
men
Art. (Figure
Labor Code.11).
295, 15.0 Most
Regular pronounced
employment is where thein agriculture
employee wheretoalmost
has been engaged one inwhich
perform activities every four necessary
are usually workers or is
desirable in the usual business or trade of the employer.
52 underemployed, it is also significant in industry and services. On the other hand, vulnerable
Under Art. 295, idem, these include a) employment with a period or term that has been fixed for a specific project or undertaking the
10.0
employment
completion refers
2000
or termination to has
of which the
2005 proportion
been oftime
2010 at the
determined the ofself-employed
2011 2012 of theand
the engagement 2013 unpaid
employee 2014
(fixed family
period workers
2015
or project to total
employment);
b) employment where the work or service to be performed is seasonal in nature and the employment is for the duration of the season (seasonal
employment. In 2016,
Total vulnerable
Men employment
Women was at 34.9
Agriculture per cent. The
Industry less developed
Services
employment), and c) casual employment. Subject to regulations, employment involving a trilateral relationship through contracting or regions
53
withSource:
large
subcontracting agricultural
arrangements sectors
is also legal
Philippine Statistics typically
(Arts. 106-109,
Authority, haveForce
idem).
Labor higher incidence of vulnerable employment.
Survey.
Idem, Arts. 106-109, now implemented through DOLE Department Order No. 174-17, the new rules and regulations implementing Arts. 106
to 109 of the Labor Code, as amended, issued on 16 March 2017. A “trilateral employment relationship” refers to the relationship in a
contracting or subcontracting arrangement59
46. Informal employment wheresubsumes there is a contract for a specific job, work or service between the principal and the
those in self-employment and unpaid work
subcontractor, and a contract of employment between the contractor and its workers. There are three parties involved in these arrangements:
constituting about 38 per cent of total employed.
the principal who decides to farm out a job, work or service to a contractor; Common
the contractor who has the in both
capacity agriculture
to independently and
undertake
the performance of the job, work or service; and the contractual workers engaged by the contractor to accomplish the job, work or service.
services and often involving women and the youth and children, informal sector workers
(Sec. 3 [m], D.O. No. 18-A). Though already used in jurisprudence, the phrase “trilateral employment relationship” is no longer used in DOLE
D. O. No.are highly vulnerable. They have low level of education and skills and are engaged in
174-17.
54
55 work that is impermanent, of low productivity, and yields little or no income.
56
57
DOLE D.O. No. 174-17.
58
As used in this report, vulnerable employment refers to the self-employed and unpaid family workers.
59
See Figure 1. 22
23
significant in industry and services. On the other hand, vulnerable employment refers to
the proportion of the self-employed and unpaid family workers to total employment. In
Section II. Employment by status,
2016, vulnerable employment was at 34.9 per cent. The less developed
informal regions
employment and large30
withpoor
the working
agricultural sectors typically have higher incidence of vulnerable employment.
Figure 11. Underemployment rate by sector and sex

(in per cent)
44. 30.0 There is a need for serious dialogue and consensus among all stakeholders, including
Underemployment,
legislators, on how to discussed
regulatefurther
both regularin a later or section,
standardisand highly pronounced
non-regular in the sector.
or non-standard
25.0
About of 3.9employment,
million or 10especially
per cent of totalthe employed are in opposed
unpaid work. In all,
forms given diametrically positions of informal
workers
workers have little opportunity of moving up
and employers in the private sector and the differentiated treatment between forms
20.0 the skills and income ladder. Hardlyof
covered by labour standards and social protection,
employment in the private sector (where the Labor Code and jurisprudence do not allow they are the poorest and most
15.0
marginalized
disclaimers ofsegment employmentof the working
relationship) population.
and in the public sector (where CSC rules
10.0
expressly 2000
allow2005 similar 2010disclaimers). 2011
The2012 objective 2013
of the 2014
dialogue 2015
can include
B.3 Unemployment
formulation of a cohesive policy on regular and non-regular forms of employment
Total Men Women Agriculture Industry Services
applicable to both the private and public sectors. The dialogue can be guided, among 60
47. Source:
As ofPhilippine
others, 2016,
by theaboutdata2.38
Statistics
and million
Authority,
experience or 5.5
Labor Force
from perthe cent
Survey. of the labour
Philippine setting,force thewere unemployed.
principles of equal
Most
protectionof them and were men (1.49 million
non-discrimination, or 62.9 per
the principles cent); those
enunciated in ILO agedRecommendation
15-24 years old
59
46. Informal
46. Informal (1.145
198, and employment
employment
million
the needorto59 48.4
evolvesubsumes
subsumes
per thosethose
cent)
a balanced in
and in self-employment
andself-employment
those
flexible whopolicyattained
and highand school
andregulatory
unpaid unpaid
work
framework work
constituting
education
that
constituting
about (1.013
will38promote about
million
per cent or 38
42.8 perpercent
cent)
of total employed.
employment of total
(Figure
and rightsCommon employed.
12).
at work and The Common
more
in both developed
at theagriculture in
same time allowboth
and agriculture
urbanized
and services
the evolution andoften
regions
and of
services
with
involving
existing and
the
women often
highest
and future involving
share
and thework of
youthwomen
working and the
populationyouth and children,
employment informal
and children, informal sector workers are highly vulnerable.
arrangements. also sector
had workers
the highest
areunemployment
They highly
have vulnerable.
low level rates,
of They
with have
education and low
CALABARZON level
skills andof are
education
at 8.0 per and
engaged in skills
cent, NCRthat
work and
at 6.6are engaged
per cent, in
is impermanent, and of
Underemployment,
workRegion that is discussed
impermanent,
III at 8.1 per cent. further
of low in a later
productivity,section, is
and highly
yields pronounced
little or in
no the sector.
income.
low productivity,
B.2.2
About andor
3.9Underemployment
million yields
10 perlittle
and
centorinformal
nototal
of income. andUnderemployment,
vulnerable
employed unpaid discussed
are inemployment
58
work. In all, further in a later
informal
section, is highly
workers have little pronounced
opportunityin the sector.
of moving up About 3.9 million
thebyskills or 10
andage per
income cent of total employed
Figure 12. Unemployment rate sexworkers.
and groupladder. Hardly
58
45.
As are
used inin
thisunpaid
The report, work.
underemployed
vulnerable In all,
employment
covered by labour standards and social informal
are those
refers workers
wanting
to the self-employed haveand little
unpaid opportunity
additional
protection, hours
family of work,of moving
whether up they
the skills
are inand
(in per cent) they are the poorest and most
income ladder. Hardly covered by labour standards and social protection, they are the poorest
59
See Figure 1.
formal
marginalized or informal employment.
segment of the working population. Underemployment ranged at 18 to 23 per cent over the
20.0
andlastmost marginalized
decade. It was atsegment
18.3 perofcent the in working population.
2016 representing 7.48 million workers. More23
Age group than
B.3half
15.0 (55.1 per cent or 4.12 million) were visibly underemployed working less than
Unemployment
B.3 Unemployment
40
10.0
hours a week. By region, underemployment is highest in Region V at 30.3 per cent,
Sex
47. AsRegion of 2016, X at 27.92.38
about per million
cent, Regionor 5.5 VIII per cent at 29.7of theperlabour
cent and force Caraga
were (Region
unemployed. XIII)60at
47. AsMost of 2016,
27.8 aboutwere 2.38men million
(1.49ormillion
5.5 per or cent of per
5.0 per cent. It involves more women than men (Figure 11). Most pronounced
of them 62.9 the labour force aged
cent); those 15-24 years oldMost
were unemployed. 60 in
agriculture
of(1.145
them where almostper one in andevery four who workers agedis 15-24
underemployed, it is million
also
0.0 were
millionmen or(1.49
48.4 million or 62.9
cent) perthosecent); those attained highyears old (1.145
school education
significant
or(1.013
48.4 per in
cent)
million industry
Total and those
or 42.8 perMen and services.
who(Figure
cent) attained On the
Womenhigh school other
12). The 1more hand, vulnerable
5-24 education
developed employment
2 5-54(1.013 million
and urbanized 5 5+ refers
or 42.8toper
regions
cent) the(Figure
with proportion
the 12). The
highest ofshare
the
more
2005self-employed
ofdeveloped
2010
working and
2011 and
population unpaidand
urbanized
2012 family
regions
2013 workers
2014with2015
employment theto total
highest
also had employment.
share In
of working
the highest
2016,
population
unemployment vulnerable
and employment employment
rates, with also was at 34.9 per
had the highestatunemployment
CALABARZON cent. The less
8.0 per cent, NCR developed
rates,at with regions
6.6CALABARZON with large
per cent, and at
Source: Philippine
agricultural sectorsStatistics Authority,
typically have Labor
higher Force Survey. of vulnerable employment.
incidence
8.0Region
per cent, III NCR
at 8.1atper 6.6cent.
per cent, and Region III at 8.1 per cent.
48. The unemployment
Figure rate
Figure among
12.11. those with
Underemployment
Unemployment ratetertiary
rate
by and
sexby post-secondary
sector
and age and sex
group education is
relatively higher than those with lower
(in(ineducation
percent)
per cent) (Figure 13). This implies a demand-
supply
30.0
20.0
mismatch where the jobs being created are not of the kind or quality that match
their qualifications. A frequently-held view is that Agethe
group
better educated are in a better
25.0
15.0
economic situation such that they are more selective or can afford to wait longer for better
prospects.
20.0
10.0 Sex
15.0
5.0 Figure 13. Unemployment rate by educational attainment
10.0 (in per cent)
0.0 2000 2005 2010 2011 2012 2013 2014 2015
15.0 Total Men Women 1 5-24 2 5-54 5 5+
Total Men Women Agriculture Industry Services
12.0 2005 2010 2011 2012 2013 2014 2015
Source:
9.0 Philippine Statistics Authority, Labor Force Survey.
6.0 Philippine Statistics Authority, Labor Force Survey.
Source:
3.0
46. Informal employment 59 subsumes those in self-employment and unpaid work
0.0
48. The
48. The unemployment
constituting
unemployment raterate
about 38 among
per
among cent
thosethose with
of total tertiary and
employed. post-secondary
Common education
in both agriculture is
and
2005 2010 2011with tertiary
2012 and post-secondary
2013 2014 education
2015 is relatively
relatively
higher than higher
services and
those than
often
with those education
involving
lower with
women lowerand education
13). (Figure
the youth
(Figure andimplies
This 13). This
children, impliessector
informal
a demand-supply a demand-
workers
mismatch
supply mismatch where Total
the jobs being No schooling
created are not of Primary
the kind or quality that matchin A
are highly vulnerable.
where the jobs being created Theyarehave
not low
of the level
kind of education
or quality and
that skills
match and
their are engaged
qualifications.
their qualifications. Secondary Post secondary Tertiary
work
frequently-held that is view isA frequently-held
impermanent,
that low view
of educated
the better is that
productivity,
are theand
in a better better educated
yields
economic little are
or in
situation no a income.
such better
that they
economic situation such that they are more selective
are more selective or can afford to wait longer for better prospects.
Note: Before 2012, data for post-secondary education or
included can
in afford
tertiary. to wait longer for better
58 prospects.
As used in this report, vulnerable employment refers to the self-employed and unpaid family workers.
59
See Figure 1.
60
From the 6-8 per cent range over the13.
Figure past Unemployment
decade. rate by educational attainment
(in per cent) 23
24
15.0
supply mismatch where the jobs being created are not of the kind or quality that match
their qualifications. A frequently-held view is that the better educated are in a better
31 economic
49. Philippines
Another 2017
situation such that they are more selective or can afford to wait longer for better
symptom of demand-supply mismatch is the existence of “hard-to-fill”
prospects.
vacancies due to the applicants’ lack of competencies/skills and years of experience
(Figure 14). A Figure
study noted that beginning
13. Unemployment 2001,
rate firms were attainment
by educational hiring older and more
experienced workers while avoiding young workers
(in per cent) to minimize training costs. When the
200815.0global crisis struck, workers who were laid off were either those near retirement or
49. Another
the very symptom of demand-supply mismatch 61 is the existence of “hard-to-fill”
12.0 new workers, usually aged 15 to 19.
vacancies
9.0
due to the applicants’ lack of competencies/skills and years of experience
(Figure6.0 14). Figure
A study 14. that
noted Reasons why vacancies
beginning 2001, firmsare were
hard hiring
to fill older and more
experienced
3.0 workers while avoiding young workers
(in per cent) to minimize training costs. When the
2008 0.0
100%global crisis struck, workers who were laid off were either those near retirement or
2005 2010 2011 2012 2013 2014 2015
the very new workers, usually aged 15 to 19. 61
Total No schooling Primary
Others
80%
Figure 14. Reasons why
Secondary vacancies are
Post secondary hard to
Competition
Tertiary filloverseas jobs
with
Location/work schedule concer n

Note: Before 2012, data for post-secondary (in
60%
per cent)
education included in tertiary.
100% Lack pr ofessional license/TESDA
Source: Philippine Statistics Authority, Labor Force Survey. skills certification
Expectation of high salary
49. Another symptom of demand-supply mismatch is the existence of “hard-to-fill”
40% Others
Lack years of ex perience
49. Another symptom of demand-supplylack
vacancies duerangeto the applicants’
of competencies/skills ofand years of experiencedue
60
From the 6-8 per cent over the past decade.
80%
mismatch is the existence
Competition “hard-to-fill”
with overseas vacancies
No/few applicants jobs
(Figure
to the 14).
applicants’A study
lack of noted that beginning
competencies/skills and 2001,
years firms
of were
experience
Location/work
hiring
(Figure older
14). A
schedule concer
and more
study
n noted
24
20% Lack competency/skill
experienced workers while avoiding young workers to
that beginning 2001, firms were hiring older and more experienced
60% minimize training
Lack pr ofessionalworkerscosts. When the
while avoiding
license/TESDA
2008 global
young workers crisis
to struck, workers
minimize trainingwho were
costs. laid the
When off 2008
were either
skills those
certification
global
Expectation crisis
of high
near
struck,retirement or
salary workers who
0% 61
the40%
were very new
laid off workers,
were
2008 usually
either2010
those aged
near 15 to 19.2014
retirement
2012
or the very newLack workers, usually aged 15 to 19.61
years of ex perience
Note: The surveys covered establishments employing 20 workers or more.applicants

No/few Data for 2008 and 2010
Figure 14.
20% not strictly comparable Reasons
with later why
years as vacancies
these are hardand
excluded agricuture to fishery.
fill
Lack competency/skill
Source: Philippine Statistics Authority, BLES (in per cent)
Integrated Survey/Integrated Survey on Labor and
100% Employment.
0%
2008 2010 2012 2014
Others
50. About
Note: 44surveys
80% The per cent of the
covered youth cohort
establishments (15-24
employing 20 years
workersold) is in Data
or more. the labour
for 2008force. Youth
and 2010
Competition with overseas jobs
unemployment is at 15 with
not strictly comparable per later
cent, theas these
years highest among
excluded all age
agricuture cohorts. The youth
and fishery.
Sources: Philippine Statistics Location/work schedule concer
andn
unemployed
60% do not haveAuthority,
job-ready BLES Integrated
skills. TheySurvey/Integrated
have difficultySurveymaking on Labor
the school-to-
Employment. Lack pr ofessional license/TESDA
work transition due to low educational attainment, age,skills behaviour
certificationtowards job search,
Expectation of high salary
family
40% considerations, social network, minimum wage,Lack regulations and restrictions on
50. About cent of the youth cohort (15-24 years old) isyears
44 perarrangements.
employment
of exlabour
in the perience force. Youth
No/few applicants
unemployment is at 15 per cent, the highest among all age cohorts. The youth
20% Lack competency/skill
51. unemployed do not have
Another dimension of thejob-ready skills. They
unemployment problemhave isdifficulty makingofthediscouraged
the existence school-to-
work transition
workers, or thosedue to low educational
unemployed who no longerattainment,
lookedage, behaviour
for work on thetowards job search,
perception that no
0%
family considerations,
2008
social
2010
network,
2012
minimum
2014
wage, regulations
work is available for them due to their lack of or obsolete skills and competencies (Table and restrictions on
employment
Note:
13). While arrangements.
The surveys covereddiscouraged
declining, establishments workers
employing is20 still
workers
at 12or more. Data for
per cent, 2008
with and 2010
older workers
not the
affected strictly comparable with later years as these excluded agricuture and fishery.
most.
51. AnotherPhilippine
Sources: dimension of the
Statistics unemployment
Authority, problem
BLES Integrated is the existence
Survey/Integrated Survey on of discouraged
Labor and
workers, Employment.
or those unemployed who no longer looked for work on the perception that no
Table 13. Discouraged unemployed by sex and age group
work is available for them due to their
(per cent lack
of of or
total obsolete skills and competencies (Table
unemployed)
50.50. About
About 4444
13). While perper
cent of the
cent
declining,ofyouth
the cohort
youth
discouraged (15-24
cohort
workersyears
(15-24 old)
is is in
years
still the12labour
atold) force.
is incent,
per Youth
the labour
with unemployment
force.
older Youth
workers
15 Sex
isunemployment
at and
per age
cent,group
the highest 2005
among 2010
all age 2011
cohorts. The2012youth 2013
unemployed 2014 do 2015 have job-
not
affected the most. is at 15 per cent, the highest among all age cohorts. The youth
Total 21.4 16.4 14.4 14.4 14.3 12.5 12.0
ready skills.
unemployed They have difficulty
do not have job-ready making the school-to-work
skills. They have transition
difficulty due
making to low
the 13.3educational
school-to-
Men 23.5 18.3 16.3 16.1 16.0 14.0
attainment,
work
Women
age,
transition behaviour
due to lowtowards
Table 13. Discouraged job
educational
18.1
search, family
13.2unemployed
attainment,
11.2
considerations,
by
11.7sex and
age, behaviour social
11.5age group
network,
towards
9.7 job minimum
9.5 search,
wage,
family regulations and restrictions
15-24 considerations, social 21.5
(per on employment
network,
17.3ofminimum
cent 14.9
total arrangements.
wage,
14.7 regulations
unemployed) 14.5 and
12.4 restrictions
12.1 on
25-54 Sex and age group
employment arrangements. 20.1
2005 15.0
2010 13.3
2011 13.5
2012 13.3
2013 11.8
2014 11.5
2015
51. Another
55+
Total dimension of the unemployment
36.5
21.4 21.7 problem
16.4 22.6 is the
14.4 21.4existence
14.4 23.3 of discouraged
14.3 21.6
12.5 workers, or
16.3
12.0
51. those Men unemployed
Source:
Another Philippine
dimension whoofnoAuthority,
Statistics longer
the 23.5 looked
Labor
unemployment for work
18.3Force 16.3 on the
Survey.
problem 16.1isperception
the 16.0 that14.0
existence noofwork is available
13.3
discouraged
for them due
Women
workers, to their
or those lack of or obsolete
unemployed 18.1 13.2 skills and
who no longer 11.2 competencies
looked for work (Table
11.7 on the 13).
11.5 9.7 While declining,
perception 9.5 that no
61
discouraged
15-24 workers is still at 12
21.5 per cent,
17.3 with older
14.9 workers
14.7 affected
14.5
work is available for them due to their lack of or obsolete skills and competencies (Table the most.
12.4 12.1
ADB. 2009. How Has Asia Fared in the Global Crisis? A Tale of Three Countries: Republic of Korea, Philippines, and Thailand.
25-54 20.1 15.0
13). While declining, discouraged workers 13.3 is still at13.5
12 per13.3 11.8
cent, with older 11.5
workers
55+ 36.5 21.7 22.6 21.4 23.3 21.6 16.3 25
affected the most.

61
(perA cent
ADB. 2009. How Has Asia Fared in the Global Crisis? Tale ofof total
Three unemployed)
Countries: Republic of Korea, Philippines, and Thailand.
Sex and age group 2005 2010 2011 2012 2013 2014 2015
25
Total 21.4 16.4 14.4 14.4 14.3 12.5 12.0
workers, or those unemployed who no longer looked for work on the perception that no
work is available for them due to their lack of or obsolete skills and competencies (Table
Section
cent,II.with
employment and the working poor 32
13). While declining, discouraged workers is still at informal
12 per older workers
affected the most.

(per cent of total unemployed)
Sex and age group 2005 2010 2011 2012 2013 2014 2015
Total 21.4 16.4 14.4 14.4 14.3 12.5 12.0
Men 23.5 18.3 16.3 16.1 16.0 14.0 13.3
Women 18.1 13.2 11.2 11.7 11.5 9.7 9.5
15-24 21.5 17.3 14.9 14.7 14.5 12.4 12.1
25-54 20.1 15.0 13.3 13.5 13.3 11.8 11.5
55+ 36.5 21.7 22.6 21.4 23.3 21.6 16.3
B.4 A distinct problem: NEET
61
B.4 A distinct problem: NEET
ADB. 2009. How Has Asia Fared in the Global Crisis? A Tale of Three Countries: Republic of Korea, Philippines, and Thailand.
52. A distinct group specially involving the young population are persons who are neither in
52. Aemployment,
distinct group speciallynor
education involving
trainingthe(NEET)
young (Figure
population 15).areA persons
high NEET who rateare neither
an in
is 25
employment, education or training (NEET) (Figure 15). A high
indication of unutilized labour with serious long-term and generational implications. It is NEET rate is an indication
ofestimated
unutilized labour
that almost with
oneserious long-term
out of four young andpersonsgenerational implications.
is in this group. It is estimated
The incidence among that
almost
women one out of four
is around younghigher
1.8 times persons thanis in
men,thisagain
group. The incidence
indicating among women
an opportunity gap skewedis around
1.8 timesone
against highersex.than men, again indicating an opportunity gap skewed against one sex.
Figure 15. Youth not in employment, education or training (NEET)

(per cent of youth population)
35
30
25
20
15
2006 2010 2011 2012 2013 2014 2015
Total Men Women
C. C.
Sectoral andand
Sectoral enterprise performance
enterprise in creating
performance employment
in creating employment
C.1 Performance of the of
C.1 Performance economic sectorssectors
the economic
C.1.1
C.1.1The
Thedilemma of of
dilemma job-slow growth
job-slow growth
53. The data over the last 15 years show a pattern of “job-slow” growth, as shown in the employment
53. The data over the last 15 years show a pattern of “job-slow” growth, as shown in the
elasticity of GDP. In agriculture, marginal average growth came with a negative employment
employment elasticity of GDP. In agriculture, marginal average growth came with a
effect. In industry, strong average growth had a marginal employment effect. Employment
negativeis noticeably
elasticity employment effect.
higher in theInmore
industry, strong average
labour-intensive growth
sub-sectors had a and
of mining marginal
quarrying
employment effect. Employment elasticity is noticeably higher
and construction, and lower in the more capital-intensive sub-sectors that require in the more labour-
specific
intensive sub-sectors of mining and quarrying and construction, and lower
skills like manufacturing and utilities (electricity, gas and water supply). Services also posted in the more
capital-intensive
strong average growthsub-sectors that require
but likewise specific skills
with a marginal like manufacturing
employment effect. Publicand utilities
administration
(electricity, gas and water supply). Services also posted strong
and defence and hotels and restaurants were the only sub-sectors where employment average growth butgrew
likewise
higher thanwith
GDP; a in
marginal employment effect.
public administration, Public growth
employment administration and defence
may be partly attributedandto the
hotels and restaurants were the only sub-sectors where
government’s temporary employment programmes implemented during the period.employment grew higher than
GDP; in public administration, employment growth may be partly attributed to the
54. Agovernment’s
relatively hightemporary
or relatively low employment
employment programmeselasticity in periodsduring
implemented of strong sectoral growth
the period.
indicate that the sector either has further room for employment creation or, conversely, has
54. approximated its fulloremployment
A relatively high relatively low generating potential.
employment The latter
elasticity seems to
in periods ofbe generally
strong the case
sectoral
for all sectors,
growth as shown
indicate in Table
that the sector14.either
Thus, has
for employment
further roomtofor grow at a faster rate,
employment GDP needed
creation or,
to expand much faster than the average of 5.9 per cent registered during the period.
conversely, has approximated its full employment generating potential. The latter seems
to be generally the case for all sectors, as shown in Table 14. Thus, for employment to
grow at a faster rate, GDP needed to expand much faster than the average of 5.9 per cent
33 Philippines 2017
Table 14. GDP, employment, elasticity and labour productivity, 2011-2015

(Annual average, in per cent except employment elasticity and
actual value of labour productivity)
Annual growth Industry group share Employment Labour productivity
Major Industry Group
GDP Employment GDP Employment elasticity Growth Value (Php)
Total 5.9 1.9 100.0 100.0 0.4 3.9 177 046
Agriculture 1.7 -0.9 10.5 31.2 -9.9 2.6 59 518
Agriculture, hunting and forestry 2.4 -0.7 8.6 27.5 -1.7 3.2 55 049
Fishing -1.2 -1.9 1.9 3.7 1.3 0.8 92 791
Industry 6.4 3.5 32.8 15.6 0.7 2.8 372 366
Mining and quarrying 4.2 4.1 1.1 0.6 2.0 0.7 319 660
Manufacturing 6.9 1.5 22.7 8.3 0.3 5.3 486 646
62
share ofgastotal
Electricity, exports
and water supply in3.92016 mainly
-1.1 3.3limited to0.4bananas-0.7and 5.2 pineapples.
1,566 832 Other
Construction
agricultural products remain 7.0 6.5
uncompetitive 5.6 due to 6.3 quality 0.5 0.3
and price 156 511
issues. Low
Services 6.4 3.1 56.7 53.3 0.5 3.2 188 424
agricultural productivity
Wholesale and retail trade
negatively impacts on employment and income. Since it results
inrepair
higher prices
of motor on food products and on costs of living, its most immediate negative
vehicles
motorcycles, and personal
impact is on household welfare. Thus, it hampers poverty reduction efforts in households.
and household goods 6.0 1.4 16.6 18.9 0.4 4.8 156 303
Hotels and restaurants 6.3 9.4 1.8 4.0 1.3 -1.3 78 966
57. The problems
Transport, storage in agriculture are due primarily to a failure to modernize and diversify and
toandpersistent
communicationland tenure issues.6.3 3.4
The sector is7.6also most7.9vulnerable 0.5to climate
2.8 169 449 risks.
change
Financial intermediation 7.9 4.6 7.0 1.2 0.7 3.3 1 021 191
Theestate,
Real directions
renting of PDP 2017-2022 and AmBisyon Natin 2040 are encouraging as public
investments in agricultural
and business activities 7.9 modernization
6.0 11.0 are seen 3.6 as critical
0.8 not1.9 only
535 in
622 raising
Public administration
productivity and improving sectoral capacity to create productive employment especially
and defense, compulsory
for thesecurity
social lower-skill and lower-educated
3.1 3.6 segments
4.2 of the
5.2 labour1.9force,-0.4 but also as a key
142 823
63
toward inequality-reducing transformation. These investments should take into account
Other services 5.9 3.2 8.5 12.4 0.7 2.7 121 772
Sources:Philippine
all stages of theStatistics
crop orAuthority, National
production Accounts
cycle, from of the Philippines
irrigation andinputs
to farm Labor Force
and technology,
Survey.
common facilities such as farm equipment, harvest and post-harvest and other support
facilities like aggregation centers, warehouses and silos, agri-processing, farm-to-market
55. Labour
55. roadsproductivity
Labour productivity
and infrastructureor
or value
valueandadded
added per worker
per
logistics, worker
among isisoften
oftena function
others. a Investments
function of human
of human and and
on research capital
capital and
investments,
investments, technology
technology and innovation.
and Virtually
innovation. no improvement
Virtually no
development is also critical, especially in the development of climate change-adaptive in labour
improvement productivity
in labour can
beproductivity
noted in agriculture.
and resistant cancrops asInwell
be noted services andprocessing
in agriculture.
as green industry,
In servicesmodest
and improvements
industry,
technologies. modest
Finally, can be notedpolicy
improvements
outstanding overall.
The
can manufacturing,
be noted overall. utilities,
The financial intermediation
manufacturing, utilities, and real estate,
financial renting and
intermediation and business
real
and institutional issues on land reform, land rights and land use should also be resolved
activities
estate, illustrate that sub-sectors with strong GDP growth and which require GDPspecific technical
fairly,renting and
consistent business
with the activities
underlyingillustrate
goal of that
landsub-sectors
reform which withis strong
social justice.growth
orand
professional
which require skillsspecific
tend totechnical
have lower employmentskills
or professional elasticity
tend tobuthave
higher
lowervalue-added.
employment These
are the sub-sectors
elasticity C.1.2.2 where
but higherReviving most
value-added. of the quality
These jobs are found. However, while they contributed
industry andare the sub-sectors where most of the quality
manufacturing
about
jobs 44areperfound.
cent ofHowever,
GDP, theirwhile employment share was only
they contributed about14 44
perpercent.centOn oftheGDP,
other hand,
their the
agriculture
employment sector
shareand the sub-sectors
was only 14anchored of wholesale
per cent. on and
Onmanufacturing retail as
the other hand,exports,well as hotels
the agriculture and restaurants,
58.whichExport-led
have higher industrialization,
labour intensity but with lower skills and has beensector
qualifications part of andthe
requirements,
thecountry’s
sub-sectors of
development wholesale and
strategy retail
since as well
thewhile
1970s. as hotels and
In April for restaurants,
2016, which have
contributed
higher labouronly about 30
intensity butper cent
with of
lower GDP
skills and accounting
qualifications 55 outward
per cent
requirements, 64
shipments
of employment
contributed
of
manufactured
thereby resulting goods
in a much accounted
lowerwhile for 90.9 per cent of total export receipts, with electronics
value-added.
only about
products 30 per
including cent of GDP
components andaccounting
semiconductorsfor 55 accounting
per cent of employment
for 53 per cent thereby
of total
resulting
export in a much
revenues. 65lower value-added.
But while total manufacturing exports increased in 2016, total export
C.1.2 Sectoral challenges
sales and total merchandise exports actually decreased by 4.1 per cent and 7.3 per cent.66
C.1.2
The Sectoral challenges
decrease in totaltheexport salessector
was attributed to declines in three major export
C.1.2.1 Transforming agriculture
products: semiconductors, apparel and clothing accessories, chemicals, and machinery
C.1.2.1 equipment.
Transforming Thistheis agriculture sector
56. Employment
and transport in agriculture, especially in thethat
a signal ruraltheareas whereniche
country’s threeexport
out ofmarkets
every fourare farpoor
56. Filipinos live, isincharacterized by low productivity and areas
returns, large-scale informality, and
fourhigh
from stable and that industry as a whole requires strategic repositioning. Manufacturing,
Employment isagriculture, especially ininelectronics
the rural where three out of every
incidence of poverty.
in particular,
poor Filipinos While
highly rice is
concentrated
live, is characterized the dominant
bythelowcrop accounting
exports.
productivity for around
Over-reliance
andofreturns, 45
onperthiscent of crop
product
large-scale
arable
linearea
makes andthe 24 sub-sector
per cent ofvulnerable
total agriculture
to gross value-added,
recessionary effects thefinancial
Philippines remains
shocks that a
informality, and export
high incidence of poverty. While ricethe
is the dominant crop accounting
rice importer. Agro-based products had only 6 per cent share of total exports in 2016 mainly
affect its main markets, particularly Japan and United States. At the same 62 time,
forother
around 45 per centthe of region
crop arable area andground24 pernotcentonly
of total agriculturemanufacturing,
gross value-
limited tocountries
bananas inand pineapples. Other agricultural
are gaining products remain uncompetitive due
in electronics
added, the inPhilippines remains a major
rice importer. Agro-based products had only 6 per cent
to quality
but also and theprice issues. Low
country’s otheragricultural productivity
exports. Thus, there negatively
is a need impacts on employment
to continuously find
andniches
income. in Since
the higherit results
stages in of
higher priceschain
the value on food
and toproducts
diversify and to on
othercosts of living, its most
products.
immediate negative impact is on household welfare. Thus, it hampers poverty reduction efforts
in households.
62
27
PSA, Merchandise Export Performance data, April 2016. Exports from Total Agro-Based Products, with a 6.0 per cent share to total exports
in April 2016, amounted to $256.57 million. It dropped by 11.1 per cent from $288.60 million in April 2015.
63
See Part III, Chapters 8-12, PDP 2017-2022.
64
PSA, Merchandise Export Performance data, April 2016. Manufactured Goods were valued at $3.869 billion, or 90.9 per cent of the total
export receipts in April 2016. It increased by 2.1 per cent from $3.788 billion recorded in April 2015.
65
The country’s top 10 manufactured exports are electronics products including semiconductors, other manufactures, woodcrafts and furniture,
informal employment and the working poor 34
57. The problems in agriculture are due

primarily to a failure to modernize
and diversify and to persistent land
tenure issues. The sector is also most
vulnerable to climate change risks.
The directions of PDP 2017-2022 and
AmBisyon Natin 2040 are encouraging
as public
share of investments
total exports in agricultural
in 2016 62 mainly limited to bananas and pineapples. Other
modernization are
agricultural products remainseen as critical
uncompetitive due to quality and price issues. Low
not agricultural
only in raising productivity and
productivity negatively impacts on employment and income. Since it results
improving
in higher sectoral
prices capacity
on food to create and on costs of living, its most immediate negative
products
productive
impact isemployment
on household especially
welfare. for Thus, it hampers poverty reduction efforts in households.
the lower-skill and lower-educated
57.segments of the labour
The problems force, but
in agriculture arealso
due primarily to a failure to modernize and diversify and
as atokey toward inequality-reducing
persistent land tenure issues. The sector is also most vulnerable to climate change risks.
transformation.
The directions These
63
of PDPinvestments
2017-2022 and AmBisyon Natin 2040 are encouraging as public
should take into account
investments in agricultural all stages
modernization are seen as critical not only in raising
of productivity
the crop orandproduction improving sectoralcycle, capacity to create productive employment especially
fromforirrigation
the lower-skill to farm and inputs and
lower-educated segments of the labour force, but also as a key
technology, common facilitiestransformation.
toward inequality-reducing such 63
These investments should take into account
as farm equipment, harvest and post-
all stages of the crop or production cycle, from irrigation to farm inputs and technology,
harvest
common and facilities
other support such asfacilities
farm equipment, harvest and post-harvest and other support
like facilities
aggregation centers, warehouses
like aggregation centers, warehouses and silos, agri-processing, farm-to-market
androads
silos,and agri-processing,
infrastructure farm-to- and logistics, among others. Investments on research and
market roads andis infrastructure
development and
also critical, especially in the development of climate change-adaptive
logistics, among crops
and resistant others. Investments
as well as green processing technologies. Finally, outstanding policy
on research and development
and institutional issues on land is also
reform, land rights and land use should also be resolved
critical, especially
fairly, consistent in with
the development
the underlying goal of land reform which is social justice.
©ILO J. Bobot Go
of climate change-adaptive and
resistant crops C.1.2.2as Revivingwell as industrygreen and manufacturing
processing technologies. Finally,
58.outstanding
Export-ledpolicy and institutional
industrialization, anchored on manufacturing exports, has been part of the
issues on land reform, land rights and
country’s development strategy since the 1970s. In April 2016, outward shipments of
landmanufactured
use should also goodsbe resolved
accounted for 90.9 per cent of total export receipts, 64 with electronics
fairly,
consistent
products with the underlying
including components goal of and semiconductors accounting for 53 per cent of total
65
land reform which is social justice.
export revenues. But while total manufacturing exports increased in 2016, total export
sales and total merchandise exports actually decreased by 4.1 per cent and 7.3 per cent.66
C.1.2.2
The Reviving
decrease in industry
total exportand sales was attributed to declines in three major export
manufacturing
products: semiconductors, apparel and clothing accessories, chemicals, and machinery
and transport equipment. This is a signal that the country’s niche export markets are far
58. Export-led
from stableindustrialization,
and that industry anchored
as a whole requires strategic repositioning. Manufacturing,
on manufacturing exports, has been in electronics exports. Over-reliance on this product
in particular, is highly concentrated
partlineof makes the sub-sector
the country’s vulnerable to the recessionary effects of financial shocks that
development
affect its main export markets,
strategy since the 1970s. In April 2016, particularly Japan and the United States. At the same time,
outward shipments of manufacturedgaining ground not only in electronics manufacturing,
other countries in the region are
goodsbutaccounted
also in thefor country’s
90.9 per other
centmajorof exports. Thus, there is a need to continuously find
total export receipts,64 with electronicsvalue chain and to diversify to other products.
niches in the higher stages of the
products including components and
semiconductors accounting for 53 per
62
PSA, Merchandise Export Performance data, April 2016. Exports from Total Agro-Based Products, with a 6.0 per cent share to total exports
in April 2016, amounted to $256.57 million. It dropped by 11.1 per cent from $288.60 million in April 2015.
63
64
PSA, Merchandise Export Performance data, April 2016. Manufactured Goods were valued at $3.869 billion, or 90.9 per cent of the total
export receipts in April 2016. It increased by 2.1 per cent from $3.788 billion recorded in April 2015.
65
machinery and transport equipment, ignition and other wiring sets, chemicals, apparel and clothing accessories, metal components,
miscellaneous articles, electronic equipment and parts.
66
35 Philippines 2017
cent of total export revenues.65 But while total

manufacturing exports increased in 2016,
total export sales and total merchandise 62
62
shareactually
exports of total exportsbyin
decreased 4.12016
per centmainly
and limited to bananas and pineapples. Other
agricultural products remain
7.3 per cent.66 The decrease in total export uncompetitive due to quality and price issues. Low
salesagricultural
was attributedproductivity
to declinesnegatively impacts on employment and income. Since it results
in three major
export products: semiconductors, apparelon costs of living, its most immediate negative
in higher prices on food products and
andimpact is onaccessories,
clothing household welfare.chemicals, Thus,and
it hampers poverty reduction efforts in households.
machinery and transport equipment. This
57.is aThe problems
signal that the in agriculture
country’s niche are due primarily to a failure to modernize and diversify and
export
to persistent
markets land stable
are far from tenureandissues.
thatThe sector is also most vulnerable to climate change risks.
industry
as a whole requires strategic repositioning.AmBisyon Natin 2040 are encouraging as public
The directions of PDP 2017-2022 and
investments in
Manufacturing, in agricultural
particular, modernization
is highly are seen as critical not only in raising
productivity and improving
concentrated in electronics exports. Over- sectoral capacity to create productive employment especially
for the
reliance on lower-skill
this productand linelower-educated
makes the sub-segments of the labour force, but also as a key
63
63
toward inequality-reducing
sector vulnerable to the recessionary effectstransformation. These investments should take into account
all stages of the crop or production
of financial shocks that affect its main export cycle, from irrigation to farm inputs and technology,
common
markets, facilitiesJapan
particularly such as andfarm the equipment,
United harvest and post-harvest and other support
facilities like aggregation centers,
States. At the same time, other countries in warehouses and silos, agri-processing, farm-to-market
the roads
regionand are infrastructure
gaining groundand notlogistics,
only in among others. Investments on research and
electronics manufacturing, but also in thein the development of climate change-adaptive
development is also critical, especially
and resistant
country’s crops as
other major well asThus,
exports. greenthere
processing technologies. Finally, outstanding policy
is a need to continuously find niches inland rights and land use should also be resolved
and institutional issues on land reform,
the fairly,
higherconsistent
stages of the withvalue
the underlying
chain and goal
to of land reform which is social justice.
diversify to other products.
C.1.2.2 Reviving industry and manufacturing
C.1.2.3 Balancing and sustaining gains in
58. Export-led
services industrialization, anchored on manufacturing exports, has been part of the
country’s development strategy since the 1970s. In April 2016, outward shipments of
ILO R. Dela Cruz
64
64 with electronics
manufactured goods accounted
59. Services grew fastest over the last four decades for 90.9 per cent of total export receipts,
andproducts
now accounts for65
including more than half and
components of GDP semiconductors accounting for 53 per cent of total
65 But while total manufacturing exports increased in 2016, total export
export revenues.
and employment. Formal employment in the 66
sectorsales hasandbeen expanding
total merchandise at a fairly
exports actually decreased by 4.1 per cent and 7.3 per cent.66
robust
rateThe of 10 decrease
per centin annually.
total export sales was attributed to declines in three major export
Nevertheless,
growth withinsemiconductors,
products: the sector is differentiated.
apparel and clothing accessories, chemicals, and machinery
and transport equipment.
Financial intermediation and real This is aestate,
signal that the country’s niche export markets are far
renting and business activities, although requires strategic repositioning. Manufacturing,
from stable and that industry as a whole
withinrelatively
particular,low employment
is highly concentrated share in andelectronics exports. Over-reliance on this product
moderate employment elasticity, were thethe recessionary effects of financial shocks that
line makes the sub-sector vulnerable to
fastest
affect growing
its main sub-sectors
export markets, andparticularly
ranked Japan and the United States. At the same time,
other countries in the
second and third in value-added per workerregion are gaining ground not only in electronics manufacturing,
acrossbut allalsoindustry groups. other
in the country’s On the major other
exports. Thus, there is a need to continuously find
hand, next to public administration, hotelschain and to diversify to other products.
niches in the higher stages of the value
and restaurants had the highest employment
growth and employment elasticity across all
62
62 sectors
PSA,
PSA, but Export
Merchandise
Merchandise labour
Export productivity
Performance
Performance data, Aprilgrowth
data, April 2016. was
2016. Exports
Exports from Total
from Total Agro-Based
Agro-Based Products,
Products, with
with aa 6.0
6.0 per
per cent
cent share
share to
to total
total exports
exports
in
63 negative.
in April
April 2016,
2016, amounted
amounted toto $256.57
$256.57 million.
million. It
63See Part III, Chapters 8-12, PDP 2017-2022.
It dropped
dropped by
by 11.1
11.1 per
per cent
cent from
from $288.60
$288.60 million
million in
in April
April 2015.
2015.
64
64 PSA, Merchandise
PSA, Merchandise Export
Export Performance
Performance data,
data, April
April 2016.
2016. Manufactured
Manufactured Goods
Goods were
were valued
valued at
at $3.869
$3.869 billion,
billion, or
or 90.9
90.9 per
per cent
cent of
of the
the total
total
export receipts
export receipts in
in April
April 2016.
2016. It
It increased
increased by
by 2.1
2.1 per
per cent
cent from
from $3.788
$3.788 billion
billion recorded
recorded inin April
April 2015.
2015.
65
65The country’s top 10 manufactured exports are electronics products including semiconductors, other manufactures, woodcrafts and furniture,
machinery
machinery andand transport
transport equipment,
equipment, ignition
ignition and
and other
other wiring
wiring sets,
sets, chemicals,
chemicals, apparel
apparel and
and clothing
clothing accessories,
accessories, metal
metal components,
components,
miscellaneous
miscellaneous articles,
articles, electronic
electronic equipment
equipment and
and parts.
parts.
66
66PSA, Merchandise Export Performance data, April 2016. The Philippines’ export sales amounted to $4.254 billion in April 2016, a 4.1 per
PSA, Merchandise Export Performance data, April 2016. The Philippines’ export sales amounted to $4.254 billion in April 2016, a 4.1 per
cent
cent decrease
decrease from
from $4.434
$4.434 billion
billion recorded
recorded value
value in
in April
April 2015.
2015. The
The decrease
decrease was
was attributed
attributed to
to three
three major
major commodities
commodities -- apparel
apparel and
and clothing
clothing
accessories
accessories (-39.1
(-39.1 per
per cent),
cent), chemicals
chemicals (-9.0
(-9.0 per
per cent),
cent), and
and machinery
machinery andand transport
transport equipment
equipment (-0.9
(-0.9 per
per cent).
cent). Further,
Further, total
total merchandise
merchandise
exports
exports between
between January
January and
and April
April 2016
2016 decreased
decreased byby 7.3
7.3 per
per cent
cent from
from $18.738
$18.738 billion
billion in
in 2015
2015 toto $17.363
$17.363 billion
billion in
in the
the same
same period
period of
of 2016.
2016.
28
60. In the last two decades, liberalization of key areas of investment catalyzed growth and job
creation in some sub-sectors, notably business process outsourcing (BPO). In 2012, BPOs
employed over 800,000 workers who were relatively higher-paid and contributed 5.4 per cent to
the country’s C.1.2.3
GDP. TheBalancing
sub-sector’sandtotal
sustaining gains
direct and in services
indirect contribution to value-added growth
through services exports, real estate, construction, retail trade, and telecommunications was
59.estimated
Services grew fastest
at around 10 perover
centtheoflast
GDP.four
67 decades and now accounts for more than half of
The industry estimates that by 2016, BPO revenues
GDP and employment. Formal employment
will hit US$25 billion, account for about 8 per cent in the
of sector
GDP, has
and been expanding
employ at a workers
1.3 million fairly
robust rate of 10 per cent
directly and 3.2 million more indirectly. annually.
68 Nevertheless, growth within the sector is
differentiated. Financial intermediation and real estate, renting and business activities,
although with relatively low employment share and moderate employment elasticity,
61. Across other sub-sectors such as financial intermediation, real estate, renting and business
were the fastest growing sub-sectors and ranked second and third in value-added per
activities and wholesale and retail, outputs and outcomes are mixed. The main job generator
worker across all industry groups. On the other hand, next to public administration, hotels
– wholesale and retail trade – has a relatively fast growth in labour productivity but is still
and restaurants had the highest employment growth and employment elasticity across all
below the sector average in terms of growth in value-added. On the other hand, hotels and
sectors but labour productivity growth was negative.
restaurants has the fastest employment growth but has a negative labour productivity growth
60.andInlowthevalue-added per worker,
last two decades, indicating
liberalization of that
key jobs
areasinofthis sub-sector
investment are likelygrowth
catalyzed to haveandlow
skills
jobrequirements and tosub-sectors,
creation in some be precarious and ofbusiness
notably low quality.
process outsourcing (BPO). In 2012,
BPOs employed over 800,000 workers who were relatively higher-paid and contributed
C.2 5.4
Performance of enterprises
per cent to the country’s GDP. The sub-sector’s total direct and indirect contribution
to value-added growth through services exports, real estate, construction, retail trade, and
C.2.1 MSMEs: Dominant
telecommunications was but weak at around 10 per cent of GDP. 67 The industry estimates
estimated
that by 2016, BPO revenues will hit US$25 billion, account for about 8 per cent of GDP,
62. In 2014, there 1.3
and employ were 947,000
million registered
workers directlyestablishments
and 3.2 millionemploying 7.78 68million workers
more indirectly.
nationwide (Table 15). Micro, small and medium enterprises (MSMEs)69 accounted for more
61.thanAcross
99 per other
cent ofsub-sectors
the total. Micro
suchandas small enterprises
financial employed real
intermediation, 55 per cent or
estate, 4.28 million
renting and
workers. Large enterprises employed 38 per cent or 2.97 million. Medium
business activities and wholesale and retail, outputs and outcomes are mixed. The enterprises represent
main
a “missing” or “thin”
job generator – middle,
wholesaleemploying only
and retail 6.8 per
trade centaorrelatively
– has about 530fast
thousand.
growth in labour
productivity but is still below the sector average in terms of growth in value-added. On
the other hand,Tablehotels
15. Distribution of establishments
and restaurants has the fastestand employment
employment growth but has a
(in per cent except total)
negative labour productivity growth and low value-added per worker, indicating that jobs
Size of establishment
inTotal
thisestablishments likely to 2004
sub-sector are(000) have
784
2010
low skills
778
2011
requirements
820
2012
and 2014
to be precarious
945 947
and of
low quality.
Micro 91.0 91.3 90.6 89.4 89.9
Small 8.2 8.0 8.6 9.7 9.2
Medium
C.2 Performance of enterprises 0.4 0.4 0.4 0.4 0.4
Large 0.4 0.4 0.4 0.4 0.4
Total employment (000) 5 643 5 669 6 346 7 590 7 780
C.2.1
Micro MSMEs: Dominant but weak36.8 30.5 28.0 30.5 30.1
Small 25.3 25.0 25.9 27.2 24.9
62. Medium 7.1 6.8 7.1 7.3 6.8
In 2014, there were 947,000 registered establishments employing 7.78 million workers
Large 30.8 37.7 39.0 35.0 69 38.1
nationwide (Table 15). Micro, small and medium enterprises (MSMEs) accounted
Note: In the absence of data on the number of MSMEs by total assets as defined under the law, the
for
more
then National Statistics Office and Small and Medium Enterprise Development Council Resolution or
than 99 per cent of the total. Micro and small enterprises employed 55 per cent
4.28
No.million
1, s. 2003workers. Largeaccording
defined MSMEs enterprises employedsize.
to employment 38 per cent or 2.97 million. Medium
enterprises
Source: represent
Philippine StatisticsaAuthority,
“missing” Listor
of “thin” middle, employing only 6.8 per cent or about
Establishments.
530 thousand.
63. Most MSMEs
63. Most MSMEs are are
in theinservices
the services
sector sector regardless
regardless of employment
of employment size. Inmanufacturing
size. In industry, industry,
manufacturing comprised the bulk of establishments and employment.
comprised the bulk of establishments and employment. Agriculture had the least share Agriculture had in
the least
number share in number
of establishments andofemployment;
establishments workand
andemployment;
employmentwork and employment
arrangements in this sector
arrangements in this sector are informal in nature
are informal in nature and largely household-based (Table 16). and largely household-based (Table
16).
Table 16. Sectoral distribution of establishments and employment, 2014

(in per cent)
67
Sector Total Micro Small Medium Large
World Bank Philippine Office. (2013). Philippine Development Report: Creating More and Better Jobs. World Bank Philippine Office.
68 Total establishments 100.0 100.0 100.0 100.0 100.0
Estimates from the Information Technology and Business Process Association of the Philippines (IBPAP).
69 Agriculture, forestry, and fishing 0.9 0.7 2.3 4.1 4.7
PSA. Classification by employment size: micro enterprises – nine or less; small enterprises – 10 to 99; medium enterprises – 100 to 199.
Industry 13.3 12.6 17.5 35.9 37.0
Manufacturing 12.5 12.2 14.3 25.8 27.0
Services 85.8 86.7 80.1 59.9 58.3
29
Total employment 100.0 100.0 100.0 100.0 100.0
manufacturing comprised the bulk of establishments and employment. Agriculture had
the least share in number of establishments and employment; work and employment
37 arrangements
Philippines 2017 in this sector are informal in nature and largely household-based (Table
16).
Table 15. Distribution of establishments and employment
Table 16. Sectoral distribution of cent
(in per establishments
except total)and employment, 2014
Size of establishment (in per cent)
2004 2010 2011 2012 2014
Total establishments (000)
Sector 784
Total 778
Micro 820
Small 945
Medium 947
Large
Micro
Total establishments 100.091.0 100.091.3 100.090.6 100.089.4 100.089.9
Agriculture,
Small forestry, and fishing 0.9 8.2 0.7 8.0 2.3 8.6 4.1 9.7 4.7 9.2
Industry
Medium 13.3 0.4 12.6 0.4 17.5 0.4 35.9 0.4 37.0 0.4
Manufacturing
Large 12.5 0.4 12.2 0.4 14.3 0.4 25.8 0.4 27.0 0.4
Services
Total employment (000) 85.8
5 643 86.7
5 669 80.1
6 346 59.9
7 590 58.3
7 780
Total employment
Micro 100.036.8 100.030.5 100.028.0 100.030.5 100.030.1
Agriculture,
survey
Small forestry,
which and fishing
covered registered 2.8
firms 1.025.0
25.3 shows 2.9three
that after 4.027.2
25.9 years, 91 per 4.0
24.9
cent of small
Industry
Medium 26.2 7.1 14.3 6.8 21.2 7.1 36.4 7.3 37.0 6.8
firms remained small and only one percent moved to the medium-size category. Among
Manufacturing
Large 20.830.8 13.737.7 16.939.0 26.135.0 28.038.1
medium-size
Services enterprises, 17 per71.0cent upscaled
84.7 to large-size
75.9 category
59.7 while
59.021 per cent
Note: In the absence of data on the number of MSMEs by total assets as defined under the law, the
reverted
Source: then to small-size
Philippine Statistics
National category.
Authority,
Statistics Office of This
ListSmall
and pattern Enterprise
Establishments.
and Medium perpetuates the “missing
Development middle”
Council Resolution
71
phenomenon.
No. 1, s. 2003 defined MSMEs according to employment size.
C.2.2
Source:Enterprise
Philippine challenges and constraints
Statistics Authority,
C.2.2 Enterprise challenges and constraints List of Establishments.
65. The legal and institutional framework to support MSMEs is the Magna Carta for Micro,
72
64.63. MSMEs
Most
Small MSMEsand Medium are in the services
Enterprises. Itsector
aims toregardless of aemployment
promote financial inclusion size.
for In industry,
MSMEs atby at
64. MSMEs – –particularly
particularly micro
micro and
and smallsmallenterprises
enterprises- have - have bigger
a bigger employment
employment share share
manufacturing
eliminating comprised
orlarge
reducing the bulk
market, of establishments
policy andfor regulatory 36and peremployment.
constraints Agriculture
that prevent MSMEs had
6060per
per cent than
cent than large enterprises
enterprises but
but account
account only 36
for only per cent of GDP.
cent of GDP. Most MSME
Most MSME jobs
the
from least share
developing. in number
Among of
others, establishments
it mandates and
banks employment;
to
jobs are of low productivity and quality, employ low- or semi-skilled labour, and yield allocate a work
minimum and employment
of 8 per cent
are of low productivity and quality, employ low- or semi-skilled labour, and yield low income.
arrangements
of
low their
income.loanMany in this
portfolioMSMEssector
to micro areand
are informal
not small in nature
enterprises
registered and and do not 2largely centhousehold-based
perhave to medium
legal (Table
enterprises.
personality as
Many16). MSMEs are not 70 registered and do not have legal personality as business entities.70 A study
business entities. A study also shows that entrepreneurs often set up micro and small is
However, compliance with the mandatory allocations has been decreasing. This
alsoattributed
shows that entrepreneurs often risksetof up micro and small businesses as a matter
theirof necessity
businesses asmainly a matter to of
thenecessity
high for loan
want default
of otherassociated
options. Local with entrepreneurs
MSMEs, inability
are not
for want
to complyof other
Table 16.options.
Sectoral Local entrepreneurs
distribution of are not backed
establishments up by
and technologyand
employment, andstricter
2014 research
backed up bywith requirements
technology and for loanand
research applications
are less likely particularlyto collaterals,
introduce any product or
andprudential
are less likely to introduce
regulations any product or market
(inSentral
per cent) innovation. They also do not expect to
market innovation. Theyfrom also dothenot Bangko
expect to create ng Pilipinas
more than(BSP) to minimize
five jobs in the next borrower
five
create more (Table
than five jobs in the nextTotal five years.MicroOverall, aSmall vast majority Medium of new businesses are
Sector
defaults
years. Overall, a 17). vast majority of new businesses are subsistence in natureLarge and have
subsistence in nature
Total establishments
limited potentials and
at job have
creation,limited 100.0potentials 100.0at job creation,
100.0 specially
100.0 creation 100.0 of quality
Agriculture, forestry, and fishing specially 0.9 creation
0.7 of quality 2.3 and decent 4.1 jobs. A 2009
and decent jobs.
Table A 2009
17. survey
Compliance which by covered
banks registered
with mandatory firms shows
loan that after4.7
allocations three years,
Industry 13.3 12.6 17.5 35.9 37.0
91 perManufacturing
cent of small firms remained small and only
12.5for MSMEs 1 per
12.2 cent
73 moved
14.3 to the
25.8medium-size27.0 category.
Among medium-size enterprises, 17 per centper upscaled
cent) to large-size category while
70See World Bank Philippine Office (2013). Philippine Development Report: Creating More and Better Jobs. Red tape and associated costs
Services 85.8 86.7 80.1 59.9 58.3 21 per cent
discourage MSMEs growth(in
from registering. Non-registration inhibits100.0 of the enterprise.
100.0 It forces the enterprise to remain small and hidden to 71
reverted
Total to small-size
employment
Indicator
avoid formal regulations, product category. This pattern
2000has an2005
standards and taxes. It also perpetuates
2010
exclusionary effect,2011the 100.0“missing
2012
that is, non-registered middle”
100.0
2013
MSMEs2014 phenomenon.
100.0
2015to credit
cannot access
Agriculture,
and technical Minimum
assistance from forestry, and fishing 2.8 and 1.0 2.9development4.0
and promotion,4.0
Industry % ofgovernment, sucholio
net loan por as appropriate technologies
26.2
processes, product
14.3 21.2 36.4
and market
37.0
information and connectivity.
65. The legal andtoinstitutional
required
Manufacturing be allocated framework 20.8 to support13.7 MSMEs is16.9 the Magna Carta for28.0
26.1 Micro, Small
Micro and small enterprises 6.0 71.0 6.0 8.0 8.0 75.9 8.0 8.059.7 8.0 8.0 30
and Medium Enterprises. It aims to promote financial inclusion for MSMEs by
Services 72 84.7 59.0eliminating
Medium enterprises 2.0 2.0
Source: Philippine Statistics Authority, List of Establishments. 2.0 2.0 2.0 2.0 2.0 2.0
or reducing market,
Total percentage policy and regulatory constraints that prevent MSMEs from developing.
of compliance
Among for micro, small and medium banks to allocate a minimum of 8 per cent of their loan portfolio
others, it mandates
C.2.2 Enterprise challenges23.48 and constraints
to micro and small enterprises and
enterprises 2 per
23.19cent to medium
16.40 enterprises.
15.15 13.31 11.69 However,
11.00 10.54compliance
with the mandatory allocations has been decreasing. This is attributed mainly
Universal commercial banks 21.46 19.77 14.47 13.23 12.02 10.45 9.74 to 9.10
the high risk
64. MSMEs – particularly micro54.32 and small enterprises - have a bigger
16.79 employment
14.92 15.50share at
of loanThri banks
default associated with MSMEs,32.02 their 22.61 24.26
inability 19.03
to comply with requirements for loan
60Rural and coopera
per cent ve banks
than large enterprises 66.50
35.78 but 46.09for 40.11
account only 3631.77 37.27
per cent 33.94 Most
of GDP. 33.49MSME
applications
Percentageparticularly collaterals, and stricter prudential regulations from the Bangko Sentral
jobs are ofoflow
compliance
productivity and quality, employ low- or semi-skilled labour, and yield
ng Pilipinas
for micro(BSP)
low income. toenterprises
and small
Manyminimize
MSMEs borrower
are notdefaults
12.72 12.45 8.46(Table
registered 7.5617). 6.39
and do not have 5.59 4.90
legal 4.35
personality as
Universal commercial banks 11.53 9.24 6.76 5.78 5.29 4.58 3.95 3.39
business entities. 70 A study also
Thri banks
shows that entrepreneurs often9.80
26.51 20.76 14.02 16.23 11.26
set up7.36
micro7.14
and small
businesses as a matter of
Rural and coopera ve banks necessity
28.74 53.25 34.07 29.58 22.27 26.04 24.81 23.20 are not
for want of other options. Local entrepreneurs
backed
Percentageupofby technology and research and are less likely to introduce any product or
compliance
for medium
market enterprisesThey also10.76
innovation. do not10.74
expect7.94 7.58more
to create 6.92
than 6.10 6.10in the
five jobs 6.19
next five
Universal
years. commercial
Overall, banks
a vast 9.93of 10.53
majority 7.71
new businesses 7.45 6.73 5.87 in5.79
are subsistence nature5.70
and have
Thri banks 27.81 11.27
limited potentials at job creation,
Rural and coopera ve banks
specially8.59
7.04 13.25 12.03 10.52
8.03
creation 7.76
of quality 6.99
and
9.50 11.23
7.57
decent 8.36
jobs.
9.13 10.29
A 2009
Source: Bangko Sentral ng Pilipinas, Supervisory Data Center.
70See World Bank Philippine Office (2013). Philippine Development Report: Creating More and Better Jobs. Red tape and associated costs
discourage MSMEs from registering. Non-registration inhibits growth of the enterprise. It forces the enterprise to remain small and hidden to
avoid formal regulations, product standards and taxes. It also has an exclusionary effect, that is, non-registered MSMEs cannot access to credit
and technical assistance from government, such as appropriate technologies and processes, product development and promotion, and market
information and connectivity.
71
Ibid.
72
Republic Act No. 6977 (1991), as amended by Republic Act No. 8289 (1997) and Republic Act No. 9501 (2008), An Act to Promote, 30
Develop and Assist Small and Medium Scale Enterprises Through the Creation of the Small and Medium Enterprise Development (SMED)
Council, and the Rationalization of Government Assistance, Programmes and Agencies Concerned with the Development of Small and
Medium Enterprises, and for Other Purposes.
73
Basis for minimum per cent allocation:
a. RA 8289 - Magna Carta for Small Enterprises, approved on May 6, 1997 (amending RA 6977): at least 6 per cent for small enterprises
and 2 per cent for medium. Size of enterprise according to total assets: micro – not more than Php1.5 million; small – more than
Php1.5 million-Php15 million; medium – more than Php15 million-Php 60 million.
attributed mainly to the high risk of loan default associated with MSMEs, their inability
to comply with requirements for loan applications particularly collaterals, and stricter
prudential regulations
survey which coveredfrom the Bangko
registered firmsSentral
showsng Pilipinas
that informal (BSP)
after three to minimize
employment
years, and
91the borrower
perworking
cent poor
of 38
small
defaults (Table 17).
firms remained small and only one percent moved to the medium-size category. Among
medium-size enterprises, 17 per cent upscaled to large-size category while 21 per cent
revertedTable 17. Compliance
to small-size by banks
category. This with mandatory
pattern loan the
perpetuates allocations
“missing middle”
phenomenon. 71 for MSMEs 73
(in per cent)

66. In 2008,Indicator
the BSP and other2000 concerned
2005 entities
2010 set up 2012
2011 a Credit2013 Surety
2014Fund (CSF) 74 to
2015
65. The legal and
secure %business institutional
loans framework
obtained by to support MSMEs is the Magna Carta for Micro,
Minimum of net loan por olio 72 cooperatives operating as MSMEs. The CSF cover is
Small
lieu and
required
in to
ofbe Medium
collateral, and thus servesIt to
allocated Enterprises. aims to promote
address financial
the inability inclusion forenterprises
of cooperative MSMEs by to
eliminating
Micro and smallor reducing
enterprises market,
6.0 policy
6.0 and
8.0 regulatory
8.0 constraints
8.0 8.0
access to credit because they cannot put up adequate collateral. In February 2016, the 75 that
8.0 prevent
8.0 MSMEs
Medium
from enterprises Among others,
developing. 2.0 it2.0mandates
2.0 banks2.0 to 2.0
allocate 2.0a minimum
2.0 2.0
of 876 per cent
CSF
Total
was
percentage
institutionalized
of compliance
through the Credit Surety Fund Cooperative Act. Actual
of their
evaluationloan portfolio to micro and small enterprises and 2 per cent to medium enterprises.
for micro, smallofandthe CSF programme is needed to determine the extent to which it has
medium
However,
facilitated compliance
access to credit with the mandatory allocations has been decreasing. This its
is
enterprises 23.48 and 23.19 promoted financial
16.40 15.15 13.31 inclusion,
11.69 11.00 to determine
10.54
attributed mainly
Universal commercial
contributions to the
banks
to employmenthigh risk of
21.46generation,
loan
19.77 14.47
default associated
and 13.23 with
12.02 whether
to consider 10.45
MSMEs,
9.74
their
9.10
inability
its implementation
to comply
Thri banks with requirements54.32
justifies replication beyond cooperatives.for loan
32.02 applications
22.61 24.26 particularly
19.03 16.79 collaterals,
14.92 and stricter
15.50
prudential regulations
Rural and coopera ve banksfrom35.78
the Bangko
66.50 Sentral ng Pilipinas
46.09 40.11 31.77 (BSP)
37.27 to33.94
minimize
33.49 borrower
Percentage
defaults of(Table
compliance
17).
D. Inclusiveness
for micro and small ofenterprises
growth 12.72 12.45 8.46 7.56 6.39 5.59 4.90 4.35
Universal commercial banks 11.53 9.24 6.76 5.78 5.29 4.58 3.95 3.39
Thri banks
D.1 Growth Table 17. Compliance
inadequate to26.51 by
create20.76 banks
enough 14.02
with
decent 16.23
mandatory
work 11.26
loan allocations
9.80 7.36 7.14
28.74 53.25for34.07 MSMEs 73
Rural and coopera ve banks 29.58 22.27 26.04 24.81 23.20
67. Percentage
From the of compliance
data presented in this Section (in perand cent)
in Section 1, economic growth did create
Indicator
for medium enterprises 2000
10.76 10.74 2005 2010 7.58
7.94 2011 6.92 2012 6.10 2013 6.10 2014 6.19 2015
work
Minimum
and% of
employment
net
Universal commercial banks loan por
opportunities
olio 9.93 10.53
but
7.71
not in
7.45
adequate
6.73
number
5.87 5.79
and 5.70
quality to
significantly
banksto be increase
required
Thri allocated incomes 27.81or 11.27
reduce unemployment
8.59 8.03 and underemployment.
7.76 6.99 7.57 8.36 Neither
did
Rural itand
Micro build
and confidence
small
coopera ve banks in the
enterprises 7.046.0working
13.25 age8.0population
6.0 12.03 10.52 8.0 9.50 that adequate
8.0 11.23 8.0 9.13 opportunities
8.0 10.298.0 for
Medium
workBangko enterprises
actually existed, 2.0
as evidenced 2.0
by Data 2.0
the fact 2.0 2.0 2.0 2.0
that LFPR has remained at 63 per cent 2.0
Source: Sentral ng Pilipinas, Supervisory Center.
Totalthe
and percentage
number of of
compliance
the working age population who were not economically active or did
for micro, small and medium
66. In 2008, not participate
the BSP and
enterprises
in other
the labour
concerned forceentities
23.48 23.19
actually set increased
16.40 up15.15a Credit (Table
13.31Surety
18).11.00
11.69Fund
This
(CSF) situation
10.54 to secure
74 is
confounded
business by otherbanks
loanscommercial
Universal obtained factors such
21.46 as19.77
by cooperatives theoperating
existence
14.47 13.23 of MSMEs.
as discouraged
12.02 The workers
10.45 CSF9.74 and9.10
cover those
is who of
in lieu
are technically
Thri banks out of the labour force but are also not
54.32 32.02 22.61 24.26 19.03 16.79 14.92 15.50 in education, employment and
71
Ibid.collateral, and thus serves to address the inability of cooperative enterprises to access to credit
Rural
training. andOverall, vethere
coopera amended banksby is a35.78 66.50 46.09
significant degree 40.11
of human31.77 37.27
resource 33.94 33.49
exclusion, non-
72
because
Republic Act No.they
6977 cannot
Percentage
(1991), asput
of compliance
up adequate
Republic collateral.
Act No. 8289 75 In February
(1997) and Republic 2016, the
Act No. 9501CSF was
(2008), Aninstitutionalized
Act to Promote,
Develop andparticipation
Assist Small and and underutilization
Medium thattheneeds
Scale Enterprises Through Creation more
of the urgent
Small and attention.
Medium Enterprise Development (SMED)
Council, through
and the the Credit
for Rationalization
micro and small ofSurety Fund
enterprises
Government Cooperative
12.72
Assistance, 12.45 Act.
Programmes 8.46
76
Actual evaluation
7.56Concerned
and Agencies the of
6.39 with5.59 the
4.90CSFof
Development programme
4.35
Small and
Medium is needed
Enterprises, to
and
Universal determine
for Other Purposes.
commercial the
banks extent 11.53to which
9.24 it has
6.76 facilitated
5.78 5.29access4.58to credit
3.95 and3.39 promoted
73
Basis for minimum per centTable 18. Working
allocation: poverty by sex, sector and class of worker
a. RAfinancialThri
8289 - Magna inclusion,
banks to Enterprises,
Carta for Small determine its contributions
26.51
approved 20.76 14.02 to employment
on May 6, 1997 (amending 16.23 11.26 generation,
6 per cent for and
9.80
RA 6977): at least 7.36 to consider
7.14
small enterprises
Ruralforand cooperaSize ve
of banks 28.74 to53.25 (inassets:
per
34.07cent)
micro29.58 22.27 26.04 million;
24.81small23.20
whether
and 2 per cent its implementation
medium.
Sex, sector and class
justifies
enterprise
– more of
thanworker
replication
according total
Php15 million-Php 602006
beyond cooperatives.
– not more than Php1.5
2009 2012
– more than
Percentage of compliance
Php1.5 million-Php15 million; medium million.
Total
b. RA 9501-forMagna Carta enterprises
medium for Micro, Small and Medium Enterprises,
10.76 10.74 approved22.9
7.94 on May 23, 2008
7.58 22.86.10
(amending
6.92 RA 6977 21.9
as
6.10 amended):
6.19 at least
D. Inclusiveness
8 per cent Men
than Php3 Women
of
million;
growth
commercial
small – more than banks 9.93 million;
Php3 million-Php15 10.53 medium 25.0
for micro and small enterprises; and 2 per cent for medium. Category
Universal
of enterprises 25.1
7.71– more7.45 6.73 5.87 million.
5.7924.4
based on total assets: micro – not more
5.70
19.5 than Php15 million-Php100
19.3 18.1
Thri banks 27.81 11.27 8.59 8.03 7.76 6.99 7.57 8.36
Agri cul
andture
Ruralinadequate
coopera to
vecreate
banks enough
7.04 decent
13.25 work 43.5
12.03 10.52 44.3
9.50 11.23 44.0
9.13 10.29 31
D.1 Growth
Indus try 15.7 16.2 13.4
Source:
ServiBangko
ces Sentral ng Pilipinas, Supervisory Data10.5
Center. 11.1 9.5
67. From Wage
the dataand presented
s al aryinworkers
this Section and in Section 17.21, economic 18.3 growth did18.1 create work and
employment
Empl oyersopportunities but not in adequate number 16.9 and quality
14.5 to significantly
11.7 increase
Sel f-empl oyed 27.5 26.3 26.0
incomesUnpaior reduce
d famiunemployment
l y workers and underemployment.38.7 Neither
39.6 did it build 37.3 confidence in
71
the working
E.
Ibid. age population that adequate opportunities for work actually

Source: Philippine Statistics Authority, Merged Files of the Family Income and Expenditure
existed, as evidenced
by the fact that LFPR has Scale
remained at 63 per cent and the number of the working age population
72
Republic Act No. 6977 (1991), as amended by Republic Act No. 8289 (1997) and Republic Act No. 9501 (2008), An Act to Promote,
Develop and Assist Survey
Small andand LFS.
Medium Enterprises Through the Creation of the Small and Medium Enterprise Development (SMED)
Council, and the Rationalization of Government Assistance, Programmes and Agencies Concerned with the Development of Small and
Medium Enterprises, and for Other Purposes.
68.
73 Economic
Basis for minimum per growth also did not generate decent work opportunities enough to reduce the
cent allocation:
proportion,
a. RA 8289 distribution
- Magna Carta and approved
for Small Enterprises, category of 6,activities
on May of RA
1997 (amending the6977):
working poor.
at least 6 per The
cent for smallshare of
enterprises
and 2 per cent for medium. Size of enterprise according to total assets: micro – not more than Php1.5 million; small – more than
the working poor in total employment hardly changed
Php1.5 million-Php15 million; medium – more than Php15 million-Php 60 million. in 2012 compared to six years
earlier.
b. RA 9501- MagnaOnly
Carta forone
Micro,out
Smallof
andfive
Mediumworking
Enterprises,poor
approvedisonin
Mayformal or wage
23, 2008 (amending employment
RA 6977 as amended): at–least
a
8 per cent for micro and small enterprises; and 2 per cent for medium. Category of enterprises based on total assets: micro – not more
than Php3 million; small – more than Php3 million-Php15 million; medium – more than Php15 million-Php100 million.
74
The CSF partners are cooperatives, non-government organizations, local government units. Cooperatives are eligible for CSF surety cover.
31
The Development Bank of the Philippines, Land Bank of the Philippines, Industrial Guarantee and Loan Fund are the financial contributors
to the CSF and also act as the lenders.
75
As of December 2015, 45 CSFs in 30 provinces and 15 cities have been established and 15,248 MSMEs have been able to access loans from
banks totaling Php2.28 billion.
76
Republic Act No. 10744 (2016), An Act Providing for the Creation and Organization of Credit Surety Fund Cooperatives to Manage and
Administer Credit Surety Funds to Enhance the Accessibility of Micro, Small and Medium Enterprises, Cooperatives and Non-Government
Organizations to the Credit Facility of Banks and for Other Purposes.
32
work and employment opportunities but not in adequate number and quality to
significantly increase incomes or reduce unemployment and underemployment. Neither
Decent
did work country diagnostics:
39 it build
Philippines 2017
confidence in the working age population that adequate opportunities for
work actually existed, as evidenced by the fact that LFPR has remained at 63 per cent
and the number of the working age population who were not economically active or did
who notwere not economically
participate activeforce
in the labour or didactually
not participate in the
increased labour
(Table force
18). actually
This increased
situation is
(Table 18). Thisbysituation
confounded is confounded
other factors such as thebyexistence
other factors such as theworkers
of discouraged existence
andofthose
discouraged
who
workers and those who are technically out of the labour force but are also not in education,
are technically out of the labour force but are also not in education, employment and
employment and training. Overall, there is a significant degree of human resource exclusion,
training. Overall, there is a significant degree of human resource exclusion, non-
participation andand
non-participation underutilization
underutilizationthatthat
needs more
needs urgent
more attention.
urgent attention.
Table 18. Working poverty by sex, sector and class of worker

(in per cent)
Sex, sector and class of worker 2006 2009 2012
Total
disproportionately low share. Men, agriculture 22.9workers 22.8 21.9
and unpaid workers had the
Men
highest rates in their respective categories. 77 25.0 25.1 24.4
Women 19.5 19.3 18.1
Agri cul ture 43.5 44.3 44.0
D.2 Quality of employment
Indus try 15.7 16.2 13.4
Servi ces 10.5 11.1 9.5
78
69. For
Wagethose
andemployed, high proportions of informal
s al ary workers 17.2 employment 18.3 and underemployment
18.1
Empl oyers 16.9 14.5
were noted across regions and industry groups (Tables 19 and 20). Figure 11.716 illustrates
Sel f-empl oyed 27.5 26.3 26.0
the sectoral shares
Unpai d fami l y workers
of informal employment 38.7
and other categories.
39.6
In
37.3
2015, it was
E.
estimated that one in every two workers was either self-employed, an unpaid family
Source: Philippine Statistics Authority, Merged Files of the Family Income and Expenditure
workerSurvey
or anandemployee
LFS.
whose nature of employment is short-term, seasonal, casual or
worked for different employers on day-to-day or week-to-week basis.
68. Economic
68. Economic growthalso
growth alsodiddidnot
not generate
generate decent
decent work
work opportunities
opportunities enough
enough to to
reduce the the
reduce
Table
proportion, 19. Underemployment,
distribution and category of vulnerable,
activities of precarious
the working and informal
poor. The share of
proportion, distribution and category of activities
employment 79
by of the working
industry, 2015poor. The share of the working
the working poor in total employment hardly changed in 2012 compared to six years
poor in total employment hardly changed (in 000inexcept
2012 compared ) to six years earlier. Only one out
earlier. Only one out of five working poor isper cent
inVulnerable
formal or wage employment – a
of five working poor is in formal or wage employment – a disproportionately
Underemployed
Employees low Informal
share. Men,
Major industry group employment in precarious work employment 77
74
agriculture workers and unpaid workersNumber
had the highest rates in their respective categories.
Percent Number Percent Number Percent Number Percent
The CSF partners are cooperatives, non-government organizations, local government units. Cooperatives are eligible for CSF surety cover.
Philippines
The Development 7 180 Industrial
Bank of the Philippines, Land Bank of the Philippines, 18.5 14 569
Guarantee 37.6
and 7 040are the
Loan Fund 30.7 21 609
financial 55.8
contributors
D.2
to the Quality of employment
CSF Agriculture
and also act as the lenders. 2 906 25.7 7 131 63.1 1 990 57.7 9 121 80.8
75
Agriculture,
As of December 2015, 45hunCSFsngin
and
30 forestry 2 558
provinces and 15 cities have 25.6
been established 6 134
and 61.5
15,248 MSMEs 1 904been able
have 60.4to access
8 038 80.6
loans from
banks totalingFishing
Php2.28and aquaculture
billion. 348 26.3 997 75.5 86 29.3 1 083 82.0
69. For
Republic those employed, high proportions of1 informal 20.3 employment 78
and underemployment were
76
Industry
Act No. 10744 (2016), An Act Providing 271and Organization
for the Creation 726
of Credit11.6
Surety 2 025
Fund 37.1
Cooperatives 2 751
to Manage 43.8
and
Administer Credit
MiningSurety Funds to Enhance the Accessibility of Micro,
and quarying 66 Small and Medium
28.1 55 Enterprises,
23.4 Cooperatives
56 and Non-Government
31.6 111 47.2
notedManufacturing
Organizations across regions
to the Credit and
Facility of industry
Banks groups
and for Other Purposes.(Tables
576 19
17.9 and63820). Figure
19.9 16
656 illustrates
26.3 the
1 294 sectoral
40.3
sharesElectricity,
of informal employment
gas, steam and other categories. In 2015, it was estimated that one in every
and air condi oning
supply 10 12.0 32
19.3
two workers was either self-employed,
Water supply; sewerage, waste management
an unpaid family -worker- or an16employee
19.3 16
whose nature
of employment
and remedia on is ac
short-term,
v es seasonal, casual
9 or17.3
worked for3 different
5.8 employers
10 20.4 on 13
day-to-day
25.0
or week-to-week
Construc on basis. 610 22.6 31 1.1 1 287 48.6 1 318 48.9
Services 3 003 14.2 6 712 31.7 3 025 21.5 9 737 46.0
Wholesale and retail trade; repair of motor
vehicles and motorcycles 993 13.6 4 261 58.3 819 29.0 5 080 69.5
Transport and storage 502 18.1 1 260 45.3 285 19.1 1 545 55.6
Accommoda on and food service ac vi es 242 14.1 582 33.9 328 30.7 910 53.0
Informa on and communica on 41 10.8 68 17.8 63 20.7 131 34.4
Financial and insurance ac vi es 41 8.2 20 4.0 52 10.9 72 14.5
Real estate ac vi es 21 11.4 66 35.9 16 14.2 82 44.6
Professional, scien fic and technical ac vi es 22 10.6 35 16.8 24 14.5 59 28.4
Administra ve and support service ac vi es 104 9.1 33 2.9 171 15.6 204 17.9
Public administra on and defense; compulsory
social security 326 15.6 - - 370 17.7 370 17.7
Educa on 116 9.0 13 1.0 106 8.4 119 9.3
Human health and social work ac vi es 48 9.7 25 5.1 65 14.2 90 18.2
Arts, entertainment and recrea on 71 20.7 33 9.6 73 23.9 106 30.9
Other service ac vi es 475 17.4 317 11.6 651 27.1 968 35.4
Ac vi es of extraterritorial organiza ons
and bodies a a - - 1 33.3 1 33.3
77
On average, there are around two employed members per family with about half of families whose income were sourced from wages and
salaries (2012 FIES) and an average household size of 4.6 (2010 Census).
78
There is no institutionalized survey on informal employment although a Survey on the Informal Sector was conducted in 2008. An analysis
of its results by UNESCAP estimated that 67.7 per cent of total employed are in informal employment. See Heintz, J. 2010. Defining and
Measuring Informal Employment and the Informal Sector in the Philippines, Mongolia, and Sri Lanka. Working Paper No. 3. United Nations
Development Account Project: Interregional Cooperation on the Measurement of the Informal Sector and Informal Employment (UNESCAP).
79
a. Per cent of underemployed is proportion of employed wanting additional work to total employed (underemployment rate).
b. Per cent of vulnerable employment is proportion of self-employed and unpaid family workers to total employed.
c. Per cent of employees in precarious work is proportion of employees whose nature of employment is short-term, seasonal, casual or worked
for different employers on day-to-day or week-to-week basis, to total employees.
the sectoral shares of informal employment and other categories. In 2015, it was
estimated that one in every two workers was either self-employed, an unpaid family
worker or an employee whose nature of employment is short-term, seasonal, casual or
worked for different employers on day-to-day or week-to-week basis.

employment 79 by industry, 2015
(in 000 except per cent)
Vulnerable Employees Informal
Underemployed
Major industry group employment in precarious work employment
disproportionately low share. Number Men, Percent
agricultureNumber workers
Percent Number and unpaid Percent Number
workers Percent
had the
Philippines 7 180 18.577 14 569 37.6 7 040 30.7 21 609 55.8
highest
Agriculture
rates in their respective categories.
2 906 25.7 7 131 63.1 1 990 57.7 9 121 80.8
Agriculture, hun ng and forestry 2 558 25.6 6 134 61.5 1 904 60.4 8 038 80.6
Fishing
D.2and aquaculture
Quality of employment 348 26.3 997 75.5 86 29.3 1 083 82.0
Industry 1 271 20.3 726 11.6 2 025 37.1 2 751 43.8
Mining and quarying 66 28.1 55 23.4 56 31.6 111 47.2
78
69.Manufacturing
For those employed, high proportions 576 of17.9informal638 employment
19.9 656 and
26.3 underemployment
1 294 40.3
Electricity, gas, steam and air condi oning
were noted across regions and industry
supply 10
groups (Tables
12.0 - -
19 and 16
20).19.3 Figure 16 16 illustrates
19.3
Waterthe sectoral
supply; sewerage,shares of informal employment and other categories. In 2015, it was
waste management
andestimated
remedia on acthat v es one in every two workers 9 17.3 was either 3 5.8 10
self-employed, 20.4 an unpaid 13 25.0family
Construc on 610 22.6 31 1.1 1 287 48.6 1 318 48.9
worker or an employee whose nature
Services 3 003
of14.2employment
6 712
is short-term,
31.7 3 025 21.5
seasonal,
9 737
casual
46.0
or
worked
Wholesale for different
and retail trade; repairemployers
of motor on day-to-day or week-to-week basis.
vehicles and motorcycles 993 13.6 4 261 58.3 819 29.0 5 080 69.5
Transport and storage 502 18.1 1 260 45.3 285 19.1 1 545 55.6
Accommoda on and Table 19. Underemployment,
food service ac vi es 242 vulnerable,
14.1 582 precarious
33.9 328 and 30.7 informal910 53.0
Informa on and communica on employment 41 10.8by industry,
79 68 17.8201563 20.7 131 34.4
Financial and insurance ac vi es
Real estate ac vi es
(in41
21
000 11.4 8.2
except 20
per
66
cent 4.0
35.9
) 52
16
10.9
14.2
72
82
14.5
44.6
Vulnerable Employees Informal
Professional, scien fic and technical ac vi es 22Underemployed
10.6 35 16.8 24 14.5 59 28.4
Major industry group employment in precarious work employment
Administra ve and support service ac vi es 104 9.1 33 2.9 171 15.6 204 17.9
Public administra on and defense; compulsory Number Percent Number Percent Number Percent Number Percent
socialPhilippines
security 326 7 180 15.6 18.5 - 14 569 - 37.6370 7 040 17.7 30.737021 609 17.7 55.8
Agriculture
Educa on 116 2 906 9.0 25.7 13 7 131 1.0 63.1 106 1 990 8.4 57.7 119 9 121 9.3 80.8
HumanAgriculture, hun ng
health and social andac
work forestry
vi es 48 2 5589.7 25.6 25 6 1345.1 61.5 65 1 904 14.2 60.4 90 8 038 18.2 80.6
Fishing and aquaculture
Arts, entertainment and recrea on 71 348 20.7 26.3 33 997 9.6 75.5 73 86
23.9 29.3106 1 083 30.9 82.0
Other Industry
service ac vi es 475 1 271 17.4 20.3317 726 11.6 11.6651 2 025 27.1 37.1968 2 751 35.4 43.8
Ac vi Mining and quarying organiza ons
es of extraterritorial 66 28.1 55 23.4 56 31.6 111 47.2
Manufacturing
and bodies a 576 a 17.9 - 638 - 19.9 1 656 33.3 26.3 1 1 294 33.3 40.3
Electricity, gas, steam and air condi oning
Source: supplyPhilippine Statistics Authority, Labor Force10Survey. 12.0 - - 16 19.3 16 19.3
Water supply; sewerage, waste management
77
On average, thereand areFigure
remedia
around two on16.ac Informal,
v esmembers per
employed precarious and
family with about 9 halfvulnerable
17.3
of families 3whose employment
5.8
income and
were10sourced 20.4
from wages 13 and 25.0
Construc on household size of 4.6 (2010 Census).610 22.6 31 1.1 1 287 48.6 1 318 48.9
salaries (2012 FIES)
78
and an average
Services
There is no institutionalized
underemployment
survey on informal employment although3 a003
by14.2
Survey on
sector, 2015
6 712
the Informal Sector31.7 3 025 in21.5
was conducted 2008. An9 analysis
737 46.0
Wholesaleestimated
of its results by UNESCAP and retailthattrade;
67.7repair of motor
per cent of total employed are in informal employment. See Heintz, J. 2010. Defining and
Measuring Informal vehicles
Informal and
Employment motorcycles
employment
and the Informal Sector in the 42.2 993 Mongolia,
Philippines, 13.6 12.7
and4 Sri
261Lanka.58.3 Working45.1 819 No.29.0
Paper 3. United5 Nations
080 69.5
Development Account Transport andInterregional
Project: storage Cooperation on the Measurement 502 of the18.1
Informal1 260
Sector and 45.3
Informal285 Employment19.1 (UNESCAP).
1 545 55.6
79
a. Per cent Accommoda
of underemployed
Employees on andwork
food service
is proportion
in precarious ac 28.3
of employed viwanting
es 242 work
additional 14.1 582
to total employed
28.8 33.9 328
(underemployment
43.0 30.7
rate). 910 53.0
b. Per cent of vulnerable on and communica
Informa employment on of self-employed and41unpaid10.8
is proportion 68 to total
family workers 17.8employed. 63 20.7 131 34.4
c. Per cent of employees
Financialinand precarious
insurancework acis vi
proportion
es of employees whose41 nature8.2of employment
20 is4.0
short-term,52 seasonal, casual or worked
10.9 72 14.5
for different Vulnerable
employers
Real estateon
employment
acday-to-day
vi es or week-to-week basis,48.9 to total 21
employees.
11.4
5.0
66 35.9
46.1
16 14.2 82 44.6
d. Per cent of informal employment
Professional, scien isficproportion of vulnerable
and technical ac vi esemployment 22 and10.6employees 35 in precarious
16.8 work, 24 to total 14.5
employed. This59 is a 28.4
crude measure in the Underemployed
absence of a regular survey on informal employment.
Administra ve and support service ac vi 40.5 es 104 9.1 17.7 33 2.9 41.8
171 15.6 204 17.9
Public administra on and defense; compulsory
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
social security 326 15.6 - - 370 17.7 370 17.7
Educa on Agriculture 116
Industry 9.0 13
Services 1.0 106 8.4 119 9.3
Human health and social work ac vi es 48 9.7 25 5.1 65 14.2 9033 18.2
Source:Arts, Philippine Statistics Authority, Labor Force71
entertainment and recrea on
Survey.20.7 33 9.6 73 23.9 106 30.9
Other service ac vi es 475 17.4 317 11.6 651 27.1 968 35.4
70. The more Ac vi developed
es of extraterritorial
regionsorganiza ons
of NCR, Regions III and CALABARZON had the lowest
and bodies a a - - 1 33.3 1 33.3
proportion
Source: of underemployment
Philippine and Labor
Statistics Authority, informal,Forcevulnerable
Survey. and precarious employment.
These regions also had the lowest poverty incidence among its population. The nature,
77 type and seasonality of activities are major factors in determining informality,
On average, there are around two employed members per family with about half of families whose income were sourced from wages and
vulnerability
salaries (2012 FIES) and and precariousness.
an average Consequently,
household size of 4.6 (2010 Census). these characteristics are most prevalent
78
There is no institutionalized survey on informal employment although a Survey on the Informal Sector was conducted in 2008. An analysis
in agriculture, hunting and forestry; fishing and aquaculture; wholesale and retail trade;
of its results by UNESCAP estimated that 67.7 per cent of total employed are in informal employment. See Heintz, J. 2010. Defining and
and accommodation
Measuring Informal Employmentand food
and the andSector
Informal service activitiesMongolia,
in the Philippines, (hotelsandand restaurants).
Sri Lanka. Working Paper No. 3. United Nations
Development Account Project: Interregional Cooperation on the Measurement of the Informal Sector and Informal Employment (UNESCAP).
79
a. Per cent of underemployed is proportion of employed wanting additional work to total employed (underemployment rate).
b. Per cent ofTable 20.
vulnerable Underemployment,
employment vulnerable,
is proportion of self-employed and unpaidprecarious
family workers toand informal
total employed.
c. Per cent of employees in precarious work employment by region,
is proportion of employees 2015
whose nature of employment is short-term, seasonal, casual or worked
for different employers on day-to-day or week-to-week basis, to total employees.
d. Per cent of informal employment is proportion (in 000 except
of vulnerable per cent)
employment and employees in precarious work, to total employed. This is a
in the absence of a regular surveyVulnerable
crude measure Underemployed on informal employment. Employees Informal employment
Region employment in precarious work
Number Percent Number Percent Number Percent Number Percent
Philippines 7 180 18.5 14 569 37.6 7 040 30.7 21 609 55.8
Underemployed 40.5 17.7 41.8
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Decent work country diagnostics: Agriculture
41 Philippines 2017
Industry Services
70.70. The
The more
more developed
developedregions
regionsofofNCR,
NCR, Regions
Regions III III
andandCALABARZON
CALABARZON had the
hadlowest proportion
the lowest
of underemployment
proportion and informal,
of underemployment and vulnerable and precarious
informal, vulnerable employment.
and precarious These regions
employment.
also had
These the lowest
regions poverty
also had incidence
the lowest among
poverty its population.
incidence among itsThepopulation.
nature, type
Theand seasonality
nature,
of activities
type are major
and seasonality factors in
of activitiesdetermining
are majorinformality,
factors invulnerability
determiningand
Figure 16. Informal, precarious and vulnerable employment and precariousness.
informality,
Consequently,and
vulnerability these characteristics
precariousness. are most prevalent
Consequently,
underemployment in agriculture,
these characteristics
by sector, 2015
arehunting and forestry;
most prevalent
fishing
in and aquaculture;
agriculture, hunting and wholesale
forestry;and retailand
fishing trade; and accommodation
aquaculture; wholesale andandretail
food trade;
and service
activities (hotels
and Informaland
accommodation restaurants).
and food
employment and service activities
42.2
(hotels
12.7
and restaurants).
45.1
Table 20. Underemployment,

Employees in precarious work 28.3 vulnerable,28.8
precarious and informal
43.0
employment by region, 2015

Vulnerable employment 48.9 5.0 46.1
Vulnerable Employees
Underemployed
Underemployed 40.5 17.7 Informal employment
41.8
Region employment in precarious work
Number Percent0% Number
10% Percent
20% 30% Number
40% 50%Percent
60% Number80% Percent
70% 90% 100%
Philippines 7 180 18.5 14 569 37.6 7 040 30.7 21 609 55.8
NCR 475 10.0 943 19.8 785 21.2 1 728 36.4
CAR 158 20.8 402 53.0 114 33.6 516 68.0
Region I 340 16.9 773 38.4 432 37.4 1 205 59.8
Region II 168 11.1 446 29.5 343 40.5 789 52.2
70.Region
TheIII more developed
555 13.5
regions1of 132NCR, 27.4Regions III 783and CALABARZON
27.4 1 915 had the46.4lowest
Region IV-A 925 18.2 1 486 29.2 956 27.4 2 442 48.0
proportion of
Region IV-B
underemployment
269 20.8 627
and informal,
48.4
vulnerable
265
and precarious
42.4 892
employment.
68.8
These
Region V regions
749also had
31.6 the lowest
1 115 poverty
47.0 incidence
434 among 36.3its population.
1 549 The
65.2nature,
Region
typeVI and seasonality
681 21.3of activities
1 143 35.8 major765factors 40.1
are 1 908
in determining 59.7
informality,
Region VII 592 18.4 1 345 41.8 411 22.4 1 756 54.6
vulnerability
Region VIII and precariousness.
321 31.8 517 Consequently,
51.1 these characteristics
190 39.8 are most69.9
707 prevalent
Region IX 256 18.5 693 50.1 159 24.3 852
in agriculture, hunting and forestry; fishing and aquaculture; wholesale and retail trade; 61.6
Region X 496 24.9 881 44.3 419 39.4 1 300 65.4
and
Region XI
accommodation
365
and food and
19.0 684
service35.5
activities
402
(hotels34.5and restaurants).
1 086 56.4
Region XII 407 23.2 828 47.2 320 36.5 1 148 65.4
Caraga Table
286 20. Underemployment,
26.2 522 vulnerable,
47.8 204 precarious37.5 and726informal66.5
ARMM 140 11.1 1 031
employment by region, 2015
81.9 58 26.7 1 089 86.5
Vulnerable Employees
Underemployed Informal employment
D.3 Poverty
Region incidence and inequality are being reduced
employment but remain
in precarious work significant
D.3 Poverty incidence and
Number inequality
Percent are being
Number reduced
Percent but
Numberremain significant
Percent Number Percent
Philippines 7 180 18.5
80 14 569 37.6 7 040
81 30.7 21 609 55.8
71. In 2015, NCR poverty incidence 475 and subsistence
10.0 943 incidence
19.8 among
785 individuals
21.2 1decreased
728 to
36.4
71. In 2015, poverty incidence 80
and subsistence incidence 81
among individuals decreased to
21.6 CAR per cent and 8.1 158 per cent20.8 respectively.
402 53.0
Poverty 114 incidence 33.6 516
among families 68.0
also
21.6 Region
per cent I and 8.1 340per cent 82 respectively.
16.9 773 Poverty
38.4 incidence
432 among37.4 families
1 205 also decreased
59.8
decreased to 16.5 per cent.11.1Real average family income and40.5 the Gini789 coefficient
to 16.5 per cent.82 Real
Region II
Region III
168
555
average13.5
family1 income
446
132
and
29.5
27.4
the Gini343
783
coefficient27.4
improved
1 915
slightly (Table
52.2
46.4
80 21). The
From 25.2 perRegion
relationship
cent in IV-A
2012. As of 925
between economic
18.2 of poor
2015, the number 1 486 growth
individuals 29.2
and poverty
was estimated956
reduction
27.4
at 21.9 million.
among
2 442
The poverty
regions
48.0 was
thresholds were
positive
Php21,753 in 2015 andbut
Region IV-B differentiated
Php18,935 269
in 2012. (Figure 17). Less developed regions that registered high growth
20.8 627 48.4 265 42.4 892 68.8
From 10.4 per Region V 749 31.6 1 115 47.0 434 36.3 1 549 65.2
made dramatic inroads in poverty reduction in35.8
families765 (e.g., Regions40.1 I, II, V, VI, IX 59.7and XII
81
cent in 2012.
82
From 19.7 per Region VI
cent in 2012. 681 21.3 1 143 1 908
except Caraga). In more developed regions (e.g., NCR, Region III, CALABARZON, VII and
Region VII 592 18.4 1 345 41.8 411 22.4 1 756 54.6
Region VIII 321 31.8 517 51.1 190 39.8
X), gains were not as256
Region IX
pronounced18.5
in spite
693
of relatively
50.1
high
159
growth. The data707
24.3
therefore69.9
852
suggest
61.6
a need forXdevelopment
Region 496 planning24.9 and881implementation
44.3 to be sensitive
419 39.4 to regional
1 300
34
differences
65.4
in opportunities,
Region XI
Region XII
endowments
365
407
19.0
23.2
and challenges
684
828
in
35.5
47.2
mobilizing
402
320
resources
34.5
36.5
in order
1 086
1 148
to maximize
56.4
65.4
desired outcomes and
Caraga 286impacts. 26.2 522 47.8 204 37.5 726 66.5
ARMM 140 11.1 1 031 81.9 58 26.7 1 089 86.5
D.3 Poverty incidence and inequality are being reduced but remain significant
71. In 2015, poverty incidence 80 and subsistence incidence 81 among individuals decreased to
21.6 per cent and 8.1 per cent respectively. Poverty incidence among families also
decreased to 16.5 per cent. 82 Real average family income and the Gini coefficient
80
From 25.2 per cent in 2012. As of 2015, the number of poor individuals was estimated at 21.9 million. The poverty thresholds were
Php21,753 in 2015 and Php18,935 in 2012.
81
From 10.4 per cent in 2012.
82
From 19.7 per cent in 2012.
34
(e.g.,
spite NCR, Region high
of relatively III, CALABARZON,
growth. The dataVII and X),suggest
therefore gains were not as
a need forpronounced
development in
spite of relatively high growth. The data therefore suggest a need for
planning and implementation to be sensitive to regional differences in opportunities, development
planning and and
implementation to mobilizing
be sensitiveresources
to regional Section
toII.maximize
in differences in opportunities,
endowments
endowments and
outcomes and impacts.
challenges in
challenges in mobilizing resources in
order
informal employment
order to maximize
desired
and the working poor
desired 42
outcomes and impacts.
Figure 17. Economic growth and reduction in poverty incidence
Figure 17. Economic growth andby
of families reduction
region in poverty incidence
of families by region
GDP average growth, 2012-2015: 6.5%
9.0 Total poverty reduction, 2012 -2015: 3.2 percentage points (ppt)
GDP average growth, 2012-2015: 6.5%
9.0 Total poverty reduction, 2012 -2015: 3.2 percentage points (ppt)
7.0
7.0
5.0
5.0
3.0
3.0
1.0
1.0
-1.0
-1.0
GRDP average gr owth, 2012-2015 No te : Ave . gro wth o f R-VIII, -0.2
Percen tage poin

GRDP average grtowth,
red uction No
in po verty incid
2012-2015 te : Ave
ence amon. gro wth o f R-VIII,
g families, -0.2
2012-2015
Percen tage poin t red uction in po verty incid ence amon g families, 2012-2015
Sources:Philippine Statistics Authority, National Accounts of the Philippines and Official Poverty
Sources:Philippine
Statistics. Statistics Authority, National Accounts of the Philippines and Official Poverty
Statistics.
Table 21. Poverty incidence among families, real average annual family income
Table 21. Poverty incidenceand amongGini families,
Coefficient real average annual family income
and Gini Coefficient
Poverty incidence among families (%) Real average family income (PhP 000) Gini Coeffcient
Region Poverty incidence among families (%) Real average family income (PhP 000)
Region 2009 2012 2015 2009 2012 2015 2009 Gini2012
Coeffcient2015
Philippines 2009
20.5 2012
19.7 2015
16.5 2009
180 2012
181 2015
189 2009
0.4641 2012
0.4605 2015
0.4439
Philippines
NCR 20.5
2.4 19.7
2.6 16.5
2.7 180
318 181
305 189
322 0.4641
0.4081 0.4605
0.4028 0.4439
0.3909
NCR
CAR 2.4
19.2 2.6
17.5 2.7
14.9 318
190 305
200 322
202 0.4081
0.4658 0.4028
0.4675 0.3909
0.4211
CAR
Region I 19.2
16.8 17.5
14.0 14.9
9.6 190
163 200
165 202
177 0.4658 0.4265
0.4170 0.4675 0.3979
0.4211
Region III
Region 16.8
20.2 14.0
17.0 9.6
11.7 163
157 165
149 177
165 0.4170 0.4096
0.4560 0.4265 0.4065
0.3979
Region III
Region II 20.2
10.7 17.0
10.1 11.7
8.9 157
187 149
196 165
210 0.4560 0.4084
0.3821 0.4096 0.3970
0.4065
Region IV-A
Region III 10.7
8.8 10.1
8.3 8.9
6.7 187
216 196
219 210
223 0.3821 0.4186
0.4203 0.4084 0.4012
0.3970
Region IV-B
Region IV-A 8.8
27.2 8.3
23.6 6.7
17.4 216
121 219
134 223
153 0.4203 0.4476
0.4116 0.4186 0.4568
0.4012
Region VIV-B
Region 27.2
35.3 23.6
32.3 17.4
27.5 121
128 134
122 153
128 0.4116 0.4233
0.4268 0.4476 0.3961
0.4568
Region V
Region VI 35.3
23.6 32.3
22.8 27.5
16.6 128
136 122
153 128
154 0.4268 0.4233 0.3961
0.4309 0.4754 0.4362
Region VII
Region VI 23.6
26.0 22.8
25.7 16.6
23.6 136
164 153
163 154
166 0.4309 0.4712
0.4711 0.4754 0.4647
0.4362
Region VII
Region VIII 26.0
34.5 25.7
37.4 23.6
30.7 164
133 163
124 166
130 0.4711 0.4712 0.4647
0.5008 0.4834 0.4649
Region VIII
Region IX 34.5
39.5 37.4
33.7 30.7
26.0 133
119 124
119 130
124 0.5008 0.4592
0.4915 0.4834 0.4362
0.4649
Region
Region XIX 39.5
33.3 33.7
32.8 26.0
30.3 119
139 119
137 124
145 0.4915 0.4592 0.4362
0.4860 0.4844 0.4636
Region XI
Region X 33.3
25.5 32.8
25.0 30.3
16.6 139
140 137
143 145
166 0.4860 0.4330
0.4339 0.4844 0.4295
0.4636
Region XI
Region XII 25.5
30.8 25.0
37.1 16.6
30.5 140
128 143
120 166
125 0.4339 0.4330 0.4295
0.4462 0.4570 0.4626
Region XII
Caraga 30.8
46.0 37.1
31.9 30.5
30.8 128
120 120
126 125
124 0.4462 0.4397
0.4732 0.4570 0.4338
0.4626
Caraga
ARMM 46.0
39.9 31.9
48.7 30.8
48.2 120
94 126
92 124
89 0.4732
0.2991 0.2882 0.4338
0.4397 0.2801
ARMM 39.9 48.7 48.2 94 92 89 0.2991 0.2882 0.2801
Sources: Philippine Statistics Authority, Official Poverty Statistics and Family Income and Expenditure
Sources: Philippine
Survey. Statistics Authority, Official Poverty Statistics and Family Income and Expenditure
Survey.
72. Overall, the country fell short of its MDG poverty reduction target of 17.2 per cent of the
population by 2015. Uneven levels of development across regions translated to highly skewed
variances in opportunities, poverty incidence, real income and inequality. Compared 35 to the
national average, the Luzon regions generally have less poverty incidence among families, 35 better
Gini coefficient, and higher real annual family income. In contrast, all the Visayas and Mindanao
regions where agriculture predominates have higher poverty incidence and lower real family
incomes. ARMM, an outlier among the regions that needs special attention, may have the best
Gini coefficient but this is because much of the population is equally poor. ARMM has the
highest poverty incidence and lowest real income, with the latter two indicators deteriorating
from 2009 to 2015.
73. Underemployment, precarious employment and vulnerable employment are closely linked to
poverty incidence (Table 22). The country’s poorest regions such as CARAGA, Regions V, VIII,
X and XII had poverty rates of at least 36 per cent and also had the highest underemployment
73. Underemployment, precarious employment and vulnerable employment are closely
43 linked to poverty incidence (Table 22). The country’s poorest regions such as CARAGA,
Philippines 2017
Regions V, VIII, X and XII had poverty rates of at least 36 per cent and also had the
highest underemployment rates. Other regions with underemployment higher than the
rates.national
Other regions
rate of with
18.5underemployment
per cent (CAR, Regionshigher than
IV-B,theVI,
national
VII, IXrate of 18.5
and XI) per cent (CAR,
showed high
Regions IV-B, VI,
proportions of VII, IX and XI) showed
self-employment high family
and unpaid proportions
work of self-employment
(vulnerable and unpaid
employment). All
family work
these 10(vulnerable
regions with employment).
the exceptionAllofthese
Regionten IV-B
regions with
also hadthe
theexception of Region
widest family IV-B
income
also disparities
had the widest
(Ginifamily income disparities
coefficients). (GiniARMM
Exceptionally, coefficients).
had lowExceptionally, ARMMbut
underemployment had low
had
underemployment but had the
the highest proportion highest proportion
of vulnerable employmentof vulnerable
(more thanemployment (more
80 per cent) andthan 80 per
poverty
cent)incidence
and poverty incidence
at more at more
than half of itsthan
totalhalf of its total population.
population.
Table 22. Poverty, underemployment and vulnerable employment

by region, 2015
(in per cent)
Poverty incidence Underemployment Proportion of self-employed and unpaid
Region
among population rate family workers in total employment
Philippines 21.6 18.5 37.6
NCR 3.9 10.0 19.8
CAR 19.7 20.8 53.0
Region I 13.1 16.9 38.4
Region II 15.8 11.1 29.5
Region III 11.2 13.5 27.4
Region IV-A 9.1 18.2 29.2
Region IV-B 24.4 20.8 48.4
Region V 36.0 31.6 47.0
Region VI 22.4 21.3 35.8
Region VII 27.6 18.4 41.8
Region VIII 38.7 31.8 51.1
Region IX 33.9 18.5 50.1
Region X 36.6 24.9 44.3
Region XI 22.0 19.0 35.5
Region XII 37.3 23.2 47.2
Caraga 39.1 26.2 47.8
ARMM 53.7 11.1 81.9
Sources: Philippine Statistics Authority, Official Poverty Statistics and Labor Force Survey.
D.4 Medium term projections: employment growth and poverty reduction

D.4 Medium term projections: Employment growth and poverty reduction
74. Based on growth, sectoral, demographic and other development patterns, ILO prepared
74. Based on growth, sectoral, demographic and other development patterns, ILO prepared a
a Philippine Employment Projection Model (PEPM) for the period from 2013 to 2022.
Philippine Employment Projection Model (PEPM) for the period from 2013 to 2022. The basic
The basic assumptions of the model are a GDP growth of 6 per cent to 6.5 per cent for
assumptions of the model are a GDP growth of 6 per cent to 6.5 per cent for the entire period
the entire period (6.4 per cent to 7.2 per cent from 2013 to 2016, and 5.8 per cent to
(6.4 per cent to 7.2 per cent from 2013 to 2016, and 5.8 per cent to 6.2 per cent from 2016 to
2022). The labour force and working age population were also assumed to grow at relatively the
same pace. 36
75. The model projects that at best, there will be minimal to moderate growth in employment and
productivity. The incidence of vulnerable employment and working poverty will remain the
same, contending an increase in the actual number of working poor. Incidence of the two across
regions will remain highly correlated with the agriculture share in employment. So far, actual
outcomes on employment, unemployment, and vulnerable employment in the first three years
are within the range of the model’s projections.
76. Industry roadmaps based on the model project net employment growth in agriculture over the
forecast period at between 1.6 to1.9 million mainly from raising of perennial and non-perennial
crops, plant propagation, forestry, fishing and aquaculture, and animal production. Raising of
perennial crops can have positive upstream effects on food processing. In services, information
technology and business process management (IT-BPM) including BPOs are seen to remain a
primary growth driver in GDP and employment. High employment growth is seen in wholesale
and retail trade and repair of motorcycles and household goods (2.2 million additional workers),
production. Raising of perennial crops can have positive upstream effects on food
processing. In services, information technology and business process management
(IT-BPM) including BPOs are seen to remain a primary Section growthII.driver
in GDP and
employment. High employment growth is seen in wholesale and retail trade and repair
of motorcycles and household goods (2.2 million additional workers), followed by
followed by construction
construction (567 and
(567 to 720,000), to 720,000), and (500,000).
land transport land transport
Other(500,000).
economic Other economic
sub-sectors
sub-sectors
projected toprojected to grow are
grow are education education
(282,000), (282,000),
public public administration
administration and defense
and defense (232,000),
(232,000), food and service
food and beverage beverage service (201,000),
activities activities (201,000), among
among others. In others. In manufacturing,
manufacturing, high
high employment
employment growth
growth is seen
is seen in IT-BPM
in IT-BPM related
related sub-sectors,
sub-sectors, aerospace
aerospace manufacturing,
manufacturing,
automotive and automotive parts manufacturing (Table 23). Less positive employment growth
automotive and automotive parts manufacturing (Table 23). Less positive employment
isgrowth
seen inisthe sub-sectors
seen of furniture
in the sub-sectors of and rubber
furniture products
and rubber manufacturing, and iron and
products manufacturing, and steel.
For electronics including semiconductors, projections are varied because of differences in
iron and steel. For electronics including semiconductors, projections are varied because
relative growth in
of differences of relative
exports growth
and imports.
of exports and imports.
Table 23. National labour market aggregates and indicators

Persons (millions) Average annual growth rate (%)
Indicator
2010 2013 2010-2013 2013-2016 2016-2022 2013-2022
Total population 93.8 99.2 1.9 1.7 1.6 1.6
Overseas Filipino Workers 1.9 2.1 3.0 7.5 5.0 5.8
Below working age population 31.1 32.9 1.8 0.9 0.6 0.7
Working age population, excluding
OFWs 60.7 64.2 1.9 1.9 1.9 1.9
Labour force 38.9 41.0 1.8 2.0 1.9 1.9
Employed 2.9 2.9 0.5 3.5 - 5.7 0.5 - 1.2 1.5 - 2.4
Unemployed 36.0 38.1 1.9 1.7 - 1.9 2.0 1.9 - 2.0
Vulnerable employment 15.0 14.6 -0.9 1.5 - 1.9 1.4 - 1.5 1.5 - 1.7
Working poor (<$1.25/day) 7.1 7.2 0.4 1.8 - 2.0 1.9 - 2.0 1.9 - 2.0
Working poor (<$2.00/day) 15.4 15.6 0.4 1.8 - 2.1 1.9 - 2.0 1.9 - 2.0
Total percentage point change
Labour force participation rate 64.1 63.9 -0.1 0.2 -0.1 0.1
Employment-to-population ratio 59.3 59.4 0.0 (0.4) - (0.1) 0.1 - 0.3 (0.1) - 0.0
Unemployment rate 7.3 7.1 -0.3 0.5 - 0.8 (0.6) - (0.3) (0.3) - 0.3
Vulnerable employment rate 41.7 38.3 -3.4 (0.2) - 0.0 (1.2) - (1.0) (1.4) - (1.1)
Working poverty rate (<$1.25/day) 19.0 19.0 0.0 0.0 - 0.1 (0.1) - 0.0 (-0.1) - 0.1
Working poverty rate (<$2.00/day) 41.0 40.9 -0.1 0.1 - 0.2 (0.1) - 0.0 0.0 - 0.2
Labour productivity (Php 000) 158.2 177.5 3.9 4.6 - 5.2 3.8 - 4.1 4.0 - 4.5
Source: 2015 Philippine Employment Projection Model.
77. In terms of occupational groups, supply of skilled workers is expected to tighten while the
surplus of semi-skilled and unskilled workers will grow. This implies increasing skills mismatch,
reflecting dissonance between education and training outputs and labour market demands. 37
Much of the employment growth is projected to take place in the sub-sectors that have
inherently higher labour intensity, higher informality, and lower labour productivity and value-
added such as agriculture and trading. On the other hand, except for IT-BPM, the sub-sectors
projected to create jobs of better quality and demand higher level of skills have inherently low
employment elasticity, such as aerospace manufacturing, automotive and automotive parts
manufacturing. For export-oriented sub-sectors such as electronics manufacturing, these are
expected to continue creating quality jobs. However, these sub-sectors are also exposed to
external competition and shocks; the potential impact of external factors is large considering
that manufacturing exports are largely concentrated in electronics products.
E. Accelerating growth across sectors and in enterprises
78. Even the most optimistic projections of the PEPM are not likely to bring about the conditions
of inclusive growth, i.e., massive creation of quality employment, significant improvement in
labour productivity and value-added, and substantial poverty reduction. Policy action needs to
accelerate the realization of these conditions to enable a larger part of the working population
to participate and become more economically active in productive and remunerative work.
45 Philippines 2017
79. In view of this, it is extremely important for

PDP 2017-2022 and AmBisyon Natin 2040
to deliver on its specific strategic and policy
actions aimed at not only enhancing the
strengths and competitiveness of the more
productive sectors, but also making the less
productive sectors and sub-sectors more
productive. The government’s commitment
to allocate at least 5 per cent of GDP to
infrastructure spending is an encouraging
sign. For their strategic value, investments on
reliable and sustainable energy sources and
other utilities, as well as on basic infrastructure,
logistics and connectivity need to be given
priority. Investments toward energy self-
sufficiency and infrastructure development,
in particular, will have a favorable and direct
employment and productivity impact on the
electricity, gas and water, construction and
mining sub-sectors, and can also have second-
round favorable effects on other sectors.
Strategic investments in infrastructure will
make possible, as discussed in Section I,
C.1, the transformation and modernization
of agriculture, the revival and repositioning
of manufacturing and industry as a whole,
and the continued growth and expansion
in services toward generating employment
opportunities of better quality.
80. Measures to address the root causes of human

resource underutilization and exclusion,
unemployment and underemployment are
also of utmost importance in any national
development framework. The surplus of
unutilized or underutilized low skilled
labour, as discussed in Section I, A.3, how
to make workers more productive, and
how the economy’s capacity to absorb them
can be enhanced, are major challenges.
Accessible opportunities for skills upgrading
are also extremely important. Increasing the
productive and remunerative time of farmers
and fisher-folk with farm-related or off-farm
activities such as engaging them in farm-
supportive and climate change-adaptive public
works projects like protecting water sheds and
marine resources, dredging of canals, dams
and waterways, and building water catchment
basins can dramatically increase their income
opportunities while improving and sustaining
their sources of livelihood.
81. Tightening of the supply of skilled workers

is already anticipated. Investments in
human capital should develop the labour
force to move up the skills and production
value chain. This will require a reliable
81. Tightening of the supply of skilled workers is already labour supplyInvestments
anticipated. with higher education,
in human
capital should develop the labour force to move up the qualifications and skills,value
skills and production correction
chain.of the
This will require a reliable labour supply with higherdissonance between the and
education, qualifications outputs
skills,of the
correction of the dissonance between the outputs educational system system
of the educational and theand signals
the from
the labour market, and implementation
signals from the labour market, and implementation of efficient active labour market of
programmes that facilitate school-to-work as well asefficient active labour
work-to-work market programmes
transitions.
that facilitate school-to-work as well as
F. work-to-work transitions.
Gearing up for a just transition toward sustainable development
82. The challenge of creating jobs of better qualityF. Gearing

needs up for a justthe
to consider transition toward
imperatives of
sustainable development for the present sustainable
and future development
generations. PDP 2017-2022
acknowledges the critical role of the environment and natural resources (ENR) sector in
the country’s development. This sector provides82. Thea broadchallenge
scope of of creating services,
ecosystem jobs of better
such as : (a) provisioning (e.g., food, raw materials, freshwater); (b) regulating (e.g.,imperatives
quality needs to consider the local
climate and air quality, carbon sequestration and of sustainable
storage, development for the present
erosion prevention);
(c) supporting (e.g., habitats for species, maintenance and future generations.
of genetic PDP 2017-2022
diversity); and
acknowledges the
(d) cultural (e.g., recreation, tourism). These ecosystem services support the growthcritical roleandof the
performance of other sectors, including agriculture, environment and natural
fisheries, industry resources
and services, and(ENR)
provide livelihood, especially to resource dependent communities. Provision of these This
sector in the country’s development.
indispensable services, including the maintenancesector of aprovides
healthya broad
and goodscope quality
of ecosystem
environment, has been increasingly compromised due services, such as: (a)
to mismanagement, misuse,provisioning
and
(e.g., food, raw materials,
overexploitation of the country’s ENR. It is critical that environmental health is improved freshwater);
and integrity ensured to help accelerate economic growth,(b) regulating
strengthen(e.g.,resilience
local climate
against and air
quality, carbon sequestration
the impact of climate change and disasters (natural and human induced), and improve the and storage,
welfare of the poor and marginalized members of society. erosion 83 prevention); (c) supporting (e.g.,
habitats for species, maintenance of
83. To this end, it is noteworthy that PDP 2017-2022 includesgeneticmorediversity);
aggressiveand strategies
(d) cultural to (e.g.,
rehabilitate and restore degraded natural resources,recreation,
and protect tourism).
the fragile These ecosystem
ecosystems
while improving the welfare of resource-dependent communities. Providing a frank and
services support84 the growth
performance of other sectors, including
assessment of the ENR situation in the Philippines, it notes that managing natural
agriculture, fisheries, industry and
resources as a whole needs further improvement, especially in monitoring environmental
services, and provide livelihood, especially
quality such as air and water pollution and wastewater management (many classified
to resource dependent communities.
water areas are unfit for their intended uses); efforts on disaster risk reduction and climate
Provision of these indispensable
change adaptation remain inadequate; socio-economic and environmental landscape is
services, including the maintenance of a
changing with increase in population and high concentrations in urban areas, straining
©ILO M. Rimando
healthy and good quality environment,
resources; the impacts of climate extremes and variability are being felt with increasing
has been increasingly compromised
frequency and intensity; environmental laws are weakly enforced; lack of sustainable
due to mismanagement, misuse, and
financing and access to available funding facilities; private sector
overexploitation of engagement
the country’sin ENR.
environmental activities is limited, including in climate change that
It is critical adaptation and disaster
environmental health is
preparedness. 85 improved and integrity ensured to help
accelerate economic growth, strengthen
resilience against the impact of climate
change and disasters (natural and human
induced), and improve the welfare of
the poor and marginalized members of
society. 83
83
PDP 2017-2022, Chapter 20, p. 315. http://pdp.neda.gov.ph/wp-content/uploads/2017/01/Chapter-20.pdf
84
Idem.
85
Idem, pp. 315-318.
signals from the labour market, and implementation of efficient active labour market
programmes that facilitate school-to-work as well as work-to-work transitions.
47 F.Philippines
Gearing2017
up for a just transition toward sustainable development
82. The challenge of creating jobs of better quality needs to consider the imperatives of
83. To this end, it is noteworthy that PDP 2017-2022 includes more aggressive strategies to
sustainable development for the present and future generations. PDP 2017-2022
rehabilitate and restore degraded natural resources, and protect the fragile ecosystems while
acknowledges the critical role of the environment and natural resources (ENR) sector in
improving the welfare of resource-dependent communities.84 Providing a frank assessment of
the country’s development. This sector provides a broad scope of ecosystem services,
the ENR situation in the Philippines, it notes that managing natural resources as a whole needs
84.furthersuch as developments
: (a) provisioning (e.g., food,and rawlegal materials, freshwater); at (b) regulating (e.g., local
Recentimprovement, especially
in the in monitoring
policy environmental
framework aimquality further such as air and water
institutionalizing
climate
pollution
the principlesand
and wastewater air quality,
management
of sustainable carbon sequestration
(many classified
development, among whichand storage,
water areas is theare erosion
unfit for their
Philippine prevention);
Green intended
Jobs
uses);(c) supporting
Actefforts
of 2016 on disaster
86 (e.g.,
that promotes habitats
risk reduction for
sustainable species,
and maintenance
climate change
development 87
amidst of genetic
adaptation
climate change. diversity); The and
remain inadequate;
88
law
(d) cultural
socio-economic
affirms labourand (e.g., recreation,
as aenvironmental tourism).
primary social landscape These
economic force ecosystem
is changing services
in promoting with increasesupport
sustainable the growth
in population
development andand
performance to of other
promote sectors,
the rightsincluding
of the agriculture,
high concentrations in urban areas, straining resources; the impacts of climate extremes and
and seeks people to a fisheries,
balanced industry
and and
healthful services,
ecology and
in
provide
variability
accord are livelihood,
with being
the felt
rhythm especially
with increasing
and to resource
harmony frequency dependent
of nature. and 89 communities.
intensity;
It seeks environmental
to contribute Provision
tolaws of these
are
the effort weakly
of
indispensable
enforced;
“just transition” services,
lack of sustainable
90 including
toward financing
to a greenand the
economy maintenance
access towhich
91
availableof a healthy
funding
includes and
facilities;
creating good
private
a carbon-neutral quality
sector
engagement
economy,in environmental
environment, has been increasingly
communications, activities iscompromised
manufacturing,limited, including due to
health inmismanagement,
care, climate change adaptation
conservation misuse,
of natural andand
disaster preparedness.
overexploitation
resources, of 85the country’s ENR. It is critical that environmental health is improved
among others. For this purpose, all concerned government agencies are to lead
and integrity ensured
the transition with the to use
help of accelerate economic growth,
green technologies, 92 strengthen
production resilience
of green goods against
and
84. Recent the developments
impact
services, 93 of climate
and creation in theofpolicy
change greenand
and legalThe
disasters
jobs. 94 framework
law wasaim
(natural and human at further
followed induced), institutionalizing
recently andby improve
the comingthethe
principles ofofsustainable development, onamong which ofissociety.
the Philippine Green Jobs Act of 201686
83
welfare
into force thethe
of poorParis and marginalized
agreement members
climate change, which the Philippines subsequently
thatratified.
promotes 95 sustainable development amidst climate change. The law affirms labour as a
87 88
83.primaryTo thissocial
end,economic
it is noteworthy force in that promoting
PDP 2017-2022 sustainable development
includes more aggressive and seeks to promote
strategies to
the rights of
rehabilitate
85. Given its economic the andpeople
restore to a balanced
degraded and
natural healthful
resources, ecology
structure, technological resources and capability, and in accord
protect the with
fragile the rhythm
ecosystems
human resource and
harmony
while of
knowledge nature.
improving 89
It
the seeks
welfareto contribute
of to the
resource-dependent effort of “just transition”
communities.
and skills base, and high vulnerability to climate change and environmental
84 90
toward
Providing to
a a green
frank
economy 91
assessmentwhich
risks, the country ofincludes
the isENR creating
still at thea carbon-neutral
situation andeconomy,
in the Philippines,
preparatory positioning itcommunications,
notesstage thatof managing
moving manufacturing,
naturala
toward
health care,
resources conservation
as a whole of
needs natural
further resources,
improvement, among others.
especially
green economy. Transition to a more advanced stage will neither be easy nor inexpensive. For
in this purpose,
monitoring all concerned
environmental
government
quality
The policy agencies
such as air
directions areandtoidentified
lead
waterthepollution
transition
in PDP with
and the use
wastewater
2017-2022 of green
combined managementtechnologies,
with the (many
Green
92
production
classified
Jobs Act
of green
water
and thegoods
areas
Paris and services,
areagreement
unfit 93
for theirandintended
have creation
the potential of green
uses); jobs.onsustainable
efforts
to move
94
The law was
disaster risk followed
reductionrecently
development and by the
climate
initiatives
comingchangeinto force of the
adaptationofremain Paris agreement
inadequate; on climate change,
socio-economic which the
and environmental Philippines subsequently
landscape is
from95declarations commitments to more concrete collaboration and joint action among
ratified.
changing with increase in population and high concentrations in urban areas, straining
all stakeholders. For this to be realized, these instruments should influence national
resources; the impacts
budget allocations in ofthe climate
directionextremes and variability
of MDGs, which are canbeingthen felt make withsustainable
increasing
85. Given its economic
frequency and structure,
intensity; technological
environmental resources
laws areand capability,
weakly human
enforced; resource
lack of knowledge
sustainable
development initiatives, programmes and projects attractive to potential investors and
andfinancing
skills base,and and high
access vulnerability
toinstitutions.
available to climate
funding change and environmental
facilities; risks, the country in is
development
still environmental
at the preparatory financing and positioning stage On ofthe moving hand,private
other toward while
a green
sector
moving
economy.
engagement
forward,
Transition the
country needsstage activities
to move is limited,
quickly and including in climate
pragmatically change problems
in confronting adaptationand disaster to
andobstacles
a more advanced
preparedness. 85 will neither be easy nor inexpensive. The policy directions identified in
already existing on the ground.
PDP 2017-2022 combined with the Green Jobs Act and the Paris Agreement have the potential to
move sustainable development initiatives from declarations of commitments to more concrete
collaboration and joint action among all stakeholders. For this to be realized, these instruments
should influence national budget allocations in the direction of MDGs, which can then make
sustainable development initiatives, programmes and projects attractive to potential investors
and development financing institutions. On the other hand, while moving forward, the country
needs to move quickly and pragmatically in confronting problems and obstacles already existing
on the ground.
83
83PDP
PDP 2017-2022, Chapter 20, p. 315. http://pdp.neda.gov.ph/wp-content/uploads/2017/01/Chapter-20.pdf
84
84Idem.
Idem.
85
85Idem, pp. 315-318.
86
Republic Act No. 10771 (2016).
39
87
Defined as development that meets the needs of the present generation without compromising the ability of the future generations to meet
their own needs (Sec. 4 [g], idem).
88
Refers to a change in climate that can be identified by changes in the mean or variability of its properties and that persists for an extended
period typically decades or longer, whether due to natural variability or as a result of human activity (Sec. 4[b], idem).
89
Sec. 2 [c], idem.
90
91
Refers to one which is low-carbon and resource-efficient, and results in the generation of green jobs and in improved human well-being and
social equity, while significantly reducing environmental risks and ecological scarcities (Sec. 4 [d], idem).
92
Refers to the development and application of products, equipment and systems used to conserve the environment and natural resources
(Sec. 4 [d], idem).
93
Refer to goods and services that benefit the environment or conserve natural resources, and may include research and development,
installation and maintenance services (Sec. 4[e], idem).
94
Refer to employment that contributes to preserving or restoring the quality of the environment, be it in the agriculture, industry or services
sector. Specifically, but not exclusively, this include jobs that help to protect ecosystems and biodiversity, reduce energy, materials and water
consumption through high efficiency strategies, decarbonize the economy, and minimize or altogether avoid generation of all forms of waste
and pollution. Green jobs are decent jobs that are productive, respect the rights of workers, deliver a fair income, provide security in the
workplace and social protection for families, and promote social dialogue (Sec. 4 [c], idem).
95
The ratification was concurred in by the Philippine Senate on 14 March 2017.
40
©ILO M. Rimando
Section III.
Fundamental
principles and
rights at work
and international
labour standards
Cruz
R . Dela
©ILO
51 Philippines 2017
A. The Philippine constitution and international labour standards
86. The Philippines is bound by the ILO standards and instruments it ratified and draws guidance
from other relevant ILO instruments,96 including the ILO Declaration of the Fundamental
SECTION III. FUNDAMENTAL PRINCIPLES AND RIGHTS AT WORK AND
Principles and Rights at Work. Social justice and protection of the rights and welfare of workers,
INTERNATIONAL LABOUR STANDARDS
which are central goals of international standards, are overarching State policies on labour and
employment under the Constitution.97 The scope of social justice and labour protection policies
A. The Philippine constitution and international labour standards
include the specific areas of full employment and equality of employment opportunities, self-
86.organization and collective
The Philippines is bound bargaining
by the ILOincluding the rights
standards to peaceful concerted
and instruments it ratified activities
and draws and
to strike,
guidancesecurity
fromofother
tenure, humane
relevant ILO conditions of work,
instruments, 96 living wage,
including workers’
the ILO participation
Declaration of the in
policy and decision-making processes, shared responsibility in settling
Fundamental Principles and Rights at Work. 98Social justice and protection of the rights disputes, productivity
sharing,
and and expansion
welfare and growth
of workers, for enterprises.
which are central This scope
goals of embodies the decent
international work pillars
standards, are
andoverarching
the areas covered by the fundamental conventions, particularly equality
State policies on labour and employment under the Constitution. The scope of
97 employment
opportunities
of social (non-discrimination) and the rights
justice and labour protection to self-organization
policies include the and collective
specific areasbargaining.
of full
Freedom of association is also separately protected from abridgement
employment and equality of employment opportunities, self-organization and under the Billcollective
of Rights.99
All these are putincluding
bargaining into effect thebyrights
a Labor Code andconcerted
to peaceful several more specific
activities labour
and and social
to strike, welfare
security of
legislations.
tenure, humane conditions of work, living wage, workers’ participation in policy and
decision-making processes, shared responsibility in settling disputes, productivity
B. Work tosharing,
be abolished
and expansion and growth for enterprises. 98 This scope embodies the decent
work pillars and the areas covered by the fundamental conventions, particularly equality
B.1 Forced labour
of employment opportunities (non-discrimination) and the rights to self-organization and
collective bargaining. Freedom of association is also separately protected from
87. Theabridgement
Constitutionunder prohibits
the Billinvoluntary
of Rights.servitude
99
All theseinare
anyput form
intoexcept as aa Labor
effect by punishment
Code andfor a
crime whereof
several more thespecific
party shall
labourhaveandbeen
socialduly convicted.
welfare 100
An anti-human trafficking law is in
legislations.
place prohibiting human trafficking and other situations amounting to forced labour.101 These
B.legalWork
mandates
to beare consistent with the country’s ratification of ILO Convention Nos. 29 and
abolished
105 against forced labour and other human rights conventions.
B.1 Forced labour
88. Although the incidence and magnitude of forced labour is difficult to track and monitor, its
87.existence is undeniable.
The Constitution Administrative
prohibits dataservitude
involuntary from the inInter-Agency
any form except Councilas aAgainst Trafficking
punishment for
100
(IACAT) show that documented trafficking cases mostly involve sexual exploitation and some
a crime whereof the party shall have been duly convicted. An anti-human trafficking
labour
law trafficking
is in placecases such ashuman
prohibiting forcedtrafficking
labour, involuntary
and other servitude, debt bondage,
situations amounting slavery,
to forced
101
drug couriers and use of children in armed conflicts. From 2004 to 2015, IACAT prosecuted
labour. These legal mandates are consistent with the country’s ratification of ILO
133 Convention
labour trafficking
Nos. 29 cases
and(Table 24). forced labour and other human rights conventions.
105 against
88. Although the incidence and magnitude of forced labour is difficult to track and monitor,
its existence is undeniable. Administrative data from the Inter-Agency Council Against
Trafficking (IACAT) show that documented trafficking cases mostly involve sexual
exploitation and some labour trafficking cases such as forced labour, involuntary
servitude, debt bondage, slavery, drug couriers and use of children in armed conflicts.
From 2004 to 2015, IACAT prosecuted 133 labour trafficking cases (Table 24).
96
ART. II, Section 2 of the Philippine Constitution states that the Philippines adopts the generally accepted principles of international law as
part of the law of the land and adheres to the policy of peace, equality, justice, freedom, cooperation, and amity with all nations. The Philippines
has ratified 37 conventions, including all eight of the fundamental conventions.
97
1987 Philippine Constitution, ART. II, Section 18.
98
Idem, ART. XIII, Section 3.
99
Idem, ART. III, Section 8.
100
Idem, Section 18 (2).
101
Republic Act No. 9208 (2003), as amended by Republic Act No. 10364 (2012), “An Act To Institute Policies To Eliminate Trafficking in
Persons Especially Women and Children, Establishing the Necessary Institutional Mechanisms for the Protection and Support of Trafficked
Persons, Providing Penalties for its Violations Therefor, and for Other Purposes.”
41
Section III. Fundamental principles and
rights at work and international labour standards 52
Table 24. Trafficking in persons

Indicator 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Table 24. Trafficking in persons
Cases filed by type 2 32 87 117 182 276 285 315 388 261 308 326 274
Indicator 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Sexual exploita on 2 29 86 110 176 214 267 295 350 239 284 308 264
Cases filed by type 2 32 87 117 182 276 285 315 388 261 308 326 274
Cybersex trafficking - - - 2 1 4 4 2 13 1 6 6 3
Sexual exploita on 2 29 86 110 176 214 267 295 350 239 284 308 264
Labour trafficking - 3 1 5 5 7 13 16 25 21 18 12 7
Cybersex trafficking - - - 2 1 4 4 2 13 1 6 6 3
Organ trafficking - - - - - 51 1 2 - - - - -
Labour trafficking - 3 1 5 5 7 13 16 25 21 18 12 7
Convic ons - - 7 - 3 6 10 18 25 27 27 55 47
Organ trafficking - - - - - 51 1 2 - - - - -
Sexual exploita on - - 7 - 3 3 9 17 22 26 24 47 35
Convic ons - - 7 - 3 6 10 18 25 27 27 55 47
Cybersex trafficking - - - - - - 1 - 1 - 1 5 10
Labour trafficking - - - - - 3 - 1 2 1 2 3 2
Cybersex trafficking - - - - - - 1 - 1 - 1 5 10
Persons convicted - - 6 - 4 5 11 16 32 32 37 57 49
Labour trafficking - - - - - 3 - 1 2 1 2 3 2
Persons convicted - - 6 - 4 5 11 16 32 32 37 57 49
Labour trafficking - - - - - - 1 - 5 - 1 3 9
Organ trafficking - - - - - 1 - 1 2 1 2 2 3
Labour trafficking - - - - - - 1 - 5 - 1 3 9
Source: Department of Justice, Inter-agency Council against Trafficking.
Organ trafficking - - - - - 1 - 1 2 1 2 2 3
Source: Department of Justice, Inter-agency Council against Trafficking.
89.
89. InIn2014, 2014, the the Department
Department of Socialof Social
WelfareWelfare and Development and Development(DSWD) reported (DSWD) 648reported
women and
648
465 women
children and
victims 465 of children
trafficking, victims
155 of
victims trafficking,
of illegal 155 victims
recruitment of
(121 illegal
women, recruitment
34 children)
89. In 2014, the Department of Social Welfare and Development (DSWD) reported
(121
and648 women,
39 victims 34 children) and 39 victims of child labour. During the same year,
Policethe
women of andchild465labour.
childrenDuring victims theofsame year, the
trafficking, 155 Philippine
victims ofNational illegal recruitment (PNP)
Philippine
recorded 385 National
crimes Police
relating (PNP)
to recorded
trafficking in 385
personscrimes relating
involving to
238 trafficking
women and in persons
147 children,
(121 women, 34 children) and 39 victims of child labour. During the same year, the
involving
103 cases of238
punishable sexual women
by harassmentand 147and
imprisonment children, cases103
12 recorded
which caseslabour.
of child
involves of sexual
an 102 harassment
obligationThe combinedto perform anddata 12labour.
casesIACAT,
from of
The
Philippine National
102 Police (PNP) 385 crimes relating to trafficking in persons
child
DSWD labour.
and PNP The combined data from IACAT, DSWD and PNP indicate that not many
Revised
involving 238indicate
Penal women that
Code and not
also 147many
provideschildren, cases103
for reach
sanctions
cases theofcourts.
of imprisonment for
sexual harassment and 12 cases of participation in
cases reach
illegallabour. the courts.
106
strikes. The combined data from IACAT, DSWD and PNP indicate that not many
102
child
90. Thecases ILO Committee
reach the courts. of Experts on Application of Conventions and Recommendations (CEACR)
90. The ILOChild Committeelabour of Experts on Application of Conventions and Recommendations
has B.2
standing observations arising from the implementation of ILO Convention No. 29. Among
(CEACR) has standing observations arising from the implementation of ILO Convention
90.these The include the need to enforce
ILO Committee of Experts the on lawsApplication
more effectively and to robustly
of Conventions prosecute violations,
and Recommendations
No.
92.addressThe 29.Philippines
Among these includeILO the need to enforce theand laws more effectively and
law,tothe
(CEACR) allegations ofratified
has standing complicity
observations Conventions
of certainarising No. 138
government
from 182.
officials
the implementation in Under ofnational
trafficking ILO activities,
Convention and
robustly
minimum prosecute
age of violations,
employment address
is 15 allegations
years old. of A
107 complicity
special lawof certain
also government
provides for the
ensure that migrant workers particularly women and children are not placed in situations
No. 29. Among these include the need to enforce the laws more effectively and to
officials
elimination in trafficking
of to theabusesactivities,
worst forms andofensure child that
labour migrant
and workers
for particularlyofwomen
the protection working
that
and subject
robustly
children them
prosecute
108 are not
violations,
placed including
in
address
situations unpaid that wages,
allegations
subject food
of deprivation,
complicity
them to abuses forcedgovernment
of certain
including confinement
unpaid
children.
inwages,
the workplace, Technically,
and physical child labour
andconfinement
sexual isabuse,
prohibited and illegal, andparticularly
refers to any work
in or
officials in trafficking activities, and ensure thatinmigrant
situations workerswhere traffickers presenting
women
performed food deprivation,
by persons forced
under 18 years of age the
which workplace,
violates and
the physical
conditions andprescribed
sexual
themselves
and children
abuse, inassituations
orthe recruiters
are not placed use traffickers
where fraudulent
in situations recruitment
presenting
that subject practices,
themselves
them tohiring
asthat
abuses
recruiters fees, useuse
including of unpaid
fraudulentviolence,
under
withholding country’s
ofpractices,
travel documentslaws. On the
and other
salaries, hand, child
psychological work is
intimidation performed by persons
of travel and other practices,
wages, food deprivation, forced confinement in the workplace, and physical and sexual
recruitment
under 18 years of agehiring
that fees,
is not use of violence,
prohibited or withholding
illegal. documents and
tosalaries,
force
abuse, their
or invictims
situations
psychological into where
work. 103
traffickers presenting themselves as recruiters use fraudulent
intimidation and other practices, to force their victims into
recruitment
103 practices, hiring fees, use of violence, withholding of travel documents and
93. work. The 2011 Survey on Children (SOC) estimated that 2.097 million (7.9theirper cent) children
91. In relation
salaries,to psychological
Convention No.intimidation 105, the CEACR and also otherobserved
practices, thattotheforce imposition in someinto
victims penal
aged 5 to
103 17 years old were in child labour. The incidence was 10.2 per cent for boys and
91. laws of punishment for holdingthe or expressing political views or the views ideologically opposed
work.
104
In 5.4
relation
per cent to Convention
for girls. The105, incidence CEACR
tends toalso observed
increase with thatthe age ofimposition the child: those in some aged
topenal
the established
laws 104 political, social or economic system is inconsistent with the Convention. Also
ofat 20.4
punishment for holding or expressing political views or views
15-17
91.seenInasrelation years is per cent while those under 15 is at 4.2 per cent. It is higher in rural
inconsistent
ideologically is Article
to Convention
opposed to in 278established
105,
the (g) of the political,
the105CEACR Labor Code
also observed
socialwhich thatconfers on the
the imposition Secretary
in some of
areas
penal (9.6
laws per
104 cent)
of than
punishment urbanforareas holding(5.2 per or cent). On theorpolitical
expressing othereconomichand, views
system
LFS is
statistics
or views
Labor and Employment
inconsistent with the and on the Also
Convention. President seen (of
as the Philippines)
inconsistent is the discretionary
Article 278 (g) 105 authority
of the
show that the number
ideologically opposed and incidence of working childrensocial decreased from 2.29 system million or
toLabor
enjoin or force
Code which an end to to
confers on
the inestablished
strikes the labour
Secretary
political,
disputes
of that occur
Labor and inorindustries
Employment
economic which,
and on inthe hisisor
9 per cent inwith
inconsistent 2005the to Convention.
1.839 millionAlso or 6seen per as cent in 2015. This
inconsistent is trend was
Article 278 apparent
(g) 105
of for
the
her opinion,
President
both (of
males areand
the“indispensable
Philippines)
females and to the
theage
by national
discretionary
group. interest”
authority
However, and
the tothereby
enjoin require
incidence or
for force it an
those to inbe
end resolved
the toage
Laborcompulsory
through Code which confers onA the
arbitration. Secretary of Labor andarbitration Employment and on the
strikes
groupin15-17
President
labour
(of years
the
disputes
old was
Philippines)
that atstrike
stilloccur
the 17.8 in per during
industries
discretionary cent for compulsory
which,
both sexes
authority
in his
to in 2015
enjoin
or her
or
isopinion,
(Figure
force
prohibited
18).end
an
are and
illegal, punishable
“indispensable to bytheimprisonment
national interest” which andinvolves
thereby an obligation
require it to be to resolved
perform through labour. to The
strikes
Revised in labour
Penal Code disputes
also provides that for occur in industries
sanctions of which, in for
imprisonment his participation
or her opinion, in are
illegal
94. In compulsory
terms arbitration.
of sectoral A strike during compulsory arbitration is prohibited and illegal,
“indispensable
strikes. 106 to theand geographical
national interest”distribution,
and therebySOC requiredataitshow to bethat 58.4 per
resolved cent
through
(1.225
compulsory million) of child labourers
arbitration. A strike during are in compulsory
rural areas, mostly arbitration in agriculture
is prohibited engaged in the
and illegal,
102
Philippineproduction
Statistical Yearbook,
of 2015.
sugarcane, banana, coconut, corn, hog, palm oil, rice, rubber and tobacco.
103
Observation (CEACR) – adopted 2013, published 103rd ILC session (2014), Forced Labour Convention, 1930 (No. 29) – Philippines
(Ratification:
102 Services
Statisticalincluding
2005).
Philippine Yearbook, 2015. domestic work accounted for 34.6 per cent (726,000), while industry
104 103
ForObservation
example, Sections
accounted(CEACR)142for–and 154
7.0of2013,
adopted the Revised
per cent Penal
published 103Code
(147,000)
rd
ILCaresession
worded in
who(2014), terms
were broad
employed
Forced enoughConvention,
Labour toinlendmining
themselves to be
and
1930 (No. 29)applied as a
quarrying,
– Philippines
means of punishment
(Ratification: for the peaceful expression of views, enforceable with sanctions involving compulsory labour.
2005). 109
105 104
Formerly manufacturing
Art.
For example,263Sections
(g) of the142Labor
andpyrotechnics
Code.
154 of the Revised andPenal construction,
Code are worded in among others
terms broad enough(Table 25). toInbe terms
to lend themselves applied asofa
means of punishment for the peaceful expression of views, enforceable with sanctions involving compulsory labour.
105
106
Formerly Art. 263 (g) of the Labor Code. 42
Observation (CEACR) - adopted 2013, published 103rd ILC session (2014), Abolition of Forced Labour Convention, 1957 (No. 105) - Philippines
(Ratification: 1960).
107
42
Under, Art. 137 of the Labor Code, no child below 15 years of age shall be employed, except when he works directly under the sole
responsibility of his parents or guardian, and his employment does not in any way interfere with his schooling.
108
Republic Act No. 9231 (2003). Sec. 12-D of the Act prohibits child labour and defines the worst forms of child labour to include the following:
(1) All forms of slavery, as defined under the “Anti-trafficking in Persons Act of 2003”, or practices similar to slavery such as sale and
53 Philippines 2017
B.2 Child labour
92. The Philippines ratified ILO

Conventions Nos. 138 and 182. Under
national law, the minimum age of
employment is 15 years old.107 A special
punishable by imprisonment which involves an law also provides
obligation for the labour.
to perform elimination The of
Revised Penal Code also provides for sanctions of theimprisonment
worst forms offor child labour andinfor
participation
illegal strikes. 106 the protection of working children.108
Technically, child labour is prohibited
B.2 Child labour and illegal, and refers to any work
performed by persons under 18 years
92. The Philippines ratified ILO Conventions No. 138 of and
age 182.
which Underviolates the conditions
national law, the
107 prescribed under the country’s laws.
minimum age of employment is 15 years old. A special law also provides for the
elimination of the worst forms of child labour On andthe forother hand, childofwork
the protection is that
working
children. 108 Technically, child labour is prohibitedperformed and illegal, by and
personsrefersunderto any18 years
work of
©ILO G. Carreon age
performed by persons under 18 years of age which violates the conditions prescribed that is not prohibited or illegal.
under the country’s laws. On the other hand, child work is that performed by persons
under 18 years of age that is not prohibited or illegal. 93. The 2011 Survey on Children (SOC)
estimated that 2.097 million (7.9 per
cent) children aged 5 to 17 years old
93. The 2011 Survey on Children (SOC) estimated that 2.097 million (7.9 per cent) children
were in child labour. The incidence was
aged 5 to 17 years old were in child labour. The incidence was 10.2 per cent for boys and
10.2 per cent for boys and 5.4 per
5.4 per cent for girls. The incidence tends to increase withfor
cent the age Thechild:
girls.of the those aged
incidence tends
15-17 years is at 20.4 per cent while those under 15tois atincrease 4.2 per cent. It is higher
with the age of the in rural
areas (9.6 per cent) than in urban areas (5.2 per cent). child:Onthose
the otheraged hand, 15-17LFSyearsstatistics
is at
show that the number and incidence of working children 20.4 per cent while those under 15 or
decreased from 2.29 million is at
9 per cent in 2005 to 1.839 million or 6 per cent in 2015. This trend was
4.2 per cent. It is higher in rural areas apparent for
both males and females and by age group. However, (9.6the perincidence
cent) thanfor in urban
thoseareasin the(5.2
ageper
group 15-17 years old was still at 17.8 per cent for cent). On the
both sexes other (Figure
in 2015 hand, LFS 18).statistics
show that the number and incidence
94. In terms of sectoral and geographical distribution,ofSOC working children
data show that decreased
58.4 per cent from
(1.225 million) of child labourers are in rural areas, 2.29 million
mostly or 9 per engaged
in agriculture cent in 2005 in the to
production of sugarcane, banana, coconut, corn, hog, 1.839
palmmillion or 6rubber
oil, rice, per cent and in tobacco.
2015. This
Services including domestic work accounted for 34.6 trend
perwascentapparent
(726,000), forwhile
both industry
males and
accounted for 7.0 per cent (147,000) who were females employed and in by age group.
mining However,
and quarrying,
manufacturing pyrotechnics and construction, among others (Table 25). In termsgroup
the incidence for those in
109 the age of
15-17 years old was still at 17.8 per cent
106 for both sexes in 2015 (Figure 18).
Observation (CEACR) - adopted 2013, published 103rd ILC session (2014), Abolition of Forced Labour Convention, 1957 (No. 105) - Philippines
(Ratification: 1960).
107
Under, Art. 137 of the Labor Code, no child below 15 years of age shall be employed, except when he works directly under the sole
responsibility of his parents or guardian, and his employment does not in any way interfere with his schooling.
108
trafficking of children, debt bondage and serfdom and forced or compulsory labour, including recruitment of children for use in armed conflict;
(2) The use, procuring, offering or exposing of a child for prostitution, for the production of pornography or for pornographic performances;
(3) The use, procuring or offering of a child for illegal or illicit activities, including the production and trafficking of dangerous drugs and
volatile substances prohibited under existing laws; or
(4) Work which, by its nature or the circumstances in which it is carried out, is hazardous or likely to be harmful to the health, safety or morals
of children, such that it:
a) Debases, degrades or demeans the intrinsic worth and dignity of a child as a human being; or
b) Exposes the child to physical, emotional or sexual abuse, or is found to be highly stressful psychologically or may prejudice morals; or
c) Is performed underground, underwater or at dangerous heights; or
d) Involves the use of dangerous machinery, equipment and tools such as power-driven or explosive power-actuated tools; or
e) Exposes the child to physical danger such as, but not limited to the dangerous feats of balancing, physical strength or contortion, or which
requires the manual transport of heavy loads; or
f) Is performed in an unhealthy environment exposing the child to hazardous working conditions, elements, substances, co-agents or
processes involving ionizing, radiation, fire, flammable substances, noxious components and the like, or to extreme temperatures, noise
levels, or vibrations; or
g) Is performed under particularly difficult conditions; or
h) Exposes the child to biological agents such as bacteria, fungi, viruses, protozoans, nematodes and other parasites; or
i) Involves the manufacture or handling of explosives and other pyrotechnic products.
109
In 2015, half of working children were found in agriculture, hunting and forestry while one-fifth in trade industries. In terms of major
occupation group, working children were mostly hired as labourers and unskilled workers (67.9 per cent).
94. In terms of sectoral and geographical distribution, SOC data show that 58.4 per cent
(1.225 million) of child labourers are in rural areas, mostly in agriculture engaged in the
production of sugarcane, banana, coconut, corn, hog, palm oil, rice, rubber and tobacco.
Services including domestic work accounted for 34.6 per cent (726,000), while industry
accounted
punishable for by
7.0imprisonment
per cent (147,000) who were
which involves an employed
obligation into mining
perform and quarrying,
labour. The
manufacturing
nature of
RevisedofPenal pyrotechnics
work, about
Code and
95
also construction,
per cent
provides (2.050 among
million)others (Table
child 25).
labourers 109
In
were terms of
engaged nature
in
nature
of work, about work,
95 per about
cent 95
(2.050 cent for
per million) sanctions
(2.050
child
of imprisonment
million)
labourers child
were labourers
engaged
forwere
in
participation in
engagedwork,
hazardous in
hazardous
illegal work,
strikes. 106 including the worst forms of child labour. Eight out of every 10 children
hazardous
including work,forms
theinworst including the worst
of child forms
labour.were
Eightofout
child labour.
of every 10Eight out of
children every 10
working in children
hazardous
working hazardous environments exposed to physical hazards.
working
environments in hazardous environments were exposed to physical hazards.
B.2 Childwere exposed to physical hazards.
labour
Figure 18. Incidence of child labour by age group, 2011
Figure 18. Incidence of child labour by age group, 2011
92. The Philippines ratified ILO Conventions (in per cent)138 and 182. Under national law, the
(in per No.
cent)107
30.0
minimum age of employment is 15 years old. A special law also provides for the
30.0
elimination of the worst forms of child labour and for the protection of working
20.0
children. 108 Technically, child labour is prohibited and illegal, and refers to any work
20.0
performed by persons under 18 years of age which violates the conditions prescribed
10.0
10.0
under the country’s laws. On the other hand, child work is that performed by persons
under
0.0 18 years of age that is not prohibited or illegal.
0.0 Total Male Female Urban Rural
Total Male Female Urban Rural
93. The 2011 Survey on Children Total
(SOC) estimated
5-14 that 2.097 million
(7.9 per cent) children
15-17
Total 5-14 15-17
aged 5 to 17 years old were in child labour. The incidence was 10.2 per cent for boys and
Note: Data based on past 12 months reference period.
5.4Data
Note: perUnderstanding
Source: cent
basedfor girls.
on past 12The incidence
months
Children’s reference
Work tends
period.
(UCW) to increase
Programme with thebased
calculations age on
of the child: those aged
thePhilippine
Source: Understanding
15-17 Statistics Children’s
years isAuthority,
at 20.4 per Work
2011cent (UCW)
while
Survey Programme calculations based on the Philippine
those under 15 is at 4.2 per cent. It is higher in rural
on Children.
Statistics
areas (9.6 per Authority,
cent) than2011
inSurvey
urbanonareas
Children.
(5.2 per cent). On the other hand, LFS statistics
show that the number and incidence of working children decreased from 2.29 million or
9 per centTable 25. to
in 2005 Economic activity
1.839 million or rate
6 perofcent
children
in 2015.by sex
Thisand agewas
trend group
apparent for
both males Table 25. Economic
and females and byactivity
age group.rateHowever,
of children the by sex andfor
incidence age those
groupin the age
(in per cent)
Sex and15-17
group age group 2005was still
years old 2010
(in
perper
at 17.82011 cent)
cent 2012
for both 2013 2014 (Figure
sexes in 2015 201518).
Sex and age group
Total 20059.0 2010
7.2 20118.5 20127.7 2013
6.9 2014
7.2 2015
6.0
Total
5-9 9.0
1.5 7.2
1.1 8.5
1.3 7.7
0.9 6.9
0.8 7.2
0.9 6.0
0.8
94. In10-14 5-9terms of sectoral 1.5 and
7.8 geographical
1.1
5.3 distribution,
1.3
7.2 0.9
5.8 SOC data
0.8
5.0 show 0.9
5.6 that 58.44.4 per cent
0.8
10-14
(1.225
15-17 million) of child7.8
23.6 labourers 5.3
20.8 are in 7.2
22.9rural areas, 5.8
22.1 mostly 5.0
20.3in 5.6
agriculture
20.9 4.4
engaged
17.8 in the
15-17
Male 23.6
11.2 20.8
9.0 22.9
10.6 22.1
9.6 20.3
8.7 20.9
9.0 17.8
7.5
production
Male
of sugarcane, 11.2
banana, 9.0
coconut, 10.6
corn, 9.6 hog, palm8.7oil, rice,9.0rubber and 7.5
tobacco.
5-9 1.7 1.2 1.5 1.0 0.9 1.0 0.8
Services
5-9
10-14
including domestic
1.7
9.8
work
1.2
6.5
accounted 1.5
8.7
for 34.6
1.0
7.2
per cent
0.9
6.1
(726,000),
1.0
6.8
while0.8
5.1
industry
10-14
accounted
15-17 for 7.0 per 9.8
30.0 cent (147,000) 6.5
26.6 8.7
who were
29.2 7.2
28.2 employed 6.1
26.5 in mining 6.8
26.9 and 5.1
23.0 quarrying,
15-17
manufacturing
Female 30.0
pyrotechnics
6.6 26.6
and
5.4 construction,29.2
6.4 28.2
among
5.7 26.5
others
5.0 (Table 26.9
5.425). 23.0
109
In terms of
4.5
Female
5-9 6.6
1.2 5.4
0.9 6.4
1.1 5.7
0.8 5.0
0.8 5.4
0.8 4.5
0.7
5-9
10-14 1.2
5.7 0.9
4.2 1.1
5.5 0.8
4.4 0.8
3.8 0.8
4.4 0.7
3.6
106
Observation10-14
15-17(CEACR) - adopted 2013, 17.0 5.7
published 4.2
103rd14.9 5.5 Abolition
16.4
ILC session (2014), 4.4
15.9 3.8 Convention,
14.0
of Forced Labour 4.41957 (No.12.5
14.7 3.6
105) - Philippines
(Ratification: 15-171960). 17.0 14.9 16.4 15.9 14.0 14.7 12.5
107 Note: Data based on past week reference period.
Under,Note:
Art. 137Data of the Labor
based onCode,
past no week childreference
below 15 period.
years of age shall be employed, except when he works directly under the sole
Source:
responsibility of hisPhilippine Statistics
parents or guardian, andAuthority,
his employment Labor doesForce Survey
not in any way.interfere with his schooling.
108 Source: Philippine Statistics Authority, Labor Force Survey .
95. School participation
trafficking of children,
95. School debt bondageisand
participation an indirect
isserfdom
an indicator
and forced or compulsory of ofthe inroads
labour, and
anddeficits
including recruitment of childrin
inthe
en for useelimination
in armed conflict; of
of aindirect indicator the the inroads deficits the elimination
95. child
(2) The use,
(3) The of labour.
procuring,
School
use, child
procuring Over the last
offering or exposing
participation is
child
andecade,
for illegal the
or proportion
child for prostitution,
indirect indicator
illicit
forof
activities,
the
labour. Over the last decade, the proportion of working children not attending
or offering of a of
including working
production
inroads
the
and
production children
of pornographydeficits
and not
trafficking
in attending
or for pornographic
the
of
elimination
dangerous school
performances;
drugs and
decreased
volatile substances (56.7
of child labour.
prohibited per cent
Over
under in
existing the 2006
laws; or to 45.4 per cent in 2015). In terms of educational outcomes,
last decade, the proportion of working children not attending
(4) Workschool
which, bydecreased
its nature or the(56.7 per cent in 2006 to out,
45.4 per cent in 2015). In terms of educational
school
of children,
school attendance
outcomes,
such
decreased
that it: school gap(56.7
between
circumstances
attendance
per cent child in labourers
in which it is carried
2006
gap between
to 45.4 and
child those
is hazardous
per cent
labourers who
or likely
are
in 2015).
and notInworking
to be harmful
those who are increases
to the health,
terms of educational
not working with
safety or morals
a)age. It was 18with per age.

cent for those 18 between ten
for to 14 years old 10 andto48 14per centold forandthose 15 to
outcomes,
Debases, degrades orschool
demeans attendance
the intrinsic worth gap
and between
dignity of a child
child as alabourers
human being; and
or those who are not working
b) Exposesincreases
the child to physical, It was
emotional or sexual per cent
abuse,centor is found those
to be highly between
stressful psychologically years
or mayoldprejudice 48 per
morals; or
17 (Figure
increases
cent for
c) Is performed 19). withChild
those 15
underground,
age. labourers
It was
to 17 or(Figure
underwater have
18 per
at dangerous lower
19). Child
heights; school
for those life expectancy
between 10 tocompared
14
or labourers have lower school life expectancy
years to other
and children.
48 per
d)At each
centtheage
Involves for
use ofupto
those toother
12 machinery,
15
dangerous years
to 17 old, (Figure the
equipment difference
19). Child
and tools such in expectancy
labourers
as power-driven have islower
around
or explosive two years
school
power-actuated life orin favour of
tools;expectancy
e) Exposescompared
the child to physical children.
danger such as, butAtnoteach
limited age
to the up to
dangerous 12featsyearsof old,
balancing,the difference
physical strength or in expectancy
contortion, or which
those is who
compared
requires around aretwo
the manual notother
to working.
years
transport
children.
in favour
of heavy From
loads;
Ata each
or of life-cycle
those whoapproach,
age up to 12 years
are not working. theyold, arethe most
From likely
difference not
a life-cycle
inable to get the
expectancy
approach,
f)necessary education and intraining to
ofeither
the proceed
is around
Is performed in antwo years
unhealthy environmentfavour exposing thosechild who areto not higher
working. levels oftraining
From education
a life-cycle or get good jobs
approach,
theyinvolving
processes are most likely
ionizing, not fire,
radiation, ableflammable
to getthe substances,
to hazardous
necessary
noxious
working
education
components
conditions,
andand
the
elements,
like, or to
substances,
to either
extreme
co-agents
proceed
temperatures,
or
noise
they
aslevels,
youth. are
They most are likely not
or at risk
able to get
of entering the necessary education youth and training to either proceedor
toorhigher
vibrations; levels of education oradulthood
get good as jobsunemployed
as youth. They and are as at underemployed
risk of entering
to higher
g)vulnerably
Is performed under levels
employed.
particularlyofAs education
a
difficult result,
conditions; or
their
or getchancegood of jobs as
acquiring youth.decent They work are asat risk of
adults entering
is lower.
h) Exposesadulthood
the child toas as unemployed
biological agents such asyouth youth and
bacteria,and
fungi,as as underemployed
viruses, protozoans, nematodes or and
vulnerably
other parasites; employed.
or As a
adulthood unemployed underemployed or vulnerably employed. As a
result,
i) Involves their
the manufacture chance of
or handling acquiring
of explosives and decent work
other pyrotechnic as adults
products. is lower.
109
In 2015, result,
half of their
workingchance of acquiring
children were decenthunting
found in agriculture, work andas adults
forestry whileis one-fifth
lower.in trade industries. In terms of major
occupation group, working children were mostly hired as labourers and unskilled workers (67.9 per cent).
55 Philippines 2017
Figure 19. Working children not in school by sex and age group
(per cent of children population)
Figure 19. Working children not in school by sex and age group
80.0
(per cent of children population)
60.0
80.0
40.0
60.0
20.0
40.0
0.0
20.0
2006 2010 2011 2012 2013 2014 2015
0.0 Total Male Female 5-9 10-14 15-17
2006 2010 2011 2012 2013 2014 2015
Note: Data basedTotal
on past week reference
Male period.
Female 5-9 10-14 15-17
Source: Philippine Statistics Authority, Labor Force Survey. 114
enhance
Note: Datatheir
basedwelfare and reference
on past week enable them
period.to realize their full potential. The Labor Code
Source: Philippine Statistics Authority, Labor Force Survey. 115
96. Forprovides
the past fordecade,
specificthe standards for women
Philippines employees
implemented pertainingforto the
a programme (a) facilities such
progressive
96. For as theseats,
past decade,
separate the Philippines implemented a programme for the progressive elimination
elimination of child toilet
labourrooms and
particularly lavatories,
its worst and forms nurseries;
by 2015.(b) But maternity
the problem leaveof benefits
child
96.of child For labour
the
in relation past particularly
decade,
to social children the its worst
Philippines
security benefits; forms
116 by
implemented
(c) family2015. But
a the
programmeproblem forof child
the labour
progressive and
labour and working is ultimately tied toplanning
poverty services and incentives
in households. With afor
working
family
significant children
elimination of is
planning;
proportion ultimately
child(d)labour tied to against
particularly
prohibition
of households poverty ininhouseholds.
its worst
stilldiscrimination
forms by in
poverty, the With
2015. a significant
But
compensation
essential
the problem and
conditionproportion
of child of
benefits,
for
households
labour
promotion,
effectively still
and in poverty,
working the
children
training opportunities,
eliminating essential
child labour instudy
is condition
ultimately
all itsand forms for
tied effectively
scholarshipto poverty
remains grants eliminating
unfulfilled.
in child
households.
on the basis of sex; and labour
With inaall
its forms
(e) remains
significant
declaration unfulfilled.
proportion
as unlawful of households
any stipulation still in poverty,
against marriage, the essential
denying conditionany benefits for
effectively eliminating
provided under the and law andchild labour
discharging in all its forms
a female employee remains unfulfilled.
ontreatment
account ofin her pregnancy
C. Non-discrimination equality of opportunity, access and
C. Non-discrimination and equality of opportunity, access
or refusing admission upon her return to work after giving birth for fear of the employee
employment and treatment in employment
C. getting Non-discrimination
pregnant again. and 117 equality of opportunity, access and treatment in
C.1 C.1 Policy and legal

employment
Policy andframework
legal framework
99. Over the years, various government offices have also established or formulated policies,
97. The C.1 Policy and
Philippines legal framework
97. The Philippines ratified
programmes, rules
ratified andILO
ILO Convention
guidelines
Convention on No. No.100
promoting 100(Equal
(Equal
women’s Remuneration
Remuneration participation Convention)
in the labour
Convention) and and
Convention
force andNo.
Convention No.111 111(Discrimination
respecting their right for in
(Discrimination inEmployment
equality
Employment of access andandOccupation
and treatment in
Occupation Convention).
employment.ItItInalso
Convention).
97.acceded The Philippines
addition,to the United
amendments ratified
Nations
in ILO
labourConvention
Convention
laws and No.on
new 100
the
laws (Equal
Elimination
have Remuneration
also of
been Convention)
Discrimination
introduced to expand and
Against
also acceded to the United Nations Convention on the Elimination of Discrimination
Women Convention
protection ofNo.
(UN-CEDAW). women 111 Under
(Discrimination
workersILO 118 in Employment
Convention
as well as ofNo. of and
acts111, the Occupation
protected
discrimination Convention).
characteristicsnot sex-that It
against Women (UN-CEDAW). Under ILO Convention No. 111, that the are protected
cannot also acceded
be Inthe2010,
basis to the United Nations Convention on the Elimination of Discrimination
based.
characteristics thataof lawany
cannot was distinction,
bepassed
the basis exclusion
repealing
of anythe or
banpreference
distinction, on the of such
employment
exclusion nature
of women
or preference thatofnullifies
night or
insuch
impairsagainst 119 Women (UN-CEDAW). Under ILO Convention No. 111, the protected
work.equality of opportunity law or treatment in employment or occupation are race, colour,
nature that In 2016,
nullifies another
or impairs was passed
equality ofprohibiting
opportunity discrimination
or treatment against
in employment an individual or
sex, characteristics
religion, are politicalthat cannot be the basis of any distinction, exclusion or preference of such
race, opinion, national extraction
politicaloropinion,social origin, or extraction
any other characteristic
120
based
occupation on age. colour, sex, religion, national or social
nature that nullifies or impairs equality of opportunity or treatment in employment or
determined
origin, or any by the otherratifying country. determined
characteristic Consistent with by the international
ratifying country. principles, the Constitution,
Consistent with
occupation are race, colour, sex, religion, political opinion, national extraction or social
the Labor Codeprinciples,
C.2
international Policy and otherthe
performance laws
and provide protection
outcomes
Constitution, the Labor against
Codediscrimination
and other laws in employment
provide
origin, or any other characteristic determined by the ratifying country. Consistent with
and occupation.
protection against The discrimination
Labor Code generally seeks to ensure
in employment equal employment
and occupation. The Labor opportunities
Code
international principles, the110 Constitution, the Labor Code and other lawsand provide
100. regardless
generallyofseeks
Serious sex, to
concerns raceensure
or creed.
remain equal In
on the addition, discrimination
over-representation
employment of women
opportunities regardless based on other
in low-skilled
of sex, characteristics
race low-or
protection against discrimination in employment and occupation. The Labor 112Code
such
creed. as civil
income In status,
110 jobs, gender
addition, age,discrimination
union membership,
segregation in occupation
based on physical and disability andsuch
vocational
other characteristics 111
ethnic
training, and origin
as civil the need
status, is toalso
generally
continuously seeks to
promote ensure equal
women’sdisability employment
access to higher-paid opportunities regardless
jobs andis jobs of sex, race or
prohibited
age, union bymembership,
110 specific laws.physical 111
and ethnic origin 112
also offering
prohibitedcareer by
creed.
advancement. In addition,
121 discrimination based on other characteristics such as civil status,
specific laws.
age, union membership, physical disability111 and ethnic origin 112 is also prohibited by
98. With the Constitution’s
specific laws.Wide sex emphasis on the role of women in nation-building and the fundamental
98. equality
With the C.2.1
before the law of women
Constitution’s gap in labour
emphasis andonmen, force participation
the of
the113role laws pay strong
women attention to discrimination
in nation-building and the
113
98.based on sex. Legal protectionemphasis for women on includes mandatory
of women provision by employers of safe
fundamental equality before the law of women and men, the laws pay strong attention
101. With the Constitution’s the roleparticipation in nation-building only and half the
to The
and
historically
healthful
discrimination working
wide
based sexon gap
conditions sex.intaking
labour
Legal force
into consideration
protection for 113 women persists,
their maternal
includes with mandatory
functions,
of
and
fundamental
women of equality
working agebefore
in the the law of
labour women
force despite andthe men,fact the laws
that they paygenerally
are strong attention better
suchtofacilities
provision by and opportunities
discrimination
employers
based
of
on LFS that
safe will
and
sex. dataLegal enhance
healthful
protection their forwelfare
working
women and enable
conditions
includes them
taking to realize
into
mandatory
educated than men. The 2015 show 68.8facilities
per centand of the 23.6 millionthat not will
in the 115
their full
consideration
provisionpotential.their The
114 maternal
Labor Code
functions, provides
and for
such specific standards for
opportunitieswomen employees
labour forcebywere employers
women. Almost of safethree-fifths
and healthful of themworking
were caring conditions
for their takingchildreninto or
pertaining to: (a) their
consideration facilities such as
maternal seats, separate
functions, and suchtoilet rooms and
facilities and lavatories,
opportunities andthat nurseries;
will
110
doing housekeeping chores, confirming the persistence of gendered social norms and
Art. 3.
111
Republic expectations on the
Act No. 7277, otherwise roleasof
known thewomen
Magna Carta thatfortend
Disabledto Persons,
limit their
or an Actopportunity
Providing for and access to more
the Rehabilitation, Self-
Development
110
Art. 3. and Self-Reliance ofwork.
remunerative Disabled Persons
On and Their
the otherIntegration
hand, intowomen
the Mainstreamin ofthe
Society and for other
labour forcePurposes
have (1992).
lower
112 111
Republic Act Act
Republic No. No.
8371, otherwise
7277, known
otherwise as theasIndigenous
known the MagnaPeople’s Rights Act ofPersons,
Carta for 1997, ororananActAct
to Recognize, Protect and Promote the
Rights
Development
unemployment
of Indigenous
and Self-Reliance
and underemployment
Cultural Communities/Indigenous
of Disabled Persons and Peoples, ratesDisabled
Creating
Their Integration athan men
National
into
(Table
Commission
the Mainstream
Providing for
26).
on Indigenous
of Society
the Rehabilitation,
Peoples,
and for other Establishing
Purposes (1992).
Self-
Implementing
112
RepublicMechanisms,
Act No. 8371,Appropriating Funds
otherwise known asTherefor, and forPeople’s
the Indigenous other Purposes (1997).
Rights Act of 1997, or an Act to Recognize, Protect and Promote the
113
1987
RightsConstitution, ART.Cultural
of Indigenous II, Section 14.
Communities/Indigenous Peoples, Creating a National Commission on Indigenous Peoples, Establishing
Implementing Mechanisms, Appropriating Funds Therefor, and for other Purposes (1997).
113
1987 Constitution, ART. II, Section 14. 45
114
1987 Constitution, ART. XIII, Section 14.
115
116
Labor Code of the Philippines, Arts. 130-136. 45
Republic Act No. 1161, as amended by Republic Act No. 8262 (Social Security Act).
117
Labor Code, Art. 135.
118
Among these are Republic Acts No. 10151 (2011) on employment of night workers; 10028 (2010) on promotion of breastfeeding;
9710 (2008) on Magna Carta of Women; 9262 (2004) on anti-violence against women and their children; 8972 (2000) on parental leave for
(b) maternity leave benefits in relation to social security benefits;116 (c) family planning services
and incentives for family planning; (d) prohibition against discrimination in compensation and
benefits, promotion, training opportunities, study and scholarship grants on the basis of sex;
andenhance
(e) declaration as unlawful
their welfare any stipulation
and enable againsttheir
them to realize marriage, denying114
full potential. anyThebenefits
Laborprovided
Code
under the law
provides forand discharging
specific standards a female
for womenemployee on account
employees 115 of her to
pertaining pregnancy or refusing
(a) facilities such
admission
as seats,upon her return
separate to workand
toilet rooms after giving birth
lavatories, and for fear of the
nurseries; employee leave
(b) maternity gettingbenefits
pregnant
again.
in 117
relation to social security benefits; 116 (c) family planning services and incentives for
family planning; (d) prohibition against discrimination in compensation and benefits,
99. Over the years,training
promotion, variousopportunities,
government study offices
andhave also established
scholarship grants on or
theformulated
basis of sex;policies,
and
programmes, rules as
(e) declaration andunlawful
guidelines anyonstipulation
promotingagainst
women’smarriage,
participation
denyingin the
anylabour force
benefits
and respecting their right for equality of access and treatment in employment. In addition,
provided under the law and discharging a female employee on account of her pregnancy
amendments
or refusinginadmission
labour lawsuponandhernew lawstohave
return workalso been
after introduced
giving birth forto expand
fear of theprotection
employee of
117
women workers as well as of acts of discrimination that are not sex-based. In 2010, a law was
getting 118
pregnant again.
passed repealing the ban on the employment of women in night work.119 In 2016, another law
99.wasOver
passedtheprohibiting discrimination
years, various governmentagainst
officesan individual
have based onor
also established age.
formulated
120 policies,
programmes, rules and guidelines on promoting women’s participation in the labour
C.2 Policy and respecting
forceperformance andtheir right for equality of access and treatment in employment. In
outcomes
addition, amendments in labour laws and new laws have also been introduced to expand
118
protection
100. Serious of women
concerns remainworkers as well as of acts
on the over-representation of discrimination
of women thatand
in low-skilled arelow-income
not sex-
based. In
jobs, gender 2010, a law was passed repealing the ban on the employment of women in night
119 segregation in occupation and vocational training, and the need to continuously
work. In 2016, another law was passed prohibiting discrimination against an individual
promote women’s access to higher-paid jobs and jobs offering career advancement.121
based on age. 120
C.2.1 Wide sex gap in labour force participation
C.2 Policy performance and outcomes
101.
100.The historically
Serious wideremain
concerns sex gaponinthe
labour force participation
over-representation persists,inwith
of women only halfand
low-skilled of women
low-
ofincome
workingjobs,
age in the labour
gender force despite
segregation the fact that
in occupation and they are generally
vocational better
training, and educated than
the need to
men. The 2015 LFS data show 68.8 per cent of the 23.6 million not in the
continuously promote women’s access to higher-paid jobs and jobs offering career labour force were
women. Almost121three-fifths of them were caring for their children or doing housekeeping
advancement.
chores, confirming the persistence of gendered social norms and expectations on the role of
women C.2.1
that tend to sex
Wide limitgap
their opportunity
in labour and access to more remunerative work. On the
force participation
other hand, women in the labour force have lower unemployment and underemployment
101.rates
Thethan men (Table
historically wide26).
sex gap in labour force participation persists, with only half of
women of working age in the labour force despite the fact that they are generally better
educated than men. The 2015 LFS data show 68.8 per cent of the 23.6 million not in the
labour force were women. Almost three-fifths of them were caring for their children or
doing housekeeping chores, confirming the persistence of gendered social norms and
expectations on the role of women that tend to limit their opportunity and access to more
remunerative work. On the other hand, women in the labour force have lower
unemployment and underemployment rates than men (Table 26).
114
1987 Constitution, ART. XIII, Section 14.
115
Labor Code of the Philippines, Arts. 130-136.
116
Republic Act No. 1161, as amended by Republic Act No. 8262 (Social Security Act).
117
Labor Code, Art. 135.
118
Among these are Republic Acts No. 10151 (2011) on employment of night workers; 10028 (2010) on promotion of breastfeeding;
9710 (2008) on Magna Carta of Women; 9262 (2004) on anti-violence against women and their children; 8972 (2000) on parental leave for
solo parents; 7877 (1995) on anti-sexual harassment; 7322 (1992) increasing maternity benefits for women in the private sector; and
6725 (1989) strengthening the prohibition on discrimination against women.
119
Republic Act No. 10151 (2011), An Act Allowing the Employment of Night Workers. The Act repeals the ban against night work for
women and instead requires that an alternative to night work is made available to women workers before and after childbirth for at least
16 weeks, with possible extension on the ground of medical necessity.
120
Republic Act No. 10911 (2016), An Act Prohibiting Discrimination Against Any Individual on Account of Age, and Providing Penalties
Therefor. Under Section 5, the scope of the prohibition includes advertisements of vacancies/recruitment; declaration of age during the
application process; exclusion of an application for employment; discrimination in compensation and benefits; promotion or opportunity for
training; lay-off; and early retirement.
121
Idem.
46
57 Philippines 2017
Table26.
Table 26.Key
Keyemployment
employmentindicators
indicators
Total Men Women
Indicator Total Men Women
Indicator Table 200526. 2010
2005
Key
2010
employment
2015
2015
2005
2005
indicators
2010
2010
2015
2015
2005
2005
2010
2010
2015
2015
Working age population 54,388(in60,717 64,936
00064,936 27,111
except27,111
per cent)30,223 32,417 27,277 30,493 32,519
Working age population 54,388 60,717 30,223 32,417 27,277 30,493 32,519
Labour force 35,286 38,893
Total 41,342 21,646 23,729 25,062 13,641 Women
Men 25,062 15,164 16,280
Labour force Indicator 35,286 38,893 41,342 21,646 23,729 13,641 15,164 16,280
Employed 32,313
2005 36,03536,035 38,741 19,910
2015 19,910
2010 38,741 21,921
2005 21,921 23,406
2010 23,406
2015 12,40312,403 14,114
2005 14,114 15,335
2010 15,335
2015
Employed 32,313
Underemployed
Working age population 6,785
54,388 6,762
60,717 7,180
64,936 4,703
27,111 4,680
30,223 4,897
32,417 2,082
27,277 2,082
30,493 2,283
32,519
Underemployed 6,785 6,762 7,180 4,703 4,680 4,897 2,082 2,082 2,283
Unemployed
Labour force 2,748
35,286 2,8592,859 2,602
38,893 2,602 1,685
41,342 1,685 1,808
21,646 1,808 1,656
23,729 1,656
25,062 1,0621,062 1,051
13,641 1,051
15,164 16,280945
Unemployed 2,748 945
Employed 32,313 36,035 38,741 19,910 21,921 23,406 12,403 14,114 15,335
Labour force participation rate
Underemployed 64.7
6,785 64.1
6,762 63.7
7,180 79.6
4,703 78.5
4,680 77.3
4,897 49.9
2,082 49.7
2,082 50.1
2,283
Labour force participation rate 64.7 64.1 63.7 79.6 78.5 77.3 49.9 49.7 50.1
Employment-to-population
Unemployed ratio 59.4
2,748 59.3 59.3
2,859 59.759.7
2,602 73.473.4
1,685 72.572.5
1,808 72.272.2
1,656 45.5 45.5
1,062 46.3 46.3 47.2
1,051 47.2945
Employment-to-population ratio 59.4
Underemployment rate 21.0 18.8 18.5 23.6 21.3 20.9 16.8 14.8 14.9
Underemployment rate 21.0 18.8 18.5 23.6 21.3 20.9 16.8 14.8 14.9
Unemployment rate
Labour forcerate
participation rate 7.8 7.4 6.3 7.8 7.6 6.6 7.8 6.9 5.8
Unemployment 7.864.7 7.464.1 6.363.7 7.879.6 7.678.5 6.6 77.3 49.9
7.8 49.7
6.9 50.1
5.8
Employment-to-population
Note: ratio
Definition of unemployment 59.4
revised59.3 59.7 April
beginning 73.4200572.5 72.2 availability
to include 45.5 46.3 47.2
criterion
Note: Definition of unemployment revised beginning April 2005 to include availability criterion
Underemployment rate with
in conformance
in conformance 21.0
with the international
the international 18.8 18.5 2005
standard.
standard. 23.6
2005 data21.3
data on 20.9force,
on labour
labour 16.8
force,
labour14.8force 14.9
labour force
Unemployment rate
participation rate, unemployment 7.8 7.4
rate refer 6.3 7.8
to averages of 7.6 6.6
the estimates
participation rate, unemployment rate refer to averages of the estimates for April, July 7.8
for April,6.9July 5.8
and
Note:and October.
Definition
October.of unemployment revised beginning April 2005 to include availability criterion
Source:inPhilippine Statistics
conformance Authority,
withAuthority,
the Laborstandard.
international Force Survey.
2005 data on labour force, labour force
Source: Philippine Statistics Labor Force Survey.
participation rate, unemployment rate refer to averages of the estimates for April, July
C.2.2
C.2.2 Employment
and
C.2.2 Employment
October.opportunities
Employment opportunities
and accessand
opportunities andaccess
tend access tendtotobe
to be tend
skewed beskewed
skewed
against women againstwomen
against women
102.Overall,
102.
102. Overall,
Overall, women’s
women’s
women’s share share ininopportunities
in total
share totalwage
wage
total wageemployment
employment
employment follows follows
its to
share
follows itsshare
in shareinforce
labour
itsskewed inlabour
labour force
participation
force
C.2.2
participation Employment
andhas
hasremained
remained unchanged and access
atless
less tend
than be against women
and has remained
participation and unchanged atunchanged
less than 40atper cent
than 4040per
(Figure per
20).cent
More
cent (Figure
(Figurethan 20).More
half
20).
122
More
are than
employed
than
half are employed in services, especially in wholesale, retail and trade. Women share
102.in services, especially in wholesale, retail and trade.122 Women share inin industry, which
122
half are employed
Overall, women’s in share
services, especially
in total wage inemployment
wholesale, retail
followsanditstrade.
share Women
labour share
force
in industry, which traditionally offers jobs of higher productivity, income and stability,
traditionally
inparticipationoffers
industry, which jobs of higher
traditionally
and has Inremained productivity,
offers jobs
unchanged of income
higher
at less and stability,
productivity,
than has
income been
and declining.
More thanIn
stability,
hasbeen
beendeclining.
declining. agriculture, women share has40 per cent (Figure
remained 20).unchanged.
relatively
agriculture,
has women share
half are employed In has remained
agriculture,
in services, relatively
women
especially share
incent unchanged.
has
wholesale, retailFurther,
remained women
relatively
and trade. 122 comprise
unchanged.
Women shareless
Further, womencomprise
comprise lessthan
than 25per
percent ofemployers.
employers.
than 25
Further, per cent
women of employers.less 25 of
in industry, which traditionally offers jobs of higher productivity, income and stability,
Figure
has been declining.
Figure 20.Female
20. Femaleshare
In agriculture, shareinin
women sectoral
share employment
has remained
sectoral employment
relatively unchanged.
Further, women comprise less than 25(in perper
cent of employers.
cent)
(in per cent)
60.0
60.0
Figure 20. Female share in sectoral employment
40.0 (in per cent)
40.0
60.0
20.0
20.0
40.0
0.0
0.0
20.0 2000 2005 2010 2015
2000 2005 2010 2015
Agriculture Industry Services Total
0.0
2000
Source: Philippine Statistics Authority,2005
Labor Force Survey. 2010 2015
103.WomenWomenemployment
employmentis isskewed skewedtowardtowardwork workwith
withhighhighlevels
levelsofofinformality
informalityand and
103. Women
103. Source: employment
Philippine
vulnerability, low is skewed
Statistics
skills toward
Authority,
content, Labor
low work
Forcewith high
Survey.
productivity, andlevels
low of informality
income or andwork.
unpaid vulnerability,
Over
low skills
vulnerability,
80per
percentcontent,
cent low productivity,
low skills
areemployed
employed
content, low and
inprivate low income
productivity,
privatehouseholds
households
andorlow unpaid
andalmost
income
almost work.
60 Over
or unpaid
percent
centare80 per
work.
are cent are
Over
inunpaid
unpaid
80
103.employed
Women
work.This in are
private
employment
Thissituation households
situationtakes is in
skewed
takesmany and almost
toward
manyemployed
employedwomen 60
work and
per cent
with
womenout are
high 60
in per
unpaid
levels
outofofthe of
thecoverage work. in
This
informality situation
coverageofofprotective and
protective
work.
takes many
vulnerability,employed
lowon women
skills out
content, of
low the coverage
productivity, of and
protective
low labour
income orstandards
unpaid on working
work. Over
labour
labour standards
standards on working
working hours,
hours, work
work environment,
environment, safety
safety andandhealth,
health, andprotection
and protection
hours,
80 perwork
cent
againstsexual environment,
are employed
sexualharassment
harassmentand safety
in and
private
andviolence health, and
households
violenceininthe protection
and
theworkplace,almostagainst
workplace,asaswell 60 sexual
per cent
wellasassocialharassment
are in unpaid
socialprotection
protectionand
against
violence in thesituation
work. This workplace, takesasemployment
well
many as employed
social protection
women mechanisms
out of theand tiedmaternity
to wage
coverage of employment
protective
mechanisms
mechanisms tied
tied towage
toon wage employment such
such asassocial
socialinsurance
insurance and maternity protection
protection
such as
labour social
(Figure21).
21). insurance
standards and
working maternity
hours, protection
work (Figure
environment, 21).
safety and health, and protection
(Figure
against sexual harassment and violence in the workplace, as well as social protection
mechanisms tied to wage employment such as social insurance and maternity protection
122
ADB.(2013).
(FigureGender Equality in the Labour Market in the Philippines.
122
ADB.(2013). Gender21).
Equality in the Labour Market in the Philippines.
4747
122
ADB.(2013). Gender Equality in the Labour Market in the Philippines.
47
Figure 21. Female share in class of worker employment
Figure 21. Female share (in
in class of worker employment
per cent)
2000
(in per2010
2005
cent) 2015
2000 2005 2010 2015
Figure 21. Female share in class of worker employment
100.0
100.0
(in per cent)

80.0
80.0
60.0
60.0 2000 2005 2010 2015
40.0
100.0 40.0
20.0
80.0 20.0
0.0
60.0 0.0
40.0
20.0
0.0

C.2.3 Sex-based occupational segregation in wage and salary employment
Source:
C.2.3 C.2.3 Sex-based
Sex-based occupational occupational
segregation segregation
in wage and in wage
salaryand salary employment
employment
Philippine Statistics Authority, Labor Force Survey.
104. Data indicate a slight decline in occupational segregation and that more women are
104. Data indicate
104. venturing
Data and aagaining
slightdecline
decline intraditionally
occupational segregation and that123more women are
C.2.3indicate
venturing Sex-based
and
slight
gaining
access
occupational
access
intooccupational
to segregation
traditionally
segregation
in wage and and
male-dominated
male-dominatedsalarythat more
jobs.
employment
jobs.
women
In 2005,
are venturing
123 In 2005, higher
higher
and gainingofaccess
proportions women to traditionally
were employed male-dominated
as officials ofjobs. 123
In 2005,
government andhigher
specialproportions
interest- of
proportions
women of women were employed as officials of government and special interest-
indicatewere
104. Data organizations, employed
a slight
organizations,
corporate
decline
corporate
asexecutives,
officials of government
in occupational
executives,
managers, and special
managing
segregation
managers, managing
interest-organizations,
andproprietors
that more and
proprietors women
and arecorporate
supervisors;
supervisors;
executives,
professionals;
venturing managers,
and gaining clerks;
access andmanaging
service
to proprietors
workers
traditionally and and
and shop
male-dominated supervisors;
market sales
jobs.123 professionals;
In workers.
2005, higherByclerks;
2015, and
professionals;
serviceofworkers
however, clerks;
womenand share and
shop service
inandthese workers
market and shop
sales workers.
occupations went and market
By 2015,
down sales
however,
(Table workers.
women By
share 2015,
in these
proportions
however, women were
share employed
in these as officials
occupations of government
went down (Tableand27).
27).
Notably,
special
Notably,
a lower
interest-a lower
occupations went down
percentage
organizations, of women are(Table 27).
now Notably,managing
occupying a lower percentage
positions of managerial of women
and are now occupying
decision-making
percentagecorporate
of women executives,
are to now managers,
occupying positions ofproprietors
managerialand supervisors;
andwomen
decision-making
positionsclerks;
professionals; of managerial
responsibilities compared
and serviceandworkers
adecision-making
decade ago.
and shop responsibilities
In private
and compared
establishments,
market sales workers. to
By a2015,
decade
share has ago. In
responsibilities compared to a decade ago. In private establishments, women share has
however,private
remained establishments,
women unchanged at
share in these women
about share haswent
30
occupationsper centremained
over
downtheunchanged
last 27).atNotably,
decade. about 30 aper
In the public cent over the
sector
remained unchanged at about 30 per cent over the(Table
lastshare
decade. Inbeen lower
the public sector
last decade.
(government
percentage of womenInand
the
are public
government
now sector corporations),
occupying (government
positions and
of government
women
managerial andcorporations),
has
decision-making women share
consistently
(government andandnowgovernment corporations), women share the has CEACR
been consistently
has been consistently
increasing
responsibilities compared increasing
accounts
to a decade and
for now
over
ago. In50accounts
per cent,
private for although
over 50 per
establishments, cent, although
women sharehas the
has CEACR
urged
increasing and now accounts for over 50 per cent, although the CEACR has urged
remainedhas urged
government government
unchanged to take
at about to 30
further take further
measures
per cent measures
to increase
over the towomen’s
lastincrease
decade. women’s
participation
In the participation
public in sector in third-
third-level
government 124 to 124
take further measures to increase women’s participation in third-level
level positions.
positions.
(government
positions. and
124 government corporations), women share has been consistently
increasing and now accounts for over 50 per cent, although the CEACR has urged
government to take further Table 27. Femaletoshare
measures in occupational
increase employment
women’s participation in third-level
124 Table 27. Female share in occupational
(in per cent except Duncan Index of Dissimilarity) employment
positions. (in peron cent except Duncan Index
Major occupa group 2001 of Dissimilarity)
2005 2010 2015
All ccupa Major ons occupa on group 2001
38.5 2005
38.4 2010
39.2 2015
39.6
All
Offi ccupa
ci al s of Table 27. Female share in occupational employment
onsgovernment and s peci al 38.5 38.4 39.2 39.6
Offi ci al s
i nteres of government
t-organi za ons , and s peci al
corporate
i nteres ves
execu
(in per cent except Duncan Index of Dissimilarity)
t-organi za ons
, managers , corporate
, managi ng
execuMajorves occupa on group 2001 2005 2010 2015
propri etors, managers
and s upervi , managi
s ors ng 59.0 57.4 52.7 46.6
All ccupapropri onsetors and s upervi s ors 38.5 59.0 38.4 57.4 39.2 52.7 39.6 46.6
Profes s i onal s 68.1 68.3 68.5 66.9
Offi ciProfes
al s of sgovernment
i ans
onaland
s and s peci al 68.1 68.3 68.5 66.9
Techni ci as s oci ate profes s i onal s 49.1 51.9 51.9 51.1
i nteres
Technit-organi za ons , corporate
Cl erks ci ans and as s oci ate profes s i onal s 49.1
67.1 51.9
65.1 51.9
62.4 51.1
62.2
execu Cl erksves , managers , managi ng 67.1 65.1 62.4 62.2
Servi ce workers and s hop and market
propriServietors and s upervi
ceworkers
workers andssors hop and market 59.0 53.3 57.4 50.1 52.7 50.7 46.6 51.2
s al es
Profess sali onal s
es workers 68.1 53.3 68.3 50.1 68.5 50.7 66.9 51.2
Farmers , fores try workers and fi s hermen 17.0 14.1 14.7 17.3
Techni ci ans and
Farmers , as stry
fores ociworkers
ate profes s i onal
and fi s s 49.1 17.0 51.9 14.1 51.9 14.7 51.1 17.3
hermen
Trades and rel ated workers 28.3 25.6 20.7 15.4
Cl erksTrades relne
ated workers & as s embl ers 67.1 28.3 65.1 25.6 62.4 20.7 62.2 15.4
Pl ant & and machi operators 8.1 9.0 9.7 14.1
Servi ce workers
Pl ant & machi and s hop and market
Labourers and neuns operators & as s embl ers 45.4
ki l l ed workers 8.1 9.0
44.6 9.7
42.8 14.1
40.1
s al es workers and uns ki l l ed workers
Labourers 53.3 45.4 50.1 44.6 50.7 42.8 51.2 40.1
Speci al occupa ons 14.8 12.3 19.2 15.8
FarmersSpeci , fores
alIndex try workers
occupa ons and fi s hermen 17.0 14.8 14.1 12.3 14.7 19.2 17.3 15.8
Duncan of Dissimilarity 0.349 0.343 0.305 0.248
Trades and rel
Duncan Indexatedofworkers
Dissimilarity 28.3 0.349 25.6 0.343 20.7 0.305 15.4 0.248
Pl ant & machi
Source: ne operators
Philippine & as s embl
Statistics Authority, Laborers
Force8.1
Survey. 9.0 9.7 14.1
Source: Philippine
Labourers and uns ki Statistics Authority, Labor Force
l l ed workers Survey. 44.6
45.4 42.8 40.1
123
Speci al occupa ons 14.8 12.3 19.2 15.8
Measured by the Duncan Index of Dissimilarity, which is a summary 0.349indicator of occupational segregation. It ranges from zero to one,
123 Duncan Index of Dissimilarity 0.343 0.305 0.248
with Measured by thenoDuncan
zero meaning Index segregation
occupational of Dissimilarity, which
and one beingiscomplete
a summary indicatorbetween
segregation of occupational segregation.
the two sexes. It ranges
An increase in the from
index zero to one,
will mean a
with
greaterzero
Source: meaning
tendency ofno
Philippine occupational
men or women segregation
Statistics toAuthority, andjobs.
do different one The
Labor being complete
country’s
Force segregation
index
Survey. between
improved fromthe twoin
0.349 sexes.
2001An increase
to 0.248 in the index will mean a
in 2015.
greater
124 tendency
Specifically, to of men or
ensure thatwomen to do different
the exemption from thejobs. The country’s
requirement index improved
of publication from 0.349
of vacancies in 2001 to
to primarily 0.248 in positions
high-level 2015. in the public
124
Specifically,
service does nottohave
ensure
thethat the exemption
effect of impairing from the requirement
equal of publication
access to employment. SeeofCEACR
vacancies to primarily
Observation re:high-level positions
Discrimination in the public
(Employment and
123
Measured by does
service
Occupation) the Convention,
Duncan
not haveIndex
the of
1958 Dissimilarity,
effect adoptedwhich
of impairing
(No.111), is and
in equal
2015 aaccess
summary indicator
105th ILCofSession
to employment.
published occupational
(2016). segregation.
See CEACR Observation Itre:ranges from zero
Discrimination to one,
(Employment and
with zero meaning noConvention,
Occupation) occupational segregation
1958 and oneinbeing
(No.111), adopted 2015complete segregation
and published 105th ILCbetween the(2016).
Session two sexes. An increase in the index will mean a
greater tendency of men or women to do different jobs. The country’s index improved from 0.349 in 2001 to 0.248 in 2015.
48
48
124
Specifically, to ensure that the exemption from the requirement of publication of vacancies to primarily high-level positions in the public
service does not have the effect of impairing equal access to employment. See CEACR Observation re: Discrimination (Employment and
Occupation) Convention, 1958 (No.111), adopted in 2015 and published 105th ILC Session (2016).
48
59 Philippines 2017
105.
105. Certain occupational
Certain occupational categories
occupational categories remain
categories remain
remain to to be
to be male-dominated,
be male-dominated,
male-dominated, such such
such as as farming,
as farming, forestry
farming, forestry
forestryand
105.
105. Certain
Certain
and occupational
fishing; plant andcategories
machine remain
operations to beandmale-dominated,
assembly; such
trades and as farming,
related forestry
work; and
and fishing;
fishing; plant
plantplant and
and machine machine operations
operations and
and and assembly;
assembly; tradestrades
and and related
related work;work;
and andspecial
and fishing;
special
special occupations.
occupations. and machine
Nevertheless,
Nevertheless, operations
women’s
women’s assembly;
share
share increased
increasedtradesin
in and related
farming,
farming, work;
forestry
forestry and
and
occupations.
special Nevertheless,
occupations. women’sbecauseshare increased in farming, forestry andforestry
fishing and
(which
fishing
fishing
may be
(which
(which
a negative
may
may beNevertheless,
be aa negative
because negative
of the low
women’s
because
quality
of share
ofofthe
the
jobs
low
lowin
increased
quality
quality
this ofinjobs
of
group),
farming,
jobs
and
in
ininthis
this group),
group),
plant and and
machine
105.fishing
in plant(which
plant
inCertain and
and may beoperations
machine
occupational
machine a negativeand
categories
operations because
remain
and toofbethe
assembly
assembly low quality
(which may
may be
male-dominated,
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as this
positive
such
positive group),
because
farming,
because of and
of the
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the
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higher
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content
plant and
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the may
and
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operationsa positive
assembly
high sex
and because
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be a
these
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positive
jobs).
and skills content
because
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related is of and
also
work; the aa the
and
higher skills content and the traditionally high sex barriers in these jobs). There is also
traditionally
higher
decrease
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in high
women’s
occupations. sex
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share in
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traditionally jobs).
labourers
women’s There
high sex
and is also
barriers
skilled
share a decrease
in these
workers.
increased in women’s
in jobs).
farming, There share among
is alsoand
forestry a
decrease in women’s share among labourers and skilled workers.
labourers
decrease
fishing in and
(which skilled
women’s workers.
may share among labourers
be a negative because of andtheskilled workers.
low quality of jobs in this group), and
C.2.4
in plant
C.2.4 Sex-based
andSex-based wage
machine operations gap
wage gap and and differences
and differences
assembly (which in working
in workingmay be hours
hoursa positive because of the
C.2.4 Sex-based
C.2.4
higher wage gap
skillsSex-based
content andandthedifferences
wage gap in working
and differences
traditionally high sex hours
in workinginhours
barriers these jobs). There is also a
125
106.
106. Most of
of the
decrease
Most theinoccupational
women’s share
occupational groups
among
groups recorded
labourers
recorded generally
and skilled
generally increasing
workers.
increasing sex-based
sex-based wage wage gaps
gaps 125
106. Most
106. Most
where of
of
thethe
the occupational
occupational
average daily groups
groups
basic pay recorded
recorded
of women generally
generally
in the increasing
sameincreasing sex-based
occupation
where the average daily basic pay of women in the same occupation was relatively lower sex-based
was wage
wage gaps
relatively gaps
lowerwhere
125 125
the
thanaverage
where
than the
those
C.2.4
those daily
average
of
of men.
men. basic
Thepay
daily
The
Sex-based of women
basic
biggest
wage
biggest paygapofand
gaps
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women
occurredsame
differences
occurred occupation
inamong
the
among same
intrades
working
trades was
occupation
and relatively
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andhours
related lower than
wasworkers;
relatively
workers; those of
lower
service
service
men.
than
workers The
those biggest
and of men.
shop gaps
The
and occurred
biggest
market among
gaps
sales trades
occurred
workers; and
among
and related
trades
workers and shop and market sales workers; and labourers and unskilled workers. In
labourersworkers;
andand service
related workers
workers;
unskilled and
service
workers. Inshop
106.andMost
2015, market
workers
2015, ofand
women
women thesales
shop workers;
and market
labourers
occupational
labourers and
and
and labourers
salesrecorded
unskilled
groups
unskilled andgenerally
workers;
workers
workersunskilled
andreportedly
reportedlyworkers.
labourers andIn
had
increasing
had an 2015,
unskilled
average
sex-based
an average women
basiclabourers
workers.
basic
wage pay
gaps
payIn125
and
2015,
26.5 unskilled
where
26.5 women
per
per cent
the
cent workers
labourers
lower
average
lower thanreportedly
daily
than and
men payhad
basicunskilled
men (Table
(Table anworkers
of 28).
women
28). average
In
In contrast,
in the
contrast,basic
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ofhad
women
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women peraverage
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managerial
relatively
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(Table
26.5
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higher
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than
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bycontrast,
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men 3.3
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pay
per cent.
among supervisory
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and
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and(Figure working
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22).of longer
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longer than the
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Table 28.
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28. than
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byIn
28). major
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contrast, pay of womengroup
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Table 28. Gender
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per
perbymajor
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cent) occupation
3.3 per cent. Higher groupproportions of women
Major
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occupation group (in
groupthan the normal per 2001
cent)
2001 2005
2005 2010
2010 2015
than men were working longer
Offi ci al s of government and speci al
48 hours per week (Figure2015 22).
Offi ci al sMajor occupation
of government andgroup
speci al 2001 2005 2010 2015
ii nterest-organi
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ons,and speci al
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i nterest-organi
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28.
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Gender
ons, managi wage
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etors
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2005
0.5
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2010
1.6
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2015
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8.5
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3.7
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ce workers and
ves, managers,shop and
and shopmanagi market
ng
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sal
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sal es
ceworkers
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workers
workers and supervi
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-3.3
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onal
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10.8
33.0
20.5 30.2
13.2
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30.2 24.4
12.2
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24.4 -19.6
8.5
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ans
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ated workers
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workers ate
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erks machi
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ated
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23.5 3.7
27.5
PlServi
ant & cemachi
workers and shop and
ne operators marketers
& assembl
Source:sal es workers 33.0 35.4 35.7 30.8
Source: Philippine
Authority, Labor
Labor Force
Force Survey.
Survey.
Farmers, forestry workers and fi shermen
Source: Philippine Statistics Authority, Labor Force Survey. 20.5 30.2 24.4 -19.6
Trades and rel ated workers 19.4 18.3 23.5 27.5
Pl ant & machi neFigure
Figure
operators
22.
22. Employed
Employed
& assembl ers
by
by weekly
weekly hours
hours of
of work
work
100% Figure 22. Employed by weekly hours of work
100%
100%
80%
80%
80%
60%
60%
60%
Figure 22. Employed by weekly hours of work
40%
40%
100%
40%
20%
20%
80%
20%
0%
0%
60% 2000
0% 2000 2005
2005 2010
2010 2015
2015 2000
2000 2005
2005 2010
2010 2015
2015
40% 2000 2005Men 2010
Men 2015 2000 2005
Women 2010 2015
Women
20% Men20
Less than
than 20-39 40-48 49+ Did not work Women
not work
Less 20 20-39 40-48 49+ Did
Source:
0% Philippine Less than
Statistics20 20-39
Authority, 40-48
Labor Force 49+
Survey.Did not work
2000 Statistics
Source: Philippine 2005 Authority,
2010 2015 Force Survey. 2000
Labor 2005 2010 2015
125
125 The gender wage gap is an important Men of discrimination and
measure
The gender wage gap is an important measure
of discrimination equal opportunity in the labour market. It is an indicator – assessed by
and equal opportunity in the labourWomen
market. It is an indicator – assessed by
occupation
125 – of the degree to which the pay of women is lower than that of men (positive value) or the extent to which the pay of women is
The gender
occupation – ofwage gap is an
the degree to important
which the measure of discrimination
pay of women andthat
is lower than equal opportunity
of men (positiveinvalue)
the labour
or themarket.
extent Ittoiswhich
an indicator
the pay–ofassessed
womenbyis
Less than
higher than that of men (negative value). The20gender 20-39
wage gap is40-48
defined as49+ Did not
the difference work the average daily basic pay of men and
between
higher than –that
occupation of men
of the (negative
degree to whichvalue). Theofgender
the pay womenwage gap than
is lower is defined
that ofasmen
the (positive
differencevalue)
between theextent
or the average daily basic
to which payofofwomen
the pay men and
is
women, expressed as a percentage of the average daily basic pay of men.
higher than
women, Source:
that of as
expressed menPhilippine
a percentage Statistics
(negative value).
of Authority,
The gender
the average dailywage Labor
basicgap Force
payisofdefined
men. as Survey.
the difference between the average daily basic pay of men and
125
49
49
49
The gender wage gap is an important measure of discrimination and equal opportunity in the labour market. It is an indicator – assessed by
occupation – of the degree to which the pay of women is lower than that of men (positive value) or the extent to which the pay of women is
higher than that of men (negative value). The gender wage gap is defined as the difference between the average daily basic pay of men and
49
C.3 Call for additional legal measures and

judicial developments
107. Apart from sex-based discrimination,

there
C.3 is scant
Call forinformation
additionalmeasuring
legal measures and judicial developments
the implementation and success
107.ofApart non-discrimination
from sex-based discrimination,policies there is scant information measuring the
and laws coveringand
implementation other protected
success of non-discrimination policies and laws covering other
groups such as workers withwith disabilities and indigenous peoples (IPs) and other
protected groups such as workers
disabilities
ethnic groups.and indigenous
Data on budget, peoples
specific programmes and measurable success indicators
(IPs) and other ethnic groups. Data in spite of specific laws covering them; properly
for these groups are hardly visible,
ondesigned interventions
budget, specific with spatial
programmes and and cultural dimensions are especially important to
IPs and ethnic minorities
measurable success indicators for concentrated in particular regions or areas of the country. In
the formal
these groupssector, on thevisible,
are hardly other hand,
in diversity and inclusion policies are just beginning
spite of specific laws covering them;few large companies. Reviewing the country’s legal
to develop at the initiative of a
framework
properly and implementation
designed interventions of laws against discrimination, the CEACR has
suggested for additional
with spatial and cultural dimensions legal measures to protect women against discrimination in all
are especially important to IPs andhiring, employment benefits and dismissal; expanding
aspects of employment including
the anti-sexual harassment law; promoting equality of opportunity and treatment toD.those
©ILO Respall
ethnic minorities concentrated in
with disabilities and indigenous peoples 126 in wage and non-wage employment; and
particular regions or areas of the
enhancing the capacity of responsible authorities to identify and address discrimination
country. In the formal127 sector, on the
in its various forms.
other hand, diversity and inclusion
policies are just beginning to
108. Whether or not new legislation further strengthening protection against discrimination
develop at the initiative of a few large
will be passed, the Supreme Court has been taking a quiet but firm and progressive stance
companies. Reviewing and
for equal protection the against
country’snon-discrimination in employment and occupation. In
legal framework and implementation
various decisions over the years, the Court has upheld the right of employees to equal
ofprotection
laws against of the laws discrimination,
and the right to be protected against discrimination. While
the CEACR has
recognizing that these suggested
rights are fornot absolute and deferring to the inherent power of
additional
Congresslegal measures
to draw to protect as appropriate, the Court has been clear that any
classifications
women against discrimination
classification must be based on substantial in distinctions; germane to the purposes of the
alllaw;
aspects of employment including
not limited to existing conditions only; and applied equally to all members of the
hiring, employment
class. 128 These standards benefitshaveand become the benchmark on equal protection and non-
dismissal; expanding the anti-sexual
discrimination in almost all fields of law, including labour law.
harassment law; promoting equality
of•opportunity
In a case and treatment
involving to those
an OFW, 129
the Court struck down a statute on the ground that it
with violated
disabilities and indigenous
the equal protection, protection to labor and social justice provisions of the
peoples 126
in wageNoting
Constitution. and non-wage
that overseas Filipino workers are a constitutionally protected
employment; and enhancing
class, the Court adopted a “strict the judicial scrutiny” approach in which a legislative
capacity of responsible
classification whichauthorities to
impermissibly interferes with the exercise of a fundamental
identify and address discrimination
right or operates to the peculiar disadvantage of a suspect class is presumed
in its various forms.127 and the burden is upon the government to prove that the
unconstitutional,
classification is necessary to achieve a “compelling state interest” and that it is
108. Whether or not
the “least new means”
restrictive legislationto protect such interest. Where the classification violates
further strengthening
a fundamental protection
right, or prejudices persons accorded special protection by the
against discrimination
Constitution, the will
Courtbe will
passed,
assume its primary role as the vanguard of constitutional
the Supreme
guaranties Court andhas been taking
require a stricter and more exacting adherence to constitutional
a quiet but firm and progressive
limitations.
126
Based on the 2010 Census where total household population was 92.1 million, there were 1.4 million (1.6 per cent) persons with disabilities
and 8.1 million (8.8 per cent) indigenous peoples, as classified under Magna Carta for Disabled Workers and the Indigenous People’s Rights
Act of 1997.
127
See CEACR Observation re: Discrimination (Employment and Occupation) Convention, 1958 (No.111), adopted in 2015 and published 105th ILC
Session (2016).
128
Serrano v. Gallant Maritime Services, En Banc, G.R. No. 167614, 24 March 2009.
129
61 C.3 Call
Philippines 2017 for additional legal measures and judicial developments
107. Apart from sex-based discrimination, there is scant information measuring the
stance for equal protection
implementation and success andofagainst non-discrimination
non-discrimination policiesinand employment
laws covering and occupation.
other
Inprotected
various groups
decisions such over the years,
as workers withthe Court has
disabilities andupheld
indigenousthe rightpeoples of employees
(IPs) and other to equal
protection
ethnic groups. of theData lawson andbudget,
the right to be protected
specific programmes against discrimination.
and measurable successWhile recognizing
indicators
that
for these
these rights
groupsare arenot absolute
hardly andindeferring
visible, spite of to the inherent
specific power of
laws covering Congress
them; properly to draw
classifications as appropriate, the Court has been clear that any classification must be based
designed interventions with spatial and cultural dimensions are especially important to on
substantial
IPs and ethnic distinctions;
minorities germane to the purposes
concentrated in particular of the law; not
regions or limited
areas oftothe existing
country. conditions
In
only; and applied equally to all members of the class. These standards have become the
the formal sector, on the other hand, diversity and inclusion
128 policies are just beginning
to developon
benchmark at equal
the initiative
protection of and
a few large companies. Reviewing
non-discrimination in almost allthefields
country’s
of law,legalincluding
•
framework
In
labour law. a case and implementation
involving freedom of
of laws
religion against
and worship, 130
discrimination, the the
Court CEACR
struck has a
down
suggested
resolution for additional
of the Civil legalService
measures to protect (CSC)
Commission women exempting
against discrimination
Muslim employees in all
aspects ofworking employment including hiring,
to 2employment benefitsinand dismissal; themexpanding
• In afrom case involving between an OFW,10 129 a.m.
the Court p.m. every
struck downFridaya statute order
on thefor ground to pray
that and
it violated
the anti-sexual
worship. harassment
The Court law; promoting
pointed out that equality
such of opportunity
exemption had and
no treatment
statutory tobasis
thoseand
the equal protection, protection to labour 126and social justice provisions of the Constitution.
witheffectively
disabilitiesfavors and indigenous
or creates apeoples
preference in
forwage and non-wage
one religion, employment;
in contravention of theand non-
Noting
enhancing that overseas
the capacity Filipino
of workers
responsible are a constitutionally
authorities protected class, the Court
131 to identify and address discrimination
adopted
establishment
a “strict judicial clause
scrutiny”
127
of the Constitution.
approach in which a legislative classification which impermissibly
in its various forms.
interferes with the exercise of a fundamental right or operates to the peculiar disadvantage
•of aIn a case
suspect involving
classnew is presumed locally-hired
unconstitutional, teachers and andthe foreign-hired
burden teachers
is upondiscrimination
the government in an to
108. Whether or not legislation
132 further strengthening protection against
prove international school, the Court applied the principle of "equal pay for equal work"
will bethat
passed,the theclassification
Supreme Court is necessary
has beentotaking achieve a “compelling
a quiet but firm andstate interest”stance
progressive and that it
is thepremised
“least on various
restrictive provisions of the Constitution and the Labor Code ensuring
for equal protection andmeans”
against to protect such interest.
non-discrimination Where theand
in employment classification
occupation.violates In a
equality of
fundamental right,opportunities
or prejudices and non-discrimination
persons accorded special and in particular
protection by the prohibiting
Constitution,
various decisions over the years, the Court
133 has upheld the right of employees
134 to equal
the discrimination
Court of
protection willthe assume in regard
laws its
to wages
andprimary
the right role andprotected
to asbethe
union
vanguardmembership,
of constitutional
against
as well
discrimination.
as
guaranties on the
While and
International Covenant on
are Economic,absoluteSocial and Cultural Rights
inherenttopower whichof the
require a stricter
recognizing that theseand more rightsexacting not adherence
135 to constitutional
and deferring to thelimitations.
Philippines is a signatory. The Court
Congress to draw classifications as appropriate, the Court has been clear that any ruled that persons who work with
substantially mustequal qualifications, skill, effort and responsibility, underofsimilar
• classification
In a case involving freedom
be based of
onreligion
substantial and distinctions;
worship,130 the Court struck
germane down a resolution
to the purposes the of
conditions, should be paid similar salaries. If an employer accords employees the
the Civil
law; not Service Commission (CSC) exempting Muslim employees from working between
limited to existing conditions only; and applied equally to all members of the
same position
128 and rank, the become
presumption is that theseon employees perform and equalnon- work.
10 a.m. toThese
class. 2 p.m.standards
every Friday have in order for thethem to pray and equal
benchmark worship. The Court pointed
protection out
If the
discrimination employer in almostpays one
all employee
fields of law, less than
including the rest,
labour the
law. burden is on the employer
that such exemption had no statutory basis and effectively favors or creates a preference for
to prove that this is not discriminatory.
one religion, in contravention of129the non-establishment clause of the Constitution.131
• In a case involving an OFW, the Court struck down a statute on the ground that it
• In a case theinvolving employees with disability who were first provisions
employed ofunder the a
• In aviolated
case involving equallocally-hired
protection, protection
teachers to andlabor and social
foreign-hired justice
teachers in an international
special
Constitution. employmentNoting programme
that overseas for persons
Filipino with
workers disabilities
are a but
constitutionallywhose employment
protected
school, 132
continued the Court applied the of
after completion principle
thejudicial of “equal 136
programme, pay forCourt
equal work” premised on Carta
various
class, the Court adopted a “strict scrutiny”the approachinvoked in whichthe Magna
a legislative
provisions
for Disabledof thePersonsConstitution
137
which andmandates
the Laborthat Codequalified
ensuringdisabledequalityemployee
of opportunities and
classification which impermissibly interferes awith the exercise of a fundamental should be
non-discrimination
givenorthe
right and
same134terms
operates in
to the andparticular prohibiting
conditions
peculiar disadvantage discrimination
of employment
of a suspect in regard
as a qualified to wages
able-bodied
class is presumed
133
and
union membership,
unconstitutional,
person. Continuously as well
and employing as on
the burden the the International
is workers
upon the Covenant
government
concerned meant on Economic,
to they
prove were Social
the and
thatqualified
Cultural Rights
classification to
for the responsibilities which
is necessary the
of thePhilippines
to position
achieve aand is a signatory.
“compelling
should therefore
135
The Court
state interest”
be treated ruled
andjust that
thatlikeit persons
is
other
whothe work
“least with substantially
restrictive means” equal
to qualifications,
protect such interest. skills,
regular employees, and not under the special provisions for disabled or handicapped Where effort
the and responsibility,
classification violates under
similar fundamental right, or prejudices persons accorded special protection by the the
conditions,
aworkers. should be paid similar salaries. If an employer accords employees
same position and
Constitution, therank,
Courtthe presumption
will assume its primary is that theserole employees
as the vanguard perform equal work. If the
of constitutional
employer pays one employee less than the rest,
• In a case involving a company policy against nepotism, the Court strictly
guaranties and require a stricter and more the burden
exacting is on
adherence the
138 employer
to to prove
constitutional andthat
thislimitations.
is not discriminatory.
narrowly interpreted a company’s no-spouse rule as an invalid and not a bona fide
occupational qualification (BFOQ), and ruled that the employer must show a
126
Based on thecompelling
2010 Census wherebusiness
total householdnecessity
population was for which
92.1 million, thereno alternative
were 1.4 million (1.6 perexists other
cent) persons than the
with disabilities
and 8.1 milliondiscriminatory practice
(8.8 per cent) indigenous peoples, asby proving
classified that Carta
under Magna the for
employment
Disabled Workersqualification
and the Indigenous is reasonably
People’s Rights
Act of 1997.
127
See CEACRrelated
Observationto the essential
re: Discrimination operation
(Employment of theConvention,
and Occupation) job involved; and
1958 (No.111), thatin 2015
adopted thereand is a factual
published 105th ILCbasis
Session (2016).
128
129
130
In Re: Request of Muslim Employees in the Different Court in Iligan City, A.M. No. 02-2-10-SC, 14 December 2005.
131
Section 5, Article III of the Constitution provides that [n]o law shall be made respecting an establishment of religion, or prohibiting50
the free
exercise thereof. The exercise and enjoyment of religious profession and worship, without discrimination or preference, shall forever be
allowed. No religious test shall be required for the exercise of civil and political rights.
132
International School Alliance of Educators v. Quisumbing, G. R. No. 128845, 01 June 2000.
133
Art. 135 (now 133, as renumbered), Labor Code.
134
Art. 248 (now 259, as renumbered), Idem.
135
Article 7 A.1 of the Covenant provides that the States Parties recognize the right of everyone to the enjoyment of just and favourable
conditions of work, which ensure, in particular, remuneration which provides all workers, as a minimum, with fair wages and equal
remuneration for work of equal value without distinction of any kind, in particular women being guaranteed conditions of work not inferior
to those enjoyed by men, with equal pay for equal work.
136
Bernardo, et al v. NLRC and Far East Bank, G.R. No. 122917, 12 July 1999. Art. 80 of the Labor Code provides differentiated treatment
for handicapped workers, among others, by allowing employers to pay them at least 75 per cent of the minimum wage.
137
Section 5. Equal Opportunity for Employment. No disabled person shall be denied access to opportunities for suitable employment. A
• In a case involving employees with

disability who were first employed under
a special employment programme for
persons with disabilities but whose
• worship, 130 continued
In a case involving freedom of religion andemployment the Court after struckcompletion
down a
resolution of the Civil Service Commissionof(CSC) the programme,
exempting Muslim136
the Court invoked
employees
from working between 10 a.m. to 2 p.m. every the Magna Carta for Disabled Persons
Friday in order for them to pray and 137
worship. The Court pointed out that such which mandates that a qualified disabled
exemption had no statutory basis and
employee
effectively favors or creates a preference for one religion,should be given theofsame
in contravention terms
the non-
establishment clause of the Constitution.131 and conditions of employment as a qualified
able-bodied person. Continuously
• In a case involving locally-hired teachers employing the workers teachers
and foreign-hired concernedinmeantan
international school, 132 the Court applied thethey were qualified for the responsibilities
principle of "equal pay for equal work"
of the position
premised on various provisions of the Constitution and theand Labor should
Codetherefore
ensuringbe
treated just
equality of opportunities and non-discrimination andlike in other regular
particular employees,
prohibiting
discrimination in regard to wages 133 and union membership, 134
as
and not under the special provisionswell as on thefor
International Covenant on Economic, Social and Cultural
disabled Rights workers.
or handicapped to which the
Philippines is a signatory. 135 The Court ruled that persons who work with
substantially equal qualifications, skill,• effort
In a andcaseresponsibility,
involving a company under similar
policy
conditions, should be paid similar salaries. against
If an employer
nepotism, accords
138 employees
the Court strictlythe
same position and rank, the presumption is thatandthese employees
narrowly perform
interpreted equal work.
a company’s no-
If the employer pays one employee less thanspousethe rest,
rule as an invalid and employer
the burden is on the not a bona
to prove that this is not discriminatory. fide occupational qualification (BFOQ),
and ruled that the employer must show
• In a case involving employees with disability who were first
a compelling employed
business under afor
necessity
special employment programme for persons with which disabilities but whose employment
no alternative exists other than the
136
continued after completion of the programme, the Court invoked
discriminatory practicethe Magna Carta
by proving that the
for Disabled Persons 137 which mandates that aemployment qualified disabled qualification is should
employee reasonablybe
given the same terms and conditions of employment as a qualified
related to the essential operation of the jobable-bodied
person. Continuously employing the workersinvolved; concerned andmeant they were
that there qualified
is a factual basis
for the responsibilities of the position and should therefore be treated just
for believing that all or substantially all like other
regular employees, and not under the specialpersons provisions for disabled
meeting or handicapped
the qualification would
workers.
be unable to properly perform the duties
of the job. The concept of BFOQ, further
• In a case involving a company policy against ruled the Court, the
nepotism, 138
must Court
stand strictly
the testand of
narrowly interpreted a company’s no-spousereasonableness,
©ILO D. Respall
rule as an invalid thatandis, not an a bona fide
otherwise
occupational qualification (BFOQ), and ruled facially discriminatory requirement willabe
that the employer must show
compelling business necessity for which valid no alternative existsanother
only if it reflects thanquality
inherent the
discriminatory practice by proving that the employment qualification is reasonably
reasonably necessary for satisfactory
related to the essential operation of the job involved; and that there is a factual basis
job performance. Here, the Court also
adopted an expansive approach by
130
In Re: Request of Muslim Employees in the Different Court in Iligan City, A.M.including
No. 02-2-10-SC, both disparate
14 December 2005. treatment (overt
131
discrimination) and disparate
Section 5, Article III of the Constitution provides that [n]o law shall be made respecting an establishment of religion, impact
or prohibiting the free
exercise thereof. The exercise and enjoyment of religious profession and worship, without discrimination or preference, shall forever be
(covert discrimination) within the scope
allowed. No religious test shall be required for the exercise of civil and political rights.
132
133
International School Alliance of Educators v. Quisumbing, G. R. No. 128845, 01 ofJune
inquiry
2000. into acts of discrimination.
Art. 135 (now 133, as renumbered), Labor Code.
134
Art. 248 (now 259, as renumbered), Idem.
135
Article 7 A.1 of the Covenant provides that the States Parties recognize the right of everyone to the enjoyment of just and favourable
conditions of work, which ensure, in particular, remuneration which provides all workers, as a minimum, with fair wages and equal
remuneration for work of equal value without distinction of any kind, in particular women being guaranteed conditions of work not inferior
to those enjoyed by men, with equal pay for equal work.
136
Bernardo, et al v. NLRC and Far East Bank, G.R. No. 122917, 12 July 1999. Art. 80 of the Labor Code provides differentiated treatment
for handicapped workers, among others, by allowing employers to pay them at least 75 per cent of the minimum wage.
137
Section 5. Equal Opportunity for Employment. No disabled person shall be denied access to opportunities for suitable employment. A
qualified disabled employee shall be subject to the same terms and conditions of employment and the same compensation, privileges, benefits,
fringe benefits, incentives or allowances as a qualified able bodied person.
138
Star Paper Corp. v. Simbol, et al., G.R. No. 164774, April 12, 2006.
51
63 Philippines 2017
109. The judicial system (including both the Supreme Court and the Court of Appeals) and quasi-
judicial foragencies
believinglike thatthe all or substantially
National Labor all persons Commission
Relations meeting the qualification
(NLRC) andwould be
voluntary
unablehave
arbitration to properly
an important perform rolethe duties
to play of the job. the
in addressing Theissue
concept of BFOQ, further
of discrimination. ruled
The specific
the Court, must stand the test of reasonableness,
cases above, as well as in many other cases involving similar or related issues, underscore that is, an otherwise facially
discriminatory
the potential of existing requirement
equality of will treatment be valid only if it reflects
and non-discrimination policies an and inherent
laws in
quality reasonably necessary for satisfactory
promoting decent work and social justice, as well as what policymakers should consider job performance. Here, the Court also as
adopted an
areas for further legislative expansive approach by including both disparate
action. But as progressive as judicial and quasi-judicial agencies treatment (overt
discrimination) 140 and disparate impact (covert discrimination) within the scope of
of be,
can they can onlyFor
employment. make thisdecisions
purpose,on theissues
Laborand Code organizes
cases broughtthe bargaining
before them long process
afterbythe
inquiry into acts of discrimination.
actproviding
constituting rules on classification
discrimination had been of committed.
employees,The union formation
inherently slow and pace registration,
of judicial and
quasi-judicial processes means the remedies they administer are not immediate.agent
determination of the union which will be the sole and exclusive bargaining On the of other
the
109. The
employeesjudicialinsystem a bargaining(including unitboth for the Supreme
purposes of Court
collectiveand the Court of procedure
bargaining, Appeals) and for
hand, there is a gap in terms of how non-discrimination laws can be effectively administered
quasi-judicial
collective agencies
bargaining, thelike
rightthe National
to strike and Labor
lockout,Relations
definitionCommission
of unfair labour (NLRC) and
practices,
and enforced during the pre-employment stage where the employee-employer relationship
voluntary
and arbitration machinery
an administrative have an important to settle disputes role toincluding
play inconciliation,
addressing mediation the issueand of
does not yet exist. Given all these, a key challenge for policymakers would be how to devise
discrimination. The specific cases above, as well as in many other cases involving similar
arbitration.
a speedy alternative mechanism that could efficiently and effectively implement and enforce
or related issues, underscore the potential of existing equality of treatment and non-
non-discrimination
discrimination laws not
policies and only
lawsduring employment
in promoting decentbut workalso before andjustice,
after employment.
112. Unionism and collective bargaining are decentralized at theand social
enterprise. as well as
Only employees
what
of the policymakers
enterprise can should join the consider
enterpriseasunion. areasToforbargainfurtherwith legislative
the employer, action.theBut unionas
D. Freedom of association
progressive as and
judicial the
and right to self-organization
quasi-judicial
must have majority support of the employees it seeks to represent. agencies canand be,collective
they can bargaining
only 141
make decisions
Federations,
on issuesunions
national and cases andbrought
trade union beforecentersthem long afterassistance
provide the act constituting
to enterprise discrimination
unions during had
D.1 Policy
been and legal
committed. framework
The inherently slow pace of
their formative and organizational stages and during pre-collective bargaining and judicial and quasi-judicial processes means
the remedies
collective they administer
bargaining stages, are andnot seek immediate.
to represent On the other hand,
workers’ intereststhere inissocial
a gapdialogue
in terms
110. The
andnational
of how policy
non-discrimination
tripartite mechanismsand legaloutsideframework
laws can on
thebeenterprise.labourUnder
effectively relationsthe differentiates
administered system, andthere
enforcedthe
are application
during
three the of
levels
the principles
pre-employment
of unions but onlystage of freedomone levelof
whereassociation,
of the self-organization
employee-employer
collective bargaining (Figure and collective
relationship
23): (a) the bargaining
does between
not yet union
enterprise exist.
public
Given
whose andallprivate
locus is ansector.
these, aappropriate In relation
key challenge to the
for
bargaining private
policymakers
unit sector,
within the the
would country
be
enterprise; how (b) hasthe
to a long
devise apolicy
speedy
federation and
or
institutional
alternative
national union experience
mechanism which must on freedom
that could of
have efficiently association
at least tenand and
effectively
enterprise the rights
implement
unions to self-organization
and enforce
all of which must non-be aand
collective
certifiedbargaining.
discrimination exclusive Itnot
ratified
lawsbargaining only duringILO Convention
employment
representative ofNos.
but87also
their andbefore
98 in bargaining
respective 1948.
and afterBookemployment.
V of the
units: 142 Labor
and
Code incorporate the principles under the two conventions.
(c) the trade union center which is a combination of two or more federations or national In relation to the public sector,
D. the country
Freedom
unions. 143 has not ratified and
of association ILO the Convention
right to No. 151 (Labour Relations
self-organization in the Public
and collective Service).
bargaining
Executive Order No. 180 issued in 1987, its implementing rules and regulations, and civil
139
service
D.1 laws Policy and and rules
Figure legal regulate
23.framework
Trade theunion
right of and public servants
collective to form associations
bargaining structure and to engage
in collective negotiations. in the private sector
110. TheSEVERALnational policy and legal framework on labour relations differentiates the application
PEAK ORGANIZATIONS
Engage in political unionism TRADE
of the
D.1.1 SitPrivate principles
sector
or participate
of freedom
labour
in tripartite relations
bodies
of association, self-organization UNION
and collective bargaining
between
Assist or actpublic
as agentand private sector. In relation to the private
in enterprise CENTER sector, the country has a long
collective bargaining
policy and institutional experience on
111. In the private sector, the policy preference is to emphasize and encourage freedom of association and the rights free to self-
collective
FEDERATIONS/NATIONAL
organization and UNIONS
collective as bargaining. It ratified ILO
bargaining Createand
locals or negotiations
chapters a democraticGENERAL
UNION
method of Convention
regulating INDUSTRY Nos.
the
UNION
87 and between
relations 98 in
1948.
employers Book V of the
Assist or act as agent in
and employees Labor Code
and generally incorporate the principles
limits orthe role of administrative
(10 affiliates
under the two
agencies
(10 affiliates or
conventions.
and courts
enterprise collective
InSitrelation toin the bargaining
public sector, the country has not ratified ILO Convention No. 151
locals) locals)
in setting or fixing
or participate wages,
tripartite bodies rates of pay, hours of work or other terms and conditions 139 of
(Labour Relations in the Public Service). Executive Order No. 180 issued in 1987, its
employment. 140
ENTERPRISE For this purpose, the Labor Code organizes the bargaining process by providing
UNIONS
implementing rules and regulations,
Independentand civil service Local or laws and rules regulateLocal
Independent theorright of
rulesMay onsitclassification
Principal in collective
or participate
of employees,
bargaining union formation
Union (for and registration,
Chapter (for (for determination
Unionnegotiations. of the
public servants toinform
tripartite
associations and to engage in collective Chapter (for
unionbodieswhich willof be
as affiliate the sole
federation or and exclusive bargaining agent of the employeesreporting,
registration, reporting, no registration, in a bargaining
no
TUC 20 per cent minimum 20 per cent
unit for purposes of collective bargaining,
minimum procedure for collective
minimum bargaining, the
minimum right to
D.1.1 Private sector labour membership) relations membership) membership)
strike and lockout, definition of unfair labour practices, and an administrative machinery to membership)
111.settle
In the disputes
privateincluding
sector, the conciliation,
policy preference mediation is toand arbitration.
emphasize and encourage free collective
bargaining and negotiations as a democratic method of regulating the relations between
112. Unionism and
D.1.2
employers andcollective
Public bargaining
sector
employees labour are decentralized
relations
and generally at the
limits the role of enterprise.
administrativeOnlyagencies
employees
and of
the enterprise
courts canorjoin
in setting the wages,
fixing enterprise
ratesunion.
of pay,Tohours
bargain withorthe
of work employer,
other theconditions
terms and union must
113.have
Themajority
specificsupport of thetoemployees
body tasked it seekssector
oversee public to represent. 141
Federations,
labour relations nationalSector
is the Public unions
and tradeManagement
Labor union centersCouncil
provide(PSLMC),
assistance as to enterprise
constitutedunions
throughduring their formative
Executive Order No.and
144
139
180. The amended rules and regulations to implement Executive Order No. 180 was
Executive Order No. 180 (1987) is entitled “Providing Guidelines for the Exercise of the Right to Organize of Government Employees,
Creating a Public Sector Labor-Management Council, and for other Purposes.”
140
See Labor Code, Art. 218, as renumbered.
141
52
In cases where there are two or more unions in an enterprise within the same group of employees, the workers within the group must choose
one union; the union which secures majority support becomes the sole and exclusive bargaining representative for all the workers in the group.
142
Labor Code, Article 234, as amended by R. A. No. 9481, in relation to D.O. No. 40-3, Rule III, Section 2.B.
143
Specific reference to trade union centers was included in the Labor Code, through R. A. No. 9481 (2007). Prior to this, trade union centers
were already recognized as an inherent right of federations under general principles of freedom of association.
144
This inter-agency council was created by Executive Order No. 180 (1987). It is lodged with the Civil Service Commission (CSC), which
determination
112. Unionism of the union
and collective whichare
bargaining will be the sole and
decentralized at the exclusive
enterprise. bargaining agent of the
Only employees
of the enterprise can join the enterprise union. To bargain with the employer, the union for
employees in a bargaining unit for purposes of collective bargaining, procedure
Section III.
labour standards 64
Fundamental principles and
mustcollective
have majority bargaining, the right
support of theto strike and lockout,
employees it seeks definition
towork
rights at
of unfair
represent. 141 labour practices,
and internationalFederations,
and an
national administrative
unions and trade machinery
union centers to settle disputes
provide including
assistance conciliation,
to enterprise unionsmediation
during and
theirarbitration.
formative and organizational stages and during pre-collective bargaining and
organizational
collective bargaining stagesstages,
and during
and seekpre-collective
to representbargaining and collective
workers’ interests bargaining
in social dialoguestages,
112.
andand seek to mechanisms
Unionism
tripartite represent
and collective workers’ interests
bargaining
outside in decentralized
are socialUnder
the enterprise. dialogue and
the tripartite
theatsystem, enterprise.
there are mechanisms
Only
threeemployees
levels outside
ofthe of enterprise.
unionsthe enterprise
but only Under canthe system,
one level join the there are
enterprise
of collective three levels
union.
bargaining To of unions
bargain
(Figure 23): but
with onlyenterprise
the
(a) the one141level of
employer, the collective
union union
whose must
bargaining
locushave majority
is(Figure
an 23):support
appropriate (a) the of the unit
enterprise
bargaining employees
union it seeks
withinwhose
the focus to isrepresent.
enterprise; an
(b)appropriate Federations,
the federation bargaining
or
national
unit within
national unions
unionthe which and
enterprise;trade
must have union
(b) the centers
at federation provide assistance
or national
least ten enterprise unionall
unions to enterprise
which unions
must must
of which have at during
beleast
a ten
their exclusive
enterprise
certified formative and
unionsbargaining
all of organizational
must be astages
whichrepresentative andexclusive
certified
of their during bargaining
respective pre-collective
bargaining bargaining
representative
units: 142
andofand
their
collective
(c)respective bargaining
the trade bargaining
union center stages,
units;
whichand
142 and
is a(c) seek to represent
the trade union
combination of two workers’
center
or morewhichinterests in social
is a combination
federations dialogue
or national of two or
and143
more
unions. tripartite mechanisms
federations or nationaloutside
unions.the143 enterprise. Under the system, there are three levels
of unions but only one level of collective bargaining (Figure 23): (a) the enterprise union
whose locus Figure is an23.appropriate
Trade union bargaining unit within
and collective the enterprise;
bargaining structure (b) the federation or
national union which must have in theat private
least tensector
enterprise unions all of which must be a
certified
SEVERAL PEAK exclusive
ORGANIZATIONS bargaining representative of their respective bargaining units: 142 and
Engage TRADE
(c) thein trade
political union
unionism center which is a combination of
Sit or participate in tripartite bodies UNION
two or more federations or national
143
unions.
Assist or act as agent in enterprise CENTER
issued by the PSLMC in 2004. 145 Executive Order No. 180 applies to all government
FEDERATIONS/NATIONAL FigureUNIONS23. Trade union and collective bargaining structure
GENERAL
employees of all branches, subdivisions,
Create locals or chapters instrumentalities, INDUSTRY and agencies of the
in UNION
the private sector UNION
Assist or act as agent
Government, in
including government-owned or controlled corporations
(10 affiliates or (10 affiliates or with original
enterprise
SEVERAL collective bargaining
PEAK ORGANIZATIONS
146 locals) locals)
Sit charters
or participate
Engagein except
in tripartite
political members of the Armed Forces ofTRADE
bodies
unionism the Philippines, including police
Sit or participate in tripartite bodies 147 UNION
officers,
ENTERPRISE
Assist
policemen,
or act asUNIONS
agent in enterprise
firemen and jail guards. It provides
CENTER
that all rank-and-file
Principal in collective bargaining Independent Local or Independent
government employees can form, join orChapter
Union (for
assist (for
employees’ organizations
Union (for
or their own
Localof
May sit or participate in tripartite Chapter (for
choosing, except high-level
as affiliate of federationUNIONS
bodiesFEDERATIONS/NATIONAL or employees
registration, whose
reporting, no functions are
registration,normally considered
reporting, no as
TUC 20 per cent GENERAL minimum 20 per cent INDUSTRY 148
Create locals
policy-making or managerial or chapters or whoseUNION duties are of a highly confidential minimum
minimum membership) minimum UNION nature. The
Assist or act as agent in membership)
scope of the right is membership)
clarified by the (10 PSLMC
affiliates or Rules where membership) (10 affiliates
rank-and-file or
employees 149
enterprise collective bargaining
locals) locals)
Sit orthe
have participate
rightinto tripartite
organizebodies while high-level and confidential employees 150 are not eligible
D.1.2 to exercise the UNIONS

ENTERPRISE
Publicinsector right. The PSLMC Rules prescribe the requirements for union formation
Principal collectivelabour
bargaining relations Independent Local or Independent Local or
andD.1.2
May organization
sit or Public inincluding
participatesector labour
tripartite registration,
Union (for
relations accreditation
Chapter (for and cancellation,Union (for and reporting;
Chapter (for
bodiesand as affiliate of federation registration, reporting, no registration,
113. The rights
specific body conditions oformembership andsector
settlement labourofrelations
intra-union disputes; attainment
reporting, no
TUC tasked to oversee public
20 per cent minimum 20 periscentthe Public Sector
minimum Labor
of the sole and exclusive minimum agent which
negotiating membership) is done through
minimum a two-step process 144 of
113. The Management Council (PSLMC),
specific body tasked to oversee as constituted through Executive
public
membership)
sector labour relations is
membership) Order No. 180. The
the Public Sector
membership)
Labor certification
amended Managementrules election
andCouncil and (PSLMC),
regulations accreditation;
to implement procedure
Executive
as constituted forOrder
through collective
No. 180
Executive negotiation;
was
Order issuedNo.unfair
by the
180. labour
144
The practices;
amended and
rulesmodesand of grievance
regulations toand
PSLMC in 2004. Executive Order No. 180 applies to all government employees of all branches,
145 dispute
implement settlement.
Executive Order No. 180 was
subdivisions, instrumentalities, and agencies of the government, including government-owned
140
See114.
Laboror There Art.D.1.2
controlled
Code, 218, Public sector
areas renumbered.
technical
corporations and labour
with substantiverelations
original differences
charters 146
exceptbetweenmembersprivate of the Armed sector Forceslabour of
141
In cases where
the organizations
there are
Philippines,
two or or
more unions, police
unions
including
in an as discussed
enterprise within
officers,
the above,
same group
policemen,and public
of employees,
firemen sector
the
andforlabour
workers within
jail
the organizations
group must choose or
workers in theIt
all theguards. provides
147
one union; the union which secures majority support becomes the sole and exclusive bargaining representative group.
142 113.
Labor Code, thatThe specific
government
all rank-and-file
Article body
employees’ tasked
234, as amended by government to oversee
organizations.
R. A. No. 9481, inemployees public
Under
relation to D.O.can sector
Executive
form,
No. 40-3, labour
Rulejoin relations
Order
or assist
III, Section No. is
180, the thePublic
2.B. employees’ organizations Sector
appropriate
143
Labor
organizationalManagement unit Council
shall be the(PSLMC),
employers as constituted
units No. 9481 through
consisting of Executive
rank-and-file Order
centersNo.
employees
were alreadyof their144own as an choosing,
inherent right ofexcept high-level
under generalemployees whose functions are normally considered
Specific reference to trade union centers was included in the Labor Code, through R. A. (2007). Prior to this, trade union
recognized federations principles
151 of freedom of association.
144
as180.
unless
This inter-agencypolicy-making
council Thewas amended
circumstances
created rules Order
otherwise
orbymanagerial
Executive andor regulations
require.
No. whose
180 (1987). to
ItThus,
duties implement
areas
is lodged ofimplemented
with Executive
a highly
the Civil inOrder
confidential
Service
152
the PSLMC
Commission No. 180
nature.
(CSC), which was
rules,
148
The
only
scope one thebargaining
Department of unit, technically
Employment,called a negotiating unit, can be formed in one
of Justiceof as the right (seeis clarified Orderby No.the PSLMC Rules where rank-and-file employees have the
chairs the Council, with Labor and Department of Budget Management, Department of Finance,
149 and
Department members Executive 180,
153Section 15).
140
141
employer
right
See Labor Code, Art. or
to organize218,organizational
while
as renumbered.
high-level unit. and The Rules do
confidential not recognize
employees 150
are the
not righteligible of to employees’
exercise the
In cases where there are two or more unions in an enterprise within the same group of employees, the workers within the group must choose
one union; the union which secures majority support becomes the sole and exclusive bargaining representative for all the workers ininclude
organizations to affiliate or to form federations and consequently does not 53group.
the
142
Labor affiliations
Code, Article 234, and federations
as amended by R. A. No.in its
9481,reporting
in relation to and
D.O. No.registration
40-3, Rule III,system.
Section 2.B.
143
Specific reference to trade union centers was included in the Labor Code, through R. A. No. 9481 (2007). Prior to this, trade union centers
were already recognized as an inherent right of federations under general principles of freedom of association.
144
This inter-agency council was created by Executive Order No. 180 (1987). It is lodged with the Civil Service Commission (CSC), which
chairs the Council, with the Department of Labor and Employment, Department of Budget Management, Department of Finance, and
Department of Justice as members (see Executive Order No. 180, Section 15).
145
Amended Rules and Regulations Governing the Exercise of the Right of Government Employees to Organize, 28 September 2004. Some
provisions of these rules and regulations were also subject to amendments.
146
53
Executive Order No. 180, Section 1.
147
Idem, Section 4.
148
Idem, Section 2 in relation to Section 3.
149
Under Section 1(t) of the PSLMC Rules, “employee” refers to any person working for an agency. It includes one whose work has ceased in
connection with any current employee-management dispute or unfair labour practice or whose dismissal from the service has not attained
finality.“ Under Section 1 (k), “rank-and-file employee” refers to an employee in the public sector whose functions are neither high-level nor
highly-confidential.
150
Under Section 1 (z) of the PSLMC Rules, a “High Level Employee” refers to one who performs managerial functions such as the exercise
of powers to formulate management policies and decisions, or to hire, transfer, assign, lay-off, recall or discipline employees, while under
Section 1 (aa), a“Highly Confidential Employee” refers to an employee who occupies a position which requires a high degree of trust and
confidence and close intimacy with the appointing authority or immediate supervisor which ensures free and open communication without
harassment or freedom from misgivings of betrayal of personal trust or confidential matters of state. The term is used interchangeably with
primarily confidential employee is used interchangeably with primarily confidential employee.
151
Executive Order No. 180, Section 9.
152
PSLMC Rules, Section 1 (gg): “Negotiating Unit” refers to the constitutional bodies and their regional offices; the executive department
including services and staff bureaus and regional offices; line bureaus and their regional offices; attached agencies; the legislature; the
issued by the PSLMC in 2004. 145 Executive Order No. 180 applies to all government
Decent work country
employees of diagnostics:
all branches, subdivisions, instrumentalities, and agencies of the
65 Philippines 2017
Government, including government-owned or controlled corporations with original
charters 146 except members of the Armed Forces of the Philippines, including police
officers, policemen, firemen and jail guards. 147 It provides that all rank-and-file
right. The PSLMC Rules prescribe the requirements for union formation and organization
government employees can form, join or assist employees’ organizations of their own
including registration, accreditation and cancellation, and reporting; rights and conditions
choosing, except high-level employees whose functions are normally considered as
of membership and settlement of intra-union disputes; attainment of the sole and148 exclusive
policy-making or managerial or whose duties are of a highly confidential nature. The
negotiating agent which is done through a two-step process
scope of the right is clarified by the PSLMC Rules where rank-and-file employees 149 of certification election and
accreditation;
have rightprocedure forwhile
collective negotiation; unfair labour practices;
150
areand modes of
UndertheExecutive
115.grievance and
to organize
dispute Order No. high-level
settlement. 180, the and mainconfidential
purpose of employees
government not eligible
employees’
to exercise theisright.
organizations for theThefurtherance
PSLMC Rules prescribe the
and protection of requirements
their interests,forincluding
union formation
through
and organization
mechanisms like including registration,
labor-management accreditation
committees, work and cancellation,
councils and and reporting;
other forms ofor
114. There areand
rights technical
conditions and substantive
of membership differences
and between of
settlement private sector labour
intra-union disputes;organizations
attainment
workers’
unions, participation schemes to achieve the same objectives.orIngovernment this regard,employees’
the law
of the as
provides
discussed
sole and
that terms
above,
exclusive
and
and
conditions
public
negotiating of
sector
agent labour
employmentwhich organizations
is improvements
or done through athereof, two-step process
except of
those
organizations.
certification Under
election Executive
and Order No. 180, the appropriate organizational unit unfairbe
shall
thethat are fixedunits
employers by law, mayaccreditation;
consisting be
of the subject
rank-and-file
procedure
ofemployees for collective
negotiations unlessbetween negotiation;
duly recognized
circumstances otherwise
labour practices;
employees’ and modes
organizations andofappropriate
grievance and dispute settlement.
government authorities. 154
require. 151
Thus, as implemented in the PSLMC Rules, only one bargaining unit, technically
114.called a negotiating unit,152andcan substantive
be formed in differences
one employerbetween or organizational unit.
sector The Rules
153
116. There
Law andare technical
regulations do not recognize “collective bargaining.” Whatprivate
is recognized labour
is the
doorganizations
not recognizeorthe right of
unions, as employees’
discussed organizations to affiliate or to form federations or and
right to “collective negotiation,” used inabove,
a veryand public
specific sector
sense labour
to mean organizations
that the negotiable
consequently
government does not
employees’ include affiliations
organizations. and federations in its reporting and registration
matters are limited to those prescribed Underin the Executive
PSLMC Rules Order 155No. 180, the appropriate
and exclude matters of
system.
organizational unit shall be the employers units consisting of rank-and-file
compensation and other matters specifically 151
provided by law. 156
Thus, theemployees
output of
unless circumstances otherwise require. Thus,
negotiation is technically referred to as a collective negotiation as implemented in the PSLMC
agreement (CNA), rules,
as
115. Under
only Executive
one Orderunit,
bargaining No. technically
180, the main purpose
called a of government
negotiating unit, 152employees’ organizations
can be formed in one
distinguished from collective bargaining agreement (CBA) in the private sector.
is employer
for the furtherance and protection
or organizational of their
unit. 153 The Rules interests, including the
do not recognize through
right mechanisms
of employees’ like
117.labour-management
organizationsemployees’
Government committees,
to affiliate or to workform councils
organizations the and
federations
have other
rightand forms and
consequently
to peaceful of workers’
does not
concerted participation
include
activities
schemes to
affiliations achieve
and the
federations same in objectives.
its
subject to civil service rules and regulations reporting In this
and regard,
registration
157 the law
system. provides
but do not have the right to strike. that terms and
conditions
With respectof employment
to workers’ or improvements
participation thereof,
in policy exceptandthose that are fixed byprocesses,
decision-making law, may be
the subject of negotiations
representatives from selected between duly recognized employees’ organizations
employees’ organizations sit in the PSLMC but the choice and appropriate
of organizations is effectively facilitated by the CSC. The employees’ representatives
145
Amended Rules and Regulations Governing the Exercise of the Right of Government Employees to Organize, 28 September 2004. Some
have little or no effective voice in the process as they are only observers who do not have
116.
146 Lawvoting
Executive and rights
Order regulations
No. like the
180, Section doother
1. not recognize
provisions of these rules and regulations were also subject to amendments.
PSLMC members. “collective bargaining.” What is recognized is the right
147
148
to
Idem, “collective
Section 4. negotiation, ” used in a very specific sense to mean that the negotiable matters
areD.2 limited oftothe those prescribed andinoutcomes
the toPSLMC
any personRules
working forand exclude matters ofwork
compensation
Idem, Section 2 in relation to Section 3. 155
149
Under Section Policy
1(t) performance
PSLMC Rules, “employee” refers an agency. It includes one whose has ceased in
andwith
connection other
any matters specifically provided
current employee-management by law.
dispute or unfair labour Thus,
156
the
practice or output
whose of negotiation
dismissal from the service hasis technically
not attained
finality.“ Under Section 1 (k), “rank-and-file employee” refers to an employee in the public sector whose functions are neither high-level nor
118. referred
In Aprilto2016,
highly-confidential. as a there
collectivewerenegotiation
135 federations agreement
and 19,157 (CNA), as distinguished
enterprise-based unions,fromofcollective
which
150
bargaining agreement (CBA) in the private sector.
Under 17,245
Section 1 (z)were
of the in
PSLMC the private
Rules, a “High sector
Level and
Employee” 1,912
refers to onefrom
who the
performs public
managerial sector.
functions Total
such as the union
exercise
of powers to formulate management policies and decisions, or to hire, transfer, assign, lay-off, recall or discipline employees, while under 158
Section 1membership was 4 million
(aa), a“Highly Confidential Employee”orrefers
aboutto an17 per cent
employee of private
who occupies andwhich
a position public sector
requires a highemployees.
degree of trust and
159
confidence Data from
and close 2014with
intimacy show that men
the appointing accounted
authority or immediateforsupervisor
about 65 whichper centfreeofand
ensures union membership.
open communication without
harassment or freedom from misgivings of betrayal of personal trust or confidential matters of state. The term is used interchangeably with
primarilyIn the public
confidential employee is sector, membership
used interchangeably in employees’
with primarily confidential employee. organizations has increased to
151
152
518,000
Executive Order No.members
180, Section in9. 2014 from 343,000 in 2005. Membership density also increased to
PSLMC Rules, Section 1 (gg): “Negotiating Unit” refers to the constitutional bodies and their regional offices; the executive department
including17 per cent
services and staff from 14and
bureaus perregional
cent.offices; line bureaus and their regional offices; attached agencies; the legislature; the
judiciary; state universities and colleges; government-owned or controlled corporations with original charters; and, provinces, cities and
municipalities.
119.
153 In the1 (hh):
Idem, Section private sector, Unit”
“Organizational trade union
refers and collective
to an identifiable governmentbargaining
unit, such as theoutcomes haveand
constitutional bodies been poor.
their regional
A executive
offices; the surveydepartment
of establishments
including servicesemploying
and staff bureaus; 20lineorbureaus;
moreattached
workers shows
agencies; that union
the legislature; density
the judiciary; state
universities and colleges, government-owned or controlled corporations with original charters; provinces, cities and municipalities; regional
rate (proportion
offices (composed of union
of provincial, district, membership
local offices) to total employees)
of a department/agency, in the private
office, or government-owned sector
or controlled dropped
corporations; and,
such other sharply from
identifiable around
government unitsone-fifth of totalbyemployees
as may be considered to Labor
the Public Sector less than one-tenth
Management Council.in 2014.
Also Based1 on
under Section (v),
“Employer/Management” refers to agencies of the national government and their regional offices, attached agencies and their regional offices,
latest data,
state universities 43.8 per
and colleges, cent of
government union
- owned members
or controlled were inwith
corporations theoriginal
industry sector,
charters, 46.8government
and local per centunits. in
services and only 9.4 per cent in agriculture (Table 29). In July 2016, there were only
“Organizational Unit” refers to an identifiable government unit, such as the constitutional bodies and their regional offices; the executive
department including services and staff bureaus; line bureaus; attached agencies; the legislature; the judiciary; state universities and colleges,
government-owned(6.5
1,126 per cent)
or controlled registered
corporations unions
with original with
charters; collective
provinces, cities andbargaining agreements
municipalities; regional (CBAs)
offices (composed of
provincial, district, local offices) of a department/agency, office, or government-owned or controlled corporations; and, such other identifiable
government units as may be considered by the Public Sector Labor Management Council.
154
Executive Order No. 180, Rule V, Section 13.
54
155
Idem, Rule XII, Section 1 provides that the subject of negotiation are terms and conditions of employment or improvements thereof, except
those that are fixed by law, may be the subject of negotiation. Section identifies the following as negotiable matters: (a) schedule of vacation
and other leaves; (b) personnel growth and development; (c) communication system – internal (lateral and vertical), external; (d) work
assignment/reassignment/detail/transfer; (e) distribution of work load; (f) provision for protection and safety; (g) provision for facilities for
handicapped personnel; (h) provision for first aid medical services and supplies; (i) physical fitness programme; (j) provision for family
planning services for married women; (k) annual medical/physical examination; (l) recreational, social, athletic and cultural activities and
facilities; (m) CNA incentive pursuant to PSLMC Resolution No. 4, s. 2002 and Resolution No. 2, s. 2003; and, (n) such other concerns which
are not prohibited by law and CSC rules and regulations.
156
Idem, Section 3. Compensation matters. – Increases in salary, allowances, travel expenses, and other benefits that are specifically provided
by law are not negotiable.
157
Idem, Section 14.
158
Based on administrative records, Bureau of Labor Relations, DOLE.
159
Philippine Statistics Authority, BLES Integrated Survey/Integrated Survey on Labor and Employment.
117. Government employees’ organizations have the right to peaceful and concerted activities
subject to civil service rules and regulations157 but do not have the right to strike. With
115.respect
UndertoExecutive
workers’ participation
Order No. in policy
180, the and
main decision-making processes, representatives
purpose of government employees’
from
organizations is for the furtherance and protection of their interests, including through is
selected employees’ organizations sit in the PSLMC but the choice of organizations
effectively
covering
mechanismsfacilitated
200,476 by the CSC.
workers. 160
like labor-management Thecollective
The employees’ representatives
bargaining
committees, work coverage have
councils little
rates
and or no
also
other fell effective
formsin all
of
voice in the process
sectors during
workers’ as they
the period
participation are only
in review
schemes observers
and is now
to achieve who
thedown do not
same to have voting
less than 1Inper
objectives. rights
thiscent like
(Table
regard, the other
the30).
law
PSLMC
providesmembers.
that terms and conditions of employment or improvements thereof, except those
that are fixed by law, may Table be the29.subject
Unionof density rates between duly recognized
negotiations
D.2 Policy performance
employees’ and outcomes
organizations (in per
and appropriate cent)
Sector 2003 2004 2008 2010 2012 2014
116.InLaw
118. April
Totaland2016, there were
regulations 20.2
do not135 federations and
12.5 19,157
16.3 “collective
recognize enterprise-based
10.6
bargaining.” unions,
7.7 ofiswhich
9.9 is recognized
What the
17,245 were
Agriculture
right to in the private
“collective sector and
..
negotiation,” ..
used 1,912
in a from .. the public
very specific ..
sensesector. Totalthat
23.1
to mean unionthe membership
13.3
negotiable
was Non-agriculture
4 million or aboutto20.2
17those
per cent of private andPSLMC
public 10.6
sector
16.3 12.5
Rulesemployees.
155 9.3 Data
7.3 from 2014
158
matters are limited prescribed in the and exclude matters of
showIndustry
that men accounted 22.7for about20.1
65 per cent16.8 union15.7
ofprovided membership. 13.2159 In the11.2
public
compensation
Services
and other
18.1
matters specifically
13.3 9.9
by
7.9
law. 156
7.2
Thus, the
5.5
outputsector,
of
membership
negotiation in employees’
is technically organizations has
referred toemploying increased
as a collective to 518,000
negotiation members
agreement in 2014
(CNA), from
as
Note: The surveys covered establishments 20 workers or more. Agriculture sector not
343,000 in 2005.
distinguished Membership
from collective density also
bargaining
covered in the survey prior to 2012. increased
agreement to 17 per
(CBA) cent
in thefrom
private14 per cent.
sector.
Sources: Philippine Statistics Authority, BLES Integrated Survey/Integrated Survey on Labor and
117.InGovernment
119. the private sector,
Employment. trade union
employees’ and collective
organizations bargaining
have the right to outcomes
peaceful and have been poor.
concerted A survey
activities
ofsubject
establishments
to civil employing
service rules 20 or more
and workers shows
regulations 157
but that
do not union density
have rate (proportion
the right to strike.
ofWith
unionrespect
membership to total
to workers’ employees)
participationin the
in private
policy sector
and dropped sharply
decision-making from around
processes,
one-fifth Table
of total employees 30. Collective
to less bargaining
than one-tenth coverage
in 2014.sit
Based rates
onPSLMC
latest data,
representatives from selected employees’ organizations
(in per cent)per cent in the but 43.8 per cent
the choice
ofof
union members were in
organizations is effectivelythe industry sector,
facilitated by 46.8
the CSC. in services
The employees’ and only 9.4 per
representatives cent
Sector 2003 2004 2008 2010 2012 2014
inhave
agriculture (Table 29).
Totallittle or no effective
In July 2016,
19.7voice in thethere
17.3 processwereas only
13.1 they 1,126
are only
10.9
(6.5observers
per cent) registered
10.3 who do unions
8.1not have
with collective
voting rights
Agriculture bargaining
likeworkers.
the other agreements (CBAs)
..160PSLMC..members. .. covering 200,476
.. workers.
23.1
160
The
14.4 collective
covering
bargaining 200,476
coverage rates Theincollective
also fell all sectors bargaining
during the coverage
period in rates
review also
andfell in alldown
is now
Non-agriculture 19.7 17.3 13.1 10.9 9.6 7.8
sectors
toD.2
less during
than
Industry
the
1 per
Policy period
cent in review
(Table
23.2 and
performance and is now17.4
30).outcomes
21.1
down to less15.9
than 1 per13.5
cent (Table12.1
30).
Services 16.7 14.5 10.5 8.3 7.6 5.7
118. Note: The2016,
In April surveysthere
covered
were Table
135 29. employing
establishments Unionand
federations density
2019,157rates
workers or more. Agriculture
enterprise-based sector not
unions, of which
covered in the survey prior to 2012. (in per cent)
17,245 were in the private sector and 1,912 Survey/Integrated
from the public sector. Total union
Sector 2003 Authority,
Sources: Philippine Statistics 2004 BLES Integrated
2008 2010 2012 2014 and
Survey on Labor 158
membership
Total
was 4 million
Employment.20.2 or about
16.3
17 per cent
12.5
of private
10.6
and public
9.9
sector employees.
7.7 159
Data from 2014 show ..that men accounted
Agriculture .. for
.. about 65..per cent23.1
of union membership.
13.3
120. In revealing
A the public
Non-agriculturedatasector,
is 20.2 membership
the wide gap between
16.3 in 12.5
employees’
registered organizations
unions
10.6 and their has 7.3
increased
9.3 membership to
and the
518,000
Industry members
number of unions 22.7in 2014 from 343,000
20.1
which eventually in 2005. Membership
16.8 in concluding
succeed 15.7 density also
13.2 and 11.2
CBAs increased
the number of to
Services
17 per cent
workers 1418.1
from by
covered per cent.
such CBAs.13.3 9.9 there were
In July 2016, 7.9 only 1,126
7.2 (6.5 per
5.5cent) out of
Note: The surveys covered unions
establishments employing 161workers or more. Agriculture sector not
the 17,245 registered that had CBAs.20 One explanation to this gap is simply that
119. In
undercovered
the the in
privatethe survey
law, sector, prior
more than to
tradeone2012.
union and
union collective
can bargaining
exist in one outcomes
bargaining unit; inhave
suchbeen poor.
instances,
A survey
under the of establishments
doctrine
Employment. of sole and employing
exclusive 20 or more
bargaining workers shows
representation, that
only oneunion
uniondensity
in the
rate (proportion
bargaining unit canof union
acquire membership
a right to to total employees)
represent the employees in theinprivate
the entire sector dropped
bargaining
sharply
unit. The fromotheraround one-fifthisofthat
explanation totalasemployees
a condition to less
for than
acquiringone-tenth in 2014.status,
bargaining Basedthe on
latest data, 43.8
contending registered Table 30.
per cent or Collective
of legitimate bargaining
union members were
unions typically incoverage
the gorates
industry sector, 46.8
through the process of per cent in
services
certification and election
only 9.4orper othercentinter-union
in agriculture
(in perprocesses.
cent)(Table While29). Inthe July
Labor2016,Code there were only
characterizes
Sector
1,126 (6.5 per 2003
cent) registered 2004 unions 2008
with 2010
collective
a certification election as a non-legalistic, non-adversarial, fact-finding process where bargaining2012 2014
agreements (CBAs) the
Total 19.7 162 17.3 13.1
employer is a by-stander, it can become a very contentious and litigious matter subject 10.9 10.3 8.1
Agriculture .. .. .. .. 23.1 14.4
154 of Order
Executive a specialized V, Section 13. initiated with the DOLE Mediator-Arbiter in the Regional
No. 180, Rule proceeding
155 Non-agriculture
Idem, Rule XII, Section 1 provides 19.7
that the subject 17.3 13.1 10.9 9.6 7.8 thereof, except
Office
those thatIndustry
whose order23.2
are fixed by law, may be the
to hold an of21.1
negotiationcan
election
subject of negotiation.
are terms and conditionstoofthe
be appealed
Section 17.4
employment
DOLE
15.9 as negotiable
identifies the following
or Secretary,
improvements
13.5matters: (a)12.1
the Court
schedule of vacation
of Appeals
and otherServices and ultimately
leaves; (b) personnel growth16.7 to the Supreme
14.5 (c) communication
and development; 10.5 Court. After
system 8.3 the order to hold an
7.6and vertical),5.7
– internal (lateral election
external; (d) work is
assignment/reassignment/detail/transfer;
affirmed and an election(e) distribution of
is conducted, work load; (f) provision
the supplies;
law for
allows protection and
thatfitness
the safety; (g)
results can provision
be for facilities for
Note:
handicapped The surveys
personnel; covered
(h) provision establishments
for first aid medicalemploying
services and 20 workers or more.
(i) physical Agriculture
programme;sector notcontested
(j) provision for family
through
covered thein same
the appellate
survey prior toprocess
2012. over again. Cases in which the process
planning services for married women; (k) annual medical/physical examination; (l) recreational, social, athletic and cultural activities went through and
Sour
facilities;thecesCNA
(m) :twoPhilippine
incentive
cycles Statistics
pursuant
of to Authority,
PSLMC
appeal BLES
Resolution
are not Integrated
No.uncommon,
4, s. 2002 and Survey/Integrated
Resolution
either Survey
No.prolonging
2, s. 2003; and,on Labor
(n)the andconcerns which
such acquisition
other of
are not prohibited by law and CSC rules and regulations.
Employment.
156 bargaining status for years or worse, resulting in the collapse of the union seeking
Idem, Section 3. Compensation matters. – Increases in salary, allowances, travel expenses, and other benefits that are specifically provided to
by law are not
acquirenegotiable.
representation status.
120.
157
158
A Section
Idem, revealing14. data is the wide gap between registered unions and their membership and the
Based on administrative records, Bureau of Labor Relations, DOLE.
159 number of unions which eventually succeed in concluding CBAs and the number of
Philippine Statistics Authority, BLES Integrated Survey/Integrated Survey on Labor and Employment.
160
workers
Based covered
on administrative by such
records, Bureau CBAs. In JulyDOLE.
of Labor Relations, 2016, there were only 1,126 (6.5 per cent) out of
One explanation to this gap is simply that55
161
Idem. 161
162
Seethe 17,245
Labor registered
Code, Articles 267-272, unions
as renumbered that(formerly
had CBAs. Articles 255-259).
under the law, more than one union can exist in one bargaining unit; in such instances,
67 Philippines 2017
120. A revealing data is the wide gap between registered unions and their membership and
the number of unions which eventually succeed in concluding CBAs and the number of
workers
covering covered
200,476 by workers.
such CBAs. 160
In July
The 2016, there
collective were only
bargaining 1,126rates
coverage (6.5 also
per cent)
fell inout
all of
the 17,245during
sectors registered unions
the period that had
in review andCBAs.
is now One explanation to this gap is simply that
161 down to less than 1 per cent (Table 30).
under the law, more than one union can exist in one bargaining unit; in such instances,
Table 29. Union density rates
121.under
Tablethe 31doctrine
below shows of sole theand exclusive
number bargaining
of representation representation,
or med-arbitration only one
casesunion
filed in
andthe
bargaining
disposed in unitthecan
lastacquire a rightThe
seven years. to represent
(in per cent)
table shows theaemployees in the entireperformance
generally satisfactory bargaining unit.
of
The other
Sector
the explanation
DOLE Regional Offices is
2003 that as a condition
2004
and16.3
the Bureau for
2008 acquiring
of Labor10.6
2010 bargaining 2012status, 2014
Relations (BLR) the
in terms contending
of case
Total
registered or 163
legitimate 20.2
unions typically 12.5
go through the process of 9.9
certification7.7election or
disposition.
Agriculture At the same
.. time, it indicates
.. that
.. as a ratio
.. to total CBAs,
23.1 representation
13.3
other inter-union
isNon-agriculture
contested processes.
in more Whileout
than three the Labor instances.
Code characterizes
Further, asa9.3 certification election
cases as
20.2 16.3 of ten12.5 10.6 a ratio to 7.3total
a non-legalistic, non-adversarial,
Industry the order of22.7
disposed, fact-finding
the Med-Arbiter20.1 process
16.8
is appealed where
in15.7 the
almost one employer
13.2 is
out of two a by-stander,
11.2
instances.
162
it No
can become
Services
data a very contentious
is available 18.1how many
on andoflitigious
13.3 9.9matter
the cases disposed subject of a7.2
7.9 on appeal specialized 5.5proceeding
are elevated to the
initiated
Court of Appeals and eventually to the Supreme Court. In any case, the lengthyhold
Note: with
The the
surveys DOLE
covered Mediator-Arbiter
establishments in
employing the
20 Regional
workers or Office
more. whose
Agriculture order
sector to
not andan
election canprocedure,
covered
legalistic be appealedinstitutionalized
in the survey to the DOLE Secretary,
prior to 2012. through the the Court of Appeals
law itself, and ultimately
is a major to the
obstacle that
Supreme Court.
Sources: Philippine
unions have After the
Statistics order
Authority,to hold
BLES an election
Integrated is affirmed
Survey/Integrated
to overcome before they can acquire collective bargaining representation. and an
Survey election
on is
Labor and conducted,
Employment.
the law allows that the results can be contested through the same appellate process over again.
Cases in which the process Tablewent through theoftwo
31. Disposition cycles of appealcases
med-arbitration are not uncommon, either
prolonging the acquisition
Indicator Tableof30. bargaining
Collective
2010 status
2011 for
bargaining
2012 yearscoverage
or worse,
2013 resulting
rates
2014 2015in the collapse of
2016
theDOLE
union seeking
Regional Officesto acquire representation status.
(in per cent)
Cases handled
Sector 2003 3282004 250 2008 248 253
2010 3252012 310 2014 334
New cases filed 290 236 232 232 310 297 333 and
121. Table
121. Table 31
31below
Total belowshowsshowsthe19.7number
the number of17.3
representation 13.1 or med-arbitration
of representation or 10.9
med-arbitration 10.3cases filedfiled
cases and
8.1 disposed
Cases disposed
Agriculture .. 314 .. 234 228
.. 238 .. 312 23.1 309 311
14.4
in the
disposed last seven
in
Disposition
the lastyears. The table95.7
rate (%)
seven years. Theshows a generally satisfactory
table shows a generally performance of93.1
satisfactory performance the ofDOLE
Non-agriculture 19.7 17.3 93.6 13.191.9 94.1
10.9 96.0 9.6 99.7 7.8
Regional
the DOLEOffices
Industry
Regional and the
OfficesBureau of
and the Labor
Bureau Relations
of Labor(BLR) in
Relations terms
(BLR)of case disposition.
in terms of case163 At
Bureau 163 Relations23.2
of Labor 21.1 17.4 15.9 13.5 12.1
theCases
same
disposition.
Servicestime, At
handled it indicates
16.7that 201
the same time,asit14.5
aindicates
ratio119to total142CBAs,144
that
10.5 representation
as a ratio to total CBAs,
8.3 145 7.6 152 is representation
contested
152 in more
5.7
isthan three
contested
New cases
Note: outin of ten
more instances.
than three
filed covered establishments
The surveys Further,
out
173
of as a
ten
96 ratio to
instances.
employing 123 total
20 workers cases
Further,
112 disposed,
as a the
ratio
or more.102Agriculture order
to total
135 sector135 of the Med-
notcases
Arbiter
Casesis
disposed, appealed
the
disposed
covered in thein
order ofalmost
the
survey priorone out of two
Med-Arbiter
to178
2012. 100 instances.
is appealed
110 inNo data is128
almost
101 available145
one out of on how145
two many of the
instances.
cases
No disposed
data
Disposition
Sour on(%)appeal
ces:is Philippine
available
rate on how areAuthority,
Statistics elevated
many88.6of to
BLESthethe Court
cases
84.0
Integrated of Appeals
disposed
77.5 and
on appeal
70.1
Survey/Integrated eventually
88.3 areon95.4
Survey to and
elevated
Labor thetoSupreme
95.4 the
Employment.
Court.
Court
Source:ofInDepartment
any
Appeals case,
andofthe lengthy
eventually
Labor and legalistic
to the
and Employment, Supreme procedure,
Planning Court. In
Service. institutionalized
any case, the lengthy through and the law
120. itself,
legalistic
A is a major
procedure, obstacle that unions
institutionalized have
through to overcome
the law itself,before is they can
a major acquire
obstaclecollective
that
122.unionsIn revealing
thehave
bargaining public todata is theemployees
sector,
overcome
representation.
wide
before gap between
organizations
they registered
can acquire are unionsbargaining
classified
collective and their
into fourmembership and the
groups – national
representation.
number of unions which eventually succeed in concluding
government agencies (NGAs), State universities and colleges (SUCs), government- CBAs and the number of
workersorcovered
owned controlled by
Tablesuch CBAs.
31. Inwith
Disposition
corporations Julyoriginal
2016, there were(GOCCs)
of med-arbitration
charters onlycases
1,126 (6.5
and per government
local cent) out of
161
the 17,245
units (LGUs). registered unions
IndicatorOrganization 2010 that had2011
and membership CBAs. 2012 One explanation
is most2013prevalent 2014 to this
in NGAs gap is
2015 and2016 simplyWith
LGUs. that
under
DOLE the
Regional
respect law,
to Offices more than one union can exist in one bargaining
CNAs, data as of January 2015 show a cumulative total of 982 accredited unit; in such instances,
under
Cases
unions andthe
handled doctrine of sole and
813 registered exclusive
328CNAs 250since bargaining
248
1987. 164 representation,
253 325
However, only
310 is
there one334
nounion in the
available
New cases filed unit can acquire290
bargaining a right 236to 232 the
represent 232employees310 in the 297 entire 333bargaining
disaggregated data based on the four classifications and actual number of employees
Cases
unit.disposed
Thebyother explanation314is that234 228
as a condition 238 312
for acquiring 309
bargaining 311status, the
covered
Disposition
CNAs.
contending registered or legitimate unions typically go through the 93.1
rate (%) 95.7 93.6 91.9 94.1 96.0 99.7 process of
Bureau of Labor
certification Relations
Cases
Relatedelection
D.3 handled issues: or other inter-union
Security201
of tenure
119
processes.
and dispute144
142
While the Labor Code characterizes
resolution145 152 process152 where the
a certification election as a non-legalistic, non-adversarial, fact-finding
New cases filed 162173 96 123 112 102 135 135
123. Casesemployer
In the private is a sector,
by-stander,security it can become a very contentious and litigious matter subject
disposed 178of tenure100 and the 110 labour 101dispute 128resolution
145 system 145 are often
of a specialized
Disposition
subsumedrate proceeding
(%) the broad heading
under initiated
88.6
with the
84.0labour77.5
of DOLE Mediator-Arbiter
70.1 Security
relations. 88.3 of tenure
in
95.4 is95.4
the Regional
the right of
an employee not to be dismissed from employment without just or authorized the
Office
Source: whose
Department order
of to
Labor hold
and an election
Employment, can be
Planning appealed
Service. to the DOLE Secretary, Court
cause. 165
of Appeals and ultimately to the Supreme Court. After
Effective implementation and enforcement of this right directly impacts on freedom of the order to hold an election is
affirmed
122. In association and
the public sector, an
and theelection
employees is conducted,
right to organizations the law
collective bargaining allows
are classified that
because the
intothe results
fourunion can
groups andbe contested
– national
collective
through
government the
bargainingagencies same appellate
tradition in (NGAs), process over again.
State universities
the Philippines Cases
is premisedand in which
on colleges the process went
Thatthrough
(SUCs), government-
regular employment. is why
the
owned two
or cycles
controlled of appeal
corporations are not
with uncommon,
original either
charters prolonging
(GOCCs)
the rise of non-regular or precarious forms of employment, unfair labour practices167 166 and local the acquisition
government of
bargaining
units
and (LGUs).
termination statusoffor
Organization yearsandormembership
employment, worse,
on oneresulting andinthe
is most
hand, theefficiency
collapse
prevalent of the
in NGAs
of theand
union
LGUs.
dispute seeking
With to
resolution
acquire
respect representation
systemto toCNAs, enforce data status.
theaslawof against
Januaryunjust 2015 or show a cumulative
unauthorized total of 982
termination, on theaccredited
other, are
164
unions and 813 registered CNAs since
among the most frequently-raised issues by unions and workers. 1987. However, there is no available
160 disaggregated
Based data based
on administrative records, Bureau ofon the
Labor four DOLE.
Relations, classifications and actual number of employees
161
162
covered
Idem. by CNAs.
See Labor Code, Articles 267-272, as renumbered (formerly Articles 255-259).
163
The Bureau of Labor Relations processes appeals from orders of the Med-Arbiter for the DOLE Secretary.
164
165
D.3on data
Based Related issues:
from the Civil Security
Service of tenure and dispute resolution
Commission. 56
See Arts. 294 to 298, Labor Code, as renumbered (formerly Arts. 279 to 284).
166
See discussion on precarious work under Section II. B.2.1.
167
122. In the public sector, employees

organizations are classified into four
121. Table 31 below shows the number of representation groups or– med-arbitration
national government cases filed agencies
and
(NGAs), State
disposed in the last seven years. The table shows a generally satisfactory performance of universities and colleges
the DOLE Regional Offices and the Bureau of(SUCs), government-owned
Labor Relations (BLR) in terms or controlled
of case
disposition. 163 corporations with
At the same time, it indicates that as a ratio to total CBAs, representationoriginal charters (GOCCs)
124. The main State
is contested in more agencythanwith
threejurisdiction toand
out of ten instances. decide localcasesgovernment
Further, involving units
as a ratiotermination
to total (LGUs).
casesof
employment and unfair labour practices is theOrganization
National
disposed, the order of the Med-Arbiter is appealed in almost one out of two instances. Laborand membership
Relations Commissionis most
(NLRC),
No data is 168
the country’s
available on how compulsory
many of the labourcases prevalent
arbitration
disposed inbody.
NGAs
on Toand
appeal LGUs.
a limited
are Withtorespect
degree,
elevated the
National
Court of Conciliation
Appeals andand Mediation
eventually to Board
the Supreme to CNAs, data as of January 2015 show a
(NCMB) 169
Court. can Inconciliate
any case, and themediate
lengthy issues
and
on termination
legalistic procedure,if these are raised on the
institutionalized through cumulative
occasion the law total isofa982
of aitself,
bargaining accredited
deadlock
major unions
or unfair
obstacle that
labour
unions practice that is brought
have to overcome beforebefore
they can The and
it. acquire 813 registered CNAs since 1987.
Secretary
collective of Labor
bargaining or the NLRC,
representation. in the164
exercise of its extraordinary power to assumeHowever, jurisdiction thereoveris no available
a dispute disaggregated
involving the
national interest, may Tablealso31.pass
Disposition of med-arbitration
upon termination issues if cases
data based on the four classifications and
this is part of the dispute
brought before it. 170
Indicator 2010 2011 actual 2013
2012 number2014 of employees 2015 covered by
2016
DOLE Regional Offices CNAs.
125. Cases
The handled
NLRC has a three-layered 328dispute 250settlement248 and253 resolution 325 structure. 310 It 334
starts with
New cases filed 290 236 232 232 310 297 333 171
conciliation and mediation, a procedure
Cases disposed 314 234 which
D.3 228Related
was made issues:
238 Security
mandatory
312 of tenure
by
309
a recentand
311
law.
IfDisposition
the complaint rate (%)
is not settled, 95.7 it will then
93.6
be elevated
dispute 91.9resolutionto the second
94.1 96.0
layer,
99.7
which
93.1
is the
formal filing of the complaint with the Labour Arbiter for compulsory arbitration. The
Bureau of Labor Relations
decision of the Labour Arbiter
Cases handled 201
can 119
be elevated
123. In through
142 the 144 privatean 145appeal
sector,152 tosecurity
the appropriate
152of tenure
division of
New cases filed commissioners within
173 the NLRC,
96 whose decision
and the112labour102dispute
123 completes the third
135 layer.
135resolution system
Thereafter,
Cases disposed if any of the parties178so desire,
100 the case
are often subsumed under the first
110 may still
101 be brought
128 to
145 the courts,
145 broad
toDisposition
the Courtrate of (%)
Appeals and thereafter88.6 84.0 77.5
to the Supreme 70.1
Court. 88.3 95.4 95.4
heading of labour relations. Security of
Source: Department of Labor and Employment, Planning Service.
©ILO R. Dela Cruz tenure is the right of an employee not to
126. Almost all cases brought to the NLRC are termination cases, many of which involve
122. In the public sector, employees be
are dismissed fromfour employment without
individual complainants. Theseorganizations
cases are usually classified
accompaniedinto bygroups
claims – national
165 for re-
government back agencies (NGAs), State universitiesjust or colleges authorized (SUCs), cause. Effective
government-
instatement, wages and other money claims, and sometimes by claims for unfair
owned practice
or controlled corporations implementation and enforcement of
labour and damages. The with
NLRC original
has two charters
basic (GOCCs)
problems –and thelocal
first government
is the sheer
units (LGUs). Organization this
mostright directly impacts on freedom
volume of cases entering theand membership
system, and theissecond prevalent
is delay in in the
NGAs and LGUs.
disposition With
of cases
respect to CNAs, data as of January 2015 of
show association
a
which is a necessary consequence of the first. Table 32 shows the volume of casescumulative and the
total ofright
982 to collective
accredited
unions
enteringand the 813 NLRC registered
every year CNAs at since
the Labour bargaining
1987. 164 because
However,
Arbiter level there the union
(Regional is noand collective
available
Arbitration
disaggregated
Branches) and data
at thebased on the
appellate levelfour bargaining
classifications
(Commission and actual number of employees is
proper). tradition in the Philippines
covered by CNAs. premised on regular employment. That is
Table 32. Cases handled by the National whyLaborthe rise of non-regular
Relations Commission or precarious
D.3 Related issues: Security2010
Indicator of tenure 2011 formsresolution
and dispute
2012 of employment,
2013 2014 2015 unfair
166
2016 labour
Regional Arbitration Branches practices 167
and termination of employment,
123. InCases handled sector, security of
the private 44 693
tenure41and 708 the39on one 38
601
labour hand,
857 and
dispute 38 the efficiency
962
resolution 39 269
system of 748
38 the often
are dispute
New cases filed 32 958
subsumed under the broad heading of labour relations. 30 812 30resolutionSecurity
107 30 system to
021 30 397of enforce
tenure isthe
29 623 thelaw
30 342
rightagainst
of
anCases settled
employee not to be dismissed 14 571 13 808 13unjust
from employment 306 13 or341 12 747 12termination,
unauthorized
without just 836 13 277 on165
or authorized cause. the
Cases disposed 33 416 32 045 30 888 30 245 29 432 30 863 30 544
Effective implementation and enforcement
Disposition rate (%) 74.8 76.8
of other,
this
78.0
are among
right directly
77.8
the
75.5
most frequently-raised
impacts 78.6
on freedom
78.8
of
association and the
Judgment award (Php billion) right to collective
4.455 4.573 issues
bargaining
3.872 by unions
because
6.787 and
the
5.162 workers.
union 6.956 and collective
7.176
bargaining tradition in the Philippines
Workers benefitted 36 975 34is455 premised
33 347 on37regular
972 36employment.
769 36 685 That 36 353is why
the rise of Proper
Commission non-regular or precarious forms 124. The main State
of employment, 166
agency
unfair withpractices
labour jurisdiction
167
and termination
Cases handled of employment, on one
15 443 14 hand,
260 13 to512decide
and the 13 199cases
efficiency 11 725involving
of 864 termination
the11dispute 11resolution
815 of
system
New casesto filed
enforce the law against 11 543unjust11 372 11employment
or unauthorized and
085 11 409termination,
10 435unfair labour
on
10 705 practices
970 are is
the10other,
Cases disposed
among the most frequently-raised 12 546issues11 817 11the
by unions 710National
and 925 Labor
11 workers. 10 617 Relations
11 019 11 Commission
157
Disposition rate (%) 81.2 82.9 (NLRC),
86.7 90.3 the90.6country’s
168 92.9 compulsory
94.4
Amount of award (Php billion) 3.956 2.911 2.909 2.646 2.325 2.274 17.563
163 Workers benefitted 13 576 14 015 10 407 11 216 9 070 10 608 18 852
The Bureau of Labor Relations processes appeals from orders of the Med-Arbiter for the DOLE Secretary.
164
Based Source: Department
on data from of Labor
the Civil Service and Employment, Planning Service.
Commission.
165
See Arts. 294 to 298, Labor Code, as renumbered (formerly Arts. 279 to 284).
166
See discussion on precarious work under Section II. B.2.1.
167
Arts. 258 to 259, Labor Code, as renumbered (formerly Arts. 247 to 248).
168
Arts. 224 to 225, idem, as renumbered (formerly Arts. 217 to 218).
57
169
Art. 278, idem, as renumbered (formerly Art. 263).
170
Idem.
171
Republic Act No. 10396, “An Act Strengthening Conciliation-Mediation as a Voluntary Mode of Dispute Settlement for all Labor Cases,
124. Thework
Decent main Statediagnostics:
country agency with jurisdiction to decide cases involving termination of
69 Philippines 2017
employment and unfair labour practices is the National Labor Relations Commission
(NLRC), 168 the country’s compulsory labour arbitration body. To a limited degree, the
National Conciliation and Mediation Board (NCMB) 169 can conciliate and mediate issues
labour arbitrationifbody.
on termination theseToare a limited
raised degree, the National
on the occasion of aConciliation
bargaining and Mediation
deadlock or unfairBoard
(NCMB) 169
can conciliate and mediate issues on termination
labour practice that is brought before it. The Secretary of Labor or the NLRC, in the if these are raised on the occasion
ofexercise
a bargaining itsdeadlock
of State extraordinary or unfairpower labour practicejurisdiction
to assume that is brought over before
a dispute it. The Secretary
involving the of
124.Labor
The or main
the NLRC, agency
in the with
exercise jurisdiction
of its to decidepower
extraordinary cases toinvolving
assume termination
jurisdiction of a
over
national
employment interest,
andthe may also
unfair labourpasspractices
upon termination
is the issues Labor
National if thisRelations
is part ofCommission
the dispute
dispute
brought involving
before 170 national interest, may also pass upon termination issues if this is part of
(NLRC),
the
168
dispute broughttheit.country’s
before it.compulsory
170 labour arbitration body. To a limited degree, the
National Conciliation and Mediation Board (NCMB) 169 can conciliate and mediate issues
125. onThetermination
NLRC has if a three-layered
these are raised dispute
on the settlement
occasionand of resolution
a bargaining structure.
deadlock It starts with
125. The NLRC hasand
conciliation a three-layered
mediation, a dispute
procedure settlement
which was and
maderesolution
mandatory structure.
by a It or
recent
unfair
starts
law. with
171
labour practice
conciliation that
and mediation, is brought before
a procedure it.
which The Secretary of Labor or the NLRC, in
171 the
If the complaint
exercise of its is not settled,
extraordinary it willtothen
power assume bewas made to
elevated
jurisdiction
mandatory
the oversecond
a
bylayer,
a recent
dispute whichlaw. is If
involving thethe
the
complaint is notofsettled,
formal filing it will then be elevated to the secondfor layer, which is the formal filing The of
national interest,the may complaint
also pass with the termination
upon Labour Arbiter
issues ifcompulsory
this is partarbitration.
of the dispute
the complaint
decisionbefore with the
of theit.Labour
170 Labour Arbiter for compulsory arbitration.
Arbiter can be elevated through an appeal to the appropriate The decision of the Labour
brought
Arbiter
divisioncanofbecommissioners
elevated through an appeal
within to the appropriate
the NLRC, whose decision division of commissioners
completes the third layer. within
the NLRC, whose decision completes the third layer. Thereafter, if any of the parties so desire,
125. Thereafter,
The NLRC ifhas any of the parties so
a three-layered desire,
dispute the case may
settlement still be brought
and resolution to theItcourts,
structure. starts withfirst
the
to case
the may still
Court of be brought
Appeals and tothereafter
the courts, to firstSupreme
the to the CourtCourt. of Appeals and thereafter to171the
conciliation and mediation, a procedure which was made mandatory by a recent law.
Supreme Court.
If the complaint is not settled, it will then be elevated to the second layer, which is the
126. Almost all cases
formal filing of the brought
complaintto the withNLRC are termination
the Labour Arbiter for cases, many ofarbitration.
compulsory which involve The
126. Almost all
individual cases brought
complainants. to the NLRC
These are
cases termination
are usually cases,
decision of the Labour Arbiter can be elevated through an appeal to the appropriate many
accompanied of which
by involve
claims individual
for re-
complainants.
instatement,
division These
back wages
of commissioners cases areand usually
otherthe
within accompanied
money
NLRC, claims,
whosebyand
claims forcompletes
sometimes
decision re-instatement,
by claimsthe third back
for wages
unfair
layer.
and other
labour money
practice claims,
and and
damages. sometimes
The NLRC by claims
has two for unfair
basic problems
Thereafter, if any of the parties so desire, the case may still be brought to the courts, first labour – practice
the first and
is the damages.
sheer
The NLRC
volume
to ofhas
the Court two
cases
of basic problems
entering
Appeals and – theand
thethereafter
system, first
to the is Supreme
the the sheerisCourt.
second volume
delay in of the
cases entering the
disposition system,
of cases
and the second
which is delay in
is a necessary the disposition
consequence of the of cases which 32
first. Table is ashows
necessary the consequence
volume of cases of the
126.first. Tableall
entering
Almost 32 shows
thecases
NLRC the every
broughtvolumeto yearof cases
the at the
NLRC entering
Labour
are the Arbiter
NLRCcases,
termination every year
levelmany atofthewhich
(Regional Labour
ArbitrationArbiter
involve
level (Regional
Branches) andArbitration
at the Branches)
appellate level and at
(Commission the appellate
individual complainants. These cases are usually accompanied by claims for re- level
proper). (Commission proper).
instatement, back wages and other money claims, and sometimes by claims for unfair
labour Table
practice 32.andCases handled
damages. ThebyNLRC the National
has two Labor Relations– Commission
basic problems the first is the sheer
Indicator 2010 2011 2012 2013 2014 2015 2016
volume of cases entering the system, and the second is delay in the disposition of cases
Regional Arbitration Branches
which is a necessary consequence
Cases handled 44 693 of 41 the
708 first.39 601 Table 32 shows
38 857 38 962 the 39 volume
269 38 748 of cases
entering
New cases thefiled NLRC every year 32 958at 30 the812Labour 30 107 Arbiter
30 021 level 30 397(Regional
29 623 30 Arbitration
342
Branches)
Cases settled and at the appellate14level 571 (Commission
13 808 13 306proper). 13 341 12 747 12 836 13 277
Cases disposed 33 416 32 045 30 888 30 245 29 432 30 863 30 544
Table 32. Cases handled74.8
Disposition rate (%) by the76.8
National
78.0Labor Relations
77.8 75.5 Commission
78.6 78.8
Judgment award (Php billion)
Indicator 4.455 2011
2010 4.573 2012
3.872 2013
6.787 2014
5.162 2015
6.956 2016
7.176
WorkersArbitration
Regional benefitted Branches 36 975 34 455 33 347 37 972 36 769 36 685 36 353
Cases handled
Commission Proper 44 693 41 708 39 601 38 857 38 962 39 269 38 748
New
Casescases filed
handled 32
15 958
443 30
14 812
260 30
13 107
512 30
13 021
199 30
11 397
725 29
11 623
864 30
11 342
815
Cases settled
New cases filed 14
11 571
543 13
11 808
372 13
11 306
085 13
11 341
409 12
10 747
435 12
10 836
705 13
10 277
970
Cases disposed 33
12 416
546 32
11 045
817 30
11 888
710 30
11 245
925 29
10 432
617 30
11 863
019 30
11 544
157
Disposition rate (%) 74.8
81.2 76.8
82.9 78.0
86.7 77.8
90.3 75.5
90.6 78.6
92.9 78.8
94.4
Judgment
Amount ofaward (Phpbillion)
award(Php billion) 4.455
3.956 4.573
2.911 3.872
2.909 6.787
2.646 5.162
2.325 6.956
2.274 7.176
17.563
Workers benefitted 36
13 975
576 34
14 455
015 33
10 347
407 37
11 972
216 369 769
070 36
10 685
608 36
18 353
852
Commission
Source: Proper of Labor and Employment, Planning Service.
Department
Cases handled 15 443 14 260 13 512 13 199 11 725 11 864 11 815
New cases filed 11 543 11 372 11 085 11 409 10 435 10 705 10 970
168
Arts. 224Cases
to 225,disposed 12 546
idem, as renumbered (formerly Arts. 11 817 11 710 11 925 10 617 11 019 11 157
217 to 218).
169
Art. 278,Disposition rate
idem, as renumbered (%)(formerly Art. 263). 81.2 82.9 86.7 90.3 90.6 92.9 94.4
170
Idem.
171 Amount of award (Php billion) 3.956 2.911 2.909 2.646 2.325 2.274 17.563
Amending Workers benefitted
for this Purpose Article 228 of Presidential13 576 No.14442,
Decree 015as amended,
10 407otherwise
11 216known9as070 10 Code
the Labor 608 of 18
the 852
Philippines,”
enacted 13 March 2013.
58
168
Arts. 224 to 225, idem, as renumbered (formerly Arts. 217 to 218).
169
Art. 278, idem, as renumbered (formerly Art. 263).
170
Idem.
171
Amending for this Purpose Article 228 of Presidential Decree No. 442, as amended, otherwise known as the Labor Code of the Philippines,”
enacted 13 March 2013.
58
127.127.
OnOn thethe surface,
surface, the theinflow
inflowof of cases
cases appear
appearto tobe bedeclining
declininginin thethe
lastlast
six years and the
six years anddisposition
the
rates at both
disposition ratesLabour
at bothArbiter
Labourand Commission
Arbiter and Commission levels appear levelsto appear
be generally satisfactory. The
to be generally
data, however, does not indicate the length of time it takes to resolve a case. Aresolve
satisfactory. The data, however, does not indicate the length of time it takes to trackinga survey
127. On the surface,
of termination
case. A tracking survey the inflow
cases reaching of cases
the Supreme
of termination appear to be
Court done
cases reaching declining
the by in
the NLRC
Supreme the last
Court six
in 2012 years and thethe
done illustrates
by the
NLRC disposition
lengthin of
2012time rates at both
it takes
illustrates Labour
iftheparties Arbiter
lengthexhaust
of timetheitand Commission
adjudication
takes if partiescycle levels
from
exhaust appear to be generally
theadjudication
the Labour Arbiter to
cycle satisfactory.
thefrom
Supreme The data,
Court. Arbiter
the Labour however,
For cases does
finally
to the not
disposed
Supreme indicate
Court. by the the length
ForSupreme of
cases finally time
Court it takes
in 2011,
disposed to resolve
bythe a
theaverage
case.Court
length
Supreme A time
of tracking
infor2011,survey
the of termination
resolution
the average oflength
a caseofcases
fromtimeitsreaching
forfiling the Supreme
with
the resolution of aCourt
the Labour donetoits
Arbiter
case from by
itsthe
final
NLRC
disposition
filing in 2012
with thebyLabour illustrates
the Supreme the
ArbiterCourt length
to itswas of time
an disposition
final it
astonishing by takes if parties
9.66theyears exhaust
(Table Court
Supreme the adjudication
33). Bywas any an
measure,
cycle
this from
9.66the
is unacceptably
astonishing Labour
years long
(TableArbiter
for33). toBytheany
a termination Supreme case Court.
measure, andthisforForone
is cases finallyhis
to enforce
unacceptably disposed
long her by
or for the to
aright
Supreme Court in 2011, the average length of time for the resolution 172a case from its
of
termination
security ofcase and 172
tenure. for one to enforce his or her right to security of tenure.
filing with the Labour Arbiter to its final disposition by the Supreme Court was an
Table 33.
astonishing 9.66 Average time to33).
years (Table dispose
By any NLRC cases on
measure, thistermination
is unacceptablyof long for a
employment: 2010-2011
172
termination case and for one to enforce his or her right to security of tenure.
From filing with From NLRC to From CA to From filing to
Year Table Arbiter
Labour 33. Average timeofto dispose NLRC
Court Supreme cases on termination
final SC of
to NLRC Appeals Court (SC)
employment: 2010-2011 disposition
From filing with(CA)From NLRC to From CA to From filing to
2010 Year Labour Arbiter
756.3 days Court of
876.5 days Supreme
1,419 days final days
3,051 SC
to NLRC
(2 years) Appeals
(2.4 years) (3.88Court
years)(SC) disposition
(8.36 years)
(CA)
2011 784.1 days 898.2 days 1,560.4 days 3,526 days
2010 756.3 days 876.5 days 1,419 days 3,051 days
(2.15 years) (2.46 years) (4.27 years) (9.66 years)
(2 years) (2.4 years) (3.88 years) (8.36 years)
Source: Research Division, National Labor Relations Commission.
2011 784.1 days 898.2 days 1,560.4 days 3,526 days
128.128.
With respect to the (2.15 the
years) (2.46handled
years) are collective
(4.27 years) (9.66from
years)
With respect to NCMB,
the NCMB, main disputes
the main disputes handled disputes
are collective arising
disputes arising from
notices of strikes,
Source:
notices Researchlockouts
of strikes, Division, and
lockouts preventive
National
andLabor mediation
Relations
preventive that involve
Commission.
mediation collective
that involve bargaining
deadlocks, unfair labour practices and issues arising from the implementation
deadlocks, unfair labour practices and issues arising from the implementation or interpretation or
128. With
interpretationrespect to the NCMB, the main disputes handled are collective disputes arising from
of collectiveofbargaining
collective agreements
bargaining agreements
or companyorpersonnel
companypolicies.
personnel policies.
Where the Where
dispute is not
noticesisofnot
thesettled
dispute strikes, lockouts and preventive mediation thatrefer
involve collective bargaining
throughsettled throughthe
conciliation, conciliation,
NCMB may therefer
NCMB may
the case the case
to voluntary to voluntary
arbitration. Table 34
deadlocks,
arbitration. Table unfair
34 labour
shows the practices
cases filed and
with issues
the NCMB.arising from
Notably, the
the implementation
volume of cases or
shows the cases filed with the NCMB. Notably, the volume of cases is much less compared
interpretation
is much less compared of collective bargaining agreements or company personnel policies. Where
with NLRC, but eachwithcase,NLRC, but each
being collective case, being
dispute, collective
necessarily dispute,
involves necessarily
more workers.
the dispute
involves more workers. is not settled through conciliation, the NCMB may refer the case to voluntary
arbitration. Table 34 shows the cases filed with the NCMB. Notably, the volume of cases
129.129. Cases
Cases filed with
isfiled
muchwith lessthe
the NCMB
NCMB
compared
arise from
arise
with from
NLRC, thethe direct
direct
but each
exerciseofofcollective
exercise collectivebargaining
case, being collective
bargainingrights.
rights. Thus,
dispute, necessarily
the data
Thus,involves available
the datamoreavailabledoes not disaggregate how many of the cases involve
does not disaggregate how many of the cases involve termination
workers. termination issues. The
settlement
issues. and disposition
The settlement and rates at the NCMB
disposition rates at appear to be generally
the NCMB appearsatisfactory. One can also
to be generally
129. infer that
Cases filed
satisfactory. the settled
Onewith canthe cases
alsoNCMB effectively
infer arise bring
fromsettled
that the closure
the direct to the
exercise
cases dispute and
of collective
effectively preclude
bargaining
bring closure toa prolonged
rights.
the
appellate
Thus, or
the judicial
data remedy.
available The
does continuing
not disaggregatechallenge
how for
many NCMB
of
dispute and preclude a prolonged appellate or judicial remedy. The continuing challenge the is how
cases to promote
involve voluntary
termination
forarbitration
issues. is
NCMB Theashow
asettlement
preferred
to promote mode for arbitral
andvoluntary
disposition intervention. Using
rates at asthea NCMB
arbitration preferred procedures
appear
mode to similar
for be to NLRC
generally
arbitral
procedures,
satisfactory.
intervention. it can
Using One becanobserved
procedures thatthat
alsosimilar
infer towhilethethe
NLRC period
settled of it
cases
procedures, resolution
effectively ofbring
can be observed voluntary
closure
that arbitration
while to the
cases is relatively
disputeofand
the period quick, the disposition
precludeofavoluntary
resolution prolongedarbitrationrates
appellate or are much
judicial
cases lower than
remedy.quick,
is relatively compulsory
The continuing arbitration.
challenge
the disposition
for NCMB is how to promote
rates are much lower than compulsory arbitration. voluntary arbitration as a preferred mode for arbitral
intervention. Using procedures similar to NLRC procedures, it can be observed that while
the period of resolution of voluntary arbitration cases is relatively quick, the disposition
rates are much lower than compulsory arbitration.
172
For a more detailed discussion on the labour dispute resolution system, see B. E. R. Bitonio Jr., “Reforming the Philippine Labor Dispute
Resolution System,” in Labor and Industrial Relations in the Philippines: A Reader, University of the Philippines School of Labor and
Industrial Relations (2016), Virgel Binghay, ed., pp. 152-190.
172
59Dispute
For a more detailed discussion on the labour dispute resolution system, see B. E. R. Bitonio Jr., “Reforming the Philippine Labor
Resolution System,” in Labor and Industrial Relations in the Philippines: A Reader, University of the Philippines School of Labor and
59
71 Philippines 2017
Table 34. Cases handled by the National Conciliation and Mediation Board
Indicator 2010 2011 2012 2013 2014 2015 2016
Notices of strikes/lockouts
Cases handled 325 274 222 177 191 226 213
New cases filed 276 240 184 149 159 194 175
Workers involved 59 750 51 001 40 861 31 526 43 195 36 972 33 384
Cases settled 260 215 175 139 156 180 158
Settlement rate (%) 80 78 78 79 82 80 74
Duration to settle (days) 55 39 48 44 53 51 66
Disposition rate (%) 90 86 87 82 83 83 83
Monetary benefits (Php million) 2 140 4 164 622 863 2 350 436 677
Workers benefitted 15 275 11 148 7 054 8 704 13 600 4 976 7 440
Mandays saved (000) 2 109 1 648 1 114 568 392 408 626
Actual strikes/lockouts
Cases handled 8 2 3 1 2 5 15
Cases declared 8 2 3 1 2 5 15
Workers involved 3 034 3 828 209 400 51 730 3 106
Mandays lost 34 171 3 828 797 1 200 1 260 4 882 116 637
Settlement rate (%) 88 - 100 100 100 100 53
Cases disposed 8 2 3 1 2 5 9
Duration to dispose (days) 11 1 6 3 57 9 27
Monetary benefits (Php 000) 29 140 - 41 290 - - 1 500 26 945
Workers benefitted 2 041 - 209 - - 92 211
Requests for assistance (Single Entry Approach)
Cases handled 902 1 805 4 088 4 860 6 022 5 743 6 252
New cases filed 843 1 770 3 916 4 598 5 854 5 509 6 004
Cases settled 863 1 595 3 750 4 544 4 801 4 601 4 608
Settlement rate (%) 75 88 92 94 80 80 74
Duration to settle (days) 17 18 21 21 17 18 19
Monetary benefits (Php million) 15 72 201 331 130 188 196
Workers benefitted 777 2 340 3 746 5 155 4 677 4 538 5 235
Preventive mediation
Cases handled 476 585 471 484 498 491 449
New cases filed 416 535 428 452 464 450 417
Workers involved 131 275 141 669 129 279 138 944 123 451 105 220 96 764
Monetary benefits (Php million) 1 523 270 1 288 435 276 87 152
Workers benefitted 7 113 4 588 6 512 10 333 3 993 1 712 3 824
Voluntary arbitration
Cases handled 209 249 254 253 346 440 599
New cases filed 124 180 169 173 242 305 406
Settlement rate (%) 14 11 16 14 - 8 11
Duration to dispose (days)
From acceptance by arbitrator 231 160 162 175 190 155
From submission to resolution 38 46 52 61 81 73 18
Monetary benefits (Php million) 126 171 262 251 414 423 1 063
Workers benefitted 904 740 1 686 672 1 231 6 016 361
60
130. With respect to the DOLE Secretary who can assume jurisdiction over labour disputes
involving national interest, the long-standing issue that has reached the CEACR is that the
phrase “national interest” instead of “essential services” gives the DOLE Secretary an overly
130.broad
Withpower
respect to to
intervene
the DOLE in labour
Secretary disputes,
who can particularly in stopping over
assume jurisdiction a strike or lockout
labour disputes and
forcing
involvingthe workers
national to returnthe
interest, to long-standing
work and the issue employerthat hasto restore
reachedthe thestatus
CEACR quo is prior
that to
the dispute. As the CEACR has long observed, an overly
the phrase “national interest” instead of “essential services” gives the DOLE Secretary broad power is incompatible with
ILO
an Convention
overly broadNos. power 87 to and 98 as it undermines
intervene in labour disputes, the right of workers
particularly into collectively
stopping bargain
a strike or
armed with the coercive economic weapon of a strike.
lockout and forcing the workers to return to work and the employer to restore the status
governmental intervention leading to compulsory arbitration to essential services; 175 to
quo prior to the dispute. As the CEACR has long observed, an overly broad power is
remove the requirement that trade unions shall secure permission from DOLE prior to
D.4 Issues and challenges
incompatible with ILO Convention Nos. 87 and 98 as it undermines the right of workers
receiving foreign assistance; to lower the minimum number of unions required to
to collectively bargain armed with the coercive economic weapon of a strike.
establish federations and confederations. 176 The CEACR has also pointed out the need
131. Freedom of association
for necessary measures andtothe rightsthe
expand to organize
rights of and collective
public sector bargaining
workers tocan be powerful
organize and
instruments
D.4 Issuestoand establish decent
challenges terms and conditions of
negotiate collectively terms and conditions of employment, including wages, benefits work and achieve harmony between
workers and employers
and allowances, and workingin the time;workplace.
177
and Moreto ensure broadly, these instruments
that bargaining agreements canshall
alsonothelp
131.enhance
Freedom productivity,
of association reduce and inequality
the rights and toequitably
organizeredistribute
and collective income and
bargaining wealth,
178 can make
be
be required to be ratified by entities other than those provided for in the law.
growth
powerful more inclusive, and
instruments promote decent
to establish industrial terms peace,
and progress
conditions andofsocial
workjustice. Because
and achieve
of the
harmonylow trade
between union density
workers and
and collective
employersbargaining coverage
in the workplace.
134. As elsewhere, unions in the Philippines are fighting for survival and continuing relevance. rate,
More trade unionism
broadly, theseand
collective
instruments
Enforcement bargaining
can do not
also
of existing
help
laws have a sufficiently
enhance
in respect to the wide
productivity, basecivil
security,
reduce to directly
inequality
and human influence
rights and
and equitablycreate
of trade
redistribute
positive and income and
significant wealth, make
distributional growthand
outcomes more inclusive,
impacts for bothandworkers
promote and industrial
employers
unions need urgent attention. Of equal importance is a purposeful package of policy and
atpeace,
law
progresslevel.
the enterprise
reforms that
and social
canWith make
justice.
thisthe
Because
limited base, the
fundamental
of the low of
sphere
principles
trade union density
influence
of freedom
and collective
of federations
of association andandtrade
bargaining
union centers coverage
at the policy rate, trade
and political unionism and
levellandscape collective
also becomes bargaining do not have a
collective bargaining effective in a work that limited.
has been drastically altered by
sufficiently wide base to directly influence and create positive and significant
globalization, market integration, freer trade, increased competition, technological
132. A distributional
government policy
advancements,
outcomes document
structural
and impacts
173
changes hasand for both workers
acknowledged
changes inchallenges,
and employers others,
workers’ among
at the enterprise
behaviors, values in securing
and
level.union
trade Withand thiscollective
limited base, the sphere
bargaining rights ofasinfluence
well as of federations
human rights andandcivil
trade unionthe
rights,
preferences.
centersenjoyment
limited at the policy and political
of these rights tolevel also groups
specific becomes of limited.
workers to the exclusion of those in
135.theThe informal
obvioussector and those
challenge is howintothe public
modernize sector;
the the declining
industrial relationstrade unionAdensity
system. practical and
132. A government policy document 173 has acknowledged challenges, among others, in
collective
step would bargaining
be to open coverage; the absence
up organizing or inadequacy
options for workers of avenues
and simplifyand channels for workers
the requirements
securing trade union and collective bargaining rights as well as human rights and civil
representation; and inefficiency
for a union to acquire legitimateand questionable
status. The prolonged integrity of the labour
and litigious process dispute
beforeresolution
unions
rights, the limited enjoyment of these rights to specific groups of workers to the
system.
can acquire sole and exclusive collective bargaining representation status must also be
exclusion of those in the informal sector and those in the public sector; the declining trade
simplified. For this purpose, alternatives to certification election can be explored. With
union density and collective bargaining coverage; the absence or inadequacy of avenues
133. The CEACR
respect also hasresolution
to dispute several outstanding
and settlement, observations
it will make andsense
recommendations
to adopt morearising summary from
and channels for workers representation; and inefficiency and questionable integrity of
the country’s especially
procedures implementation for small of and
ILOsimple
Convention claimsNos. 87 as
as well andto 98. In relation
consider to freedom
downsizing the
the labour dispute resolution system.
oflayers
association,
of appeal theandgovernment
adjudication. hasInbeen requested,
the public sector,amongon theothers, to investigate
other hand, a key area alleged
for
violations of trade
policy examination union
is therights
extent
133. The CEACR also has several outstanding observations andof civil liberties
organizational by persons
and in
collective authority;
rights of to
and recommendations arising from ensure
government that
the
theimplementation
employees that is desirable of the Human
country’s implementation Security
in promoting
of ILO
larger
Convention Actsocial
174
shall
Nos. 87not
andhave
objectives,
98. Inthe
as welleffect
relation tooffreedom
as the suppressing
respective
of
legitimate trade
roles of government union activities;
and and
employees’ to continue
organizations observing
association, the government has been requested, among others, to investigate alleged
in bringing the guideline
these about. that the
For armed
both
forces
privateandand
violations the policeunion
public
of trade may rights
sectors, notfostering
intervene
and civil in
a healthytrade climate
liberties union
by activities
persons unless dialogue
for continuing
in authority; criminal
to ensure or thatviolent
through
the
acts
implementation of the Human Security Act shall not have the effect of suppressingto
arising
effective out of a
representation labour ofdispute
workersare andcommitted.
employers
174 The
can government
promote common has also been asked
understanding,
consider
joint amending
problem
legitimate certain
solving
trade union provisions
and eventualofconsensus
activities; and tothe Labor Code
continue
amongtothe
observing recognize
social the rights
partners
the guideline thattothe
andorganize
various of
armed
aliens and
stakeholders.
forces andallthe
workers
police(including
may not intervene those inin managerial
trade union positions
activitiesorunless
with access
criminal to confidential
or violent
information,
acts arising firefighters,
out of a labour prisondisputeguards and other public
are committed. sector workers,
The government has also temporary
been asked and
outsourced
to consider workers,
amending as well as workers
certain without
provisions of employment
the Labor Code contract); to lowerthe
to recognize therights
minimum to
membership requirement for the formation of a union; to
organize of aliens and all workers (including those in managerial positions or with accessensure that workers’ organizations
areto able to organize
confidential their administration
information, firefighters, prison and activities
guards and andotherformulate
publictheirsectorprogrammes
workers,
without interference by the public authorities; to restrict
temporary and outsourced workers, as well as workers without employment contract); governmental intervention leading
to
tolower
compulsory
the minimum arbitration
membershipto essential services;
requirement 175
for theto formation
remove the of arequirement
union; to ensure that that
trade
unions
workers’shallorganizations
secure permission are able fromtoDOLE organize priortheir
to receiving
administrationforeignand assistance;
activities to and
lower
formulate their programmes without interference by the public authorities; to restrict
173
Philippine Labor and Employment Plan (PLEP): 2011-2016, DOLE, pp. 32-52.
174
Republic Act 9372 (2007), An Act to Secure the State and Protect Our People from Terrorism.
175
See Art. 278 (g), Labor Code.
61
176
CEACR Observation, Freedom of Association and Protection of the Right to Organize Convention (No.87) – Philippines, adopted 2015 and published
in the 105th ILC Session (2016).
177 th
CEACR Observation, Right to Organise and Collective Bargaining Convention (No. 98) – Philippines, adopted 2015 and published in the 105 ILC
73 Philippines 2017
the minimum number of unions required to establish federations and confederations.176 The
CEACR has also pointed out the need for necessary measures to expand the rights of public
sector workers to organize and negotiate collectively terms and conditions of employment,
including wages, benefits and allowances, and working time;177 and to ensure that bargaining 175
governmental
agreements shallintervention leading
not be required to betoratified
compulsory arbitration
by entities to essential
other than those provided for intothe
services;
remove
law.178 the requirement that trade unions shall secure permission from DOLE prior to
receiving foreign assistance; to lower the minimum number of unions required to
establish federations and confederations. 176 The CEACR has also pointed out the need
134. As elsewhere, unions in the Philippines are fighting for survival and continuing relevance.
for necessary measures to expand the rights of public sector workers to organize and
Enforcement of existing laws in respect to the security, civil and human rights of trade unions
negotiate collectively terms and conditions of employment, including wages, benefits
need urgent attention. Of equal importance is a purposeful package of policy and law reforms
and allowances, and working time; 177 and to ensure that bargaining agreements shall not
that can make the fundamental principles of freedom of association and collective bargaining
be required to be ratified by entities other than those provided for in the law. 178
effective in a work landscape that has been drastically altered by globalization, market
134.integration, freer
As elsewhere, trade,
unions increased
in the competition,
Philippines are fightingtechnological
for survival andadvancements, structural
continuing relevance.
changes and changes
Enforcement in workers’
of existing laws inbehaviors,
respect tovalues and preferences.
the security, civil and human rights of trade
unions need urgent attention. Of equal importance is a purposeful package of policy and
135. The
lawobvious
reformschallenge
that canismake
how to themodernize
fundamental the principles
industrial relations
of freedom system. A practicaland
of association step
would
collective bargaining effective in a work landscape that has been drastically altered by a
be to open up organizing options for workers and simplify the requirements for
union to acquiremarket
globalization, legitimate status. The
integration, prolonged
freer and litigious
trade, increased process before
competition, unions can
technological
acquire sole and exclusive collective bargaining representation
advancements, structural changes and changes in workers’ behaviors, values status must also be simplified.
and
For this purpose,
preferences. alternatives to certification election can be explored. With respect to
dispute resolution and settlement, it will make sense to adopt more summary procedures
135.especially
The obviousfor small and simple
challenge is howclaims as well asthe
to modernize to industrial
consider downsizing the layers
relations system. of appeal
A practical
and
step would be to open up organizing options for workers and simplify the requirements is
adjudication. In the public sector, on the other hand, a key area for policy examination
the
forextent of organizational
a union and collective
to acquire legitimate status. Therights of government
prolonged employees
and litigious that
process is desirable
before unions in
promoting larger social objectives, as well as the respective roles of government
can acquire sole and exclusive collective bargaining representation status must also be and employees’
organizations
simplified. For in bringing these alternatives
this purpose, about. For both private and election
to certification public sectors,
can befostering
explored.a healthy
With
climate for continuing dialogue through effective representation of
respect to dispute resolution and settlement, it will make sense to adopt more summaryworkers and employers
can promote common
procedures especiallyunderstanding, joint problem
for small and simple claims as solving and
well as to eventual
consider consensus
downsizingamongthe
the social partners and various stakeholders.
layers of appeal and adjudication. In the public sector, on the other hand, a key area for
policy examination is the extent of organizational and collective rights of government
employees that is desirable in promoting larger social objectives, as well as the respective
roles of government and employees’ organizations in bringing these about. For both
private and public sectors, fostering a healthy climate for continuing dialogue through
effective representation of workers and employers can promote common understanding,
joint problem solving and eventual consensus among the social partners and various
stakeholders.
175
See Art. 278 (g), Labor Code.
176
CEACR Observation, Freedom of Association and Protection of the Right to Organize Convention (No.87) – Philippines, adopted 2015 and published
in the 105th ILC Session (2016).
177
CEACR Observation, Right to Organise and Collective Bargaining Convention (No. 98) – Philippines, adopted 2015 and published in the 105th ILC
Session (2016).Observation (CEACR) - adopted 2015, published 105th ILC session (2016).
178
CEACR Direct Request, Right to Organise and Collective Bargaining Convention (No. 98) – Philippines, adopted 2015 and published in the
105th ILC Session (2016).
62
© ILO A. Barredo
Section IV.
Decent working
conditions and
occupational
safety and health
rozet
M. C
©ILO
SECTION IV. DECENT WORKING CONDITIONS AND OCCUPATIONAL SAFETY
77 AND HEALTH
Philippines 2017
A. Working hours
A. Working hours
136. The standard hours of work in formal or wage employment is eight hours a day and
136. The standard
48 hours hoursAcross
a week. of workall in formal
sectors,orthewage employment
incidence of work is eight hours aofday
in excess 48and 48 hours
hours has a
week. Across all sectors, the incidence of work in excess of 48 hours has declined
declined to about 21 per cent in 2015. By sector, it is highest in services where wages are to about 21 per
cent in 2015.
relatively By sector,
lower it is highest
and therefore in services
the cost impact where wages are
on employers inrelatively
terms of lower
overtimeandpay
therefore
is
the
less. Conversely, the incidence is lower in industry where wages are relatively higher. is
cost impact on employers in terms of overtime pay is less. Conversely, the incidence
lower
Workin in industry
excess ofwhere wages
48 hours hasare
therelatively higher. Work
lowest incidence in theinagriculture
excess of 48 hourswhere
sector has the
worklowest
incidence in the
is inherently agriculture(usually
time-bound sector where
done work
duringis day
inherently
time). time-bound
By category(usually done the
of workers, during
day time). is
incidence Byhighest
category of workers,
among the incidence
the self-employed is highest
who are beyond among the the self-employed
protective coverage whoof are
beyond the protective coverage of legislation on working hours, a disproportionate number
legislation on working hours, a disproportionate number of whom are women and young
of whom (Figure
workers are women 24). and
On theyoung
otherworkers
hand, (Figure
incidence 24).
ofOnlong theworking
other hand,
hoursincidence of long
in wage and
working hours in wage and salary employment has decreased. Further study on this specific
salary employment has decreased. Further study on this specific category is warranted to
category
determine is if
warranted to determine
the decrease if the decrease
can be attributed simplycanto be
lessattributed
demand for simply to lesswork,
overtime demand or for
overtime work, or to factors indicative of better quality of employment like more efficient work
to factors indicative of better quality of employment like more efficient work methods
methods and processes,
and processes, more productivity
more productivity or higheror higher compliance
compliance with overtime
with overtime regulations.
regulations.
Figure 24. Proportion of employed with excessive hours by sector

and category of employee
(in per cent)
40.0
30.0
20.0
10.0
0.0
2000 2005 2010 2011 2012 2013 2014 2015
Total Agricultur e
Industry Services
Wage and salary wor kers Employers
Self-employed Unpaid family worker s
B. B.
WagesWages
B.1 Growth
B.1 Growth in real average
in real average wage is wage
slow is slow
137. Growth in real average wage is slow and lags behind GDP growth. The average real daily
137. Growth in real average wage is slow and lags behind GDP growth. The average real daily basic
basic pay of wage and salary workers in 2005 was about Php259. In 2015, it was
pay of wage and salary workers in 2005 was about Php259. In 2015, it was Php268 (Figure 25).
Php268 (Figure 25). Though inflation rate in 2014 (1.4 per cent) was lower than in 2005
Though
(6.5 per inflation
cent), therate in 2014
minimal (1.4 per
growth of cent) was lower
real wage than
in spite of in 2005GDP
strong (6.5 per cent),means
growth the minimal
the
growth of real
well-being wageearners
of wage in spite of stronglittle,
improved GDP growth means
underscoring the well-being
non-inclusive of especially
growth wage earners
improved little,
for low-paid underscoring
wage workers. non-inclusive growth especially for low-paid wage workers.
63
Section IV. Decent working conditions
and occupational safety and health 78
Figure25.
Figure 25. Average
Averagereal
realdaily
dailybasic
basicpay
payand
andGDP
GDPgrowth
growth
(in pesos except per cent)
(in pesos except per cent)
270.00 13
270.00 13
260.00
260.00 8
8
250.00
250.00
3
240.00 3
240.00
230.00 -2
230.00 -2
2005 2010 2011 2012 2013 2014 2015
2005 2010 2011 2012 2013 2014 2015
Average real daily basic pay Real daily basic pay growth
Average real daily basic pay Real daily basic pay growth
GDP growth
GDP growth
Sources: Philippine
Sources: PhilippineStatistics
StatisticsAuthority,
Authority,Labor
LaborForce
ForceSurvey
Surveyand
andNational
NationalAccounts
Accountsofofthe
the
Philippines.
Philippines.
138.
138.
138. Wage differences
Wage
Wage differences across
differences acrossoccupations
across occupationsshow
occupations show
show disparities
disparities
disparities symptomatic
symptomatic
symptomatic of larger
of larger
of larger income
income
income
inequalities.The
inequalities.
inequalities. Theaverage
The average real
average real daily
real daily basic
daily basic pay
basic pay of
pay ofmost
of mostoccupation
most occupation groups
occupation groups improved
groups improved from
improved from 2011
from
2011 to 2015. However, the average in 2015 is lower than in 2001 (Table 35). Those inin
2011
to to
2015. 2015. However,
However, the the
average average
in 2015 inis2015
lower is lower
than in than
2001 in 2001
(Table (Table
35). Those 35).
inThose
occupations
occupations
occupations havingthe
having the having
highest the highest
average
highest average
wage earned
average wage
wage earned
more
earned more
than
more thanthe
twice
than twice thenational
national
twice the national
averageaverage
across all
average
across
across all
occupations,occupations,
and almost
all occupations, and almost
andfour
almost four
times
fourthetimes
times the
average average
of the of
the average of the
lowest lowest paid occupations.
paid occupations.
the lowest There are
paid occupations.
There are more
more occupations
more occupations
There are occupations
whose average whose
whosewage average
is below
average wage isis below
belowaverage
the national
wage the national
the national average and
and differences
average and
between
differences between
the higher-paid
differences the
andthe
between higher-paid
lower-paid
higher-paid and
occupationslower-paid occupations
show signs
and lower-paid show
of widening.
occupations signs of widening.
show signs of widening.
Table35.
Table 35.Average
Averagereal
realdaily
dailybasic
basicpay
payby
bymajor
majoroccupation
occupationgroup
group
(in pesos)
(in pesos)
Majoroccupa
Major occupaonongroup
group 2001
2001 2005
2005 2010
2010 2011
2011 2012
2012 2013
2013 2014
2014 2015
2015
All ccupa ons
All ccupa ons 275.11
275.11 258.84
258.84 254.38
254.38 251.74
251.74 256.59
256.59 260.57
260.57 263.33
263.33 267.60
267.60
Officialsofofgovernment
Officials governmentandandspecial
specialinterest-
interest-
organiza ons,corporate
organiza ons, corporateexecu
execu ves,
ves,managers,
managers,
managing proprietors and supervisors
managing proprietors and supervisors 604.89
604.89 612.58
612.58 601.00
601.00 593.72
593.72 616.96
616.96 629.23
629.23 614.77
614.77 612.50
612.50
Professionals
Professionals 593.02
593.02 532.06
532.06 524.77
524.77 538.31
538.31 554.24
554.24 569.37
569.37 567.56
567.56 571.29
571.29
Technicians and associate professionals
Technicians and associate professionals 398.23
398.23 379.85
379.85 369.14
369.14 365.82
365.82 356.54
356.54 378.01
378.01 369.75
369.75 367.53
367.53
Clerks
Clerks 318.71
318.71 310.50
310.50 327.77
327.77 326.30
326.30 327.09
327.09 332.65
332.65 327.55
327.55 335.01
335.01
Service workers and shop and market
Service workers and shop and market sales sales
workers
workers 240.72
240.72 223.92
223.92 217.01
217.01 212.06
212.06 208.75
208.75 211.78
211.78 212.66
212.66 214.80
214.80
Farmers, forestry workers and fishermen
Farmers, forestry workers and fishermen 141.25
141.25 143.11
143.11 152.84
152.84 155.28
155.28 251.80
251.80 218.51
218.51 207.61
207.61 216.53
216.53
Trades and related workers
Trades and related workers 245.77
245.77 241.43
241.43 233.59
233.59 231.17
231.17 234.14
234.14 232.92
232.92 233.17
233.17 238.73
238.73
Plant and machine operators and assembler
Plant and machine operators and assembler 274.33 274.33 262.26
262.26 257.40
257.40 255.02
255.02 258.52
258.52 259.56
259.56 258.07
258.07 261.64
261.64
Labourers and unskilled workers
Labourers and unskilled workers 149.58
149.58 143.88
143.88 140.85
140.85 139.92
139.92 142.71
142.71 145.40
145.40 149.44
149.44 154.18
154.18
Special occupa
Special occupa ons ons 395.99
395.99 458.08
458.08 426.10
426.10 460.35
460.35 555.30
555.30 568.78
568.78 604.85
604.85 582.19
582.19
Source:Philippine
Source: PhilippineStatistics
StatisticsAuthority,
Authority,Labor
LaborForce
ForceSurvey.
Survey.
139. Similar
139. Similardifferences
differencesexist
existbybycategory
categoryof
ofemployees.
employees.Government
Governmentworkers
workershadhadthe
thehighest
highest
139. average
Similar real
differences exist
dailybasic
basicpay,by category
pay,almost of
almosttwice employees.
twicethe
thenational Government
nationalaverage workers
averageinin2015. had
2015.Government the
Governmentalso highest
also
average
average real daily
real daily basic pay,ofalmost twice the national average in 2015. Government also had
had
had thelowest
the lowest proportion
proportion low-paid
of low-paid employees
employees (Table
(Table 36).In
36). In contrast,
contrast, 2/3of
2/3 ofworkers
workers
the lowest proportion of low-paid employees (Table 36). In contrast, 2/3 of workers in private
inin privatehouseholds
private
households
householdsandandalmost
almost1/3
1/3of
ofworkers
workersininown
ownfamily-operated
family-operatedfarm
farmororbusiness
business
are
are low-paid.and almost 1/3 of workers in own family-operated farm or business are low-paid.
low-paid.
64
64
79 Philippines 2017
Table
Table 36.
36. Average
Average real
real daily
daily basic
basic pay
pay and
and proportion
proportion of
of low
low paid
paid
employees
employees by
by category
category of
of employee
employee
Category
Categoryofofemployee
employee 2001
2001 2005
2005 2010
2010 2011
2011 2012
2012 2013
2013 2014
2014 2015
2015
Average
Average real
realdaily
dailybasic
basicpay
pay(2006
(2006 pesos)
pesos) 275.11
275.11 258.84
258.84 254.38
254.38 251.74
251.74 256.59
256.59 260.57
260.57 263.33
263.33 267.60
267.60
Private
Privatehousehold
household 141.29
141.29 113.62
113.62 110.54
110.54 110.22
110.22 112.80
112.80 116.32
116.32 115.68
115.68 120.03
120.03
Private
Privateestablishment
establishment 254.90
254.90 243.04
243.04 244.14
244.14 237.20
237.20 240.21
240.21 243.39
243.39 246.09
246.09 251.10
251.10
Government/governmentcorporation
corporation 457.20
457.20 443.12
443.12 417.22
417.22 442.43
442.43 469.80
469.80 480.60
480.60 487.29
487.29 482.69
482.69
Own
Ownfamily-operated
family-operatedfarmfarmoror business
business 259.33
259.33 203.83
203.83 185.13
185.13 194.51
194.51 190.94
190.94 166.91
166.91 189.24
189.24 197.20
197.20
Proportion
Proportion of low-paid employees(%)
of low-paid employees (%) 28.5
28.5 25.3
25.3 26.6
26.6 25.9
25.9 25.3
25.3 24.9
24.9 21.9
21.9 20.0
20.0
Private
Privatehousehold
household 63.7
63.7 73.9
73.9 73.8
73.8 71.6
71.6 71.0
71.0 69.9
69.9 69.4
69.4 66.8
66.8
Private
Privateestablishment
establishment 27.4
27.4 23.4
23.4 24.2
24.2 23.8
23.8 23.0
23.0 22.6
22.6 19.3
19.3 17.2
17.2
Government/governmentcorporation
corporation 9.0
9.0 4.9
4.9 7.7
7.7 6.4
6.4 6.8
6.8 8.0
8.0 6.3
6.3 6.2
6.2
Own
Ownfamily-operated
family-operatedfarmfarmoror business
business 33.3
33.3 28.9
28.9 37.8
37.8 37.5
37.5 33.1
33.1 41.7
41.7 36.7
36.7 30.4
30.4
Source:
Source: Philippine
Authority, Labor
Labor Force
Force Survey.
Survey.
140.
140. Average
140. Average daily
Average daily basic
dailybasic pay
payisis
basicpay highest
highestinin
ishighest services
services
in (Figure
(Figure
services 26).
(Figure 26).
ButBut
26). employment
employment
But employment in
in services
in services is made
services
is made up largely of workers in wholesale and retail trade with lower pay.
up largely of workers in wholesale and retail trade with lower pay. Thus, the proportion
is made up largely of workers in wholesale and retail trade with lower pay. Thus,
Thus, the
the of
proportion
proportion of low-paid
of low-paid
low-paid employees employees
in employees in services
services wasinhighservices was
(20.6was high
perhigh (20.6
cent),(20.6 per
evenper cent), even
cent),than
higher higher
eventhose
higher than
in than
industry
those
those in
in industry
industry
(9.7 per cent). (9.7
(9.7 per
per cent).
cent).
Figure
Figure 26.
26. Average
Average daily
daily basic
basic pay
pay by
by sector
sector
(in
(in pesos)
pesos)
450.00
450.00
350.00
350.00
250.00
250.00
150.00
150.00
50.00
50.00
2001
2001 2005
2005 2010
2010 2011
2011 2012
2012 2013
2013 2014
2014 2015
2015
Total
Total Agriculture
Agriculture Industry
Industry Services
Services
Source:
Source: Philippine
Authority, Labor
Labor Force
Force Survey.
Survey.
B.2
B.2 Low- Low-
B.2 paid paid
paid employment
Low-employment
employment
141.
141. Low-paid
141. Low-paid employees
Low-paid employees are
employees are wage
arewage
wageand and salary
andsalary
salary workers
workers
workers whose
whose
whose hourly
hourly
hourly basic
basic pay pay
basic pay in
in their
in their their
primary
primary
primary job
job is
is below
below 2/3
2/3 of
of the
the median
median hourly
hourly basic
basic pay
pay of
of all
all wage
wage
job is below 2/3 of the median hourly basic pay of all wage and salary workers. Though and
and salary
salary workers.
workers.
Though
Though the
the proportion
proportion
the proportion of
of low-paid
of low-paid low-paid
employeesemployees
employees
improved improved
improved
from 28.5 from
fromper28.5
centper
28.5 in cent
per cent in
2001 to2001
in 2001
20 perto
tocent
20
20 per cent in 2015, in terms of actual numbers itit increased from about 4.1 million to
in 2015, in terms of actual numbers it increased from about 4.1 million to about 4.6toover
per cent in 2015, in terms of actual numbers increased from about 4.1 million
about
about 4.6
4.6 over
over the same
theIn
same period.
period. In
In private
private establishments,
establishments, the proportion
theimproved
proportion improved
improved from
from
the same period. private establishments, the proportion from 27.4 per cent to
27.4
27.4 per
per cent
cent to
to 17.2
17.2 per
per cent;
cent; still,
still, 2/3
2/3 of
of all
all low-paid
low-paid workers
workers (3
(3 million)
million) were
were in
in private
private
17.2 per cent; still, 2/3 of all low-paid workers (3 million) were in private establishments.
establishments.
establishments. Further,
Further, more
more women
women than than men
men were
were in in low-paid
low-paid work.
work.
Further, more women than men were in low-paid work.
142.
142. Agriculture,
Agriculture, which
which hadhad the
the highest
highest proportion
proportion of
of precarious
precarious paid
paid employment
employment (57.7(57.7 per
per
142. Agriculture, which had the highest proportion of precarious paid employment (57.7 per
cent),
cent), also
also had
had the
the highest
highest proportion
proportion ofof low-paid
low-paid employees
employees (33.9
(33.9 per
per cent).
cent). Industry
Industry
cent), also had
had the highest precarious
proportion of low-paid employeesservices,
(33.9 per cent). Industry
had aa higher
higher proportion
proportion of of precarious paid
paid employment
employment than than services, butbut the
the latter
latter
had
had a higher proportion of precarious paid employment than services, but the latter had
had aa higher
higher proportion
proportion of of low-paid
low-paid employees
employees (Figure
(Figure 27).
27). More
More than
than 90
90 per
per cent
cent ofof
a higher proportion ofarelow-paid
service employees (Figure 27).workers)
More than 90 are per cent of service
service establishments
establishments are micro
micro (employing
(employing less
less than
than 10
10 workers) which
which are presumably
presumably
establishments
paid are micro (employing less than ten workers) which are presumably
paid lower than bigger-sized establishments. Trade and hotels and restaurants comprise
lower than bigger-sized establishments. Trade and hotels and restaurants paid lower
comprise
than
70
70 perbigger-sized
per cent
cent of establishments.
of service
service establishments.
establishments.Trade and hotels and restaurants comprise 70 per cent of
service establishments.
65
65
Figure 27. Proportion of low-paid employees

(in per cent)
60.0
Figure 27. Proportion of low-paid employees
Total
45.0
(in per cent) Agriculture
60.0
Industry
Total
30.0
Services
Agriculture
45.0
15.0 Private establishment
Industry
30.0 Men
Services
0.0 Women
15.0 2001 2005 2010 2011 2012 2013 2014 2015 Private establishment
Men
Source:
0.0Philippine Statistics Authority, Labor Force Survey. Women
2001 2005 2010 2011 2012 2013 2014 2015
B.3 Minimum wage and its effects
B.3 Minimum wage and
Source: Philippine its effects
Statistics Authority, Labor Force Survey.

143. The Regional Tripartite Wage and Productivity Boards (RTWPBs) set regional minimum
143. The
B.3Regional
Minimum Tripartite
wage and Wage its and
effectsProductivity Boards (RTWPBs) set regional minimum
wages for employees in private establishments and domestic workers in private
wages for employees in private establishments and domestic workers in private households
households through minimum wage orders. The criteria in adjusting minimum wages
143.through
include
minimum wage orders.
The Regional
the needTripartite
to ensureWage a decent
TheProductivity
and criteria in adjusting
standard of living Boards minimum set
for(RTWPBs)
workers and
wages include
regional
their
the need
minimum
families; the
to ensure
wages
right a decent
for
of workers employeesstandard
to their of
in share
just living
private in the forfruits
workers
establishments andand
of production;their families;
domestic
employment the generation
workers rightinofprivate
workers
in
to their just
households share
through in the fruits
minimum of production;
wage orders. employment
The criteria
the countryside through industry dispersal; and the right of business and industry to ingeneration
adjusting in the
minimum countryside
wages
through
includeindustry
reasonable needdispersal;
thereturns toonensure and theexpansion
a decent
investment, right
standardof business
of
andliving and
growth.forindustry
workers
RTWPBs to
andreasonable
acttheir returns
families;
through wage theon
investment,
right of expansion
workers to and
their growth.
just share RTWPBs
in the act
fruits through
orders specifying the amount of increase in the prevailing minimum wage or,in
of wage
production; orders specifying
employment the
generation amount
of increase
the inmandating
countryside
alternatively, the through
prevailing minimum
industry
a cost wage and
dispersal;
of living allowance. or, alternatively,
right of mandating
theRTWPBs
179 business
distinguish and abetween
cost ofthe
industry living
to
allowance.
agriculture and non-agriculture sectors and set different wage rates for each. Within thisand
reasonable RTWPBs distinguish between the agriculture
179 returns on investment, expansion and growth. RTWPBs act through wage
and non-agriculture sectors
set different
orders
distinction, wagemay
specifying
they ratesthe
alsoforamount
seteach. Within
of increase
different rates this distinction,
based inonthe they maygroupings
prevailing
geographical also set different
minimum andwage rates
levelsor,
179
based on geographical
alternatively,
of development. mandating
RTWPBs groupings
amay alsoand
cost of living levelscertain
exclude of development.
allowance. RTWPBs
establishments RTWPBs
distinguish may also such
from coverage, between exclude
the
certain
as micro and small establishments, or exempt establishments which would otherwiseexempt
establishments
agriculture and from
non-agriculture coverage,
sectors such
and as
set micro
differentand small
wage establishments,
rates for each. or
Within this
be
establishments
distinction,
covered by the which
they maywould
increase also otherwise
set
for reasonsdifferent be
rates
of financial covered
based by
on the
distress. increase for
geographical reasons and
groupings of financial
levels
distress.
of development. RTWPBs may also exclude certain establishments from coverage, such
144. Theas micro
2014 LFS and small establishments,
show about 17.319 million or exempt wageestablishments
and salary workers which would otherwise
employed in privatebe
144. The 2014 LFS show
covered
establishmentsby the about524
increase
and about for 17.319
reasons
thousand million
of wage
financial
live-in and salary
distress.
domestic workersworkers employed
in private in private
households.
establishments
An NWPC study and aboutestimated
in 2014 524 thousand that oflive-in domestic
these private sectorworkers in private
employees, 4.537households.
million
144.An The 2014
NWPC LFS
study show
in 2014about 17.319
estimated million
that of wage
these and
private
or 26.2 per cent were receiving above the minimum wage. This is higher than the salary
sectorworkers employed
employees, 4.537 in private
million
two or
establishments
26.2 per or
million cent13.8 and
wereper about
receiving 524
cent inabove thousand
2010,the minimum
indicating live-in domestic
wage.
that the This workers in
is higherofthan
proportion private
those households.
theearning
two million the or
An
13.8 NWPC study in 2014 estimated that of these private
minimum wage and below has gone down since 2010. The NWPC finding is coherentand
per cent in 2010, indicating that the proportion of those sector employees,
earning the minimum4.537 million
wage
or 26.2
below
with ahas
PSA per
gone cent weresince
down
establishment receiving above
2010.survey
based The NWPC the minimum
conducted findingover iswage.
coherentThiswith
the years. is higher
While thethan
a PSA the two
establishment
number of
million
based
wage surveyor 13.8
earners hasper
conducted cent
overinthe
increased 2010,
years.
from indicating
While the
837,000 to that
number
1.055 themillion,
proportion
of wage its of those
earners earning
has increased
proportion to total the
from
minimum
837,000
employees wage
to 1.055 and below has
million, its proportion
in establishments gone
employing down
to total since
20 or 2010.
employees
more workers The NWPC
in establishments finding
has gone employing is coherent
down, from 20 or
withpera PSA establishment 23.8based survey conducted over the years. While the number of
more
26.5 workers
cent in has gonetodown,
2012 from
per 26.5
cent in per
2014. centThe in 2012
survey to also
23.8 noted
per centthatinmore
2014.than Thehalf
survey
wage earners has increased from 837,000 to 1.055 million, its proportion to total
also noted that
of minimum more
wage than half
earners are ofin minimum
the serviceswage earners are in the services sector.
sector.
employees in establishments employing 20 or more workers has gone down, from
26.5 per cent in 2012 to 23.8 per cent in 2014. The survey also noted that more than half
of minimum wage earners are in the services sector.
179
As an alternative to an increase in the minimum wage, RTWPBs may mandate a cost of living allowance not integrated into the basic wage,
thereby lessening the incremental impact of the adjustment on wage-tied benefits such as overtime, night differential and holiday pay. A recent
development is the introduction of a two-tiered wage system, under which RTWPBs prescribe a mandatory minimum increase (Tier 1) that is
sensitive to the poverty threshold and at the same time provide guidelines for a productivity-based or performance-based increase (Tier 2) to
179
As anupon
be agreed alternative
by the to an increase
employer and in
itsthe minimumInwage,
employees. RTWPBs
any case, RTWPBsmay may
mandate
makea the
costincrease
of livingapplicable
allowanceonlynot to
integrated into theminimum
those receiving basic wage,
thereby
wage at thelessening
time thethe
wageincremental
order wasimpact
issued,oforthe adjustment
expand on wage-tied
the application benefits
to other suchup
workers as to
overtime, nightceiling.
a specified differential and holiday pay. A recent
development is the introduction of a two-tiered wage system, under which RTWPBs prescribe a mandatory minimum increase (Tier 1) that is
sensitive to the poverty threshold and at the same time provide guidelines for a productivity-based or performance-based increase (Tier 2) to
be agreed upon by the employer and its employees. In any case, RTWPBs may make the increase applicable only to those receiving minimum
66
wage at the time the wage order was issued, or expand the application to other workers up to a specified ceiling.
66
81 Philippines 2017
B.4 Issues and challenges
B.4 Issues and challenges
145. Minimum wage is seen as a measure to alleviate poverty and reduce wage inequality
aimed at workers
145. Minimum wage isatseenthe as
bottom of the to
a measure wage scale.poverty
alleviate But from thereduce
and PSA and NWPC
wage findings
inequality aimed
in Table 37 and Figure 28 above, two points stand out. One, the fact that more than
at workers at the bottom of the wage scale. But from the PSA and NWPC findings in Table
70 per cent of private sector employees are receiving minimum wage or below
37 and Figure 28, two points stand out. One, the fact that more than 70 per cent of private
underscores the dependency of both workers and employers on State intervention. On the
sector employees are receiving minimum wage or below underscores the dependency of both
other hand, that there are wage earners receiving below minimum indicates ineffective
workers and employers on State intervention. On the other hand, there are wage earners
enforcement or non-inclusive coverage, and consequently inadequacy of the mechanism
receiving below minimum indicates ineffective enforcement or non-inclusive coverage, and
to function as a measure to reduce inequality and poverty. Thus, until 2015, minimum
consequently inadequacy of the mechanism to function as a measure to reduce inequality
wage rates were below the poverty threshold (Figure 29). One minimum wage earner
and poverty.
would not beThus,ableuntil 2015, minimum
to support a household wageofrates were belowmuch
six members, the poverty
less liftthreshold
it above (Figure
the
29). One minimum wage earner would not be able to support a household
poverty threshold. In 2015, the minimum wage has caught up with the poverty threshold; of six members,
much less lift itone
nevertheless, above
wage theearner
poverty
willthreshold. Inable
still not be 2015,tothe
liftminimum wagefrom
the household has caught up with
poverty.
the poverty threshold; nevertheless, one wage earner will still not be able to lift the household
from poverty.
Table 37. Minimum wage earners
Indicator 2003 2004 2008 2012 2014
Minimum wage earners, % of employees 32.4 34.1 26.0 26.5 23.8
Agriculture .. .. .. 26.0 19.4
Non-agriculture 32.4 34.1 26.0 26.5 24.1
Industry 31.8 33.6 27.8 32.7 28.9
Services 33.0 34.6 24.9 23.3 21.8
Minimum wage earners, % distribution 100.0 100.0 100.0 100.0 100.0
Agriculture .. .. .. 4.4 4.4
Non-agriculture 100.0 100.0 100.0 95.6 95.7
Industry 44.2 43 40.2 40.8 36.3
Services 55.9 57.2 59.8 54.8 59.4
Minimum wage earners (000) 837 817 778 991 1 055
Agriculture .. .. .. 44 46
Non-agriculture 837 817 778 947 1 010
Industry 370 351 313 404 383
Services 468 467 465 543 627
Total employees (000) 2 582 2 393 2 991 3 739 4 437
Agriculture .. .. .. 169 237
Non-agriculture 2 582 2 393 2 991 3 570 4 199
Industry 1 165 1 044 1 126 1 235 1 327
Services 1 417 1 349 1 865 2 335 2 872
Note: The surveys covered establishments employing 20 workers or more. Agriculture sector not
covered in the survey prior to 2012.
Sources:Philippine Statistics Authority, BLES Integrated Survey/Integrated Survey on Labor and
Employment.
Figure 28. Wage and salary workers in private establishments

receiving above minimum wage
18,000 30.0
15,000 25.0
12,000 20.0
9,000 15.0
6,000 10.0
3,000 5.0
0 0.0
2010 2011 2012 2013 2014
Wage and salary workers in private establishments

Workers receiving above minimum wage
% of workers receiving above minimum wage
67
Note: Data on workers receiving above minimum wage derived by the National Wages and
Productivity Commission from the LFS-Public Use Files.
Figure 29. Minimum wage rates (MWRs) above poverty threshold (PT)
% of workers receiving above minimum wage
Note: Data on workers receiving above minimum wage derived by the National Wages and
Productivity Commission from the LFS-Public Use Files. Section IV. Decent working conditions
Source: Philippine Statistics Authority, Labor Force Survey. and occupational safety and health 82
Figure 29. Minimum wage rates (MWRs) above poverty threshold (PT)
250 226
200 154 158
150 133
117
93 81
100 121 123
109 104
50 or 79% or 78% 89 92 81
or 48% or 78% or 76% or 99% or 100%
0
2000 2003 2006 2009 2012 2015 May-16
Total MWRs MWRs Above PT
Sources:Philippine Statistics Authority, Official Poverty Statistics and NWPC/RTWPBs (Minimum

Wages).
146.
146. Government
Government and and employers
employers have have stood
stoodbybythe
thecurrent
current minimum
minimum wage wage mechanism
mechanism as the
as the
most
most readily
readilyavailable
availableremedy
remedyfor forworkers
workerstoto
improve
improve their earnings.
their earnings.Workers’
Workers’groups, on the
groups,
other hand, continuously question both the efficacy of the mechanism
on the other hand, continuously question both the efficacy of the mechanism and the low and the low amounts
of increases
amounts of in wage orders.
increases in wage They point They
orders. out that minimum
point out thatwage outcomes
minimum wagefail to approximate
outcomes fail
the
to approximate the Constitutional mandate for the State to ensure a “living wage”Minimum
Constitutional mandate for the State to ensure a “living wage” to all workers. to all
wage setting
workers. as practiced,
Minimum wagewith its multiple
setting minimum
as practiced, with wage rates, exclusions
its multiple minimum and wageexemptions
rates,
from
exclusions and exemptions from coverage, has made for a very complex system. This notand
coverage, has made for a very complex system. This not only makes implementation
enforcement of wage orders difficult,
only makes implementation but also of
and enforcement makes
wagethe process
orders itself susceptible
difficult, to missing
but also makes the
its primary target which is the low-paid workers (Figures 30 and 31).
process itself susceptible to missing its primary target which is the low-paid workersIt aggravates the problem
earlier
(Figurespointed
30 and out, thatItis,aggravates
31). the limitedthe impact of minimum
problem wage action
earlier pointed on poverty
out, that alleviation
is, the limited
and reduction of wage disparities and income inequality is diluted.
impact of minimum wage action on poverty alleviation and reduction of wage disparities
and income inequality is diluted.
Figure 30. Percentage of wage orders issued with exemption provision
and ratio of exemptible categories to wage orders with exemption provision
100.00 6.00
80.00
4.00
Percent
60.00
40.00 2.00
20.00
0.00 0.00
68
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
% of WO issued with Exemption Ratio of Exemptible Categories to WO with Exemption Provision
Source: National Wages and Productivity Commission.

from the wage order
600
500
400
300
200
100
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
No. of Applications 385 517 421 226 308 0 261 196 191 41 92 78
No. of Approved Applications 293 365 310 174 253 0 205 158 138 16 62 63
Note: There was no Wage Order issuance in 2009.
Source: National Wages and Productivity Commission/Regional Tripartite Wage and Productivity
Boards.
1
1
1
1
1
1
1
1
1
1
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
% of WO issued with Exemption Ratio of Exemptible Categories to WO with Exemption Provision
83 Philippines 2017 Wages and Productivity Commission.
Source: National

from the wage order
600
C. Occupational safety
500 and health standards
400
C.1 Policy and legal framework
300
148. The Constitution mandates 200 the State to ensure just and humane terms of employment for
100
all workers. In relation to occupational safety and health (OSH), 180 the strategic policy
framework includes0 a 2004 combination of preventive, protective, corrective, curative,
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
ameliorative and
No. of Applications rehabilitative
385 517 measures
421 226 to 308
ensure 0 the 261 safety
196 and191 health
41 of workers
92 78
and safe No. ofand healthful
Approved Applications work
293 environments.
365 310 174 The 253 main0 implementing
205 158 138 law 16 is 62 Book63IV of
the There
Note: Labor was Code
no Wagewhich prescribes
Order issuance minimum requirements to be observed by all
in 2009.
Source: National Wages and Productivity Commission/Regional
establishments including first aid facilities and services, Tripartite Wage andmedical
emergency Productivity and dental
Boards.
services, personal protective equipment, safeguards in relation to the work process,
facilities and environment, and occupational safety and health programmes appropriate
147.
147. Eliminating
Eliminating
to the nature the
theofcounter-inclusive
the establishmentcharacteristics
counter-inclusive characteristics
implemented embeddedembedded
by a healthinin and the
the wage
wage
safety system
system
committee cancan
improve
and by
improve its efficacy. Toward this end, policy makers181 and the social partners may consider
itsproperly
efficacy.trained
Towardhealth this end, policy personnel.
and safety makers and the social to
Pursuant partners
its power may to consider
set, enforce a host
and of
a host of options such as simplifying the process, 182 reducing the number of minimum wage
options such as simplifying the process, reducing the number of minimum wage rates per
update OSH standards and programmes, DOLE has a manual of OSH regulations,
ratesrules
per region, putting greater
workemphasis on the poverty threshold as a regulations.
factor in fixing
region, defining
putting greaterhazardous emphasis on the
and poverty threshold
workplaces, as a factor in fixing the minimum
and industry-specific For the
the curative
minimum rates, and limiting or eliminating exclusions and exemptions from
rates, and and limiting or eliminating
rehabilitative aspects, exclusions
compensationand exemptions
for work-related from injuries
coverage. and Measures
diseases to
coverage. Measures tothe continuously improve the technical capacity ofHealth-related
tripartite
continuously improve the technical capacity of tripartite representatives to the RTWPBs in
is provided through Employees Compensation Commission (ECC).
representatives to the RTWPBs in relation to the economic, social and political
relation
benefits toaretheprovided
economic, social PhilHealth.
through and political implications of minimum wage fixing are also
implications of minimum wage fixing are also important. Outside the minimum wage
important.
fixing process, Outside
collectivethe bargaining
minimum wage should fixing
expand.process, collective
Finally, bargaining
wage growth should be
will always expand.
C.2 Policy
Finally, wage performance
growth
constrained when jobs will
being always be constrained
generated by the economy when jobs are being generated
low-skilled by the economy
and precarious
are
andOSH low-skilled
productivity and precarious
levelswork are low; and productivity
therefore, levels
measures are low;
to improve therefore,
job qualitymeasures to improve
as application
well as
149. job qualityencompasses
as wellproductivity
as capital and in both formal
labour and informal
productivity settings. But in
must be vigorously pursued. reality,
capital and labour must be vigorously pursued.
and enforcement of OSH standards is limited to the formal sector. As part of preventive
measures,
C. Occupational safety the and
OSHhealth Standards requires the organization of safety and health committees
standards
and designation of properly trained OSH personnel in all establishments regardless of
employment size. Data from 2013 show a significant implementation gap as only about
C.1 Policy and legal framework
60 per cent of establishments had safety and health committees while only 70 per cent
had designated health and safety personnel (Table 38).
148. The Constitution mandates the State to ensure just and humane terms of employment for all
workers. In relation to occupational safety and health (OSH),180 the strategic policy framework
Table 38. Establishments with safety and health committee and
includes a combination of preventive, protective, corrective, curative, ameliorative and
health and safety personnel
rehabilitative measures to ensure the safety (in and health of workers and safe and healthful work
per cent)
environments.
Sector The main implementing law is Book 2008IV of the Labor Code
2010-2011 which prescribes
2012-2013 69
minimum requirements to be observed by all establishments including first aid facilities and
Proportion of establishments with
and health committees 45.1 60.9 59.3
services, emergency medical and dental services, personal
Agri cul ture ..
protective 60.6
equipment, 40.9
safeguards
in relation
Non-agri tocultheturework process, facilities and environment, 45.1 and60.9occupational 60.0safety and
Indus try 52.9 67.9 67.9
health programmes
Servi ces
appropriate to the nature of the establishment
42.0
implemented
58.5
by
57.3
a health
andProportion
safety committee and by properly
of establishments withtrained health and safety personnel.
181
Pursuant to its
power to set, enforce
designated healthand andupdate
safety OSHpersonnel standards 52.4 and programmes, 182
68.3 DOLE has 69.5 a manual
Agri cul ture .. 56.5 56.2
of OSH regulations,
Non-agri cul ture rules defining hazardous work 52.4 and workplaces, 68.7and industry-specific
70.0
regulations.
Indus try For the curative and rehabilitative aspects, 56.5 compensation for work-related
77.1 74.4 injuries
Servi ces 50.7 65.8 68.5
and diseases is provided through the Employees Compensation Commission (ECC). Health-
related benefits
covered inare theprovided
survey priorthrough
to 2011. PhilHealth.
Sources:Philippine Statistics Authority, BLES Integrated Survey/Integrated Survey on Labor and
Employment.
180
Occupational diseases are disorders primarily due to work or working conditions. Occupational injuries are those resulting from accidents
in the course of work.
181
Arts. 156-197, Labor Code.
182
Art. 168, Labor Code.
70
©ILO R. Dela Cruz

rules defining hazardous work and workplaces, and industry-specific regulations. For the
curative and rehabilitative aspects, compensation for work-related injuries and diseases
Decent work is country diagnostics:
85 provided
Philippines benefits
2017
through the Employees Compensation Commission (ECC). Health-related
are provided through PhilHealth.
C.2 Policy
C.2 Policy performance
performance
149. OSH encompasses
149. OSH encompassesworkworkininboth
bothformal
formalandandinformal
informal settings.
settings. ButBut in reality,
in reality, application
application
and enforcement of OSH standards is limited to the formal sector. As part of preventive
and enforcement of OSH standards is limited to the formal sector. As part of
measures, the OSH Standards requires the organization of safety and health committees
preventive measures, the OSH standards requires the organization of safety and health
and designation of properly trained OSH personnel in all establishments regardless of
committees and designation of properly trained OSH personnel in all establishments
employment size. Data from 2013 show a significant implementation gap as only about
150.regardless
The totalofnumber
employment
casessize. Data from disabling
of temporary 2013 showinjury
a significant
declinedimplementation gap in
from about 26,000
60 per cent of establishments had safety and health committees while only 70 per cent
as2000
only to
about 60 in
20,000 per2013.
cent Over
of establishments had the
the same period, safety and health
number of work committees
days lost andwhile
average
had designated health and safety personnel (Table 38).
only
days70lost
per for
centevery
had designated
injury alsohealth andfrom
declined safetyabout
personnel (Table
200,000 38).
to 110,000 work days and
from 7.8 to 5.4 work days, respectively. 183 With respect to occurrence of injuries and
Table 38. Establishments with safety and health committee and
diseases across sectors, the incidence of non-fatal occupational injuries is declining while
health and safety personnel
that of occupational diseases is increasing (Figure 32). The incidence of non-fatal
(in per cent)
occupational injuries and occupational diseases
Sector
were more
2008
pronounced in industry than
2010-2011 2012-2013
in services, of
Proportion even as industry has
establishments a much lower employment share than services.
with
and health committees 45.1 60.9 59.3
Non-agri cul ture Figure 32. Incidence of non-fatal occupational injuries and
45.1 60.9 60.0
Indus try occupational diseases 52.9 67.9 67.9
Servi ces 42.0 58.5 57.3
Proportion of establishments with (per 100,000 employed persons)
designated health and safety personnel 52.4 68.3 69.5
6000 Incidence rate of occupational
Non-agri cul ture 52.4 diseases 68.7 70.0
4000 try
Indus Incidence rate of non-fatal occupational 56.5 77.1 74.4
Servi cesinjuries 50.7 65.8 68.5
2000The surveys covered establishments employing 20 workers or more. Agriculture sector not
Note:
covered in the survey prior to 2011.
Sources:Philippine
0 Statistics Authority, BLES Integrated Survey/Integrated Survey on Labor and
Employment.
2000 2002 2003 2007 2009 2011 2013 2003 2007 2009 2011 2013
150.
150.
180The The
totaltotal
Occupational number number
diseases are cases
cases
disordersof
Total of due
primarily
temporary
temporary
Agriculture
to work
disabling
disabling
or workinginjury
Non-agricultureinjury declined
declined
conditions. from
Industry
Occupational
from
about
Services
injuries
about
26,000
are those
26,000
resultingin 2000
from
in
accidents
2000oftowork.
20,000 in 2013. Over the same period, the number of work days lost and average
181to 20,000 in 2013. Over the same period, the number of work days lost and average days
in the course
days Note:
Arts. 156-197,
lost The
Labor
for surveys
Code.
everyalso coveredalso
injury establishments
declined employing
from200,000
about20 workers
200,000 or more. Agriculture
to 110,000 work sector notand
182
lost forLabor
Art. 168, every
Code.injury
covered declined
in the survey prior tofrom
2011.about
Inquiry to 110,000 work days
183 on occupational diseases began in 2003 survey.
anddaysfrom
from 7.8
7.8 to Sources: to 5.4
5.4 workPhilippine work days,
days, respectively. respectively.
183
WithBLES
Statistics Authority, respect With respect
to occurrence
Integrated to occurrence
of injuries
Survey/Integrated of
Surveyand injuries
diseases
on Labor andand
diseases across sectors, the incidence of non-fatal occupational injuries is declining while 70
across sectors, the incidence of non-fatal occupational injuries is declining while that of
Employment.
that of occupational
occupational diseases is(Figure
diseases is increasing increasing (Figure
32). The 32). The
incidence incidence
of non-fatal of non-fatal
occupational
151. The higherinjuries
occupational incidence andofoccupational
occupationaldiseasesdiseaseswere compared to occupational
more pronounced injuriesthan
in industry should
injuries and occupational diseases were more pronounced in industry than in services,
invite policy
in services, even as makers,
industry employers
has a much andlower
unions to pay more
employment share attention
than services.to the preventive
even asaspects
industry of has
OSH. a much
While lower employment
injuries share than
are immediately services.
visible, occupational or work-related
diseases develop gradually,
Figure 32. are of
Incidence initially latent
non-fatal and remain injuries
occupational largely invisible.
and Many such
diseases are detected only atoccupational
a late stage, thereby
diseases decreasing the chances of cure and
rehabilitation while increasing actual
(per 100,000 and opportunity
employed persons) costs to both workers and
employers.
6000 Incidence rate of occupational
diseases
D. Incidence rate of non-fatal occupational
The inspectorate
4000
injuries
2000
D.1 Authority and administrative capacity
0
152. The basic labour rights and standards discussed above are enforced mainly through
2000 2002 2003 2007 2009 2011 2013 2003 2007 2009 2011 2013
inspection. The law refers to inspection as the visitorial and enforcement power vested
on the DOLETotal Agriculture
Secretary or the Non-agriculture authorized representatives. 184
Industry as Services
Regional Directors
DOLE’s current rules on inspection is the Labour Laws Compliance System (LLCS)185
covered in the survey prior to 2011. Inquiry on occupational diseases began in 2003 survey.
Employment.
183
151.andNoThe
statistical data is available on the level of compliance or non-compliance with regulations specifically relating to hazardous workplaces
higher incidence
work environment, as well as onof occupational
technical diseases
safety regulations compared
in particular workplacestosuch
occupational injuries
as those operating should
boilers and other power-
invite
actuated
184
policy
or mechanized makers,
equipment employers
or tools. and unions to pay more attention to the preventive
Art. 128(a), Labor Code. Under this article, the DOLE Secretary or his duly authorized representatives, including labour regulation officers,
shallaspects
have accessof OSH. While
to employers records andinjuries are
premises at any immediately visible,
time of the day or night wheneveroccupational or work-related
work is being undertaken therein, and the right
diseases
to copy therefrom,develop
to question gradually,
any employee and areinvestigate
initially any latent and orremain
fact, condition largely
matter which may beinvisible. Many violations
necessary to determine such or
150. The total number cases of temporary disabling injury declined from about 26,000 in
151. The higher incidence of occupational diseases compared to occupational injuries
2000 to 20,000 in 2013. Over the same period, the number of work days lost and average
should invite policy makers, employers and unions to pay more attention to the
days lost for every injury also declined from about 200,000 to 110,000 work days and
from preventive
7.8 to 5.4 aspects
work of OSH.
days, While injuries
respectively. 183
Withare immediately
respect visible,ofoccupational
toto occurrence andor
injurieslaws
whichwork-related
refers to the diseases
inspectiondevelop gradually,
process are initially
as “assessment” latent
and and remain
inspectors aslargely
“labourinvisible.
diseases across sectors, the incidence of non-fatal occupational
186 injuries is declining while
Many
compliance
that of such diseases
officers”
occupational are detected
(LLCOs)
diseases only at a(Figure
with expanded
is increasing late stage,
functions.
32).thereby decreasingof
The incidence thenon-fatal
chances of
cure
occupational andinjuries and occupational diseases were more pronounced in industryworkers
rehabilitation while increasing actual and opportunity costs to both than
D.2 and
Policy performance
in services,employers.
even as industry has a much lower employment share than services.
153.
D. The
The formal sector consists of about 947,000 private establishments across the country
inspectorate
with over 17.3 Figure
million 32.workers.
Incidence of non-fatal
However, only occupational
those establishmentsinjuriesemploying
and at least
occupational diseases
ten
D.1 workers
Authorityare effectively covered capacity
and administrative by or targeted for inspection. There were 95,000 such
establishments in 2014 with(per total100,000 employed
employment of persons)
5.4 million workers. DOLE mainly
6000
sets its inspection targets on an inspector-to-establishment Incidence rate of occupational
ratio of one LLCO per
152. The basic labour rights and standards discussed above are enforced mainly through
diseases
120 establishments for a 10-month period. The number of LLCOs increased from 219 in
4000 inspection. Theoflaw
Incidence rate refersoccupational
non-fatal to inspection as the visitorial and enforcement power vested
2010 to 536 in 2015 and can now cover about 64,000 establishments per year 187 (Figures
on injuries
the DOLE Secretary or the Regional Directors as authorized representatives.184
332000and 34). DOLE inspected or assessed 67,906 establishments (employing around 185
DOLE’s
which referscurrent rules
to the on inspection
inspection processis the Labour Laws Compliance
as “assessment” and to inspectorsSystem as (LLCS)
“labour laws
4 million) in 2014 and 44,524 in 2015.
which refersofficers”
compliance to the inspection
(LLCOs) process as “assessment”
with expanded functions.and 186
to inspectors as “labour
0
laws compliance officers” (LLCOs) with expanded
2000 2002 2003 2007 2009 2011 2013
functions.186
2003 2007 2009 2011 2013
D.2 Policy performance
Figure 33. Labour law compliance officers
D.2
500
Policy performance
Total Agriculture Non-agriculture Industry Services
8.5 10.0
153.
400
The formal sector consists of about 947,000 private establishments across
8.0 not
the country
Note: The surveys
6.0 covered
6.0 establishments employing 5.6 20 workers
5.6 or more.
5.1
Agriculture sector
153.
300 The
withformal
covered over
in the sector
17.3
survey consists
million
prior 4.9of about
toworkers.
2011. 947,000
However,
Inquiry private
only those
on occupational establishments
establishments
diseases began in 2003across6.0the country
employing
survey. at least
200
Sources:with
ten over 17.3
workers
Philippine aremillionAuthority,
effectively
Statistics workers.BLES However,
covered by or
Integratedonly those establishments
targeted for Survey onemploying
inspection.
Survey/Integrated Labor and at leastsuch
There were
4.0 95,000
100 establishments
0
tenEmployment.
workers are in effectively
2014 with covered by or targetedoffor
total employment 5.4inspection. There2.0
million workers. were
0.0
DOLE 95,000
mainly
such2004
sets establishments
its inspection
2006 in2009
targets2014 with
on an total employment
2010 of 5.4 million
inspector-to-establishment
2011 2012
ratio
2014 workers. DOLE per
of one LLCO
151. The higher incidence of occupational diseases compared to occupational injuries should
mainly setsLLCOs
its inspection
120 establishments targets onperiod.
for a 10-month an inspector-to-establishment
The number of LLCOs ratio of one
increased LLCO
from 219 in
invite 2010
policy makers, employers and unions to pay moreestablishments
attention to the preventive
187
aspects perof120to
OSH.establishments
536 in
While
LLCOs
2015 and
perinjuries
for aemployed
can
100,000 are
10-month
now cover
immediatelyperiod.
about The number
64,000
visible,
in inspectionable
of LLCOs
occupational
establishment
increased from
per year
sor work-related
(Figures
33 and
219 in 201034). to DOLE
536 in inspected
2015 and or now
can assessed
cover 67,906
about establishments
64,000 (employing
establishments yeararound
persuch 187
diseases develop
4 million) gradually, are initially latent and remain largely invisible. Many
Sources:
diseases(Figures
are 33 in
DOLE-Bureau
detectedand201434).
of and
DOLE
Working
only at
44,524
a
in 2015.
inspected
Conditions;
late stage, andorPhilippine
assessed
thereby 67,906Authority,
Statistics
decreasing establishments
the chancesList of (employing
of cure and
around 4 million)
Establishments. in 2014 and 44,524 in 2015.
rehabilitation while increasing actual and opportunity costs to both workers and
employers. Figure 33. Labour law compliance officers
500 Figure 34. Establishments covered and assessed 8.5 10.0
D. The inspectorate
400 80,000 150.0 8.0
6.0 6.0 5.6 5.6 5.1
300 4.9
60,000 120.0 6.0
D.1 200
Authority and administrative capacity 90.0
4.0
100 40,000 2.0
60.0
0 20,000 0.0
152. The basic labour rights and standards 30.0through
2004 2006 2009 discussed
2010 above
2011are enforced
2012 mainly
2014
0
inspection. The law refers to inspection as the2012
visitorial and enforcement 0.0
2010 2011 2013 2014 2015 power vested
LLCOs
on the DOLE Secretary
Establishments or the
c overed Regional
35680 24419 Directors
24753 as authorized
26748 76880 representatives. 184
50161
LLCOs per35391
Establishments assessed 100,00030727
employed in inspectionable
27264 29248 establishment
67906 44524 s
DOLE’s current rules on inspection is the Labour Laws Compliance System (LLCS)185
% assessed 99.2 125.8 110.1 109.3 88.3 88.8
Sources: DOLE-Bureau of Working
% complying 63.8 Conditions;
71.1 and Philippine
52.4 52.8 Statistics
64.9 Authority,
40.5 List of
Establishments.
Source: DOLE-Bureau of Working Conditions.
183
No statistical data is available on the level of compliance or non-compliance with regulations specifically relating to hazardous workplaces
154.
and workDOLE administrative
environment, records
safety show
Figure
as well as on technical that about 35
34. Establishments
regulations in particular percovered
workplacescent
such of establishments
and
as those assessed
operating assessed
boilers and in
other power-
actuated 2014 and
or mechanized about
equipment60 per
or tools. cent of
80,000those assessed in 2015 were found violating at least one
150.0
184
Art. 128(a), Labor Code. Under this article, the DOLE Secretary or his duly authorized representatives, including labour regulation officers,
shall have general labourrecords
access to employers standard. Wage-related
60,000
and premises violations
at any time of the day such
or night whenever workas frequency
is being of payment,
undertaken therein, 120.0
and the right
underpayment
to copy therefrom, ofemployee
to question any the minimum wage
and investigate
40,000
any fact,and non-remittance
condition or matter which mayofbe Social Security
necessary to System
90.0 or
determine violations
which may aid in the enforcement of this Code and of any labour law, wage order or rules and regulations issued pursuant thereto. 60.0
185
DOLE Department Order No. 131-A (2013), as 20,000amended by DOLE Department Order No. 131-B (2016).
186 30.0
LLCO functions include enforcement, education of employers on their obligations, and offering technical assistance services to employers
and workers that will increase their capacity to comply or0monitor compliance with labour standards. 0.0 71
187 2010 2011 2012 2013 2014 2015
Number of workers based on PSA List of Establishments. Under ILO Convention No. 51 (Labour Inspection), which is not ratified by the
Establishments
Philippines, the ideal inspector-to-worker ratio isc overed 35680
one inspector 24419
for every 24753 Given
20,000 workers. 26748 76880
the current number50161
of inspectors, the
Establishments
inspector-to-worker ratio has improved assessed
to 8.5 LLCOs 35391
per 100,000 workers.30727 27264 29248 67906 44524
% assessed 99.2 125.8 110.1 109.3 88.3 88.8
% complying 63.8 71.1 52.4 52.8 64.9 40.5 72
LLCOs per 100,000 employed in inspectionable establishment s
Decent work countryDOLE-Bureau

diagnostics: of Working Conditions; and Philippine Statistics Authority, List of
87
Sources:
Philippines 2017 Establishments.
Figure 34. Establishments covered and assessed

80,000 150.0
60,000 120.0
90.0
40,000
60.0
20,000 30.0
0 0.0
2010 2011 2012 2013 2014 2015
Establishments c overed 35680 24419 24753 26748 76880 50161
Establishments assessed 35391 30727 27264 29248 67906 44524
% assessed 99.2 125.8 110.1 109.3 88.3 88.8
% complying 63.8 71.1 52.4 52.8 64.9 40.5
154.
154. DOLE administrative records
DOLE administrative records showshow that
that about
about 3535 per
per cent
cent of of establishments
establishments assessedassessed in
2014
in 2014 and about 60 per cent of those assessed in 2015 were found violating atleast
and about 60 per cent of those assessed in 2015 were found violating at leastone
general labour standard. Wage-related violations such
one general labour standard. Wage-related violations such as frequency of payment, as frequency of payment,
underpayment
underpayment of the minimum
of the minimum wage wageand andnon-remittance
non-remittanceofofSocial Social Security
Security System
System
186
(SSS)
(SSS) premium
premium werewere among
among thethe
mostmost common
common violations.
violations. OnOn OSH OSH standards,
standards, among
among the
LLCO functions include enforcement, education of employers on their obligations, and offering technical assistance services to employers
the
notable notable
violationsviolations
were on were on
preventivepreventive
measures measures
such as such as non-registration
non-registration
and workers that will increase their capacity to comply or monitor compliance with labour standards. of the of
plan the
and
planof and layout of(Rule
premises premises1020),(Rule 1020),of
absence absence
safetyofcommittees
safety committees and inadequacy
187Number of workers based on PSA List of Establishments. Under ILO Convention No. 51 (Labour Inspection), which is not ratified by the
layout and inadequacy of first
Philippines, the ideal inspector-to-worker ratio is one inspector for every 20,000 workers. Given the current number of inspectors, the
of
aiders first aiders
(Table (Table
39). 39).
Violations Violations
on on
monitoringmonitoring
inspector-to-worker ratio has improved to 8.5 LLCOs per 100,000 workers. and and
reportingreporting
measuresmeasuresthat that
could could
help
help prevent
prevent safety and safety andissues
health healthwereissuesalso
were also common.
common.
72
Table 39. Violation rates on selected standards
Labour standard 2014 2015
Establishments assessed 67,906 44,524
Violating General Labor Standards (%) 35.1 59.5
Frequency of payment 42.4 47.8
No record keeping 19.2 20.4
Underpayment of minimum wage 10.0 13.8
Non remittance of SSS premi um 9.0 12.5
Non-payment/underpayment of regular holiday pay 7.6 8.6
Non-payment/underpayment of overtime pay 5.6 8.0
Non-payment/underpayment of special hol iday pay 6.1 7.7
Non-payment/underpayment of 13th month pay 5.8 7.1
Non-payment/underpayment of service incentive leave 6.3 6.9
Non-payment/underpayment of cost of living allowance 5.8 6.1
Non-payment/underpayment of rest day pay 3.9 4.4
Non-payment/underpayment of ni ght shift di fferential 2.6 3.3
Labour only contracting 1.8 1.4
No work permit of young/child workers 1.0 0.1
Violating OSH Standards (%)
Non-regi stration of establishment (Rule 1020) 25.8 25.0
Non-keepi ng of medical records 19.1 22.2
Inadequacy of first ai der 16.6 20.1
Non-submissi on of Accident Report 20.5 20.0
Non-submissi on of Annual Medical Report 19.3 18.9
No safety committee 17.4 16.7
No minutes of safety committee meetings 15.0 12.8
Non-provisi on of fire extinguisher 1.2 6.8
Inadequacy of emergency medicine 4.5 5.9
Poor housekeeping 1.7 3.6
No Personal Protective Equi pment (PPE) 1.1 3.1
Inadequate aisles and passage ways 0.6 1.8
No machine guarding 0.4 1.0
Inadequacy of registered nurse 0.9 0.8
155. The influx of original labour standards filed with DOLE and the number of cases
disposed spiked in 2015, increasing by more than 45 per cent and 100 per cent
155. The influx of original labour standards filed with DOLE and the number of cases
disposed spiked in 2015, increasing by more than 45 per cent and 100 per cent
respectively from the previous year while the average number of workers involved per
case disposedTable 40. Disposition
went down of labour
to about three standards
workers per case. cases
The improvements in case
disposition are labour
Original significant
standard and
cases should be sustained (Table
Appealed labour40).
standard cases
Year Cases New cases Cases Disposition Workers Cases New cases Cases Disposition Workers
handled filed Table
disposed 40. Disposition
rate (%) benefited handledof labour
filed standards cases benefited
disposed rate (%)
Original labour standard cases Appealed labour standard cases
2010 8 216 6 252 6 172 75.1 58 436 .. .. .. .. ..
2011 Year
15 772Cases
10 329New10cases
516 Cases66.7 Disposition
85 484 Workers
.. Cases.. New cases .. Cases .. Disposition .. Workers
2012 12 033handled
8 128filed 8 301 disposed
69.0 rate (%)
54 309 benefited
.. handled .. filed .. disposed .. rate (%) .. benefited
2013 2010
10 930 9 039
8 216
9 668
6 252
88.5
6 172
74 342
75.1
270
58 436 .. 71 .. 84 .. 31.1 .. 1 391 ..
2014 2011
12 245 9 551 7 942
15 772 10 329 10 516
64.9 94 738
66.7
252
85 484 .. 73
.. 55
.. 21.8
.. 846 ..
2015 2012
18 877 14 158 16 267
12 033 8 128
86.2
8 301
57 884
69.0
211
54 309 .. 19 ..193 .. 91.5 .. 1 268 ..
2013 10 930 of 9Working
Source: DOLE-Bureau 039 9 Conditions.
668 88.5 74 342 270 71 84 31.1 1 391
2014 12 245 9 551 7 942 64.9 94 738 252 73 55 21.8 846
156. 2015
DOLE’s efforts to improve 267
18 877 14 158 16 the 86.2
reach and57 884 211
effectiveness 19of the193inspectorate
91.5 1 268
should
likewise be sustained.
Source: Theoffollowing
DOLE-Bureau are practical areas for possible action:
Working Conditions.
•156.
156. DOLE’s efforts
DOLE’s
Continuously efforts totoimprove
enhance improve
the general thetheand reach
reach and andeffectiveness
technical effectiveness
knowledge,ofskills of the
the inspectorate
inspectorate
and competencies should
should
likewise
oflikewise
LLCOs;be be sustained.
sustained.
resolve Thefollowing
The
potential following
conflictsare are practical
in practical
their areasfor
areas
essential forpossible
role possible action:
action:
as enforcer with their
expanded role as counselor or adviser particularly to employers.
•• Continuously
Continuously enhance enhancethe thegeneral
generaland andtechnical
technical knowledge,
knowledge, skills
skills andand competencies
competencies
• Review of LLCOs;
of LLCOs;
and validate resolve
resolve potential
thepotential
effectiveness conflicts
conflicts in
in their
of some their essential
essential
technical role
and role as enforcer
as enforcer
procedural withwith
aspects of their
their
expanded
expanded
the LLCS, suchrolerole as counselor
as
as the counselor
choice and or adviser
or adviser particularly
particularly
effectiveness to employers.
to
of workers’ employers.
representation in the
assessment process, the usefulness of giving prior notice to the employer which
•• Review
Review
eliminates theandand validate
element
validate theeffectiveness
of surprise
the effectiveness
that should of of
be some
someinherenttechnical
technical andand
in inspection, procedural
and the
procedural aspects
value
aspects of of
the LLCS, such as the choice and effectiveness of workers’ representation in the the
the
of issuing LLCS,
certificatessuch ofas the choice
compliance. and effectiveness of workers’ representation in
assessment process,
assessment process, the theusefulness
usefulnessofofgiving giving prior
prior notice
notice to tothethe employer
employer which
which
• Improve eliminates
reporting
eliminates the element
theinstruments of
element of and surprise that
gathering
surprise should be inherent
of policy-relevant
that should in
be inherent data. inspection, and
For instance
in inspection, the
andinthevalue
ofand
OSHSvalue issuing certificates
oftechnical
issuing safetyofinspections,
certificates compliance.
of compliance. the regulations classify workplaces into
hazardous and non-hazardous but there is no data is available on which workplace-
•• Improve
specificImprove reporting
reportinginstruments
OSH requirements particularly
instruments andon gathering
and technical ofsafety
gathering policy-relevant
of are data. For
being violated.
policy-relevant instance
data. For in
instance in OSH standard and technical safety inspections, the regulations classifyinto
OSHS and technical safety inspections, the regulations classify workplaces
• Improve hazardous
coordination
workplaces and
intonon-hazardous andbut
with other concerned
hazardous there is no data
agencies
non-hazardous but is
vested available
with
there is their on
no dataown which workplace-
isregulatory
available on
specific OSH
and enforcement requirements
powers such as particularly
the local on technical
government units safety
and areeconomic
the being violated.
zones.
which workplace-specific OSH requirements particularly on technical safety are
In thisbeing
regard, policy makers should draw lessons from recent experiences, such as
violated.
the• Kentex
Improve andcoordination
related incidents. with other concerned agencies vested with their own regulatory
and enforcement
• Improve coordinationpowerswith suchother
as theconcerned
local governmentagencies units and the
vested with economic
their own zones.
• Emphasize In this regard,
the primacy
regulatory
policy makers
and non-negotiable
and enforcement
should
powers such
draw
naturelessons
as the
from
of minimum recent
local government
experiences,
labour standards such
units andinthe
as
the Kentex and 188
enforcement
economic in related
andzones. complianceincidents.
In this regard, orders;
policy clarify
makers that the new
should draw law lessonsmandating
from recent
conciliation and mediation even in labour
experiences, such as the Kentex and related incidents. standards cases should not diminish labour
• Emphasize
standards entitlementsthe primacy
of workers. and non-negotiable nature of minimum labour standards in
enforcement and in compliance orders; clarify that the new law 188 mandating
• Emphasize the primacy and non-negotiable nature of minimum labour standards
• Undertake conciliation
in enforcement
and mediation
a comprehensive andeven
and in compliance
in labour evaluation
independent standards cases
orders; clarify that theshould
ofthe entire
new
not188diminish labour
lawinspectorate
mandating
with astandards
view toward entitlements of workers. this critical function.
further strengthening
conciliation and mediation even in labour standards cases should not diminish
labour standards entitlements of workers.
E. The future of work:aNew
• Undertake frontiers onand
comprehensive rights at work evaluation of the entire inspectorate
independent
with a view toward further strengthening this critical function.
• Undertake a comprehensive and independent evaluation of the entire inspectorate
157. In the conventional industrial relations framework on which labour regulation and rights
with a view toward further strengthening this critical function.
E.
at work The infuture of work: is
the Philippines New frontiers
based, the most on rights
essentialat work
elements of work are time, the
security and regularity of the relationship between employer and the worker, and the
157. In the conventional industrial relations framework on which labour regulation and rights
188
at 10396,
Republic Act No. workSeeindiscussion
the Philippines isD.3.
under Section III, based, the most essential elements of work are time, the
security and regularity of the relationship between employer and the worker, and the
74
89 Philippines 2017
E. The future of work: New frontiers on rights at

work
157. In the conventional industrial relations

framework on which labour regulation and
rights at work in the Philippines is based, the
organization and predictability of the work process. most essential
Thus, elements
working ofhours work are is time, the
conceptualized and defined as all time that an employee security and regularity
is required to work or of betheatrelationship
a
particular workplace, or all time that an employee is permitted or suffered to work.worker,
between employer and the 189 and
the organization
Consequently, wage or pay is predominantly time-rated, with the amount of and predictability of
compensation based on units of time. Regular employment the work and jobprocess. Thus,security
or tenurial working hours
is conceptualized and
are protected rights. The design of OSH standards assumes the existence of a definite and defined as all time
controlled physical work space in which people work atthat an employee
specified times. The is right
required to work or
to self-
be at a particular
organization and collective bargaining, as well as the right to social insurance, are workplace, or all time
that an employee is permitted or suffered
premised on the regularity and stability of the employment relationship.
to work.189 Consequently, wage or pay is
predominantly time-rated, with the amount
158. Under the conventional framework, per-emptory standards as the main approach to
of compensation based on units of time.
labour regulation, consisting of regulation of work hours following the eight-hour normal
Regular employment and job or tenurial
workday and a six-day normal workweek, wage standards premised on payment for units
security are protected rights. The design of
of time during which the worker is subjected to the controlOSHofstandards
the employer,
assumesoccupational
the existence of a
safety and health standards premised on the existence of a physical
definite and work space physical
controlled controlled work space
or supervised by the employer, protection against discrimination
in which and of the
people workrights
at to self- times.
specified
organization, collective bargaining and security of tenure,The right andto provision of a State-
self-organization and collective
administered contributory social insurance mechanism remain toasbewell
bargaining, the most
as thewidely-
right to social
used and proven combination of regulatory instruments. insurance, are premised on the regularity
and stability of the employment relationship.
159. There is, however, an unexplored space for potential policy action with respect to non-
conventional work arrangements that de-emphasizes time, physical
158. Under work space and
the conventional direct
framework, pre-
employer control and supervision while emphasizing output, use of information
emptory standards as the main approach to
technology, worker responsibility and autonomy, and self-managed
labour regulation,work processes.
consisting of regulation
While no specific typologies of such non-conventional work arrangements
of work hours following the have beeneight-hour
evolved and consequently no statistical data have been developed
normal workdayin the
andPhilippines,
a six-day normal
anecdotal evidence strongly suggests that such kinds of arrangements are increasing. This
workweek, wage standards premised on
is particularly true in the BPO-ITM industry, as well as to such arrangements as
payment for units of time during which
telecommuting and short and oftentimes multiple employment contracts for specific job
the worker is subjected to the control of
orders, with the added complication that the relationship between the employer and the
©ILO M. Fossat the employer, occupational safety and
worker may transcend national borders. Deep understanding of these arrangements and
health standards premised on the existence
their connections with the economy as a whole among all stakeholders is needed before
of a physical work space controlled or
any policy action can be taken. For this purpose, the country needs to open a venue for
constructive dialogue that will help all stakeholders supervised
navigate thebycomplexities
the employer, of theprotection
present and future of work. against discrimination and of the rights to
self-organization, collective bargaining and
security of tenure, and provision of a State-
SECTION V. SOCIAL PROTECTION administered contributory social insurance
mechanism remain to be the most widely-
A. Policy and legal framework; expenditure programme used and proven combination of regulatory
instruments.
160. Social protection is part of the national development framework. 190 A pillar of inclusive
growth, its objective is “to empower and protect the poor, vulnerable and disadvantaged
individuals, families and communities from individual life cycle, economic,
environmental and social risks.” 191 Its importance underscored by the high incidence of
189
Art. 84, Labor Code, as amended.
190
See Resolution No. 1 s. 2007, the National Economic Development Authority –Social Development Committee. NEDA defines social
protection as referring to policies and programmes that seek to reduce poverty and vulnerability to risks and enhance the social status and
rights of the marginalized by promoting and protecting livelihood and employment, protecting against hazards and sudden loss of income, and
159. There is, however, an unexplored

space for potential policy action with
respect to non-conventional work
arrangements that de-emphasizes
time, physical work space and direct
employer control and supervision
while emphasizing output, use of
information technology, worker
responsibility and autonomy, and
self-managed work processes.
While no specific typologies of
such non-conventional work
arrangements have been evolved and
consequently no statistical data have
been developed in the Philippines,
anecdotal evidence strongly suggests
©ILO M. Fossat
that such kinds of arrangements are
increasing. This is particularly true in
the BPO-ITM industry, as well as to
such arrangements as telecommuting
and short and oftentimes multiple
employment contracts for specific job
orders, with the added complication
that the relationship between the
employer and the worker may
transcend national borders. Deep
understanding of these arrangements
and their connections with the
economy as a whole among all
stakeholders is needed before any
policy action can be taken. For this
purpose, the country needs to open a
venue for constructive dialogue that
will help all stakeholders navigate
the complexities of the present and
future of work.
©ILO J. Bobot Go
Section V.
Social
protection
J. A liling
©ILO
organization
Decent work countryand predictability
diagnostics: of the work process. Thus, working hours is
93 conceptualized
Philippines 2017 and defined as all time that an employee is required to work or be at a
particular workplace, or all time that an employee is permitted or suffered to work. 189
Consequently, wage or pay is predominantly time-rated, with the amount of
compensation based on units of A. time. Policy
Regular and employment
legal framework; and job expenditure
or tenurial programme
security
are protected rights. The design of OSH standards assumes the existence of a definite and
controlled physical work space in which 160. Socialwork
people protection
at specified is times.part The of right the tonational self-
poverty and vulnerability to fortuitous eventsdevelopment
organization and collective bargaining, as well as the right to social insurance, are and natural framework.
disasters which
190
A pillar
affect of inclusive
millions
of Filipinos
premised onevery year, social
the regularity andprotection
stability ofhas growth,
thefour its objective
components:
employment social
relationship. is insurance
“to 192 empower or social and
security, labour market interventions, social welfare and social safety
protect the poor, vulnerable and disadvantaged nets. The first is
funded the
158. Under by contributions
conventional from members,
framework, sometimes
individuals,
per-emptory withfamilies
standards government as and the subsidy. communities
main The other
approach from
to
three are State-funded
labour regulation, consisting of regulation of and access is usually subject
individual
work hours to needs
lifefollowing or means
cycle, economic, testing.
the eight-hour environmental
normal
workday and a six-day normal workweek, 193
and
wage social
standards risks. ”191
premised Its importance
on payment underscored
for units
161. Together with health
of time during which the worker is subjected insurance, the social
by to protection
thethe high budget
incidence
control was
of theofemployer, around
poverty and 14 per
vulnerability
occupational cent
of national
safety and healthbudgetstandards in 2016 and premised2017 and on the was less thanof3events
toexistence
fortuitous aper cent
physical andofwork GDPspace
natural indisasters
2016 (Table
controlled which
41). Excluding health insurance, it doubled in 2016 and further increased by more than
or supervised by the employer, protection against affect millions of Filipinos every year, social
discrimination and of the rights to self-
12 per cent in collective 2017. Untilbargaining 2015, the biggest slice ofofthe socialand protection budget went to
organization, protection
and security has four components:
tenure, provision social
of ainsuranceState-
the Conditional Cash Transfer (CCT) programme. In 2016, unclassified allocations (not
administered contributory social insurance or mechanism
social194security, remain labour to be marketthe most interventions,
widely-
elsewhere classified or
used and proven combination of regulatorysocial n.e.c.) had the biggest slice, while allocation for old age (senior
welfare and social safety nets. The first
instruments. 192
citizens) increasing more than six times. In 2017, the biggest shares are for old age and
is funded by contributions from members,
unclassified allocations. CCT allocation alsopotential
increased by 25 per cent. The allocation
159. There is, however, an unexplored space for sometimes with policy government
action withsubsidy.respect The
to non- other
items and direction of increases suggest a dominantlytime, social welfarework and social safety net
conventional
orientation.
work arrangements
There are no specific items three
that de-emphasizes
for activeare labour
State-fundedphysical
market and climate
and access is
space and usually
direct
change-
employer control and supervision while
adaptive measures, although these may subject to needs
emphasizing or means
output, testing.
use of information
technology, worker ©ILO responsibility
M. Rimando and be subsumed
autonomy, andunder the
self-managed unclassified workallocation.
processes.
While no specific typologies of such 161. Together
non-conventional with health
work insurance, have
arrangements 193
the been social
evolved andTable 41. Expenditure
consequently no statistical programme
protection
data have on been
socialdeveloped
budget
protection
was budget aroundPercent
in the 14of GDPper cent of
Philippines,
Expenditure program (Php million) Percent of national
Expenditure item evidence strongly suggests that such
anecdotal national kindsbudget
of arrangements are 2017increasing. This
2014 2015 2016 2017 2014 2015 2016 2017 2014 2015 2016 was less
in 2016 and and
is particularly true in the BPO-ITM industry, as
perwell asoftoGDP such arrangements as
Total 161,792 219,928 than 414,236 3 468,867 cent
8.013 9.108 13.800 13.996in1.279 2016 1.653 (Table
2.867 41).
telecommuting and short and oftentimes multiple Excluding employment
health contracts
insurance, it for specific
doubled in job
2016
Health insurance 35,332 36,315 43,836 50,221 1.750 1.504 1.460 1.499 0.279 0.273 0.303
orders, with the added complication
Social protection
that the
126,460 183,613 and
relationship
370,400further
418,646 increased
between
6.263 7.604 12.339 bythe more
12.497
employer
1.000than1.380 12
and the
2.563per cent
worker may transcend national
Sickness and disability (persons with disabilities)
borders.
20
Deep
21 in 2017.
understanding
30 Until
32 0.001 2015, of
0.001the
these
0.001biggest
arrangements
0.001 slice a a of the
and
a social
their
Old ageconnections
(Senior citizens) with the economy 6,216 as a whole
17,625 117,167 among
protection all stakeholders
158,693budget
0.308 went
0.730 3.903to4.737 isConditional
the0.049 needed
0.132 0.811before Cash
any policy action can be
Survivors (Gender and Development, internally taken. For this purpose, the country needs
Transfer (CCT) programme. In 2016, unclassified to open a venue for
constructive
displaced persons anddialogue that will 316
disaster relief assistance) help all 242 stakeholders
250
allocations navigate
50 (not0.016 0.010
elsewhere the 0.001
0.008 complexities
0.002 0.002 0.002
classified orof n.e.c.)
the
present and future of
Family and children (Street families) work. 8,178 8,251 had 11,240the 7,376 0.405 slice,
0.342 194 0.374while0.220 0.065 0.062 0.078 for old
biggest allocation
Unemployment (labor standards, minimum age (senior citizens) increasing more than six
wages, emergency employment) 3,515 2,930 6,841
times. In6,422
2017, 0.174 0.121 0.228 0.192 0.028 0.022 0.047
the biggest shares are for old age
SECTION HousingV. SOCIAL PROTECTION 25,549 28,576 32,518 14,409 1.265 1.183 1.083 0.430 0.202 0.215 0.225
and unclassified allocations. CCT allocation also
Pantawid Pamilya Program (CCT) 54,120 61,477 62,666 78,687 2.680 2.546 2.088 2.349 0.428 0.462 0.434
Social exclusion
increased by 25 per cent. The allocation items
A. Policy andn.e.clegal framework; expenditure 1,116 535 178
programme 444 0.055 0.022 0.006 0.013 0.009 0.004 0.001
Conflict-affected areas 7,209 7,827
and direction of increases suggest a dominantly
7,939 12,307 0.357 0.324 0.264 0.367 0.057 0.059 0.055
Social protection
160. Social n.e.c.
protection is part of the 20,221 national 56,129 social
131,572 welfare
development and2.325social
140,226framework.
1.002 4.383 safety
190 4.186
A pillar0.160 net of orientation.
0.422 0.911
inclusive
Gross Domestic Product, at current prices 12,645,052 13,307,357 There
14,449,925
growth, its objective is “to empower and protect the poor, vulnerable and disadvantaged are no
.. specific
.. .. items
.. .. for
.. active
.. .. labour
National budget
individuals, families and 2,019,062 communities market
2,414,641 3,001,800from and
3,350,000 climate
individual .. .. change-adaptive
..
life ..
cycle, .. measures,
..economic,
..
environmental
a
Less than half the and social risks.” Its importance underscored by the high incidence ofthe
unit used. 191 although these may be subsumed under
Sources: Department of Budget and Management; and unclassified allocation.
Philippine Statistics Authority, National
189
Accounts Philippines.
Art. 84, Labor Code, as amended.
190
See Resolution No. 1 s. 2007, the National Economic Development Authority –Social Development Committee. NEDA defines social
protection as referring to policies and programmes that seek to reduce poverty and vulnerability to risks and enhance the social status and
rights of the marginalized by promoting and protecting livelihood and employment, protecting against hazards and sudden loss of income, and
improving people’s capacity to manage risks.
191
Philippine Development Plan 2011-2016, Chap. 8.
192
Labour market interventions are aimed to keep workers in employment or improve their access to employment opportunities of their choice.
These may come in the form of active labour market programmes (ALMPs) such as employment facilitation and skills or competency training,
retraining and upgrading, and government-generated employment. Social welfare programmes are public provide the poor with means for
75
their basic needs, and are usually targeted at the poorest of the poor. Social safety nets are temporary interventions such as cash transfers, food
for work and emergency employment programmes aimed at preventing individuals and households from falling into poverty and at bridging
their transition to productive employment.
193
Based on classification of expenditure programme by sector (classification of the functions of government), 2014-2016 and 2015-2017. In
this classification, health insurance is categorized separately.
194
Funds various programmes/projects, among others: DOLE's emergency repatriation programme, DND's disaster response operations,
DPWH's construction and rehabilitation of various structures and DSWD's various assistance programmes/projects.
76
unclassified allocations. CCT allocation also increased by 25 per cent. The allocation
items and direction of increases suggest a dominantly social welfare and social safety net
Section V.
Social protection 94
orientation. There are no specific items for active labour market and climate change-
adaptive measures, although these may be subsumed under the unclassified allocation.
Table 41. Expenditure programme on social protection

Expenditure program (Php million) Percent of national budget Percent of GDP
Expenditure item
2014 2015 2016 2017 2014 2015 2016 2017 2014 2015 2016
Total 161,792 219,928 414,236 468,867 8.013 9.108 13.800 13.996 1.279 1.653 2.867
B. Social insurance
Health insurance 35,332 36,315 43,836 50,221 1.750 1.504 1.460 1.499 0.279 0.273 0.303
Social protection 126,460 183,613 370,400 418,646 6.263 7.604 12.339 12.497 1.000 1.380 2.563
B.1 Coverage and membership
Sickness and disability (persons with disabilities) 20 21 30 32 0.001 0.001 0.001 0.001 a a a
Old age (Senior citizens) 6,216 17,625 117,167 158,693 0.308 0.730 3.903 4.737 0.049 0.132 0.811
162.Survivors
The(Gender
country’s major
and Development, social insurance systems are the GSIS for the public sector, the SSS
internally
for the
displaced personsprivate
and disastersector, and the316Employees’
relief assistance) 242 250Compensation
50 0.016 0.010Program
0.008 0.001 (ECP)
0.002 0.002 and
0.002 National
Health Insurance
Family and children (Street families) Corporation 8,178(PhilHealth)
8,251 11,240 for both
7,376 0.405 0.342 0.374 0.220 0.065 0.062 0.078GSIS and
public and private sectors.
SSS are
Unemployment funded
(labor by contributions from employees and employers. PhilHealth is similarly
standards, minimum
wages, emergency employment)
funded except for government 3,515 subsidies
2,930 6,841
for the 6,422 poor.
0.174 0.121
ECP 0.228is 0.192 0.028 0.022
funded 0.047 through
solely
Housing
employers’ contributions. 25,549 Covered 28,576under32,518these 14,409systems
1.265 1.183 are 1.083 seven the0.225nine basic
0.430 0.202of0.215
195
Pantawid Pamilya Program
branches of (CCT)
social security54,120 61,477 62,666
- medical care,78,687 2.680 2.546old
sickness, 2.088age,
2.349 employment
0.428 0.462 0.434 injury,
Social exclusion n.e.c invalidity benefit
maternity, 1,116 and 535survivor’s 178 444 0.055 0.022SSS
benefits. 0.006 0.013
does0.009not 0.004 0.001
provide for
Conflict-affected
unemployment areas benefits while 7,209both7,827SSS and 7,939 GSIS 12,307 do0.357
not0.324 0.264 0.367
provide for0.057 0.059 0.055
family benefits.
Social protection n.e.c. 20,221 56,129 131,572 140,226 1.002 2.325 4.383 4.186 0.160 0.422 0.911
163.GrossIn
Domestic
theProduct,
public at current prices GSIS coverage
sector, 12,645,052 13,307,357 14,449,925
is mandatory .. all.. government
for .. .. .. workers
.. .. except
.. those
National
who budgethave separate retirement 2,019,062schemes.
2,414,641 3,001,800
196
SSS 3,350,000
membership .. .. is compulsory
.. .. .. ..for ..all private
a
Lesssector employees,
than half the unit used.domestic workers, seafarers (sea-based OFWs), and self-employed
Sources: Department
workers with aofnet
Budget and Management;
monthly income ofand
at Philippine Statistics Authority,
least Php1,000. Nationalfor land-based
It is voluntary
Accounts Philippines.
OFWs, former SSS members separated from employment who continue paying
contributions, and the non-working spouse of an SSS member. All members who are
B. Social insurance
currently employed and paying contributions to SSS and GSIS, including those in
government with separate retirement schemes, are covered by the ECP. The self-
192Labour
B.1 Coverageemployed
market andmembers
interventions membership
are of SSS,
aimed to keep workersnumbering
in employment or more
improvethan 900,000
their access are notopportunities
to employment coveredofby theirthe ECP.
choice.
These may come In in2014,
the form there
of activewere 1.482
labour market million(ALMPs)
programmes GSISsuch members
as employment that translated
facilitation and skillsto 48.7 pertraining,
or competency cent of
retraining and upgrading, and government-generated employment. Social welfare programmes are public provide the poor with means for
162.
their Thethecountry’s
basic needs, and3.043 major
employed
are usually targeted atsocial
the in insurance
of the poor. systems
government
poorest and
Social are thetemporary
safetygovernment
nets are GSIS corporations,
for the public
interventions sector,
down
such as cash thefood
from
transfers, SSS thefor
for work and the private
65.8
emergency sector,
peremployment
cent and
(1.492 the
programmes Employees’
millionaimedout Compensation
of 2.268
at preventing million)
individuals Programme
recorded
and households (ECP)
infalling
from 2000.intoIn and National
2015,
poverty there
and at Health
were
bridging
their transition to productive employment.
Based onInsurance
classification ofCorporation (PhilHealth) for both public and private sectors. GSIS and SSS are
197
193 13.134 million contributing
expenditure programme SSS members,
by sector (classification of the of whom
functions 1.877
of government), million
2014-2016 and were voluntary
2015-2017. In
funded
members
this classification,
194
by
health contributions
and
insurance 463,000
is categorized from employees
land-based
separately. OFWs and employers.
(Figure 35). PhilHealth
Relating is similarly
the number funded
of
Funds various programmes/projects, among others: DOLE's emergency repatriation programme, DND's disaster response operations,
except for
contributing
DPWH's construction government
members
and rehabilitation subsidies
tostructures
of various total and forDSWD's
the various
employed poor.
outsideECPofisprogrammes/projects.
assistance fundedsector
public solelyemployment,
through employers’ there
contributions.
remains a Covered wide gap under these systems
between actual are seven of theand
membership ninepotential
basic branches membershipof social
security - medical care, sickness, old age, employment injury, maternity, invalidity76
notwithstanding
195 the policy goal of universal coverage. benefit
and survivor’s benefits. SSS does not provide for unemployment benefits while both SSS and
GSIS do not provide Figure 35. Proportion
for family benefits. of SSS contributing members
(in per cent)
60.0
163. In the public sector, GSIS coverage is mandatory for all government workers except those
45.0
who have separate retirement schemes.196 SSS membership is compulsory for all private sector
30.0
employees, domestic workers, seafarers (sea-based OFWs), and self-employed workers with
15.0
a net monthly income of at least Php1,000. It is voluntary for land-based OFWs, former SSS
0.0
2000 2005 2010 2011 2012 2013 2014 2015
members separated from employment who continue paying contributions, and the non-
Private employees (ex cluding sea-based)
Domestic wor kers (live-in)
working spouse of an SSS member. All members who are currently employed and paying
Self-employed
contributions to SSS and GSIS, including those in government with separate retirement
Over seas Filipino Workers (sea-based and land-based)
schemes,
Note: SSSare covered
statistics by theemployees
on private ECP. Theand
self-employed
OFW contributingmembers ofhave
members SSS,been
numbering
adjusted more than
900,000forare not covered
purposes bytheir
of deriving themembership
ECP. In 2014, there were 1.482 million GSIS members that
proportions.
Sources: Social Security System; Commission on Filipinos Overseas; and Philippine Statistics
translated to 48.7 per cent of the 3.043 employed in government and government corporations,
Authority, Labor Force Survey and Survey on Overseas Filipinos.
down from the 65.8 per cent (1.492 million out of 2.268 million) recorded in 2000. In 2015,
195
ILO Convention No.102, Social Security Convention (Minimum Standards). The Philippines did not ratify the Convention but it is being
here as a point of reference.
196
Public sector employees with separate retirement schemes are uniformed personnel of the Armed Forces of the Philippines, Philippine
National Police, Bureaus of Jail Management and Penology and of Fire Protection and Philippine Coast Guard; the judiciary and constitutional
commissions; and barangay officials and workers in government agencies classified as service providers or independent contractors.
197
Of 13.134 million, 9.749 million were private employees that include seafarers, 66,000 domestic workers, and 979,000 self-employed.
77
government with separate retirement schemes, are covered by the ECP. The self-
employed members of SSS, numbering more than 900,000 are not covered by the ECP.
95 Philippines
In 2014, there were 1.482 million GSIS members that translated to 48.7 per cent of
2017
the 3.043 employed in government and government corporations, down from the
65.8 per cent (1.492 million out of 2.268 million) recorded in 2000. In 2015, there were
there were
13.134 13.134
million 197
million 197
contributing contributing SSS members,
SSS members, of whom of whom
1.8771.877 million
million werewere voluntary
voluntary
members
members and and463,000
463,000 land-based
land-based OFWsOFWs(Figure 35). Relating
(Figure the number
35). Relating the of contributing
number of
B. Social insurance
members to total
contributing employed
members outside
to total of public
employed sectorofemployment,
outside public sector there remains a wide
employment, theregap
between
remains actual
B.1
a wide
Coverage membership
gap between
and membership and potential
actual membership
membershipnotwithstanding
and potentialthemembership
policy goal of
164.universal
PhilHealth coverage
coverage.
notwithstanding is mandatory for all public
the policy goal of universal coverage. and private sector employees, OFWs,
retirees and pensioners of SSS and GSIS prior to Republic Act No. 7875, and members
162. The
morecountry’s major ofsocial
Figure
than 60 years insurance
35. Proportion
age who systemsmoreare
of SSS
have paid the GSIS
contributing
than120 for thecontributions.
members
monthly public sector, There
the SSSis
for the private sector, and the
also subsidized mandatory membership Employees’ Compensation Program (ECP) and
cent)individuals from poor households.198
(in per for National
Health Insurance
60.0
Coverage of the Corporation
informal sector (PhilHealth) for both
is voluntary. In public
2015, and private sectors.
PhilHealth had 40.5 GSIS and
million
SSS are funded
members45.0 by contributions
and 93.445 from employees
million beneficiaries and employers.
(members PhilHealth
and dependents) or 92is similarly
per cent
funded except
30.0 for government subsidies for the poor. ECP
of the total population. Of this number, about 47.815 million (50 per cent) is funded solely through
were
employers’
15.0 contributions. Covered under these systems are seven
indigents/sponsored; 28.319195million (30 per cent) were from the formal economy; of the nine basic
branches0.0 of social
8.853 million (9.5 per
2000 cent) were- lifetime
security 2005
medicalmembers/senior
2010
care, sickness, citizens.
2011
old age,The
2012
employment injury,
rest were migrant
2013 2014 2015
maternity,
workers, theinvalidity benefitand
informal sector, and survivor’s individuals.
self-employed benefits. SSS does not provide for
Domestic wor kers (live-in)
unemployment benefits while both SSS and GSIS do not provide for family benefits.
Self-employed
B.2 Contributions, benefits and claims

163. Note:
In theSSSpublic sector,
statistics GSISemployees
on private coverage andis OFW
mandatory for all
contributing government
members have been workers
adjusted except those
for purposes of deriving their membership 196
proportions.
who have
165. Sources:
Social separate
security retirement
is the biggest schemes. of
component SSS membership
social insurance, isaccounting
compulsoryfor for all private
Social Security System; Commission on Filipinos Overseas; and Philippine Statistics70 per cent
sector
of social employees,
insurance domestic
contributions workers, seafarers (sea-based OFWs), and self-employed
Authority, Labor Force Survey andinSurvey 2014. on Social
Overseassecurity
Filipinos.benefits accounted for the
workers
highest pay-out although it was only less than 2 per centItofisGDP.
with a net monthly income of at least Php1,000. voluntary On the for other
land-basedhand,
OFWs,care
health former SSS members
expenditures not out separated
of pocket from
of employment
private households who have continue
been paying
declining
164.
195 PhilHealth
contributions, coverage and is
themandatory
non-working for all publicofand
spouse private
anPhilippines
SSSTotal sector
member. employees,
All OFWs, retirees
ofmembers
ILO Convention No.102, Social Security Convention (Minimum Standards). The did not ratify the Convention but itwho are
is being
here as aandsince 2000 (59.5 per cent) to 43.7 per cent in 2013. number claims for health
point pensioners
of reference.
currently of
employed SSS and
and in GSIS
paying prior to Republic Act No. 7875, and members more than
196
insurance
Public sector employeeswas with the highest
separate retirement recentcontributions
schemes years
are but the
uniformed to
personnel SSS
average and GSIS,
benefits
of the Armed Forcesremainedincluding
of the as the
Philippines, those
lowest
Philippinein

National60 years
government
Police, of age
Bureaus who
of Jailwith have
separate
Management paid
and more
Penology andthan120
retirement monthly
of Fire schemes,
Protection arecontributions.
covered
and Philippine by
Coast Guard; There
the
the is and
ECP.
judiciary also subsidized
The self-
constitutional
because of the lowandapplicable amounts set for suchas claims (Table 42). Thiscontractors.
means that an
mandatory
commissions; and barangay
employed membership
officials
members of foremployees
SSS, individuals
workers in government
numbering from
agencies
more poor
classified
than households.
service providers
900,000 are
198
Coverage
or independent
not covered ofbythetheinformal
ECP.
197
increasing proportion of total health care expenditures is being borne by households.
Of 13.134 million, 9.749 million were private that include seafarers, 66,000 domestic workers, and 979,000 self-employed.
sector
In 2014, is voluntary.
there wereIn1.482 2015, million
PhilHealth GSIShad 40.5 million
members memberstoand
that translated 48.793.445
per cent million
of
beneficiaries
the 3.043 (members and dependents) or 92 per cent of the total population. Of this 77
number,
Tableemployed
42. Contributions,in government benefitsand andgovernment
claims under corporations,
social insurance down from the
about
65.8 47.815
per
Indicator cent million
(1.492 (50
millionper cent)
out
2000of were
2.268
2005 indigents/sponsored;
million)
2010 recorded
2011 in 28.319
2012 2000. million
In
2013 2015, (30
2014there perwere
cent)
wereTotalfrom
13.134 the formal
contributions
million economy; 8.853
197 million)
(Php contributing million (9.5
SSS members, of per
whom cent) weremillion
1.877 lifetimewere members/senior
voluntary
citizens. The and
Social security
members rest were 463,000migrant workers,
64,449
land-based the
.. informal
OFWs 134,170 sector,
(Figure 147,878 and ..self-employed
35). Relating 177,240 196,087 individuals.
the number of
Employees' compensation 1,006 .. 3,284 3,339 .. 3,849 3,772
contributing
Health insurance members to total employed
8,557 18,736 outside
33,950 of public
36,770 sector
47,338 employment,
55,435 81,447 there
B.2 Contributions,
remains
Total benefitsa(Php benefits
wide
million)gapand claims
between actual membership and potential membership
Social security
notwithstanding the policy goal 49,637 75,091 116,745
of universal coverage. 133,353 146,114 170,465 183,030
Employees' compensation 1,883 1,649 1,117 1,145 1,064 1,041 1,257
165. Social security
Health insuranceis the biggest component 6,764 17,511of social
30,014insurance,
34,972 accounting
47,211 55,559for 70 per cent of
78,175
social insurance
Total claims Figure 35. Proportion of SSS contributing
(000) contributions in 2014. Social security benefits accounted for the highest members
pay-out although it was only less
Social security
60.0
than (in
1,983 2 per
2,177 percentcent)
.. of GDP. 2,716 On3,018 the other 3,071hand, health care
3,187
Employees' compensation 169 80 .. 63 58 55 57
expenditures
Health insurance
45.0
not out of pocket of1,310 private2,646households 3,479 have been declining
3,941 4,864 since 2000
5,787 6,625 (59.5 per
cent) to 43.7
Average
30.0 benefitsper percent
claim in
(Php)2013. Total number of claims for health insurance was the highest
in recent years but the average benefits
Social
15.0
security 25,031 remained.. as the49,099
34,493 lowest48,414
because55,508 of the low57,430 applicable
Employees' compensation 11,142 20,613 .. 18,175 18,345 18,927 22,053
amounts set for such
Health insurance (PhilHealth)
0.0 claims (Table
5,244
42). This
5,949
means
7,930
that
8,197
an increasing
9,089
proportion
9,116 11,800
of total
health care expenditures is being borne by households.
2000 2005 2010 2011 2012 2013 2014 2015
Sources: Social Security System; and
Domestic Government
wor kers (live-in) Service Insurance System.
Self-employed
166. SSS employee members are entitled to retirement, maternity, sickness, disability, funeral,
Note: SSS statistics
survivorship, on private
salary and employees and OFW
housing loans, andcontributing
providentmembers have been adjusted
fund (voluntary contributions of
for purposes of deriving their membership proportions.
members). GSIS members are entitled to life insurance; retirement, separation and
Sources: Social Security System; Commission on Filipinos Overseas; and Philippine Statistics
unemployment (up toForce
Authority, Labor 6 months
Survey and depending on number
Survey on Overseas of monthly contributions),
Filipinos.
disability, funeral, survivorship, and salary, policy, emergency, real estate and housing
among other loans. On top of SSS and GSIS disability benefits, employee-members are
195
ILO Convention No.102, Social Security Convention (Minimum Standards). The Philippines did not ratify the Convention but it is being
also entitled to cash benefit, medical care and rehabilitation for permanent disability, in
here as a point of reference.
196
Public sector employees with separate retirement schemes are uniformed personnel of the Armed Forces of the Philippines, Philippine
National Police, Bureaus of Jail Management and Penology and of Fire Protection and Philippine Coast Guard; the judiciary and constitutional
commissions; and barangay officials and workers in government agencies classified as service providers or independent contractors.
197
Of 13.134 million, 9.749 million were private employees that include seafarers, 66,000 domestic workers, and 979,000 self-employed.
198
Under the indigent programme targeting poor households identified by the National Household Targeting System for Poverty Reduction
(NHTSR-PR) and the sponsored programme targeted at poor individuals not covered by NHTS. 77
78
since 2000 (59.5 per cent) to 43.7 per cent in 2013. Total number of claims for health
insurance was the highest in recent years but the average benefits remained as the lowest
Section V.
because of the low applicable amounts set for such claims (Table 42). ThisSocial
means that an96
protection
increasing proportion of total health care expenditures is being borne by households.
Table 42. Contributions, benefits and claims under social insurance

Indicator 2000 2005 2010 2011 2012 2013 2014
Total contributions (Php million)
Social security 64,449 .. 134,170 147,878 .. 177,240 196,087
case of work-related injury,
Employees' compensation
sickness,
1,006 ..
disability
3,284
or3,339
death under
..
the ECP.3,772
3,849
PhilHealth
199
benefits cover
Health insurance in-patient care8,557and out-patient
18,736 33,950care.
36,770 47,338 55,435 81,447
Total benefits (Php million)
167. Social security
In 2014, there were 1.284 49,637million75,091 116,745pensioners,
retirement 133,353 146,114
more 170,465 183,030
than three-fourths of
Employees' compensation 1,883 1,649 1,117 1,145 1,064 1,041 1,257
whom were
Health insurance under the SSS. Pensioners
6,764 17,511 accounted
30,014 for
34,972 25 per
47,211 cent of
55,559 the working
78,175 age
population,
Total claims (000) up from 8.3 per cent recorded in 2000. GSIS pensioners receive higher
Social
monthlysecurity
retirement pensions 1,983than SSS 2,177 ..
pensioners due 2,716 3,018 schedules
to different 3,071 3,187
of premiums
Employees' compensation 169 80 .. 63 58 55 57
or contributions (Table 43). 1,310 2,646 3,479 3,941 4,864
Health insurance 5,787 6,625
Average benefits per claim (Php)
Social security Table25,031
43. Average
34,493 monthly
.. pension
49,099 48,414 55,508 57,430
Employees' compensation 11,142 20,613 .. 18,175 18,345 18,927 22,053
Health insurance (PhilHealth) 5,244 5,949
(in pesos)
7,930 8,197 9,089 9,116 11,800
Type of pension 2000 2005 2010 2011 2012 2013 2014 2015
Sources: Social Security
Social Security System System; and Government Service Insurance System.
Social security
166. SSS
166. employee
SSSRetirement
employee members members are areentitled
2entitled
843 to to
2 967 retirement,
retirement, 3 520maternity,
3 524 maternity, sickness,
3,707sickness, disability,
3 577 disability,
3 792 funeral,
funeral,
3 780
survivorship, salary and housing loans, and provident fund (voluntary contributions
survivorship,
Disability salary and housing
2 642 loans,
2 982 and3 provident
261 3 304 fund
3 536 (voluntary
3 467 3contributions
633 3 713 of
Death
members). (Survivorship)
GSIS members 2
are 171 2 395
entitled to2 839
life
of members). GSIS members are entitled to life insurance; retirement, separation and 2 852
insurance; 3 144 2 920
retirement, 3 021 3 689
separation and
Employees compensation
unemployment
unemployment (uptotosix6months
(up monthsdepending depending on number
on number of monthly
of monthly contributions),
contributions), disability,
Disability funeral, survivorship,
disability, 3 762 and4 073 salary, 4 082
policy, 4 189 4 329
emergency, 4real
153 estate
4 517 and4 624
housing
funeral, survivorship, and salary, policy, emergency, real estate and housing among other
among Death other
(Survivorship)
loans. On top of 3 SSS
328 and 3 658GSIS 3 589 3 602 benefits,
disability 4 017 3 684 4 151
employee-members 4 820 are
loans. On top
Government
ofInsurance
Service
SSS and GSIS disability benefits, employee-members are also entitled to
System medical care and rehabilitation for permanent disability, in
also
cash entitled
benefit, to cash
medical benefit,
care and rehabilitation for permanent disability, in case of work-related
Social security
injury,
case ofsickness, disability or death
Retirementwork-related injury, 177 under
5 sickness, the8 965
ECP. PhilHealth
7 582 disability or.. death benefits
9 634under thecover
10 394 8 398in-patient
ECP. PhilHealth
.. care199
199
and out-patient
benefits
Disability care.
cover in-patient care8 994and1out-patient
580 3 730 care... .. .. 3 934 ..
198 Death (Survivorship) 2 211 2 753 3 508 3 061 3 664 3 765
Under the indigent programme targeting poor households identified by the National Household Targeting System for Poverty..Reduction
..
167. In
167.
(NHTSR-PR) 2014,
and the there
In Employees
2014, therewere
compensation
sponsored were 1.284
programme1.284 million at..poorretirement
million
targeted ..
individuals pensioners,
not ..covered
retirement by.. NHTS.1more
pensioners, 023morethan685 three-fourths
than .. .. of whom
three-fourths of
were under the SSS. Pensioners accounted for 25 per cent of the working age population,
whom
Sources: were under
Social the
Security SSS.
System Pensioners
and Government accounted
Service for
Insurance 25 per cent
System.
78
of the working age
up from 8.3 per
population, cent recorded
up from in 2000.
8.3 per cent GSIS in
recorded pensioners receive
2000. GSIS higher monthly
pensioners receive retirement
higher
168.pensions
The average
monthly than SSSmonthly
retirement retirement
pensioners
pensions pension
due SSS
than to of schedules
different SSSdue
pensioners pensioners
toof wasschedules
premiums
different double theofmonthly
or contributions
premiums per
(Table
capita poverty threshold
or contributions (Table 43).
43). in 2015, while that of GSIS was six times more than the
threshold in 2014. These ratios were relatively steady since 2006 (Figure 36).
Table 43. Average monthly pension
Figure 36. Average monthly retirement pension and per capita
(in pesos)
Type of pension 2000 poverty
2005 2010 threshold
2011 2012 2013 2014 2015
Social Security System (in pesos)
Social security
10000
Retirement 2 843 2 967 3 524 3 520 3,707 3 577 3 792 3 780
Disability 2 642 2 982 3 261 3 304 3 536 3 467 3 633 3 713
5000
Death (Survivorship) 2 171 2 395 2 839 2 852 3 144 2 920 3 021 3 689
Employees compensation
Disability
0 3 762 4 073 4 082 4 189 4 329 4 153 4 517 4 624
Death (Survivorship) 2006 3 328 2009
3 658 3 589 3 602 20124 017 3 684 42015
151 4 820
Government Service Insurance System
Social security Social Security System Government Service Insurance System
Retirement 5 177 7 582 8 965 .. 9 634 10 394 8 398 ..
Monthly per capita poverty threshold
Disability 8 994 1 580 3 730 .. .. .. 3 934 ..
Death (Survivorship)
Sources: Social Security System; 2 211 2 753
and Government 3 508 .. 3 061System.
Service Insurance 3 664 3 765 ..
Employees compensation .. .. .. .. 1 023 685 .. ..
Sources: Social Security System and Government Service Insurance System.
199
This includes day surgeries, dialysis, cancer treatment; maternity care package; fixed coverage for treatment of tuberculosis; primary care
168.
benefitThe average
package monthly
for indigent retirement
and sponsored pension
members and of SSS
their families, pensioners
including examinationwas double
at least once a the
year, monthly perand
preventive care
diagnosis; enhanced
capita outpatient
poverty benefit package
threshold in for OFWs,while
2015, including preventive
that of care, diagnostic
GSIS was sixservices,
times psychological
more and external
than the
examination, treatment of simple illnesses; Outpatient HIV/AIDS Treatment (OHAT) package; and health care for orphans, abandoned and
abusedthreshold in 2014.
minors, out-of-school youthsThese
and streetratios were relatively steady since 2006 (Figure 36).
children.
Figure 36. Average monthly retirement pension and per capita 79

Retirement 5 177 7 582 8 965 .. 9 634 10 394 8 398 ..
Disability 8 994 1 580 3 730 .. .. .. 3 934 ..
Death (Survivorship) 2 211 2 753 3 508 .. 3 061 3 664 3 765 ..
97 Employees compensation
Philippines 2017
.. .. .. .. 1 023 685 .. ..
Sources: Social Security System and Government Service Insurance System.
168. The
168. Theaverage
averagemonthly
monthlyretirement
retirementpensionpensionofofSSS SSS pensioners
pensioners waswasdouble
double thethemonthly
monthly perper
capita
poverty threshold
capita poverty in 2015, in
threshold while
2015,thatwhile
of GSIS thatwasofsix timeswas
GSIS more sixthan
timesthe more
thresholdthaninthe 2014.
These ratios were relatively steady since 2006 (Figure 36).
threshold in 2014. These ratios were relatively steady since 2006 (Figure 36).
C. Active labour market interventions
Figure 36. Average monthly retirement pension and per capita
C.1 Programmes, resource allocation poverty andthreshold
performance
(in pesos)
169. 10000
Active labour market interventions are measures aimed at enhancing employability,
facilitating access to employment opportunities, and providing access to livelihood and
entrepreneurial activities. These are specially targeted at poor, vulnerable and
5000
marginalized workers, the youth and the unemployed, and the unskilled. From 2005-
2015, an annual average of 3.654 million workers or about 6 per cent of the working age
0
population were assisted through various active labour market programmes such as the
DOLE Integrated 2006 Livelihood Program 2009 (DILP), 200 2012the DWSD Sustainable 2015 Livelihood
201
Program (SLP), Special
Social Security System Program for the Employment of Students
Government Service Insurance System (SPES),202
Government Internship Program (GIP), 203 TESDA Training Programmes, Public
EmploymentMonthly Service per capita
Officespoverty threshold 204 and Philippine Job Exchange Network (Phil
(PESOs)
205
Job-net).
Sources: More System;
Social Security than half of these workers
and Government were provided
Service Insurance System. training (SPES, GIP,
TESDA), one-third, wage employment assistance (PESOs and Phil Job-Net) and the rest
C. Active labourlivelihood support
market through DILP and SLP. The TESDA trainees were assisted through
interventions
199 its Training for Work Scholarship Programme, and Technical Vocational Education and
This includes day surgeries, dialysis, cancer treatment; maternity care package; fixed coverage for treatment of tuberculosis; primary care
Training Programme
and sponsored(Figure
members 37).
C.1 Programmes, resource allocation and including
performance
benefit package for indigent and their families, including examination at least once a year, preventive care and
diagnosis; enhanced outpatient benefit package for OFWs, preventive care, diagnostic services, psychological and external
examination, treatment of simple illnesses; Outpatient HIV/AIDS Treatment (OHAT) package; and health care for orphans, abandoned and
abused minors, out-of-school youths and street children.
169. Active labour market interventions are measures aimed at enhancing employability, facilitating
Figure 37. Workers assisted through labour market interventions, 2005-2015
access to employment opportunities, and providing access to livelihood and entrepreneurial 79
(annual average, in 000)
activities. These are specially targeted at poor, vulnerable and marginalized
1,752
workers, the youth
1800
and the unemployed, and the unskilled. From 2005-2015, an annual average of 3.654 million
workersDILPor about 6 per cent 1500of the working age population were assisted through various
1,259
active SLP
labour market programmes 1200 such as the DOLE Integrated Livelihood Programme
(DILP), 200
SPES the DWSD Sustainable Livelihood Programme (SLP),201 Special Programme for
GIP
the Employment of Students900
TESDA graduates
(SPES),202 Government Internship Programme (GIP),203 TESDA
Training
PESOsProgrammes,
referrals Public
600 Employment Service Offices (PESOs)
204
and Philippine Job
Exchange Network
Phil-JobNet (Phil
(regist Job-Net).
ered)
300
205
More than half of these workers were provided training
299
142
(SPES, GIP, TESDA), one-third, wage employment 76 assistance
114
12 (PESOs and Phil Job-Net) and
the rest livelihood support through 0
DILP and SLP. The TESDA trainees were assisted through
its Training for Work Scholarship Programme,
Sources: Department of Labor and Employment; and Technical
Technical Education Vocational
and Skills Development Education and
Authority
Training Programme (Figure 37).
and Department of Social Welfare and Development.
170. The big-ticket interventions for livelihood and entrepreneurship are DOLE’s DILP and
DSWD’s SLP. The DILP, a grant assistance for capacity building on livelihood
responding to the income augmentation needs of the poor, vulnerable and marginalized
workers, had a budget of over Php1.7 billion in the last five years. Of a similar purpose
200
The DILP is a grant assistance for capacity building on livelihood responding to the income augmentation needs of the poor, vulnerable,
and marginalized workers and had an average budget expenditure of Php352.547 million for the past five years.
201
The SLP is administered by DSWD. It has two tracks: Entrepreneurial Skills Training Programme of the Self - Employment Assistance -
Kaunlaran (SEA-K) and Employment Facilitation such as Trabahong Lansangan ng Programang Pantawid Pamilya in partnership with the
Department of Public Works and Highways.
202
SPES is intended for poor deserving high school, college and technical-vocational students and drop-outs who want to pursue their education
by working during summer or Christmas vacations.
203
GIP is a programme for fresh graduates to work as interns in government agencies with wage equivalent to 75 per cent of the minimum
wage.
204
PESOs are non-fee charging, multi-employment service facilities that provide job referrals and information on the various programmes and
services of the DOLE as well as other government agencies.
205
The Phil-JobNet is an automated job and applicant matching system. The Philippine Job Exchange Network is a computerized national
manpower registry of skills, employment and business opportunities to facilitate the provision and packaging of employment assistance to
PESO clients, and to set up intra- and interregional job clearance systems.
80
livelihood support through DILP and SLP. The TESDA trainees were assisted through
its Training for Work Scholarship Programme, and Technical Vocational Education and
Section V.
Training Programme (Figure 37). Social protection 98
Figure 37. Workers assisted through labour market interventions, 2005-2015

(annual average, in 000)
1800 1,752
1500
DILP
1,259
SLP
1200
SPES
GIP 900
TESDA graduates
PESOs referrals 600
Phil-JobNet (regist ered) 299

300 142
76 114
12
0
Sources: Department of Labor and Employment; Technical Education and Skills Development Authority
and Department of Social Welfare and Development.
170. The
170. The big-ticket
big-ticket interventions
interventionsfor forlivelihood
livelihoodand and entrepreneurship
entrepreneurship are are
DOLE’s DOLE’s DILP DILPand and
DSWD’s SLP. The DILP, a grant assistance for
DSWD’s SLP. The DILP, a grant assistance for capacity building on livelihood capacity building on livelihood responding
to the income
responding augmentation
to the income augmentationneeds of theneeds poor,ofvulnerable
the poor, and marginalized
vulnerable workers, had a
and marginalized
budget
workers, had a budget of over Php1.7 billion in the last five years. Of a similarwhich
of over Php1.7 billion in the last five years. Of a similar purpose is the SLP, purposetargets
beneficiaries
is the SLP, which of thetargets
largerbeneficiaries
Pantawid Pamilya Programme
of the larger Pantawid (PPP) by providing
Pamilya Programthem (PPP) access
by to
200
non-collateralized
providing
The DILP is a grant assistance forand
them access interest-free
to
capacity non-collateralizedsmallresponding
building on livelihood business loan
and interest-free
to the as well
income as tobusiness
small
augmentation emergency
needs poor,employment
of theloan as well
vulnerable,
opportunities byin public It hasworks. SoEntrepreneurial
far, the SLP has provided 273,495 the -beneficiaries access- to
and marginalized workers and had an average budget expenditure of Php352.547 million for the past five years.
201 as
The SLP to emergency
is administered employment
DSWD. opportunities
two tracks: in public
Skills works.
Training So
Programme far,
of the Self SLP has provided
Employment Assistance
Kaunlaranseed
273,495
(SEA-K)capital
and amounting
beneficiaries
Employment to over
access
Facilitation totwo
such seed
as billion
capital
Trabahong pesos
Lansangan and
amounting hastofacilitated
ng Programangover the employment
two Pamilya
Pantawid billion in pesos and
partnership of
has
with some
the
Department of Public Works and Highways.
202 25,633
is intended in
SPES facilitated public
for poor works
thedeserving
employment projects.
high school,ofcollege
some and 25,633 in public
technical-vocational works
students projects.
and drop-outs who want to pursue their education
by working during summer or Christmas vacations.
203
GIP is a programme for fresh graduates to work as interns in government agencies with wage equivalent to 75 per cent of the minimum
171.
wage. Directly or
171. Directly or ininpartnership
partnershipwith with training
training institutions
institutions andandlocallocal government
government units,units,
TESDA TESDA
isaremandated
mandated totosupport
supportindustry
industry needs by providing technical andand onvocational training and and
204
PESOs is non-fee charging, multi-employment needs
service bythat
facilities providing
provide technical
job referrals vocational
and information the varioustraining
programmesand
services of the DOLE as well as other government agencies.
205 setting certification
setting
The Phil-JobNet certification
is an automated jobstandards
standards for
and applicantfor skilled,
skilled,
matching middle
system.middle level human
levelJob
The Philippine human
Exchangeresources
Network is a(Table
resources (Table44).
computerized44). InIn2015,
national
manpower TESDA had a budget of Php5.3 billion, a substantial increase from its Php3 billion budget
2015, TESDA
registry of skills, had a budget
employment and of Php5.3
business billion,
opportunities to
PESO clients, and to set up intra- and interregional job clearance systems.
a substantial
facilitate the provision increase
and from
packaging of its Php3
employment billion
assistance to in
2013. From
budget 2005From
in 2013. to 2014,
2005TESDA recorded
to 2014, TESDAanrecorded
annual average of 1,752
an annual million
average graduates
of 1,752 millionfrom
its various training programmes. However, the ten most availed courses are mostly for service
graduates from its various training programmes. However, the ten most availed 80
courses
occupations and not for industry jobs. Further, the results of four Impact Evaluation Studies
are mostly for service occupations and not for industry jobs. Further, the results of four
of TESDA’s
Impact TVET Studies
Evaluation programmes noted that
of TESDA’s onlyprogrammes
TVET 61-65 per cent
notedof that
graduates in 2009-2012
only 61-65 per
found employment.
cent of graduates in 2009-2012 found employment.
Table 44. Top 10 most availed TVET courses, 2013

Qualification/Course title Enrolled Graduates
Food and beverage s ervi ces NC II 96 804 84 333
Computer hardware s ervi ci ng NC II 78 849 66 577
Hous ekeepi ng NC II 71 059 65 429
Commerci al cooki ng NC II 61 005 53 787
Shi el ded metal arc wel di ng NC II 44 083 35 272
Cons umer el ectroni cs s ervi ces NC II 37 605 32 788
Bartendi ng NC II 36 528 31 148
Programmi ng NC IV 34 393 28 078
Fi ni s hi ng cours e for cal l center agents 26 032 25 418
Automoti ve s ervi ci ng NC II 25 188 22 891
Source: Technical Education and Skills Development Authority,
172. The PESOs, Phil-Jobnet and Job Exchange Network seek to bring down the costs of job
search, facilitate job matching and reduce job mismatches, and encourage more efficient
utilization and mobility of human resources. As of 2015, 1,925 PESOs had been set up
but only 413 have been institutionalized. DOLE administrative data from 2012-2015
reported that on average, PESOs referred 1.778 million applicants for employment, with
placement rate at 83 per cent. On the other hand, applicants registered during job fairs
averaged at 663,000 but only 19.3 per cent were placed/hired on the spot (Figure 38).
Bartendi ng NC II 36 528 31 148
Programmi ng NC IV 34 393 28 078
Fi ni s hi ng cours e for cal l center agents 26 032 25 418
99 Automoti ve s ervi ci ng NC II
Philippines 2017
25 188 22 891
Source: Technical Education and Skills Development Authority,
172. The
172. The PESOs,
PESOs,Phil Job-Net and
Phil-Jobnet and Job
JobExchange
ExchangeNetwork
Networkseekseek toto
bring down
bring down thethe
costs of job
costs search,
of job
facilitatefacilitate
search, job matching and reduce
job matching job mismatches,
and reduce and encourage
job mismatches, more efficient
and encourage utilization
more efficient
and mobility
utilization andofmobility
human resources.
of humanAs of 2015, As
resources. 1,925 of PESOs had been
2015, 1,925 set up
PESOs hadbut onlyset
been 413uphave
beenonly
but institutionalized.
413 have been DOLE administrativeDOLE
institutionalized. data from 2012-2015data
administrative reported
fromthat on average,
2012-2015
PESOs referred 1.778 million applicants for employment, with placement rate at 83 per
reported that on average, PESOs referred 1.778 million applicants for employment, withcent.
D. placement
Social welfare
On the other hand,
rate at 83applicants
per cent.registered during
On the other hand,job applicants
fairs averaged at 663,000
registered but only
during 19.3 per
job fairs
cent
D.1were
averaged placed/hiredresource
at 663,000
Programmes,
buton the spot
only 19.3 (Figureand
per cent
allocation 38).performance
were placed/hired on the spot (Figure 38).
Figure 38. PESOs and jobs fairs performance

173. Social welfare programmes focus on providing
(in 000) benefits to poor households and families,
particularly children. Assistance comes in the form of cash and in-kind transfers to
2500 PESOs
support their basic needs and mitigate their exposure to risks. The main welfare
2000
programme is DSWDs’ Pantawid Pamilyang Pilipino Program (4Ps) aimed at
improving the health and nutrition of children and keeping them in school.206 In 2013,
1500
beneficiary households received an average ofJob
1000
Fairs
Php9,409 which constituted 7 per cent of
207
total household spending.
500
174. The0 programme has expanded significantly since it started in 2008. By end of 2015, it
Applicants referred Applicants placed Applicants registered Applicants
was being implemented in 144 cities and 1,483 municipalities in 80 provinces with a total
placed/HOTS
of 4.378 million active households 2012or 98.7
2013 per2014
cent of2015
the 2015 target of 4.437 million
households (Table 45). Of the total
Source: DOLE-Bureau of Local /Employment. number of households, 4.140 million or 94.6 per cent
are covered by the regular CCT programme while 238,000 or 5.4 per cent are covered by
the Modified Conditional Cash Transfer (MCCT). 208
D. Social welfare
81
D.1 Programmes, resource allocation and performance
Table 45. CCT target, 2008-2015
Set/Year Started Target Number of Active Active as % of
173. Social welfare programmes focus on providing Households benefits to poor households
target and families,
Households
particularlyTOTAL
children. Assistance 4comes
436 732
in the form of4 cash and in-kind transfers
377 762 98.67
to support
their basic needs and
1 (Started in 2008) mitigate their exposure
286 688 to risks. The main
284 192welfare programme
99.13 is DSWDs’
Pantawid Pamilyang
2 (Started in 2009) Pilipino Program (4Ps) aimed at improving
244 484 243 140 the health and nutrition of
99.45
children and keeping
3 (Started in 2010) them in school. 206
377 006In 2013, beneficiary households
373 923 received
99.18 an average
of Php9,409
4 (Started which
in 2011)constituted 7 1per cent
192 069of total household spending.
1 176 030
207
98.65
5 (Started in 2012) 826 843 816 350 98.73
174. The6 programme has expanded significantly
(Started in 2013) 862 679 since it started in 2008. By end
850 341 of 2015, it was
98.57
being implemented
7 (Started in 2014) in 144 cities and 1,483
500 000 municipalities
374 in
372 80 provinces with
79.15 a total of
4.378 million active households or 98.7 per cent of the 2015 target of 4.437 million households
8 (Started in 2015) 21 380
(Table
MCCT 45).(no
Ofset)
the total number of146
households,
963 4.140 238
million
034 or 94.6 per cent are covered
161.97
bySource:
the regular CCT
Department programme
of Social Welfare andwhile 238,000
Development, or4Ps
2015 5.4Program
per cent are covered
Implementation Statusby the Modified
Report.
Conditional Cash Transfer (MCCT). 208
175. From January to November 2015, total cash grants released amounted Php45.326 billion
paid to eligible and compliant household beneficiaries. This covers the first to fifth
compliance periods of 2015. Of this amount, Php21.685 billion (47.8 per cent) was
for health grants and Php23.641 billion for education grants. In 2014, there were
11.116 million children beneficiaries.
206
The 4Ps provides cash incentives to households’ beneficiaries with cash grants of up to Php15,000 per year upon compliance with health
and education conditionalities, as well as avail of maternal health services. Each household receives a health grant of Php500 per month and
an education grant of Php300 per child, up to three children. Other programmes include DSWD’s cash grants to some 475,000 indigent senior
citizens in 2014, and the partnership among the Commission on Higher Education, DOLE, and the Philippine Association of State Universities
on the Student Grants in-Aid Programme for Poverty Alleviation (SGP-PA) and the Expanded SGP-PA, as of December 2015, under which
37,280 student-grantees were enrolled in State universities and colleges.
207
Based on the Pantawid Pamilya Impact Evaluation 2014 Final Report, prior to the year of the survey,
208
2015 4Ps Program Implementation Status Report.
households (Table 45). Of the total number of households, 4.140 million or 94.6 per cent
are covered by the regular CCT programme while 238,000 or 5.4 per cent are covered by
Section V.
the Modified Conditional Cash Transfer (MCCT). 208
Table 45. CCT target, 2008-2015

Set/Year Started Target Number of Active Active as % of
Households Households target
TOTAL 4 436 732 4 377 762 98.67
1 (Started in 2008) 286 688 284 192 99.13
2 (Started in 2009) 244 484 243 140 99.45
3 (Started in 2010) 377 006 373 923 99.18
4 (Started in 2011) 1 192 069 1 176 030 98.65
5 (Started in 2012) 826 843 816 350 98.73
6 (Started in 2013) 862 679 850 341 98.57
7 (Started in 2014) 500 000 374 372 79.15
8 (Started in 2015) 21 380
MCCT (no set) 146 963 238 034 161.97
Source: Department of Social Welfare and Development, 2015 4Ps Program Implementation Status Report.
175. From January to November 2015, total cash grants released amounted Php45.326 billion paid
175.toFrom eligible and compliant
January to November household
2015, total beneficiaries.
cash grantsThis covers
released the first Php45.326
amounted to fifth compliance
billion
periods of 2015. Of this amount, Php21.685 billion (47.8 per cent) was for health fifth
paid to eligible and compliant household beneficiaries. This covers the first to grants
compliance periods of 2015. Of this amount, Php21.685
and Php23.641 billion for education grants. In 2014, there were 11.116 million children billion (47.8 per cent) was
for health
beneficiaries. grants and Php23.641 billion for education grants. In 2014, there were
11.116 million children beneficiaries.
E. Social safety nets: Disaster preparedness and mitigation
E. Social safety nets: Disaster preparedness and mitigation
176. Social safety nets are designed to provide readily-accessible but temporary support to the
176.
206 Social
Thepoor safety
and
4Ps provides cash nets
vulnerable, are todesigned
incentives households’to
particularly provide
displaced
beneficiaries readily-accessible
with workers,
cash but temporary
grants of upsurvivors
to Php15,000 of year uponsupport
per calamities, andtowith
compliance thehealth
those poor
and
and education vulnerable,
conditionalities,
vulnerable to particularly
economic avail ofdisplaced
as well as shocks. maternal
The workers,
health
importance survivors
services. Each
of household
social of calamities,
receives
safety a health
nets has and
grant those
of Php500
been vulnerable
per month and
highlighted
an education grant of Php300 per child, up to three children. Other programmes include DSWD’s cash grants to some 475,000 indigent senior
to
inineconomic
citizens recent
2014, andyears shocks. The importance
in relation
the partnership among theto ofHigher
social
several ondevastating
Commission safety netsand
natural
Education, DOLE, has thebeen
calamities highlighted
Philippinethat ofin
hit various
Association recent
State partsyears
Universities
on theof
in relation
Student
the Grants
to
country several
in-Aidas well devastating
Programme as for
natural calamities
Poverty Alleviation (SGP-PA)
market-induced
37,280 student-grantees were enrolled in State universities and colleges.
shocks andin that
the
hit
Expanded
the various
global SGP-PA,
parts of the
as of December
financial system. country as well
2015, under which
207
asonmarket-induced
Based shocks
the Pantawid Pamilya Impact in the2014
Evaluation global financial
Final Report, system.
prior to the year of the survey,
208
177.2015Because
4Ps ProgramofImplementation
its geographicalStatus Report.
location and physical characteristics, the Philippines is prone
177. to Because
naturalofdisasters.
its geographical
For the past location
ten years and(2005-2014),
physical characteristics, the Philippines
the country experienced is prone
an annual
to naturalofdisasters.
average 330 disastersFor theadversely
past ten yearsaffecting(2005-2014),
14.386 millionthe country or 15 experienced
per cent of an the
annual
average of 330 disasters adversely affecting 14.386 million or 15 per cent of the population
population (Figure 39). 82
(Figure 39).
Figure 39. Proportion of population affected by natural disasters

100 000 45.0
90 000 30.0
80 000 15.0
70 000 0.0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Total popula on (000) % of popula on
Source: 2013 Philippine Disaster Report, Citizens Disaster Response Center.
178. Emergency
178. Emergency employment
employment isisgovernment’s
government’sstaple
stapleresponse
responsetotothethe
lossloss of employment
of employment and and
livelihood due to natural calamities and economic shocks. Immediate responses are alsoalso
livelihood due to natural calamities and economic shocks. Immediate responses are
carried out to
carried out to prevent
prevent further deterioration of
further deterioration of life,
life, property,
property,and
andremove
removeaffected
affectedfamilies
familiesfrom
life threatening situation, such as emergency relief assistance for food, clothing,
from life threatening situation, such as emergency relief assistance for food, clothing, medicines
and temporary
medicines and shelter to affected
temporary shelterfamilies. While
to affected emergency
families. Whileemployment
emergencyprogrammes
employmentserve
programmes serve useful purposes, such programmes are often fragmented and mired
in bureaucratic processes. Compounding the situation is the absence of standard
identification system and a common database of beneficiaries for these programmes,
101 Philippines 2017
useful purposes, such programmes

are often fragmented and
mired in bureaucratic processes.
Compounding the situation is the
absence of standard identification
E. Social safety nets: Disaster preparedness and mitigation system and a common database of
beneficiaries for these programmes,
whichbut
176. Social safety nets are designed to provide readily-accessible leadtemporary
to duplication of services
support to the
and higherofadministrative
poor and vulnerable, particularly displaced workers, survivors calamities, and costs.
those
vulnerable to economic shocks. The importance of social safety nets has been highlighted
F. Issues
in recent years in relation to several devastating naturaland challenges
calamities that hit various parts
of the country as well as market-induced shocks in the global financial system.
179. The country’s overall social protection
framework,the
177. Because of its geographical location and physical characteristics, including theisrange
Philippines prone of
to natural disasters. For the past ten years (2005-2014),needs and contingencies
the country experienced an covered
annualby
average of 330 disasters adversely affecting 14.386various millionprogrammes,
or 15 per centis broad
of theand
population (Figure 39). comprehensive. Institutionalized
structures are in place to implement
and administer these programmes,
Figure 39. Proportion of population affected including
by natural disasters representation
mandatory
100 000 of workers and employers 45.0 at the
policy-making level in some
90 000 agencies such GSIS, SSS,30.0 ECC, Pag-
©ILO M. Crozet
IBIG and PhilHealth. Apart from the
80 000 inherent limitations of 15.0 low quality
of employment overall, key issues
70 000 0.0
2005 2006 2007 2008 2009 2010 2011
persist.
2012
209
2013 2014
Total popula on (000) % of• popula on

First
is that the various
programmes are disparate and
Source: 2013 Philippine Disaster Report, Citizens Disaster Response Center.
fragmented. There is a tendency
for various agencies to duplicate
178. Emergency employment is government’s staple response each
to theother,
loss ofeither by targeting
employment and
livelihood due to natural calamities and economic shocks. Immediate responses are alsothe
the same groups or offering
carried out to prevent further deterioration of life, property, sameandkind
remove of affected
interventions
familiesor
from life threatening situation, such as emergency relief assistance for food, clothing, of
both. There is also evidence
medicines and temporary shelter to affected families. over-budgeting
While emergency which may be
employment
due to unclear
programmes serve useful purposes, such programmes are often fragmented and mired parameters in the
in bureaucratic processes. Compounding the situation identification
is the absenceor lackofof standard
absorptive
identification system and a common database of beneficiaries capacity for of targeted beneficiaries.
these programmes,
which lead to duplication of services and higher administrative For welfare
costs.programmes, there is
a long-standing observation that
F. Issues and challenges many of such programmes are
dole-outs and can actually destroy
179. The country’s overall social protection framework, including the incentive to work.
the range of needs and
contingencies covered by various programmes, is broad and comprehensive.
Institutionalized structures are in place to implement• and Second is administrative
administer efficiency.
these programmes,
including mandatory representation of workers and employers In social insurance, for example,
at the policy-making level
in some agencies such GSIS, SSS, ECC, Pag-IBIG and dataPhilHealth.
of members Apartneed
fromtothebe
inherent limitations of low quality of employment overall, key issues persist. 209
209
See B. E. R. Bitonio Jr., Labour market governance: Institutions and issues, Working Paper No. 16, ILO Subregional Office for South-
East Asia and the Pacific. – Manila (2008), pp. 50-52.
Section V.
regularly updated and secured to

ensure immediate payment and
prevent undue restriction of access
to certain benefits or to safeguard
against fraudulent claims. Effective
portability from one system to
the other, as well as continuity of
membership for those with frequent
interruptions of employment and
income (e.g. employees on short-
term contracts), are also recurring
issues. On labour market and
welfare programmes, accessing to
the programmes may be difficult
to some due to factors as lack
of awareness and information,
geographical inaccessibility,
overly stringent or voluminous
documentary requirements, red
tape, among others. There are also
the perennial problems of leakages
and meddling of politicians in the
allocation and disbursements of
funds.
• Third is adequacy of benefits. Social

insurance schemes may cover a
wide range of contingencies, but
the amount of actual benefit is
usually inadequate to cover the
costs. Entitlement is principally
a function of the number of
paying and non-paying members
in relation to such factors as
structure of the mechanism,
expansiveness of membership, ©ILO R. Dela Cruz
amount of contributions, inflation

rate, and life expectancy. While
membership is increasing and
collection efficiency is claimed
to be improving, the reality is
that increasing social insurance
benefits will not be possible unless
there is a corresponding increase
in membership and increase
in contributions from current
members, or limitations in the
amount of entitlement to current
beneficiaries.
Section V.
• Fourth is inclusiveness and selection

of beneficiaries. With respect to social
insurance, the policy objective is universal
coverage. The formal and informal sector
duality, however, is a major obstacle to
this objective. About half of labour force
participants are not members of any
system and most of them cannot pay their
way to becoming voluntary members.
On the other hand, with respect to
labour market and welfare programmes,
government has a tendency to measure the
performance of these programmes mainly
on the basis of amount of disbursements
and number of workers benefitted. But
welfare programmes are aimed at reducing
poverty and exclusion from the labour
market; a more effective way of evaluating
these programmes should include, among
others, measures on how many workers
have been capacitated, or how they have
transitioned from welfare assistance to
productive employment.
• Fifth is sustainability, particularly of welfare

and safety net programmes. Although
government-led efforts to subsidize the
enrolment of informal sector workers
are laudable, the long-term sustainability
of such subsidies cannot be assured.
Particularly worrisome is the combination
of high youth unemployment and the
unpaid or the low-paid. If the skills levels
of these groups are not upgraded, they will
remain unemployed or in low-skill, low-
paid jobs, without any margin for saving
on contingencies.
• Finally, there must be effective enforcement

of social security laws. This is especially
true in the private sector where many
employers do not register as members of
the system or do not remit contributions.
Such failure can deny the worker of his
©ILO E. Tuyay
basic social security rights. Subject to
administrative and criminal sanctions,
these requirements need to be enforced
more strictly and speedily to deter non-
compliance.
Section VI.
International
labour migration
ndo
M. Rima
©ILO
SECTION VI. INTERNATIONAL LABOUR MIGRATION
107
A. International
Philippines 2017 migration
A. 180. The Philippines

International has a long and continuing history of international migration, particularly
migration
outward migration. The Commission on Filipinos Overseas (CFO) estimated
180. 10.239 million overseas
The Philippines Filipinos
has a long in 2013, uphistory
and continuing by 40 per cent from 7.383
of international million in
migration, 2000
particularly
(Figure
outward 40).
remain AboutThe
migration. 4.87
unemployed ormillion
Commission were
in low-skill, permanent
on210Filipinos
low-paid migrants
Overseas
jobs, (CFO)
without who have made
anyestimated
margin 10.239
for their
savingmillion
on
destination
overseas countries as their residence mostly in the Americas and Trust territories
Filipinos in 2013, up by 40 per cent from 7.383 million in 2000 (Figure 40). About
contingencies.
(78 per cent).were
4.87 million About 4.21 million
permanent were temporary
migrants who havemigrants
made theirwhose primary countries
destination motivationasistheir
to work overseas
• Finally,mostly
residence 210 while maintaining
in thebeAmericas
there must their residency
and Trust territories
effective enforcement in the
of social(78 Philippines,
per cent).
security specifically
About
laws. This is 4.21 million
especially
referred
trueto as
in overseas
the Filipino
private sector workers
where (OFWs).
many In addition,
employers do there
not were
register also
were temporary migrants whose primary motivation is to work overseas while maintaining
as 1.16
members million
of the
irregular or
their residency undocumented
system orindothe not migrants.
Philippines, specificallySuch
remit contributions. referred to ascan
failure overseas Filipino
deny the workerworkers
of his(OFWs).
basic
In addition,
social there wererights.
security also 1.16 milliontoirregular
Subject or undocumented
administrative and criminalmigrants.
sanctions, these
requirements need to be enforced more strictly and speedily to deter non-compliance.
Figure 40. Stock estimate of overseas Filipinos by world region
100%
80% VI. INTERNATIONAL LABOUR MIGRATION
SECTION
60%
A. International
40%
migration
20%
0%
180. The Philippines has a long and continuing history of international migration, particularly
outward migration. The Commission on Filipinos Overseas (CFO) estimated
10.239 million overseas Filipinos in 2013, up by 40 per cent from 7.383 million in 2000
(Figure 40). 2000 About 4.87 million 2005 were permanent 2010 migrants who 2013have made their
Americas/Trust Territories 210 West Asia
destination countries as their
East and South Asia
residence mostly in the
Europe
Americas and Trust territories
(78 per cent). About Oceania 4.21 million were temporary Africa migrants whose primary motivation is
Sea-based workers
to work overseas while maintaining their residency in the Philippines, specifically
Source: Commission
referred on Filipinos
to as overseas Overseas.
Filipino workers (OFWs). In addition, there were also 1.16 million
irregular or undocumented migrants.
181. The
181. The OFWOFW phenomenon
phenomenonstarted startedin in 1974
1974 whenwhen thethe country
country officially
officially adopted
adopted an overseas
an overseas
employment programme by deploying Filipinos to work in other countries on temporary, fixed
employment programme by deploying Filipinos to work in other countries on temporary,
term contracts
fixed of employment.
term contracts
Figure of Stock
40. The pushThe
employment.
estimate factor
of pushwasfactor
overseas the lack
was
Filipinos of adequate
the lack job
by world opportunities
adequate job and
ofregion
high100%unemployment
opportunities and high in the country, aggravated
unemployment at that time
in the country, by the global
aggravated at thatoiltime
crisis.
by The
the pull
factor
global80% was supply scarcity and the promise of better remuneration particularly in Asia and the
oil crisis. The pull factor was supply scarcity and the promise of better
Middle60% East and Europe and in the seafaring industry. Originally intended as a temporary
210
measure,
40% the programme has instead expanded and transformed into a diaspora over the last
Permanent migrants refer to immigrants, dual citizens or legal permanent residents abroad whose stay do not depend on work contracts.
four
Temporary decades.
20%
migrants are thoseIt is now
whose an integral
stay overseas, aspect
while regular and of the documented,
properly Philippine economy
is temporary, and
owing society.
to the employment-related
nature of their status
0% in their host country. These include land-based and sea-based Filipino workers, intra-company transferees, students,
182. Of refer the 4.21whomillion OFWs, 55 per cent were in West Asia while 9 per cent were in a seafarers.
trainees, entrepreneurs, businessmen, traders and others whose stay abroad is six months or more, and their accompanying dependents. Irregular
migrants to those are not properly documented or without valid residence or work permits, or who are overstaying foreign
country. Remittances from OFWs grew from $6.050 billion in 2000 to $25.767 billion in 2015 and
have helped fuel a consumption-led GDP growth (Table 46). The total accounts for around
2000 2005 2010 2013 85
9 per cent of GDP, higher than the
Americas/Trust share of manufacturing
Territories exports. Per capita remittance of
West Asia
land-based OFWs was East recorded at $1,800 in 2013, up Europe
and South Asia from about $700 in 2000. Remittances
Oceania Africa
from sea-based workers increased
Sea-based workers by six times from its 2000 level, accounting for some 15 per
cent of total
Source: to around
Commission 23 per cent
on Filipinos in 2015, with per capita remittance tripling from less than
Overseas.
$5000 to $14,000.
181. The OFW phenomenon started in 1974 when the country officially adopted an overseas
employment programme by deploying Filipinos to work in other countries on temporary,
fixed term contracts of employment. The push factor was the lack of adequate job
opportunities and high unemployment in the country, aggravated at that time by the
global oil crisis. The pull factor was supply scarcity and the promise of better
210
Permanent migrants refer to immigrants, dual citizens or legal permanent residents abroad whose stay do not depend on work contracts.
Temporary migrants are those whose stay overseas, while regular and properly documented, is temporary, owing to the employment-related
nature of their status in their host country. These include land-based and sea-based Filipino workers, intra-company transferees, students,
trainees, entrepreneurs, businessmen, traders and others whose stay abroad is six months or more, and their accompanying dependents. Irregular
migrants refer to those who are not properly documented or without valid residence or work permits, or who are overstaying in a foreign
country.
85
remittance of land-based OFWs was recorded at $1,800 in 2013, up from about $700 in
2000. Remittances from sea-based workers increased by six times from its 2000 level,
Section VI.
International labour migration 108
accounting for some 15 per cent of total to around 23 per cent in 2015, with per capita
remittance tripling from less than $5000 to $14,000.
Table 46. Overseas Filipinos cash remittances by type of worker

Indicator 2000 2005 2010 2011 2012 2013 2014 2015
Total cash remittances ($M) 6 050 10 689 18 763 20 117 21 391 22 984 24 628 25 767
remuneration particularly
Land-based in Asia
5 124 and14the
9 020 957Middle
15 777 East and 17
16 556 Europe
769 19and125 in19the
975seafaring
industry. Originally intended
Sea-based 927 1as 669a temporary
3 806 4 340 measure,
4 835 the programme
5 215 5 503 5 has 792 instead
% share of total
expanded 15.3
and transformed into a15.6
diaspora20.3over 21.6
the last22.6 22.7
four decades. It22.3
is now22.5
an integral
aspect
Per of the Philippine
capita remittance ($) economy
819 1 532and society.
1 985 1 924 2 045 2 245 … …
Land-based 713 1 340 1 643 1 564 1 640 1 800 … …
182. Sea-based
Of the 4.21 million OFWs, 4 674 6 730
55 per cent10were
964 in11West
758 Asia
13 179while
14 203 13cent
9 per 695 were
14 247seafarers.
Remittances Sentral
Sources:Bangko from OFWs grewCommission
ng Pilipinas; from $6.050 billion Filipinos;
on Overseas in 2000 and
to $25.767
Philippinebillion in 2015
and have helped fuel a consumption-led
Overseas Employment Administration. GDP growth (Table 46). The total accounts for
around 9 per cent of GDP, higher than the share of manufacturing exports. Per capita
B. OFWs:
B. OFWs: remittance
Policy and Policy
of and
land-based
legal legal OFWs
framework framework was recorded at $1,800 in 2013, up from about $700 in
2000. Remittances from sea-based workers increased by six times from its 2000 level,
183.
183. With accounting
With the for some
the continuing
continuing 15 per of
problem
problem cent of total
oflimited
limited to opportunities
work
work around 23 perincent
opportunities inthethein 2015, with
domestic
domestic per capita
economy,
economy,
remittancemigration
temporary
temporary tripling from
migration for less than $5000
for employment
employment to $14,000.
involving
involving OFWsisisthe
OFWs themostmostcritical
criticalaspect
aspect of of
international migration for the country.
international migration for the country. The main law The main law governing overseas employment is
211governing overseas employment
the Migrant Table 46. Overseas
Workers Filipinos
and Overseas cash remittances
Filipinos Act. As by type ofofworker
a matter policy, the State
is the Migrant Workers and Overseas Filipinos Act.211 As a matter of policy, the State
Indicator the significant 2000
recognizes 2005
contributions 2010 2011 migrant
of Filipino 2012 2013
workers2014 to the2015 national
recognizes the significant contributions of Filipino migrant workers to the national
Total cash but
economy remittances
does not ($M)promote6 050 overseas
10 689 18employment
763 20 117 as 21 391
a means 22 984to 24 628 25
sustain 767
economic
economy but does not promote overseas employment as a means to sustain economic
Land-based
growth and achieve national 5 124 9 020 14 957
development. The 15 777 16 556
existence of the 17 769 19 125employment
overseas 19 975
growth and achieve national 927
Sea-based development.
1 669 that 3 The existence
806the 340 4of
4dignity the overseas
835 5 215 5 503 employment
5 792rights
programme rests solely on the assurance and fundamental human
programme
% share of rests
total solely on the
15.3 assurance
15.6 that
20.3 the dignity
21.6 and
22.6 fundamental
22.7 22.3 human
22.5
and freedoms of the Filipino citizens shall not, at any time, be compromised or violated.
rights and
Per State,
freedoms
capita remittance
of the Filipino
($) shall 819
citizens
1 532 1create
shall not,
985 1local
at any
924 employment
time, be compromised
2 045 2 245 opportunities …
or
… and
The therefore, continuously
violated.
Land-based
promote The State, therefore,
the equitable distribution shall
713 1of continuously
340wealth create
1 643and 1the local
564 benefits employment
1 640 of1 800 opportunities
development. … 212 …
Thus,
and promote
Sea-based the equitable distribution
4 674 6 730 of
10 wealth
964 11 and
758
the State allows overseas deployment of workers only to receiving countries where the
13 benefits
179 14 203of development.
13 695 14
212
247 the
Thus,
rights the State allows
of Filipino
Sources:Bangko
overseas
migrant
Sentral
deployment
workers
ng Pilipinas;
of workers
are protected
Commission and only
on Overseas
to receiving
guaranteed,
Filipinos; and eithercountries
throughwhere
Philippine existing
the rights
labour and of
OverseasFilipino
social lawsmigrant
Employment workers
Administration.
protecting the rights are ofprotected
migrant and guaranteed,
workers, multilateraleitherconventions,
through
existing
declarations labour and social laws
or resolutions protecting
relating the rightsof
to the protection ofworkers,
migrant or workers, multilateral
a bilateral agreement
B. conventions,
OFWs: Policy
or arrangement declarations
withand thelegal or framework
resolutions
government on therelating
protectionto theof theprotection
rights of of workers,
overseas or
Filipino
aWorkers.
bilateral213agreement
Further, or arrangement with the government on
the State recognizes that the ultimate protection to all migrant the protection of the
183.rights
Withofthe
workers isOFWs.
213
continuing
the possessionFurther, oftheskills.
problem State
of recognizes
limited
Pursuant that
this the
worktoopportunities and ultimatein theprotection
as soon asdomestic to allthe
economy,
practicable,
migrant
temporary
government workersshall isdeploy
migrationthe possession
for of skills.
employment
and/or allow Pursuant OFWs
the involving
deployment toonly
this to
and as soon
isskilled
the most ascritical
Filipinopracticable,
aspect214of
workers.
the governmentmigration
international shall deploy for the and/or
country. allow
Thethe maindeployment
law governing onlyoverseas
to skilled Filipino is
employment
211 workers.
Republic the 214
Migrant Workers and Overseas Filipinos
Act No. 8042 (1995), as amended by Republic Act No. 10042 (2010). Act. 211
As a matter of policy, the State
212
Idem, Sec. 3.
recognizes the significant contributions of Filipino migrant workers to the national
213
Idem, Sec. 4.
184.
214
As 3its(g).overseas
economy
Idem, Sec. but employment
does not promote policyoverseas
and programmeemployment evolved,
as athe meanscountry also ratified
to sustain economic
several
growthinternational
and achieveinstruments that deal with
national development. Themigration
existence for of theemployment. Among
overseas employment
86
these are the UN Convention on the Protection of the Rights of All Migrant Workersrights
programme rests solely on the assurance that the dignity and fundamental human
andandMembers
freedomsofoftheir Families citizens
the Filipino and several shallILO not,Conventions
at any time, be including
compromised the Migration
or violated.
for Employment Convention (Convention No. 97, 1949); the Migrant Workers and
The State, therefore, shall continuously create local employment opportunities
212
Convention
promote the concerning
equitablemigration
distribution in abusive
of wealth conditions and the promotion
and the benefits of development. of equalityThus,
oftheopportunity
State allows andoverseas
treatment of migrant
deployment workers only
of workers (Convention
to receiving No. countries
143, 1975); the the
where
Equality
rights of of Filipino
Treatment of Nationals
migrant workersand areNon-Nationals
protected and in Social Security
guaranteed, either(Convention
through existing
No. 118, 1962); the Maintenance of Social Security Rights Convention concerning
labour and social laws protecting the rights of migrant workers, multilateral conventions,
the establishment of an international system for the maintenance of rights in agreement
declarations or resolutions relating to the protection of workers, or a bilateral social
or arrangement
security (Convention with the government on the protection of the
No. 157, 1982); the Maritime Labour Convention (MLC, 2006); rights of overseas Filipino
213
Workers. Further, the State recognizes that
and the Seafarers’ Identity Documents Convention (Convention No. 185, 2003). The the ultimate protection to all migrant
workers isis the
Philippines alsopossession
a party to the of skills. Pursuant
International to this andonasStandards
Convention soon as of practicable,
Training, the
government shall deploy and/or allow the deployment
Certification and Watchkeeping for Seafarers (STCW, 1978). As an ASEAN Member only to skilled Filipino workers.214
211
Republic Act No. 8042 (1995), as amended by Republic Act No. 10042 (2010).
212
Idem, Sec. 3.
213
Idem, Sec. 4.
214
Idem, Sec. 3 (g).
86
184. As its overseas employment policy and programme evolved, the country also ratified
working
severalwith other members
international instrumentstoward thata one
dealASEAN Community,
with migration the Philippines
for employment. supports
Among thesethe
free flow of professionals within the region as well as initiatives
are the UN Convention on the Protection of the Rights of All Migrant Workers and to protect labour migrants
through
Members the ofASEAN Declaration
their Families andonseveral
the Protection and Promotion
ILO Conventions including of thetheRights of Migrant
Migration for
C. Workers.
Deployment
Employment215 of OFWs 216 (Convention No. 97, 1949); the Migrant Workers Convention
Convention
concerning migration in abusive conditions and the promotion of equality of opportunity
186.InThe
185. and strongestwith
accordance
treatment push factor
the
of migrant driving
Migrant
workers overseas
Workers Act
(Convention employment
andNo.the is, in essence,
international
143, 1975); absence
instruments
the Equality ofitdecent
ratified,
of Treatment
work
the opportunities
of country
Nationalshas – i.e., inadequate
andinstitutionalized
Non-Nationals mechanisms employment
in Social Security opportunities,
covering low
the full cycle
(Convention pay,
No. 118,lack of benefits
of migration
1962); thefor
and incentives,
employment
Maintenance - from and financial
regulation
of Social Security ofneeds. OFWsand
recruitment
Rights Convention reached
placement2.447activities,
concerning million
the in 2015 of
deployment,
establishment frompre-
an
978,000 in 2000. On the other hand, POEA statistics show that since 2000, average
deployment
international orientation,
system foron-site assistanceofincluding
the maintenance rights in legal
socialcounselling and welfare
security (Convention No.services,
157,
annual deployment wasLabour
1.292 million, of whom 998,000 (77 perthecent) were land-based
repatriation and reintegration. Two agencies attached to DOLE are specifically mandated
1982); the Maritime Convention (MLC, 2006); and Seafarers’ Identity
and 294,000Convention were sea-based (Figure No. 41). Notably, while growthis also
in land-based
toDocuments
regulate and manage (Convention overseas employment – the The
185, 2003). Philippine
Philippines Overseas Employment
a party to
deployment increased marginally in 2015 that of sea-based fell substantially. Average
Administration (POEA) is in charge of regulating recruitment and placement activities,
the International Convention on Standards of Training, Certification and Watchkeeping
daily deployment more than doubled from 2,300 in 2000 to 5,000 in 2015. The data
deployment
for Seafarers and (STCW,
marketing, whileAs
1978). thean Overseas
ASEAN Workers
Member Welfare
workingAdministration
with other (OWWA)members is
suggest increased deployment during periods of economic and financial crisis, i.e., in
in charge of welfare concerns including re-integration. In addition, Philippine Overseas Labor
toward a one ASEAN Community, the Philippines supports the free flow of professionals
1997-1998, 2008-2009 welland 2011. Starting 2014, labour
there were morethrough
womenthethan men,
Offices
within(POLOs)
reversing
the region and asmigrant
theonpattern
asworkers
of previous
initiatives
decadesresource centers
to protect
(Figure 42). under the
migrants consular offices are
ASEANset up
215
in countries with large concentrations of OFWs to attend to workers’ concerns on-site and
Declaration the Protection and Promotion of the Rights of Migrant Workers.
undertake marketing and job sourcing activities.
185. In accordance with the Migrant Workers Act and the international instruments it ratified,
Figure 41. Deployed overseas Filipinothe workers
C. Deployment of OFWs
the country has216institutionalized
(in
mechanisms
000 except
covering
per cent)
full cycle of migration for
employment
2 000
- from regulation of recruitment and placement activities, deployment, 20.0
pre-
deployment
186. The1 strongest orientation, on-site assistance including
push factor driving overseas employment is, in essence, absence legal counselling and welfare
15.0of decent
500
services, repatriation and reintegration. Two agencies
work opportunities – i.e., inadequate employment opportunities, low pay, lack attached to DOLE are specifically
of benefits
10.0
mandated
and 1 000
incentives, to regulate
and financialand needs.
manageOFWs overseas employment
reached 2.447 million – theinPhilippine
2015 from5.0 Overseas
978,000 in
Employment Administration (POEA) is in charge of
2000. On the other hand, POEA statistics show that since 2000, average annual deployment
500 regulating recruitment and
0.0
placement activities, deployment and marketing, while the Overseas Workers Welfare
was 1.292 0 million, of whom 998,000 (77 per cent) were land-based and 294,000 -5.0were sea-
Administration (OWWA) is in charge of welfare concerns including re-integration. In
based (Figure 41). Notably,
2000 2005 while
2010 growth 2011in land-based
2012 deployment
2013 2014 increased
2015 marginally in
addition, Philippine Overseas Labor Offices (POLOs) andSea-based migrant workers resource
2015 that of Totalsea-based fell substantially. Average daily deployment more than doubled from
Land-based
centers under the consular offices are set up in countries with large concentrations of
2,300 in 2000 to 5,000
Growth, totalin 2015. The Growth, data suggest increased deployment
land-based Growth, sea-based during periods of
OFWs to attend to workers’ concerns on-site and undertake marketing and job sourcing
economic
Source: and financial
Philippine Overseas crisis, i.e., inAdministration.
Employment 1997-1998, 2008-2009 and 2011. Starting 2014, there
activities.
were more women than men, reversing the pattern of previous decades (Figure 42).
Figure 42. OFWs by sex

215 3 000
Also known as the Cebu Declaration (January 2007). Under the Declaration, ASEAN member States, in accordance with55 their natio nal
2 500and policies, have the following commitments:
laws, regulations
- Promote decent, humane, productive, dignified and remunerative employment for migrant workers;
2 000 50
- Establish and implement human resource development programmes and reintegration programmes for migrant workers in their countries
1 500
of origin;
1 000 measures to prevent or curb the smuggling and trafficking in persons by, among others, introducing stiffer
- Take concrete 45penalties for
those who are involved in these activities;
500
- Facilitate data-sharing on matters related to migrant workers, for the purpose of enhancing policies and programmes concerning migrant
0 sending and receiving states;
workers in both 40
- Promote capacity building2000 by sharing
2005 of information,
2010 2011
best 2012
practices as 2013
well as opportunities 2014
and 2015
challenges encountered by ASEAN
member countries in relation to protection and promotion of migrant workers’ rights and welfare;
- Extend assistance to migrant Total workers Men of ASEAN member Women countries who % areMen % Women
caught in conflict or crisis situations outside
ASEAN in the event of need and based on the capacities and resources of the Embassies and Consular Offices of the relevant ASEAN
Source:
member Philippine
countries, based on Statistics Authority,
bilateral consultations andSurvey on Overseas Filipinos.
arrangements;
- Encourage international organisations, ASEAN dialogue partners and other countries to respect the principles and extend support and
assistance to the implementation of the measures contained in this Declaration; and
- Task the relevant ASEAN bodies to follow up on the Declaration and to develop an ASEAN instrument on the protection and promotion
of the rights of migrant workers, consistent with ASEAN’s vision of a caring and sharing Community, and direct the Secretary-General
of ASEAN to submit annually a report on the progress of the implementation of the Declaration to the Summit through the ASEAN
Ministerial Meeting.
216
In the absence of administrative data compilation on the sex, age and occupation groups of OFWs, the Survey on Overseas Filipinos, a rider
87
to the October round of the LFS, will be the source of statistics on these characteristics. Occupational data of OFWs from POEA are available
only for new hires.The data on OFWs from SOF are not comparable with those on temporary migrants from CFO (see definition in previous
footnote). OFWs in the SOF are those who still have households in the Philippines while those in the CFO estimates include those who have
left together with their families/dependents and thus no longer have households in the country. The SOF estimates cover overseas Filipinos
whose departure occurred within the last five years and who are working or had worked abroad during the past six months (April to September)
of the survey period.
88
1997-1998, 2008-2009 and 2011. Starting 2014, there were more women than men,
suggest increased deployment during periods of economic and financial crisis, i.e., in
reversing the pattern of previous decades (Figure 42).
1997-1998, 2008-2009 and 2011. Starting 2014, there were more women than men,
Section VI.
reversing the pattern of previous decades (Figure 42). 110 International labour migration
Figure 41. Deployed overseas Filipino workers
2 000 Figure 41. Deployed overseas Filipino workers 20.0
(in 000 except per cent) 15.0
1 000
2 500 20.0
187. By age and sex, the proportion of OFWs between 15 to 24 years old has 10.0
been declining,
1
1 000
500 15.0
particularly for women. About half of OFWs are in the prime age groups10.0 5.0
from 25 to
500
129
000 0.0
and 30 to 34, with women comprising 56 per cent (Figure 43). 5.0
500 0 -5.0
2000 2005 2010 0.0
0
Figure 43.2011
OFWs2012 2013
by sex and age 2014
group 2015 -5.0
Total Land-based Sea-based
2000 Total 2005 2010 2011 2012
Men 2013 2014 2015
Women
100% Growth, total Growth, land-based Growth, sea-based
Total Land-based Sea-based
80% Philippine Overseas Employment Administration.
Source: Growth, total Growth, land-based Growth, sea-based
60%
Source: Philippine Overseas Employment Administration.
40%
20%
0% Figure 42. OFWs by sex
Figure 42. OFWs by sex
3 000 55
(in 25-29
15-24 000 except per 40-44
30-34 35-39 cent)45+
2 500
3
2 000
000 55
50
Source: Philippine Statistics Authority, Survey on Overseas Filipinos.
2
1 500
500
2
1 000
000 50
45
188. 1Land-based
500
500 workers are classified as re-hires or new hires. Consistently, re-hires made 217
1 0000 45
40
up the bulk of land-based workers, accounting for about two-thirds of the total. However,
500 2000 2005 2010 2011 2012 2013 2014 2015
the 0spike in OFW deployment in 2011 was largely attributed to new hires 40
while the
slowdown Total
in land-based Mendeployment Women % Men % Women
2000 2005 2010 2011 in 2012-2014
2012 2013was due
2014to less re-hires. In 2015
2015
though, their
Source: Philippinegrowth rates picked
Total Men
up
Survey (Figure 44).
on Overseas Filipinos
Women % Men. % Women
187. Source:
187. By age
By agePhilippine
andsex,
and sex,Statistics
Figuretheproportion
the proportion
44. Deployed ofOFWs
OFWs between
land-based
ofSurvey
Authority, 15 15
workers,
onbetween
Overseas to . 24
rehires
to 24
Filipinos years
years old old
and new
has has been
hires
been declining,
declining,
particularly for women. About half(inof000
particularly for women. About half ofOFWs
OFWs areper
exceptarein the
in prime age groups from 25 25
the
cent) prime age groups from to 29
to and
29
30 and
to 30with
34,
1 200 to 34, with women
women comprising
comprising 56 per
56 per cent cent (Figure
(Figure 43). 43). 30.0
216
In the absence of administrative data compilation on the sex, age and occupation groups of OFWs, the Survey on Overseas Filipinos, a rider
900 20.0
to the October round of the LFS, will be the Figure 43. OFWs
source of statistics by sex andOccupational
on these characteristics. age group data of OFWs from POEA are available
only
216 for absence
In the new hires.The data on OFWs
of administrative datafrom SOF areon
compilation not
thecomparable
sex, age and with those ongroups
occupation temporary migrants
of OFWs, the from
Survey CFOon (see definition
Overseas in previous
Filipinos, a rider
footnote). OFWs 600
in the Total theMen Women include those 10.0 have
to the October round of SOF are those
the LFS, will bewho
the still
sourcehave
of households
statistics oninthese Philippines while
characteristics. those in thedata
Occupational CFOofestimates
OFWs from POEA arewho available
left 100%with their families/dependents and thus no longer have households in the country. The SOF estimates cover overseas Filipinos
together
only for new hires.The data on OFWs from SOF are not comparable with those on temporary migrants from CFO (see definition in previous
whose
footnote). OFWs300
departure
80% occurred
in the SOFwithin the last
are those whofivestill
years andhouseholds
have who are working or had worked
in the Philippines abroad
while thoseduring
in thethe
CFOpastestimates
six months to0.0
(Aprilthose
include September)
who have
of
leftthe surveywith
together period.
their families/dependents and thus no longer have households in the country. The SOF estimates cover overseas Filipinos
60% occurred within the last five years and who are working or had worked abroad during the past six months (April to September)
whose departure 0 -10.0
of the survey40% period. 2005 2010 2011 2012 2013 2014 2015 88
20% Rehires New hires Growth, rehires Growth, new hires 88
0%
189. The share of the top 10 OFW destination countries has increased to about 85 per cent in
15-24 25-29 30-34 35-39 40-44 45+
2015 from about 70 per cent in 2000. More than one-fourth of the OFWs were in the
Source: Philippine
Kingdom Statistics
of Saudi Authority,
Arabia (KSA),Survey on Overseas
which Filipinos.
has always been the primary destination since
the inception of the overseas employment programme. KSA, the United Arab Emirates
188. Land-based
188. Land-based
and Singaporeworkers
workersmadeare classified
are classified
up half ofas rehires
asthe total.or
re-hires new
newhires.
There
or hires. Consistently,
have217217
been shifts in rehires
Consistently, other made up the
destination
re-hires made
up the bulk of land-based workers, accounting for about two-thirds of the total. However,spike
bulk of land-based
countries. In 2000,workers,
KSA, accounting
Hong Kong for
and about
Taiwan two-thirds
had half ofof the
the total.
total. However,
Prior to the
2010, four
inother
theOFW
spike deployment
countries
in OFW were inin2011
deployment wasin
the top largely
ten, attributed
i.e., Brunei,
2011 to new
Japan,
was largely hires
Italy andwhile
attributed United
to newtheKingdom.
slowdown
hires while in
theland-
Canada
based
was deployment
the only in
non-Asian 2012-2014
country was due
among to
theless
top rehires.
ten in In
2014
slowdown in land-based deployment in 2012-2014 was due to less re-hires. In 20152015 though,
(Table 47). their
The growth
country rates
still
picked up
has
though, niche(Figure
their growth44).rates picked up (Figure 44).
markets, but the figures indicate a degree of uncertainty associated with
changing economic, social and political conditions and immigration policies in
Figure
destination 44. Deployed
countries (Figure 45).land-based workers, rehires and new hires
217
A rehire land-based worker is one who resumes employment with the same foreign employer under the same, if not better,
1 200 terms of contract
30.0
through the original licensed agency representative or service contractor within the prescribed period. A new hire land-based worker is one
being contracted for overseas employment for the first time by a foreign employer through a duly licensed placement agency.
900 20.0
89
600 10.0
up the bulk of land-based workers, accounting for about two-thirds of the total. However,
the spike in OFW deployment in 2011 was largely attributed to new hires while the
111 slowdown in land-based deployment in 2012-2014 was due to less re-hires. In 2015
Philippines 2017
though, their growth rates picked up (Figure 44).
Figure 44. Deployed land-based workers, rehires and new hires

1 200 30.0
900 20.0
600 10.0
300 0.0
0 -10.0
2005 2010 2011 2012 2013 2014 2015
Rehires New hires Growth, rehires Growth, new hires
189. The
189. The share
share ofofthe
thetop
topten
10 OFW
OFW destination
destination countries
countries has
hasincreased
increasedto toabout
about85 85per
percent
centinin2015
from
2015 about 70 per70
from about cent
perincent
2000.inMore
2000.thanMore one-fourth of the OFWs
than one-fourth of thewere
OFWs in the
were Kingdom
in the of
Saudi
Kingdom Arabia (KSA),Arabia
of Saudi which (KSA),
has always
whichbeenhasthealways
primarybeendestination
the primarysincedestination
the inceptionsinceof the
overseas employment
the inception programme.
of the overseas KSA, the
employment United Arab
programme. Emirates
KSA, and Singapore
the United made up
Arab Emirates
half
and of the total.made
Singapore Thereup havehalfbeen shifts
of the in other
total. Theredestination
have been countries. In 2000,
shifts in other KSA, Hong
destination
Kong and Taiwan
countries. In 2000,had KSA,halfHong
of theKong
total.andPrior to 2010,
Taiwan hadfour
halfother
of thecountries were
total. Prior in thefour
to 2010, top ten,
i.e.,
other Brunei, Japan,
countries were Italy
in and United
the top Kingdom.
ten, i.e., Brunei,Canada
Japan, was
Italythe
andonly non-Asian
United Kingdom.country
Canadaamong
the top ten in 2014 (Table 47). The country still has niche markets, but the figures indicate a
was the only non-Asian country among the top ten in 2014 (Table 47). The country still
degree
has niche of uncertainty
markets, but associated with changing
the figures indicate aeconomic,
degree ofsocial and political
uncertainty conditions
associated with and
immigration policies in destination countries (Figure 45).
changing economic, social and political conditions and immigration policies in
Table
destination countries (Figure 45). 47. Outflow of nationals for employment
Country 2007 2008 2009 2010 2011 2012 2013 2014 2015
Table 47. Outflow of nationals for employment
Total
A rehireCountry(000) worker 2is040 2 153 2 301 with 2 331 2foreign
589 employer
2 621 2 the
680same, if2 not
588 2terms
525 of contract
217
land-based 2007 2008 employment
one who resumes 2009 2010
the same2011 2012 under2013 2014better,2015
% original
through the of total licensed agency
100.0 representative
100.0 or100.0 100.0 within
service contractor 100.0 100.0 period.
the prescribed 100.0 100.0
A new hire 100.0
land-based worker is one
Total (000) 2 040 2 153 2 301 2 331 2 589 2 621 2 680 2 588 2 525
Philippines
being contracted 52.8
for overseas employment 57.4
for the first 61.8 63.1 employer
time by a foreign 65.2through68.8 68.5 placement
a duly licensed 70.8agency.73.0
% of total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Cambodia 0.4 0.4 0.7 1.3 1.0 1.3 0.9 1.0 1.0
Philippines
Indonesia
52.8
34.2
57.4
30.0
61.8
27.5
63.1
24.7
65.2
22.7
68.8
18.9
68.5
19.1
70.8
16.6
73.0
10.9
89
Cambodia 0.4 0.4 0.7 1.3 1.0 1.3 0.9 1.0 1.0
Lao PDR 0.1 0.1 0.2 0.8 1.3 0.3 0.9 0.3 2.0
Indonesia 34.2 30.0 27.5 24.7 22.7 18.9 19.1 16.6 10.9
Myanmar 0.4 0.6 0.3 0.2 0.7 2.6 2.5 2.5 3.8
Lao PDR 0.1 0.1 0.2 0.8 1.3 0.3 0.9 0.3 2.0
Thailand 7.9 7.5 6.4 6.2 5.7 5.1 4.9 4.6 4.6
Myanmar 0.4 0.6 0.3 0.2 0.7 2.6 2.5 2.5 3.8
Vietnam 4.1 4.0 3.2 3.7 3.4 3.1 3.3 4.1 4.6
Thailand 7.9 7.5 6.4 6.2 5.7 5.1 4.9 4.6 4.6
Vietnam
Note: The statistics4.1are sourced
4.0 from3.2 3.7
administrative 3.4 of the
records 3.1different
3.3countries
4.1and cover
4.6
registered nationals for overseas employment. No data are available for Brunei Darussalam,
Note: The statistics are sourced from administrative records of the different countries and cover
Malaysia and Singapore.
Source: Asia Pacific Migration Network (http://apmigration.ilo.org/asean-labour-migration-statistics).
Malaysia and Singapore.
Figure 45. Land-based OFWs by country of destination

Figure 45. Land-based OFWs by country of destination
100%
100%
80%
80%
60%
60%
40%
40%
20%
20%
0%
2000 2005 2010 2011 2012 2013 2014 2015
0% Sau di Arab ia United Arab Emirates
2000 Sin gapo
2005re 2010 2011 Qatar 2013
2012 2014 2015
Ku wait Ho ngko ng
Sau di Arab ia United Arab Emirates
Taiwan Malaysia
Sin gapo re Qatar
Oman Bah rain
Ku wait Ho ngko ng
Other destinations
Taiwan Malaysia
Oman Bah rain
Other destinations

190. Intra-ASEAN labour migration accounted for only one-fifth of the total outflow of the
Section VI.
©ILO J. Dela Cruz
©ILO R. Cabangcal
190. Intra-ASEAN labour migration accounted for only one-fifth of the total outflow of
the nationals for employment in 2014. Most of them found work in Malaysia and
Singapore. Among the labour sending countries, the Philippines accounted for the
largest share of labour migrants, increasing from 53 per cent in 2007 to over 70 per
cent in 2015. As percentage to total deployment, deployment to an ASEAN destination
increased from 9.2 per cent in 2010 to 14.1 per cent in 2014 due primarily to the
doubling of deployment to Singapore (Table 48). Policy makers should study closely
what these increases indicate.
C.1 Skills profile of OFWs
C.1.1 Sea-based OFWs
191. The country is successful in implementing the State policy to allow the deployment
of skilled workers with respect to sea-based OFWs, who are required to possess
specific skills and professional competency certificates before they can be deployed.
Among the major factors contributing to this success are the high quality of maritime
training institutions benchmarked to international standards, the well-earned
reputation
Filipino of Filipino
seafarers seafarers
in terms in terms
of skills, of skills,and
discipline discipline
positiveandwork
positive workand
values, values,
the
and the demonstrated
demonstrated commitment of commitment of the improve
the State to further State to its
further improve
laws and supportitsinstitutions
laws and
support
along institutions
the standards andalong the standards
principles andMaritime
of the ILO’s principlesLabour
of the ILO’s Maritime
Convention Labour
(2006) and
theConvention (2006) and the STCW Convention.
STCW Convention.

Table 48. Intra-ASEAN labour migration
Origina ng ASEAN countries Country of des na on
Total
country No. % of total Philippines Brunei Cambodia Indonesia Lao PDR Malaysia Myanmar Singapore Thailand Vietnam Others
Total
2010 1 984 344 17.3 - 19 5 5 9 161 - 124 17 4 1 621
2014 2 186 475 21.7 - 25 3 8 2 193 1 181 57 5 1 703
Philippines
2010 1 124 103 9.2 .. 8 1 4 1 10 - 70 5 4 1 021
2014 1 431 202 14.1 .. 11 2 5 1 31 1 140 7 4 1 229
Cambodia
2010 30 27 90.0 - - .. - - 16 - - 11 - 3
2014 25 16 64.0 - - .. - - - - - 16 - 9
Indonesia
2010 576 163 28.3 - 7 - .. - 116 - 40 - - 413
2014 430 173 40.2 - 12 - .. - 128 - 32 1 - 257
Lao PDR
2010 19
Breakdown by country of des na on not available.
2014 8
Myanmar
2010 5 5 100.0 - - - - - 3 .. 1 1 - -
2014 65 60 92.3 - - - - - 26 .. 1 33 - 5
Thailand
2010 144 24 16.7 - 4 - 1 2 4 - 13 .. - 120
2014 120 19 15.8 - 2 1 3 1 3 - 8 .. 1 101
Vietnam
2010 86 22 25.6 - - 4 - 6 12 - - - .. 64
2014 107 5 4.7 - - - - - 5 - - - .. 102
Note: The statistics are sourced from administrative records of the different countries and cover
Malaysia and Singapore. Data for the Philippines refer to land-based workers only.
C.1.2 Land-based OFWs

Section VI.
C.1.2 Land-based OFWs
192. For land-based OFWs, however, skills and qualifications are not primary considerations for
deployment. Data show that land-based deployment is dominantly on the low and medium-
skilled categories particularly in four occupational groups – medium-skilled workers in
services; trade; and plant or machine operations and assembly; and labourers and unskilled
workers including household service workers (HSWs), with the latter making up one-third
of total OFWs (Figure 46). Men mostly worked in trade occupations and as plant or machine
operators and assemblers while more than half of women worked as labourers and unskilled
workers. On average, managers and supervisors consisted less than 5 per cent of total and
professionals consisted of about 10 per cent. More men worked as managers and supervisors
while more women worked as professionals.
Figure 46.
Figure 46. OFWs
OFWs by
by sex
sex and
and major
major occupation
occupation group
group
Total Men
Men Women
Total Women
100%
100%
80%
80%
60%
60%
40%
40%
20%
20%
0%
0%
Managersand
Managers andsupervisors
supervisors Professionals
Professionals
Techniciansand
Technicians andassociate
associateprofessionals
professionals Clerks
Clerks
Serviceworkers
Service workersand
andshop
shopand
andmarket
marketsales
sales workers
workers Farmers,Forestry
Farmers, Forestry Workers
Workers and
andFishermen
Fishermen
Trades and
Trades andrelated
relatedworkers
workers Plantand
Plant andmachine
machineoperators
operatorsand
andassemblers
assemblers
Laborers and
Laborers andunskilled
unskilledworkers
workers
Source: Philippine
Source: Philippine Statistics
Authority, Survey
Survey on
on Overseas
Overseas Filipinos.
Filipinos.
193. Majority
193.
193. Majorityofof
Majority ofnew
newhire
new hireland-based
hire land-basedworkers
land-based workersare
workers arein
are in vulnerable
in vulnerable occupations,
vulnerable occupations, specifically
occupations, specificallyinin
specifically inthe
the so-called
the so-called
so-called 3-D (dirty,
3-D jobs
3-D jobs (dirty,
jobs (dirty, dangerous
dangerous and demanding).
demanding).
and demanding).
dangerous and HSWs
HSWsHSWs comprised
comprised the largest
the largest
comprised the largest
number,
number,
with with
deployment
number, deployment doubling
doubling doubling
with deployment in a span
in a spaninofa span of
just five just five
years.
of just years.
fiveAyears. A substantial
substantial number
numbernumber
A substantial of them ofare
of
them are
college
them are college graduates
graduates
college graduates
or or college-educated,
college-educated,
college-educated,
or including
including including
those those
trained
those trained
astrained
teachersas(Table
as teachers
teachers (Table
49). In most
(Table
49). In most countries, HSWs are not considered as workers and therefore
countries, HSWs are not considered as workers and therefore their rights and welfare are not
49). In most countries, HSWs are not considered as workers and therefore their
their rights
rights
and welfare
welfare are
are not
not protected
protected under
under the
the receiving
receiving countries’
countries’ labour
labour laws.
laws.
protected
and under the receiving countries’ labour laws.
Table 49.
Table 49. Deployed
Deployed land-based
land-based OFWs
OFWs by
by top
top ten
ten occupational
occupational
categories, new
categories, new hires
hires
OCCUPATIONAL CATEGORY
OCCUPATIONAL CATEGORY 2010
2010 2011
2011 2012
2012 2013
2013 2014
2014
Total
Total 341 966
341 966 437 720
437 720 458 575
458 575 464 888
464 888 487 176
487 176
Household service
Household service workers
workers 96 583
96 583 142 689
142 689 155 831
155 831 164 396
164 396 183 101
183 101
% of
% of total
total 28.2
28.2 32.6
32.6 34.0
34.0 35.4
35.4 37.6
37.6
Nurses, professional
Nurses, professional 12 082
12 082 17 236
17 236 15 655
15 655 16 404
16 404 19 815
19 815
Waiters, bartenders
Waiters, bartenders and
and related
related
workers
workers 88 789
789 12 238
12 238 14 892
14 892 14 823
14 823 13 843
13 843
Caregivers and
Caregivers and caretakers
caretakers 9 293
9 293 10 101
10 101 9 128
9 128 6 466
6 466 12 075
12 075
Charworkers, cleaners
Charworkers, cleaners
and related
and related workers
workers 12 133
12 133 66 847
847 10 493
10 493 12 082
12 082 11 894
11 894
Laborers/helpers
Laborers/helpers 77 833
833 77 010
010 99 987
987 11 892
11 892 11 515
11 515
General wiremen
General wiremen and
and electrical
electrical
workers
workers 88 606
606 99 826
826 10 575
10 575 99 539
539 88 226
226
Plumbers and
Plumbers and pipe
pipe fitters
fitters 88 407
407 99 177
177 99 657
657 88 594
594 77 657
657
Welders and flame-cutters
Welders and flame-cutters 5 059
5 059 8 026
8 026 8 213
8 213 77 767
767 77 282
282
Cook and
Cook and related
related workers
workers 44 399
399 55 287
287 66 344
344 77 090
090 55 707
707
Others
Others 168 782
168 782 209 283
209 283 207 800
207 800 205 835
205 835 206 061
206 061
Source: Philippine
Source: Philippine Overseas
Overseas Employment
Employment Administration.
Administration.
194. Another
194. Another concern
concern is
is that
that deployment
deployment inin other
other low-skilled
low-skilled occupations
occupations and
and equally
equally
vulnerable occupations like caregivers and caretakers, charworkers, cleaners and
vulnerable occupations like caregivers and caretakers, charworkers, cleaners and relatedrelated
workers, and
workers, and labourers/helpers,
labourers/helpers, is
is generally
generally increasing.
increasing. Many
Many ofof these
these OFWs
OFWs areare actually
actually
college graduates, and some of them are nurses and other health
college graduates, and some of them are nurses and other health workers with workers with
professional licenses.
professional licenses. On
On the
the other
other hand,
hand, deployment
deployment of of skilled
skilled workers
workers with
with specific
specific
©ILO M. Rimando
Section VI.
194. Another concern is that deployment in other low-skilled occupations and equally vulnerable
occupations like caregivers and caretakers, charworkers, cleaners and related workers, and
labourers/helpers, is generally increasing. Many of these OFWs are actually college graduates,
and some of them are nurses and other health workers with professional licenses. On the other
hand, deployment of skilled workers with specific skills certifications, such as wiremen and
electricians, plumbers and pipe fitters, and welders and flame cutters is generally decreasing.
C. 2 Services and assistance to OFWs; continuing and new concerns
195. Services and assistance programmes to OFWs are expected to be enhanced given that overseas
employment and protection of workers’ rights and welfare have been identified as top priorities
in DOLE’s of
provision eight-point labourfor
faster services agenda.
OFWs Among the focal
such setting upareas are theshops,
one-stop provision of faster services
strengthening of
for OFWs such setting up one-stop shops, strengthening of the
the anti-illegal recruitment campaign combined with a more selective deployment policy, anti-illegal recruitment
campaign combined
strengthening with atomore
of capacity selective
provide on-sitedeployment
counselling, policy, strengthening
welfare, re-training of and capacity
legal to
provide
assistanceon-site counselling,
through the POLOs welfare,
andre-training and legalresource
migrant workers assistancecenters.
throughExpected
the POLOs toand
migrant
continueworkers
are theresource
regularcenters. Expectedonto pre-departure
programmes continue are theeducation
regular programmes
customizedontopre-
departure
destinationeducation
countriescustomized to destination
and documentation countries of
and processing andworkers.
documentation and processing
of workers.
196. A main indicator of an OFW’s social protection coverage is OWWA membership,
196. A main indicator
through which he or of she
an OFW’s
enrolls associal protection
a member of OWWAcoverageby is OWWA
paying a USmembership,
$25 membership through
which he or she enrolls as a member of OWWA by paying a US $25 membership contribution
contribution (Figure 47). This then entitles the OFW and his or her dependents to avail
(Figure
of the 47). This then
different entitles theand
programmes OFWservices
and his suchor her asdependents to avail of
social benefits the different
(disability,
programmes and services such as social benefits (disability, dismemberment and death
dismemberment and death of OFW); education and training assistance/programmes for of
OFW); education and training assistance/programmes for OFWs and their dependents; on-
OFWs and their dependents; on-site and in country assistance; repatriation assistance;
site
andand in country assistance;
reintegration. repatriation assistance;
OWWA membership has grownand reintegration.
from OWWA
1.355 million in membership
2000 to
has grown from 1.355 million in 2000 to 1.825 million in 2014. Nevertheless, about 20 per
1.825 million in 2014. Nevertheless, about 20 per cent OFWs are still not members ofcent
OFWs
OWWA. areThis
stillleaves
not members
not onlyof OWWA. This
a significant socialleaves not only
protection gapa but
significant
also tendssocial protection
to increase
gap but also tends to increase the burden of government in securing the welfare ofOWWA
the burden of government in securing the welfare of OFWs who are not OFWs who
members.
are not OWWA members.
Figure 47. OWWA membership
2 500 80.0
2 000 75.0
1 500
70.0
1 000
500 65.0
0 60.0
2010 2011 2012 2013 2014
OFWs OWWA membership Proportion of OWWA membership
Sources:Philippine Statistics Authority, Survey on Overseas Filipinos; and Overseas Workers

Welfare Administration.
197. Other
197. Other continuing
continuing concerns
concernsare
areon-site
on-siteissues suchsuch
issues as cases of contract
as cases violations,
of contract runaways,
violations,
crimes committed against or by OFWs, OFWs in detention and repatriation (Table 50). On
runaways, crimes committed against or by OFWs, OFWs in detention and repatriation
(Table 50). On
repatriation, repatriation,
majority majorityOFWs
of repatriated of repatriated
came from OFWS came from
the Middle Eastthe Middle East
countries. Political
countries. Political conditions in the host country can abruptly increase the
conditions in the host country can abruptly increase the need for repatriation services need for and
repatriation services and make these difficult, as for example in 2011 when the number
make these difficult, as for example in 2011 when the number of repatriated individuals spiked
of repatriated
sharply becauseindividuals spikedcrisis
of the political sharply because of the political crisis in Libya.
in Libya.
Table 50. Repatriated OFWs
Live individuals
Year Total repatriated Human remains
Total Women
2009 6 510 6 148 4 779 362
2010 6 395 6 039 4 636 356
2011 16 480 16 135 5 302 345
(Table 50). On repatriation, majority of repatriated OFWS came from the Middle East
countries. Political conditions in the host country can abruptly increase the need for
117 repatriation
Philippines 2017 services and make these difficult, as for example in 2011 when the number
of repatriated individuals spiked sharply because of the political crisis in Libya.
Table 50. Repatriated OFWs

Live individuals
Year Total repatriated Human remains
Total Women
2009 6 510 6 148 4 779 362
2010 6 395 6 039 4 636 356
2011 16 480 16 135 5 302 345
198. 2012concern is the increasing
A special 7 913 risk of 7potential
553 6 719
pandemics. The growing 360
number of
2013 7 928 7 770 6 290 158
HIV cases among OFWs in recent years, which has increasingly affected women (Figure
2014 7 350 7 194 3 648 156
48), as well as diseases like SARS,
2015 5 816 MERS-CoV,
5 633 bird flu and zika infection, underscore
3 789 183
198. Athis risk.
special
Source: concern
Overseas is theWelfare
Workers increasing risk of potential pandemics. The growing number of
Administration.
HIV cases among OFWs in recent years, which has increasingly affected women (Figure
198. A special
48), concern
as well is the like
as diseases increasing
SARS,risk of potential
MERS-CoV, pandemics.
bird Theinfection,
flu and zika growing number of HIV
underscore
cases
this risk. Figure 48. OFWs with HIV by sex
among OFWs in recent years, which has increasingly affected women (Figure 48), as
800 60.0 93
well as diseases like SARS, MERS-CoV, bird flu and zika infection, underscore this risk.
600 45.0
400
Figure 48. OFWs with HIV by sex 30.0
800 60.0
200 15.0
600 45.0
0 0.0
400 2000 2005 2010 2011 2012 2013 2014 2015 30.0
OFWs with HIV, total OFWS with HIV, men
200 15.0
OFWs with HIV, women % of OFWs with HIV, total
0 % of OFWs with HIV, men % of OFWs with HIV, women 0.0
2000 2005 2010 2011 2012 2013 2014 2015
Note: The HIV/AIDS and with
OFWs Art Registry of the PhilippinesOFWS
HIV, total is thewith
official
HIV,record
men of the total number
of laboratory-confirmed
OFWs with HIV,HIV women
positive individuals,%AID cases with
of OFWs and deaths, and HIV positive
HIV, total
blood units in
% the Philippines.
of OFWs Themen
with HIV, Registry is a passive
% of OFWs surveillance
with HIV,system.
women Except for HIV
confirmation by the National Reference Laboratories all other data submitted to the Registry
Note: The HIV/AIDS
(example, placeand Art Registry
of residence) ofsecondary
are the Philippines is the official
and cannot record of the total number
be verified.
Source:ofDepartment
laboratory-confirmed
of Health, HIV positive
National individuals,Center
Epidemiology AID cases and deaths,
(Philippine and AIDS
HIV and HIV positive
Registry).
blood units in the Philippines. The Registry is a passive surveillance system. Except for HIV
confirmation by the National Reference Laboratories all other data submitted to the Registry
(example, place of residence) are secondary and cannot be verified.
199. On return
Source: and re-integration,
Department thereEpidemiology
of Health, National are no available
Centerstatistics
(PhilippineonHIV
theand
labour
AIDSforce status of
Registry).
OFWs who have decided to permanently stop working abroad (Figure 49). DOLE,
mainly
199. On through
return the Nationalthere
and re-integration, Reintegration Centerstatistics
are no available for Overseas Filipinoforce
on the labour Workers
status of
(NRCO),
199. OFWs
On return offers
and various assistance
re-integration, there such
are no as employment
available referrals
statistics on thefor local
who have decided to permanently stop working abroad (Figure 49). DOLE, mainly
labour and
force overseas
status of
employment,
through
OFWs who livelihood
the National start-up
Reintegration
have decided kits, entrepreneurial
Center stop
to permanently for Overseas development
working Filipino training,
abroad Workers
(Figure 49). and
(NRCO), legal
DOLE, offers
various assistance such as employment referrals for local and overseas employment,OFWs,
assistance.
mainly Initial
through administrative
the National data from
Reintegration NRCO
Center show
for that 4,873
Overseas returning
Filipino Workers
livelihood
mostly those
(NRCO),
start-up kits, who
offers worked
various asdevelopment
HSWssuch
assistance
entrepreneurial andasundocumented
employment
training, workers
referrals
and legal were provided
for local
assistance. various
andadministrative
Initial overseas
forms of assistance.
employment, livelihood start-up
data from NRCO show that 4,873 kits, entrepreneurial
returning OFWs, mostlydevelopment
those whotraining,
worked and legal and
as HSWs
assistance. Initial administrative data from NRCO show
undocumented workers were provided various forms of assistance. that 4,873 returning OFWs,
mostly those who worked as HSWs and undocumented workers were provided various
Figure 49. Returning OFWs by sex, country and reason
forms of assistance.
(in per cent)
60.0 51.3 48.7
50.0 43.8
Figure 49. Returning OFWs by sex, country
37.9 and reason
40.0
30.0 (in per cent) 21.3
16.7 17.7
20.0
60.0 12.4 11.5 12.5
51.3 48.7 7.6
10.0 2.7 3.5 2.9 4.8 4.8
50.0 43.8
0.0 37.9
40.0
30.0 21.3
16.7 17.7
20.0 12.4 11.5 12.5
7.6 4.8 4.8
10.0 2.7 3.5 2.9
0.0
Note: Covers the period from January 2016.

Source: National Reintegration Center for OFWs.
Note: Covers the period from January 2016.

Source: National Reintegration Center for OFWs.
Section VI.
D. Inward migration
D. Inward migration
200. With respect to inward migration, the State policy is to promote the preferential use of
218
200. WithFilipino
respect labour
to inwardand migration, the State
to adopt measures thatpolicy is tomake
will help promotethemthe preferential Any
competitive. use of Filipino
alien
seeking admission to the Philippines for employment purposes
labour and to adopt measures that will help make them competitive. Any alien seeking and any
218 domestic or
foreign employer who desires to engage a non-resident alien for employment in the
admission to the Philippines for employment purposes and any domestic or foreign employer
Philippines shall obtain an alien employment permit (AEP) from DOLE (Table 51). The
who issuance
desires toofengage a non-resident alien for employment in the Philippines shall obtain an
the AEP is subject to a “labour market test,” that is, an AEP may be issued to
alienaemployment
non-resident permit
alien or(AEP) to the from DOLE
applicant (Table only
employer 51). after
The issuance of the AEP
a determination is non-
of the subject to
D. a “labour
Inward migration
marketoftest,
availability ” that is,
a person an AEP
in the may bewho
Philippines issued to a non-resident
is competent, able andalien or to
willing the time
at the applicant
employer only after a determination of the non-availability
of application to perform the services for which the alien is desired. of a person 219in the Philippines who
200. isWith
competent,
respect able and willing
to inward migration,at the
thetime
Stateofpolicy
application to perform
is to promote the services
the preferential forofwhich the
use
218
Filipino
alienIn labour
is desired. and
219 to adopt measures that will help make them competitive. Any alien
201.
seeking2015, more than
admission to the 28,000 AEPs were
Philippines issued. Datapurposes
for employment from 2000 andtoany
2015 show that
domestic or the
foreign employer who desires to engage a non-resident alien for employment in themost
number of AEPs issued has increased five-fold. Managers still account for the
201. InPhilippines
2015,
numbermore ofthan
shall 28,000
permits
obtain an AEPsemployment
issued
alien were 43
(over issued. Data(AEP)
perpermit
cent), from 2000
but the to 2015
fromshare
DOLE show51).
of(Table thatThe
professionals theand
number
ofissuance
AEPs issued
technicians
of the AEPhas isincreased
and subject to afive-fold.
associate professionals Managerstest,”still
increased
“labour market sharply account
that is, an AEPfor
and maythe
accounted formost number
over
be issued 20
to per of
permits
cent issued
of (over
permits 43
issued per in cent),
2015. but the share of professionals
a non-resident alien or to the applicant employer only after a determination of the non-and technicians and associate
professionals
availability ofincreased
a person in sharply and accounted
the Philippines who is for over 20 able
competent, per cent of permits
and willing at theissued
time in 2015.
of application to perform the services for which the alien is desired. 219
Table 51. Alien employment permits by major occupation group
Major occupa on group 2000 2005 2010 2011 2012 2013 2014 2015
201. In 2015, more
All occupa ons than 28,000 AEPs were5 issued. Data14from
576 10 823 325 172000
142 to 201522 show
20 966 740 24that
338 the
28 371
Percent
number of AEPs issued has increased 100.0 100.0 Managers
five-fold. 100.0 100.0 100.0 100.0
still account 100.0most
for the 100.0
Managers
number of permits issued (over 43 per 82.4 cent),
76.0 but55.7 59.5 of
the share 55.0professionals
56.5 54.6 and43.5
Professionals
technicians 6.8
and associate professionals increased 7.5sharply
4.4 and 8.3 3.7 for2.9over 2.0
accounted 20 per23.7
Technicians and associate
cent of permits issued in 2015. professionals 10.0 14.4 38.3 27.4 23.9 30.2 29.5 31.1
Service workers and shop and market sales
workers 0.8 1.8 1.6 2.5 9.2 4.7 4.7 1.4
Farmers, forestry workers and fishermen 0.1 - 0.8 0.1 - - -
Table
Trades 51. Alien
and related workersemployment permits by0.2major -occupation 0.8 group0.9
1.7 3.8 0.1
Major Plant
occupaandonmachine
group operators and assemblers 2000 0.1 2005 2010
* 2011
- 2012
0.8 2013
6.5 2014
4.8 2015
5.5 0.2
All occupa ons 5 576 10 823 14 325 17 142 20 966 22 740 24 338 28 371
*Less than half the unit used.
Percent 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Source: DOLE-Bureau of Local Employment.
Managers 82.4 76.0 55.7 59.5 55.0 56.5 54.6 43.5
Professionals 6.8 7.5 4.4 8.3 3.7 2.9 2.0 23.7
Technicians and associate professionals 10.0 14.4 38.3 27.4 23.9 30.2 29.5 31.1
202. Byworkers
nationality,
and shop the inflow
salesof Chinese nationals has been increasing and they accounted
202. ByService
nationality, the and market
inflow of Chinese nationals has been50). increasing and theycontinue
accounted for
workers
for around one-third of all AEPs issued 0.8 1.820151.6
in (Figure2.5 9.2
Indian 4.7 4.7
nationals 1.4 to
around
Farmers,
have one-third
forestry workersofand
a sizeable allfishermen
share,AEPs
while issued in 2015
the proportion0.1 (Figure-
of permits50). Indian
0.8 issued0.1 to nationals -continue
the- Japanese, -
Korean,to have
a sizeable
British and Americans were on the downtrend. No remarkable change was observed for and
Trades and share,
related while
workers the proportion of permits
0.2 issued
- to
0.8 the Japanese,
1.7 0.9 Korean,
3.8 British
0.1
Plant
Americansandshare
the machine
wereofoperators and assemblers
onTaiwanese.
the the These0.1seven
downtrend. *
No remarkable -
nationalities, 0.8
change 6.5 4.8
was observed
on average, comprised5.5 for 0.2
thetoshare
close 80 of
the Taiwanese.
*Less thancent
per of These
half the unit seven nationalities,
totalused.
permits issued since on average,
2000. comprised
According close of
to records to the
80 per cent of
Bureau of total
permits issued since
Immigration, these 2000.
sameAccording to records
nationals likewise of the
made Bureau
up the sameofproportion
Immigration,
of thethese
total same
registered
nationals likewisealiens
madein the
upcountry.
the same proportion of the total registered aliens in the country.
202. By nationality, the inflow of Chinese nationals has been increasing and they accounted
Figure 50. Alien employment permits by nationality
for around one-third of all AEPs issued in 2015 (Figure 50). Indian nationals continue to
100%
have a sizeable share, while the proportion of permits issued to the Japanese, Korean,
British
80% and Americans were on the downtrend. No remarkable change was observed for
the
60% share of the Taiwanese. These seven nationalities, on average, comprised close to 80
per cent of total permits issued since 2000. According to records of the Bureau of
218
40%
1987 Constitution, ART. XII, Section 12.
219 Immigration, these same nationals likewise made up the same proportion of the total
Art. 40, Labor Code.
20%
registered aliens in the country.
0%
2000 2005 2010 2011 2012 2013 2014 2015 95
Chinese Indian Japanese
Korean Taiwanese British
218
1987 Constitution, ART. XII, Section 12.
219
E. Art. 40, Labor Code.
From overseas employment to migration and development
203. As complete as the policy and regulatory framework on overseas migration may be,95
there
E. From overseas employment to migration and

development
203. As complete as the policy and regulatory

framework on overseas migration may be,
there remains much room for improvement
particularly in terms of implementation
and enforcement, as well as in the design
of support programmes for OFWs. Some
emerging patterns, in this regard, are the
situations of persons who migrate for
work but at the start must first undergo
education, training and certification in
the receiving country, or of professionals
(such as teachers, nurses and other college
graduates) who initially find work in low-
skilled occupations such as household
services, caregiving and retailing, with a
view of gaining experience as a platform
for upward mobility to higher skill jobs.
204. In terms of policy action, there is also a

need to shift the policy and regulatory
framework from a dominantly overseas
employment perspective to a migration,
diplomacy and development perspective.
Several interconnected realities
necessitate this shift, such as the need
to adapt to globalization and regional
integration trends and commitments; to
decisively wean the overseas employment
programme from its dominantly low-
skilled deployment patterns; and to
maximize opportunities arising from
free cross-border movement of natural
persons as envisioned under the ASEAN
Community and the GATT-WTO. Some
points that may be considered are:
• Accelerating the development of a

national framework of qualifications
for professionals aligned with the
framework of the ASEAN Community.
This will necessarily include upgrading
of education and professional licensing
standards with the regional framework.
• Accelerating the development of a policy

environment supportive of movement
of natural persons, particularly of
professionals and the highly-skilled
Section VI.
who can immediately plug knowledge,

competencies, skills and technology gaps
and eventually transfer these to Filipinos.
On this, the country can build on recent
and on-going initiatives such as the
continuing pursuit of mutual recognition
agreements with other countries in the
ASEAN and even beyond, as well as
the amendment and rationalization of
regulations on the issuance of AEPs by
excluding members of governing boards
with voting rights who are not involved in
management functions, corporate under
the Corporation Code, those who provide
consultancy services, and intra-corporate
transfers involving managers, executives
and specialists from the requirement.220
• Optimizing the benefits of international

intra-corporate transfers involving managers, executives and specialists from the
requirement. 220 instruments on migrant workers through
advocacy and policy action for reciprocity
and national treatment guarantees.
• Optimizing the benefits of international instruments on migrant workers through
advocacy and policy action for reciprocity andSome of thetreatment
national ILO conventions
guarantees.on migrant
Some
of the ILO conventions on migrant workers that the Philippines ratified, such such
workers that the Philippines ratified, as
Convention Nos. 97, 118, 143 and 157 on socialas Convention Nos.of97,
security rights 118, 143
migrant and 157
workers 221on
social security
do not mean that these rights can be automatically rightsbyof Filipino
invoked migrant workers
migrant
221
do not
workers in the countries where they are deployed. The mean that these
rights become rights can
enforceable onlybe
automatically invoked by Filipino
when the country itself makes its own reciprocity and national treatment guarantees migrant
to foreign workers who enter the Philippines.workers in the countries
The Philippines’ legal andwhere they are
diplomacy
deployed. The rights become enforceable
position will be strengthened if these guarantees are institutionalized in the country’s
own laws. only when the country itself makes its
©ILO M. Rimando
own reciprocity and national treatment
guarantees to foreign workers who enter
SECTION VII. SOCIAL DIALOGUE the Philippines. The Philippines’ legal and
diplomacy position will be strengthened
A. Policy and institutional framework if these guarantees are institutionalized in
the country’s own laws.
A.1 Mechanisms outside the enterprise
205. The Constitution guarantees the right of all workers to participate in policy and decision-
making processes affecting their rights and benefits as may be provided by law. It
mentions this right in the same breath as the other basic rights to self-organization,
collective bargaining and negotiations, and peaceful concerted activities including the
right to strike, security of tenure, humane conditions of work, and a living wage.222
Tripartism in labour relations is declared a State policy. Towards this end, workers and
employers shall, as far as practicable, be represented in decision and policy-making
bodies of the government. 223
220
DOLE Department Order No. 146, series of 2015, issued on 20 August 2015. See Sec. 3 of the Order.
221
Migration for Employment Convention (Convention No. 97, 1949); Migrant Workers Convention Concerning Migration in Abusive
Conditions and the Promotion of Equality of Opportunity and Treatment of Migrant Workers (Convention No. 143, 1975); Equality of Treatment
of Nationals and Non-Nationals in Social Security (Convention No. 118, 1962); Maintenance of Social Security Rights Convention Concerning
the Establishment of an International System for the Maintenance of Rights in Social Security (Convention No. 157, 1982).
222
ART. XIII, Section 3, par. 2.
223
Art. 290 (formerly Art. 275), Labor Code, as amended and renumbered, which provides:
Tripartism, Tripartite Conferences, and Tripartite Industrial Peace Councils. – (a) Tripartism in labour relations is hereby declared a State
Section VII.
Social
dialogue
Cruz
R . Dela
©ILO
intra-corporate transfers involving managers, executives and specialists from the
requirement. 220
A. Policy and institutional framework
• Optimizing the benefits of international instruments on migrant workers through
A.1 Mechanisms
advocacy outside the enterprise
and policy action for reciprocity and national treatment guarantees. Some
of the ILO conventions on migrant workers that the Philippines ratified, such as
205. The Constitution
Convention guarantees
Nos. 97, 118,the 143right of
157allonworkers
andstatutes social to participate in migrant
policy and decision-
221
206. Although the Constitution and the do notsecurity rightsuse
specifically of the phrase workers
“social
makingdo processes
not all
mean affecting
that thesetheir rights canandbebenefits as may be provided by law. It migrant
mentions
dialogue,” tripartite bodiesrights
are meant to automatically
function invoked
as mechanisms bythe
for Filipino
social partners
this right in the
workers in same
the breath aswhere
countries the other
they basic
are rights to self-organization,
deployed. The rights become collective bargaining
enforceable only
to participate and engage in dialogue on matters affecting them. The scope of tripartite
and negotiations,
when thenow
institutions and
country peaceful concerted
itselfismakes
existing actually ownactivities
its broader than including
reciprocity the
in right
and national
“tripartism torelations”
treatment
labour strike, security
as the of
guarantees
tenure,
declared policy of the Labor Code suggests. It encompasses a wide range of areas is
to humane
foreign conditions
workers who of work,
enter the and a living
Philippines. wage.
The 222
Tripartism
Philippines’ in
legal labour
and relations
diplomacy
declared a State
position
affecting willpolicy.
labour, Towards human
be strengthened
including this end,resource
if these workers
guaranteesand employers
are shall,
institutionalized
development, as in
employment farthe
as including
practicable,
country’s
beoverseas
represented
own laws. in decision and policy-making bodies of the government.
employment, wages and other working conditions, dispute settlement, and
223
social protection.
206. Although the Constitution and the statutes do not specifically use the phrase “social dialogue,”
SECTION
207. allFunctionally,
tripartite
VII. bodies
SOCIAL areDIALOGUE
existing meant to function
mechanisms mayas bemechanisms
classified for intothe social
three partners
types: to participate
policy-making,
and engage in dialogue on matters affecting them. The
regulatory or decision-making, and advisory. The processes of exchange of information,scope of tripartite institutions now
A. existing Policy
consultationand institutional
is actuallyand broader
negotiation framework
thanin“tripartism
varying degrees in labour arerelations”
inherent asinthe all declared
functions. policy
The of
the Labor Code suggests. It encompasses a wide range
representatives of the social partners to these bodies must be nominated by the sectorof areas affecting labour, including
human
A.1 resource
they represent.development,
Mechanisms outside the
As a rule, they employment
enterprise including overseas employment, wages and other
should come from the most representative workers and
working
employers conditions, dispute in
organizations settlement,
the country. and social
Notably, protection.
the nomination and representation
205. The Constitution guarantees the right of all workers to participate in policy and decision-
process in some tripartite bodies are sensitive to gender, as for instance TESDA and SSS
making processes
207. Functionally, existing affecting
mechanisms theirmay rights and benefits
be classified intonumberas types:
three may be provided byregulatory
policy-making, law. It
where the law requires that the at least a specified of women must be included
mentions
oramong this right in the
decision-making, same The breath as the other basic rights to self-organization,
the sectoral and advisory.
representatives. processes of exchange of information, consultation
collective bargaining and negotiations, and peaceful
and negotiation in varying degrees are inherent in all functions. The representatives ofconcerted activities including thethe
222
to strike,tosecurity
rightpartners of tenure, humane conditions
by theofsector
work,they and a living wage.
208.social The policy-making these bodies
bodies are must
OWWA; be nominated
TESDA; Occupational Safety represent.
and HealthAs a rule,
Center
Tripartism
they should come in labour fromrelations
the mostisrepresentative
declared a State policy. Towards this organizations
end, workers in and
(OSHC); Philippine Overseas Employmentworkers and
Administration employers (POEA); Employeesthe
employers shall, as far as practicable, be represented in decision and policy-making
country. Notably, Commission
Compensation the nomination and representation
(ECC); and Tripartiteprocess Voluntary in some tripartiteAdvisory
Arbitration bodies are
bodies of the government. 223
sensitive
Councilto(TVAAC).
gender, asIncludedfor instance TESDA
in this categoryandare SSSthe where
Social theSecurity
law requires that the (SSC);
Commission at least a
specified
Home numberDevelopment of women Mutual mustFund be included
(HDMF), among the sectoral
Philippine representatives.
Economic Zone Authority
220
DOLE(PEZA); Philippine
Department Order Health
No. 146, series Insurance
of 2015, Commission
issued on 20 August (PHIC);
2015. See Sec. and National Anti-Poverty
3 of the Order.
221
Migration for Employment Convention (Convention No. 97, 1949); Migrant Workers Convention Concerning Migration in Abusive
Commission (NAPC). The National Labor Relations Commission
Conditions and the Promotion of Equality of Opportunity and Treatment of Migrant Workers (Convention No. 143, 1975); (NLRC) and
Equality of the
Treatment
National
of Nationals Wages
and Non-Nationals andSecurity
in Social Productivity
(Convention No.Commission (NWPC)
118, 1962); Maintenance perform
of Social Security policy-making
Rights Convention Concerning
the Establishment of an International System for the Maintenance of Rights in Social Security (Convention No. 157, 1982).
222 functions
ART. XIII, Section 3,in
par.their
2. respective areas of competence, such as setting guidelines on dispute
223
resolution
Art. 290 (formerly Art. and settlement
275), Labor or onandthe
Code, as amended criteria
renumbered, forprovides:
which minimum wage determination to be
Tripartism, Tripartite Conferences, and Tripartite Industrial Peace Councils. – (a) Tripartism in labour relations is hereby declared a State
observed
policy. Towards byworkers
this end, the Regional Tripartite
and employers shall, as farWage and Productivity
as practicable, Boardsand(RTWPBs).
be represented in decision policy-making bodies of the
government.
“(b) The Secretary of Labor and Employment or his duly authorized representatives may from time to time call a national, regional, or industrial
209.
tripartite The NLRC,
conference as the compulsory
of representatives of government,arbitration
workers and machinery
employers, and of the
other State,
interest performs
groups regulatory
as the case may be, for orthe
whatandisadoption
consideration oftenofreferred to asof quasi-judicial
voluntary codes principles designed tofunctions whenpeace
promote industrial it enforces
based on socialthejustice
laws toalign
or to resolve
labour
movement relations with established priorities in economic and social development. In calling such conference, the Secretary of Labor and
Employment disputes arising
may consult from representatives
with accredited employee-employer relations. The same authority, albeit in a
of workers and employers.
limited
“(c) A National extent,
Tripartite is given
Industrial to the(NTIPC)
Peace Council NWPC and
shall its RTWPBs
be established, headed by when they decide
the Secretary on Employment,
of Labor and petitions withfor
20 representatives each from the labour and employers’ sectors to be designated by the President at regular intervals. For this purpose, a
exemption
sectoral nomination, fromandminimum
selection, wage
recall process shall orders. byOn
be established the the
DOLEother hand,with
in consultation RTWPBs regulate
the sectors observing and
the ‘most
perform
representative’ a delegated
organization legislative
criteria of ILO Convention function
No. 144. when they issue wage orders that have the force
“Tripartite Industrial Peace Councils (TIPCs) at the regional or industry level shall also be established with representatives from government,
workers andof employers
law andtoare serveenforceable in their
as a continuing forum respective
for tripartite advisementregions. TheinPOEA
and consultation also regulates
aid of streamlining through
the role of government,
empowering the Standard Employment Contract (SEC) for overseas workers approved by its tripartite
workers’ and employers’ organizations, enhancing their respective rights, attaining industrial peace, and improving productivity.
“The TIPCs shall have the following functions:
governing board. and compliance of concerned sectors with the provisions of all tripartite instruments, including
“(i) Monitor the full implementation
international conventions and declarations, codes of conduct, and social accords;
“(ii) Participate in national, regional or industry-specific tripartite conferences which the President or the Secretary of Labor and Employment
may call from time to time;
“(iii) Review existing labour, economic and social policies and evaluate local and international developments affecting them;
“(iv) Formulate, for submission to the President or to Congress, tripartite views, recommendations and proposals on labour, economic, and
social concerns, including the presentation of tripartite positions on relevant bills pending in Congress;
“(v) Advise the Secretary of Labor and Employment in the formulation or implementation of policies and legislation affecting labour and
employment; 97
“(vi) Serve as a communication channel and a mechanism for undertaking joint programmes among government, workers, employers and
their organizations toward enhancing labour-management relations; and
“(vii) Adopt its own programme of activities and rules, consistent with development objectives.
“All TIPCs shall be an integral part of the organizational structure of the NTIPC.
“The operations of all TIPCs shall be funded from the regular budget of the DOLE.”
98
Section VII.
Social dialogue 124
208. The policy-making bodies are

OWWA; TESDA; Occupational
Safety and Health Center (OSHC);
Philippine Overseas Employment
Administration (POEA);
Employees Compensation
Commission (ECC); and Tripartite
Voluntary Arbitration Advisory
Council (TVAAC). Included
in this category are the Social
Security Commission (SSC);
Home Development Mutual Fund
(HDMF), Philippine Economic
Zone Authority (PEZA); Philippine
Health Insurance Commission
(PHIC); and National Anti-
Poverty Commission (NAPC).
The National Labor Relations
Commission (NLRC) and the
National Wages and Productivity
Commission (NWPC) perform
policy-making functions in their
respective areas of competence,
such as setting guidelines on
dispute resolution and settlement
or on the criteria for minimum ©ILO R. Dela Cruz
wage determination to be observed
by the Regional Tripartite Wage and
Productivity Boards (RTWPBs).
209. The NLRC, as the compulsory

arbitration machinery of the State,
performs regulatory or what is
often referred to as quasi-judicial
functions when it enforces the laws
to resolve disputes arising from
employee-employer relations. The
same authority, albeit in a limited
extent, is given to the NWPC and
its RTWPBs when they decide
on petitions for exemption from
minimum wage orders. On the
other hand, RTWPBs regulate and
perform a delegated legislative
function when they issue wage
orders that have the force of
law and are enforceable in their
respective regions. The POEA also
regulates through the Standard
Employment Contract (SEC) for
overseas workers approved by its
tripartite governing board.
210. Tripartite bodies performing advisory

functions mainly provide inputs and
recommendations to DOLE in aid of
the exercise of its policy and regulatory
authority on labour and employment. The
210.national Tripartite
Tripartite bodiesIndustrial
performingPeace Council
advisory functions mainly provide inputs and
(TIPC) is the main advisory mechanism.
recommendations to DOLE in aid of the exercise of its policy and regulatory authority
It on
has counterparts
labour and employment. at the regional
The National and Tripartite Industrial Peace Council (TIPC) is
industry
the main levels
advisoryas well as local government
mechanism. It has counterparts at the regional and industry levels as
levels. Originally
well224as local governmentinstitutionalized
levels.224 Originally institutionalized through an executive
through an structure
order, the executivefunction
order, and the role
structure
of the TIPC was further institutionalized and is now
function
includedand in role of the Code.
the Labor TIPC wasThe
225
further
national TIPC has the most impact in its active
institutionalized
participation inand theis review,
now includedformulationin and issuance on rules and regulations
the Labor Code.the Labor
implementing 225
The national
Code. On TIPC has hand, some industry tripartite councils have
the other
the most
been setimpact
up withintheir its active participation
own Voluntary Codes of Good Practices (VCGPs) to promote
inharmonious
the review,labour-management
formulation and relations issuance and improve productivity.
on rules and regulations implementing
theA.2Labor Code. On themechanisms
Enterprise-level other hand, some
industry tripartite councils have been set up
211.with
Thetheir ownform
highest Voluntary Codes
of social of Good
dialogue at the enterprise level is of course collective
Practices (VCGPs)
bargaining, sometimesto promote harmonious
supplemented by other forms of labour-management interaction.
labour-management
In enterprises without relations
unions, andtheimprove
most common form of social dialogue is through
productivity.
labour-management councils (LMCs) which are purely voluntary in nature.
Exceptionally, an LMC is required to be established in a non-unionized enterprise for the
A.2 Enterprise-level mechanismsa productivity gain-sharing scheme under the productivity
purpose of formulating
incentives law and implementing the second tier of wage increases which are
211. The highest form of
productivity-based social
under wage dialogue at
orders issued by the RTWPBs. Given the policy of the
the enterprise
State to promote level is ofresponsibility
shared course collective of the parties in resolving differences and disputes,
bargaining, sometimesare likewise
grievance mechanisms supplementedpromoted in all workplaces.
by other forms of labour-management
212.interaction.
Two fairly In enterprises
recent without
developments areunions,
the adoption of the Labour Laws Compliance System
the most common
(LLCS), discussedform of socialIV.D,
in Section dialogueand the institutionalization of conciliation and
is mediation
through as labour-management
the first entry point councils
in almost all labour disputes. 226 The assessment
(LMCs)
procedure which under arethe purely
LLCSvoluntary
requires in the representatives of the employer and its
nature. Exceptionally,
employees, along with an LMC is required
the LLCO, to
to assess compliance by the employer with labour
belaws.
established
Thesein adevelopments
non-unionizedopen enterprise
an avenue of workers’ participation in the
forimplementation
the purpose of formulating
and enforcement a productivity
of labour laws. Being relatively new, an objective and
gain-sharing
independentscheme evaluationunder ofthe
their productivity
effectiveness will be useful.
incentives law and implementing the
B. second
Policytier of wage increases
performance, outcomeswhich are
and issues
productivity-based under wage orders
issued
B.1 by the RTWPBs.
Tripartism Givendialogue
and social the policy of the enterprise
outside
the State to promote shared responsibility
213.ofTripartite
the partiesand in social
resolving differences
dialogue and
mechanisms have become institutionalized in the
disputes, grievance
Philippines. mechanisms
Procedurally, theare likewiseand process of these mechanisms appear to
structure
promoted
conform in all the
with workplaces.
principles of representativity and, where required, gender equality. The
more problematic issues concerning representativity have to do with the limited
224
These are called Regional Tripartite Industrial Peace Councils (RTIPCs), provincial, city/municipal TIPCs and Industry Tripartite Councils
(ITCs). As of 2015, there are nine National Industry Tripartite Councils and 288 Industry Tripartite Councils (ITCs) with a total of 178 Voluntary
Codes of Good Practices (VCGPs) adopted in various industries such as education; hospital; transport; broadcast; hotel and restaurants;
tourism; security and janitorial services; business process outsourcing; banking; mining; construction; power; manufacturing; maritime; agri-
business; and wood.
225
Republic Act No. 10395 (2013), An Act Strengthening Tripartism, Amending for the Purpose Article 275 (now Art. 290, as renumbered)
of the Labor Code of the Philippines.
226
Republic Act No. 10396 and DOLE Department Order No. 151, series of 2016 (Rules and Regulations implementing Republic Act No.
10396). See related discussion under Section III.D.
Section VII.
Social dialogue 126
212. Two fairly recent developments are the

adoption of the Labour Laws Compliance
System (LLCS), discussed in Section IV.D,
and the institutionalization of conciliation
210. Tripartite bodies performing advisory functions mainly provide inputs and
and mediation as the first entry point in
recommendations to DOLE in aid of the exercise of its policy and regulatory authority
almost all labour disputes.226 The assessment
on labour and employment. The National Tripartite Industrial Peace Council (TIPC) is
procedure under the LLCS requires the
the main advisory mechanism. It has counterparts at the regional and industry levels as
representatives of the employer and its
well as local government levels.224 Originally institutionalized through an executive
employees, along with the LLCO, to assess
order, the structure function and role of the TIPC was further institutionalized and is now
included in the Labor Code. 225 The national TIPC has compliance
the mostbyimpact
the employer with labour
in its active
participation in the review, formulation and issuance on rules and regulations avenue of
laws. These developments open an
implementing the Labor Code. On the other hand, some workers’ participation
industry in the implementation
tripartite councils have
and enforcement
been set up with their own Voluntary Codes of Good Practices (VCGPs) to of labour laws. Being
promote
harmonious labour-management relations and improverelatively new, an objective and independent
productivity.
evaluation of their effectiveness will be
A.2 Enterprise-level mechanisms useful.
211. The highest form of social dialogue at the B. enterprise

Policy performance,
level is outcomes
of courseand issues
collective
bargaining, sometimes supplemented by other forms of labour-management interaction.
In enterprises without unions, the most common B.1 form Tripartism
of social anddialogue
social dialogue
is throughoutside the
labour-management councils (LMCs) which enterprise
are purely voluntary in nature.
Exceptionally, an LMC is required to be established in a non-unionized enterprise for the
purpose of formulating a productivity gain-sharing 213. Tripartite
scheme and undersocial
the dialogue
productivity mechanisms
incentives law and implementing the second tierhave of wagebecome institutionalized
increases which are in the
productivity-based under wage orders issued by the RTWPBs. Philippines. GivenProcedurally,
the policy ofthe the structure
State to promote shared responsibility of the parties in resolving and process differencesof and these
disputes,mechanisms
grievance mechanisms are likewise promoted in all workplaces. appear to conform with the principles
of representativity and, where required,
212. Two fairly recent developments are the adoption of thegender Labour Laws equality. The more
Compliance System problematic
(LLCS), discussed in Section IV.D, and the institutionalization issues concerning representativity
of conciliation and have to
226
mediation as the first entry point in almost all labour do with the limited
disputes. The membership
assessment base of
procedure under the LLCS requires the representatives nominatingof the organizations.
employer and On its
the side of
employees, along with the LLCO, to assess compliance workers, this is an inevitable consequence of
by the employer with labour
laws. These developments open an avenue of low trade union
workers’ density and
participation in low
the collective
implementation and enforcement of labour laws. Being bargaining coverage. On the side of
relatively new, an objective and
independent evaluation of their effectiveness will be useful. employers, MSMEs are under-represented
in established employer organizations and
B. Policy performance, outcomes and issues chambers of commerce. The narrow base
©ILO R. Dela Cruz leads to issues on authority and legitimacy
B.1 Tripartism and social dialogue outside the enterprise of representation, that is, whether the
representatives stand only for their members
213. Tripartite and social dialogue mechanisms have or become
can alsoinstitutionalized
represent the interests in theof workers
Philippines. Procedurally, the structure and processand of these mechanisms
employers in general. appear to
Another issue
conform with the principles of representativity and, where required, gender equality.
is quality of representation, particularly The
more problematic issues concerning representativity have to do with the limited
the technical capacity of representatives to
engage in meaningful discussions on highly
224
specialized
These are called Regional Tripartite Industrial Peace Councils (RTIPCs), provincial, city/municipal areas.
TIPCs and Industry Tripartite Councils
(ITCs). As of 2015, there are nine National Industry Tripartite Councils and 288 Industry Tripartite Councils (ITCs) with a total of 178 Voluntary
Codes of Good Practices (VCGPs) adopted in various industries such as education; hospital; transport; broadcast; hotel and restaurants;
tourism; security and janitorial services; business process outsourcing; banking; mining; construction; power; manufacturing; maritime; agri-
business; and wood.
225
Republic Act No. 10395 (2013), An Act Strengthening Tripartism, Amending for the Purpose Article 275 (now Art. 290, as renumbered)
of the Labor Code of the Philippines.
226
Republic Act No. 10396 and DOLE Department Order No. 151, series of 2016 (Rules and Regulations implementing Republic Act No.
10396). See related discussion under Section III.D.
99
214. Substantively, policy-making and regulatory

social dialogue mechanisms have the widest
potential and actual impact for the social
partners
membership and society
base of as a whole. organizations.
nominating Some On the side of workers, this is an
mechanisms
inevitable produceconsequence outputs of that
loware direct
trade union density and low collective bargaining
and immediately
coverage. On the feltside
by the public or by
of employers, MSMEs are under-represented in established
the social partners, such as when RTWPBs
employer organizations and chambers of commerce. The narrow base leads to issues on
decide
authority to andincrease
legitimacy minimum wages or that is, whether the representatives stand only
of representation,
when the members
for their NLRC adjudicatesor can alsoan appeal the
represent on interests of workers and employers in general.
anAnother
individual issueor collective
is quality labour dispute.
of representation, particularly the technical capacity of
On the other hand, some mechanisms have
representatives to engage in meaningful discussions on highly specialized areas.
outputs that are not readily apparent or
214.visible to the public,
Substantively, but no lessand
policy-making important.
regulatory social dialogue mechanisms have the widest
For instance,and
potential policy
actual decisions
impact takenfor the by social
the partners and society as a whole. Some
SSS, ECC or TESDA can open up more
mechanisms produce outputs that are direct and immediately felt by the public or by the
access
socialfor workerssuch
partners, to the services
as when of these
RTWPBs decide to increase minimum wages or when the
institutions
NLRC adjudicates or expand the coverage
an appeal of
on an individual or collective labour dispute. On the other
workers’
hand, some benefits that they have
mechanisms administer.
outputsWiththat are not readily apparent or visible to the public,
respect
but notoless advisory bodies,
important. their
For effectiveness
instance, policy decisions taken by the SSS, ECC or TESDA
and
canimpact
open up aremore
moreaccesstrickyfor toworkers
measuretoasthe services of these institutions or expand the
the recommendations
coverage of workers’ benefitsthey make that may or
they administer. With respect to advisory bodies, their
may not be adopted
effectiveness by theare
and impact decision-maker,
more tricky to measure as the recommendations they make
ormaytheorvoluntary
may not becodes adopted of byconduct they
the decision-maker, or the voluntary codes of conduct they
adopt
adoptmay mayorormay maynot notactually
actuallybebeobserved
observed or implemented by their own constituents.
or implemented by their own constituents.
B.2 Social dialogue within the enterprise
B.2 Social dialogue within the enterprise
215. Collective bargaining is the preferred mechanism, but the low number of enterprises with
215. Collective bargaining agreements
collective bargaining is the preferred
and equally low number of workers covered by these
mechanism, but the low numberandofimpact. Other avenues of social dialogue, such
agreements restrict its effectiveness
as labour-management
enterprises with collective councilsbargaining
and grievance mechanisms, are not widely used. As of
May 2016, there
agreements and equally low numberwere 47,701 establishments
of nationwide reported to have LMCs.
However,
workers onlyby
covered 2,855
these(6agreements
per cent ofrestrict
these were actually operational, with 1,430 LMCs in
organized establishments
its effectiveness and impact. Other avenuesand 1,425 LMCs of in unorganized establishments. On the other
social dialogue, such as labour-managementthat have established grievance mechanisms,
hand, there were only 3,263 companies
227
1,370 in
councils andunorganized establishments
grievance mechanisms, areand
not1,893 in organized establishments. Lack of
interest,
widely costs,
used. Asadverse
of Mayeffect 2016,on productivity,
there were and the fear that the mechanism may be
used either as a tool to de-unionize or a springboard for union formation, among others,
47,701 establishments nationwide reported
are some of the factors inhibiting the use of labour-management mechanisms. In non-
to have LMCs. However, only 2,855 (6 per
unionized establishments where mechanisms exist, their formation is essentially
cent of these were actually operational, with
management-driven with specific purposes that are founded on promoting the common
1,430 LMCs in organized establishments and 228
interests of the employer and the employees.
1,425 LMCs in unorganized establishments.
C. On the othersocial
Tripartism, hand, there and
dialogue were only growth
inclusive
3,263 companies that have established
216.grievance mechanisms,
Where collective 1,370 inis
bargaining unorganized
present at the enterprise level, it is generally effective in
establishments
promoting better and 1,893 in
terms and conditions organized of employment. Many CBAs contain terms and
establishments. 227
Lack of
conditions of employment and mechanisms interest, costs, of meaningful workers’ participation that are
adverse
beyondeffect thoseonfixed productivity,
by law, and andthe fear promote equity and fairness between the
thereby
that the mechanism may be
employer and its employees at the enterpriseused either as level. Even then, given the low collective
a bargaining
tool to de-unionize or a springboard for
coverage and the equally limited number and scope of voluntary enterprise
227
Data from the National Conciliation and Mediation Board, 2016.
228
Based on findings from a survey on social dialogue conducted by the Employers Confederation of the Philippines, 2013.
100
Section VII.
Social dialogue 128
©ILO M. Rimando
union formation, among others, are

some of the factors inhibiting the use
of labour-management mechanisms. In
membership base of nominating organizations. non-unionizedOn the side of establishments
workers, this iswhere an
inevitable consequence of low trade union density mechanisms
and lowexist, their formation
collective bargaining is
coverage. On the side of employers, MSMEs essentially management-driven
are under-represented in established with
employer organizations and chambers of commerce. specific purposes
The narrow basethat aretofounded
leads issues onon
authority and legitimacy of representation, that is, promoting
whether thethe common interests
representatives stand onlyof the
for their members or can also represent the interests employer
of workers andand theemployers
employees.in general.
228
Another issue is quality of representation, particularly the technical capacity of

representatives to engage in meaningful C. Tripartism,
discussions socialspecialized
on highly dialogue and inclusive
areas.
growth
214. Substantively, policy-making and regulatory social dialogue mechanisms have the widest
potential and actual impact for the social216. Whereand
partners collective
societybargaining
as a whole. is present
Some at
the enterprise
mechanisms produce outputs that are direct and immediately level,
felt it ispublic
by the generallyor byeffective
the
in promoting better
social partners, such as when RTWPBs decide to increase minimum wages or when the terms and conditions
of employment.
NLRC adjudicates an appeal on an individual or collective Many CBAs
labour dispute. On the contain
other
terms and conditions
hand, some mechanisms have outputs that are not readily apparent or visible to the public, of employment
but no less important. For instance, policy decisions andtaken
mechanisms
by the SSS, of meaningful
ECC or TESDA workers’
participation that are
can open up more access for workers to the services of these institutions or expand the beyond those fixed
coverage of workers’ benefits thatCruz
©ILO R. Dela
by law, and thereby promote
they administer. With respect to advisory bodies, their equity and
effectiveness and impact are more tricky to measure fairness
as thebetween the employer
recommendations and its
they make
employees at the enterprise
may or may not be adopted by the decision-maker, or the voluntary codes of conduct they level. Even
then, given the low
adopt may or may not actually be observed or implemented by their own constituents. collective bargaining
coverage and the equally limited number
B.2 Social dialogue within the enterprise and scope of voluntary enterprise level
mechanisms for labour-management
215. Collective bargaining is the preferred mechanism, participation,
but the low number these of mechanisms
enterprises cannot
with
collective bargaining agreements and equally low number of workers covered by these as
influence larger social outcomes
agreements restrict its effectiveness and impact. Other reducing inequality
avenues of social or dialogue,
making growth such
inclusive.
as labour-management councils and grievance mechanisms, are not widely used. As of
May 2016, there were 47,701 establishments nationwide reported to have LMCs.
217. Outside the enterprise, the potential
However, only 2,855 (6 per cent of these were actually operational, with 1,430 LMCs in
of tripartite and social dialogue bodies
organized establishments and 1,425 LMCs in unorganized establishments. On the other
in contributing to the larger objectives
hand, there were only 3,263 companies that have established grievance mechanisms,
of promoting equality and 227 inclusive
1,370 in unorganized establishments and 1,893 ingrowth organized
is muchestablishments.
wider. Many actions Lack of and
interest, costs, adverse effect on productivity, anddecisions
the fearof that the mechanism may
tripartite and social dialogue be
used either as a tool to de-unionize or a springboard for union
bodies, such as formation,
for instanceamonga wage others,
order,
are some of the factors inhibiting the use of labour-management mechanisms.
affect not only the members of workers’ In non-
unionized establishments where mechanisms exist, their formation
and employers’ organizations is essentially
represented
management-driven with specific purposes that are in founded
these on
bodies. promoting
Some ofthe common
these actions
228
interests of the employer and the employees. and decisions affect non-members as well
and, in some instances, even those outside
C. Tripartism, social dialogue and inclusive growth formal employment. These mechanisms
should therefore continue to be used
216. Where collective bargaining is present at the enterpriseand enhanced
level, it is in generally
deliberating on a wide
effective in
promoting better terms and conditions of employment. range of issues
Many CBAs and contain
problemsterms including,
and
conditions of employment and mechanisms of meaningful particularly, the issues of labour are
workers’ participation that force
beyond those fixed by law, and thereby promote participation
equity andand utilization,
fairness betweenhuman the
employer and its employees at the enterprise level. resource
Even then, development,
given the lowemployment,
collective
bargaining coverage and the equally limited number unemployment and underemployment,
and scope of voluntary enterprise
rights at work, and social protection.
227
Data from the National Conciliation and Mediation Board, 2016.
228
Based on findings from a survey on social dialogue conducted by the Employers Confederation of the Philippines, 2013.
100
Section VII.
Social dialogue 130
©ILO M. Rimando
Concluding
note
rozet
M. C
©ILO
218. There is no debate that massive

creation of decent work is the
path toward equality, prosperity
and inclusive growth. But as the
level mechanisms for labour-management participation, these mechanisms cannot
experience in the past decades
influence larger social outcomes as reducing inequality or making growth inclusive.
has shown, clearing this path has
217. Outside the enterprise, the potential of tripartite never and been
socialeasy given the
dialogue country’s
bodies in
magnitude of challenges
contributing to the larger objectives of promoting equality and inclusive growth is much and
prevailing
wider. Many actions and decisions of tripartite and social dialogue economic
bodies, suchand as social
for
conditions. It
instance a wage order, affect not only the members of workers’ and employers’ will not get easier
organizations represented in these bodies. Some of these moving forward
actions as the national
and decisions affect
and global policy
non-members as well and, in some instances, even those outside formal employment. environment gets
even more volatile,
These mechanisms should therefore continue to be used and enhanced in deliberating on unpredictable,
complexthe
a wide range of issues and problems including, particularly, andissues
ambiguous.
of labour A force
factual
acknowledgement
participation and utilization, human resource development, employment, unemployment not only of the
country’s weaknesses and deficits
and underemployment, rights at work, and social protection.
but also of its inherent strengths and
advantages, combined with relevant,
CONCLUDING NOTE coordinated, and action-oriented
responses in strategic policy areas,
218. There is no debate that massive creation of decent work are indispensable
is the path towardin building a path
equality,
prosperity and inclusive growth. But as the experience to in
thethe
future
pastthat the country
decades has shown,and its
people want.
clearing this path has never been easy given the country’s magnitude of challenges and
prevailing economic and social conditions. It will not get easier moving forward as the
national and global policy environment gets even219. the area of
moreInvolatile, labour and employment,
unpredictable, complex
and ambiguous. A factual acknowledgement not onlyempoweringof the country’s human resourcesand
weaknesses and
deficits but also of its inherent strengths and advantages, combined with relevant, to
creating opportunities for them
coordinated, and action-oriented responses in strategicengage
policy in freely-chosen,
areas, productive
are indispensable in
and remunerative
building a path to the future that the country and its people want. work are
central goals. Toward these, a new,
219. In the area of labour and employment, empowering comprehensive
human resources yet practical national
and creating
decent and
opportunities for them to engage in freely-chosen, productive workremunerative
agenda is needed
work are that
central goals. Toward these, a new, comprehensive yet will help focus development efforts on
practical national decent work
agenda is needed that will help focus development effortsachievingon growth
achieving withgrowth with
employment,
employment, employment with rights, and social protection for all.
employment with rights, and social
Drawing from the
experience of previous national decent work agendas, the protection
new agenda for should
all. Drawing
be specific, from
the experience of previous national
action-driven and results-oriented. It should be appropriately aligned with the larger
agendas of PDP 2017-2022©ILO andA. Barredo
AmBisyon Natin decent work agendas,
2040 especially the of
in the areas new
inequality-reducing transformation, increasing growth agenda should be specific, action-
potential and laying the
foundations for sustainable development. 229 driven and results-oriented. It
should be appropriately aligned with
220. Guided by the issues and problems discussed in this Report, several
the larger of PDP
practical
agendas 2017-2022
initial steps,
with illustrative examples, can be helpful in formulatinganda AmBisyon
new decentNatin work2040
agenda.
especially
in the areas of inequality-reducing
• Identify and act on implementation and enforcement gaps. As the data
transformation, shows, many
increasing growth
of the country’s labour and employment problems potential and laying theabsence
are not due to the foundations of
policies, laws and programmes, but whether adequate resources are
for sustainable being mobilized
development. 229
or coordinated to ensure that these policies, laws and programmes are being
implemented or enforced effectively in accordance with policy objectives. With
respect to rights at work, for instance, most international standards are already
229
Specifically Parts III, IV and VI of PDP 2017-2022.
101
Concluding note
134
220. Guided by the issues and problems discussed in this Report, several practical initial steps,
with illustrative examples, can be helpful in formulating a new decent work agenda.
• Identify and act on implementation and enforcement gaps. As the data shows, many
of the country’s labour and employment problems are not due to the absence of policies,
laws and programmes, but whether adequate resources are being mobilized or coordinated
to ensure that these policies, laws and programmes are being implemented or enforced
effectively in accordance with policy objectives. With respect to rights at work, for instance,
most international standards are already incorporated in national legislation. However,
their realization is constrained by weak administrative capacity to implement or enforce,
fragmentation of programmes and overlapping jurisdictions, and inadequate coordination
between implementing authorities.
• Identify and act on policy gaps. Policy gaps pertain to those areas already covered by existing
policies, laws and programmes that are not compliant with international labour standards or
have become outdated, unresponsive or irrelevant, or to those areas not yet covered by any
policy, law or programmes. An example of the first is the current restriction of the period of
apprenticeship to six months. This has impeded the development of highly-skilled human
resources necessary to support industrialization. An example of the second is the absence of a
visible and efficient mechanism to address pre-employment discrimination, which obstructs
equal opportunity and access; another example is the absence of targeted programmes
pertaining to increasing labour force participation particularly for women, the needs of the
long-term unemployed and the existence of hard-to-fill occupations, which tend to aggravate
human resource underutilization.
• Give focused attention to the informal sector and special groups of workers. Policy and
programme design and implementation should take into account the unique characteristics of
the informal sector and other vulnerable groups, such as persons in domestic work, children
at work, persons with disabilities, indigenous peoples and other ethnic groups, and workers
exposed to the risks of disasters, conflicts and distressed conditions.
• Continuously balance regulatory and facilitative or allocative interventions. Given the

magnitude of the country’s problems, it is often the case that public expectations gravitate
toward regulatory solutions. An example of a regulatory dilemma is the extent to which the
State may regulate non-regular or non-standard forms of employment, where the clamor of
unions for total prohibition of non-regular forms of employment must be reconciled with the
reality that in any modern economy, there will always be jobs of a temporary or short-term
nature. In this case and similar cases, a more active labour market approach will necessarily
have to be a part of the solution. Facilitating work-to-work transitions and ensuring decent
work, respect for basic rights and continued social protection rather than prohibiting
temporary or short-term employment altogether will be a more proper intervention. On the
other hand, care must be taken that any subsidies for work-to-work transitions or similar
subsidies should not destroy incentives to search for work.
• Aim for reforms that are productivity-enhancing, adaptive and transformative. Where
reforms are introduced, these should aim for positive outcomes such as improving labour and
capital productivity, promoting constructive collaboration between workers and employers,
and continuously developing the capacity of social partners and other stakeholders to
adapt, transition and transform to present and future challenges. An area that needs to
be further promoted is performance-based compensation, which will require exchange of
information and common understanding of performance targets between workers and
Concluding note
136
management. On new employment arrangements

and working hours, a mechanism by which
workers and employers can engage in industry
regulation and governance, considering their
unique circumstances, ought to be considered.
On industrial relations, the procedural and
substantive pre-conditions the law imposes to
form unions and to bargain – such as State-
imposed pre-emptory requirements for joining
or forming a union and for acquiring exclusive
bargaining representation – have effectively
become obstacles to collective bargaining. If
unions and collective bargaining are to function
as instruments of change and transformation,
these obstacles must be removed. In the process
of introducing reforms, the State also needs to
transform its perspective of industrial relations
from one that is centered and guided by the State
to one that truly encourages creative interaction
between workers and employers.
• Correct institutional weaknesses and failures.

The actors and institutions of industrial relations
are the State, workers and their organizations, and
employers and their organizations. One of the
more visible weaknesses of these three institutions
is in implementing the preference for shared
responsibility and consensualism in settling
labour disputes. Thus, instead of disputes being
resolved at the enterprise level through voluntary
compliance, dialogue, bargaining or the grievance
process, these are often submitted to the various
dispute settlement and resolution agencies of the
State which follow quasi-judicial procedures. The
result is a clogging of dockets resulting in delays in
case disposition and very often in the enjoyment
by the workers of their basic rights.
©ILO M. Rimando • Set up an integrated decent work information

management system. The existing decent work
statistics should be enhanced, being indispensable
as basis for evidence-based quantitative and
qualitative analysis of decent work outcomes. In
addition, DOLE and the PSA need to develop
labour and employment statistics that include
performance data of and other policy-relevant
information from concerned agencies on
implementation and enforcement of policies,
laws and programmes specifically related to
labour and employment. Of special interest will
be the development of indicators pertaining to
informal employment, child labour,

persons with disabilities, indigenous
peoples, and green jobs with regional
and spatial dimensions. These
statistics can be part of an integrated
information management system
that links quantitative and qualitative
data on outputs, outcomes and
impacts, and enable more effective
monitoring, evaluation and analysis
of policies, laws and programmes.
221. Given the wide-ranging development

issues affecting labour and
employment, the new decent work
agenda can be organized with the
following as central points of action:
• Supply side measures to improve

the economy’s capacity to produce,
particularly in continuously
developing and optimizing the
utilization of human resources
for productive and remunerative
work;
• Demand side measures to create

adequate opportunities for and
equal access to productive,
remunerative and decent work
within the domestic economy;
• Social protection measures to

provide a balanced, accessible and
effective mix of active and passive
labour market measures and social
©ILO M. Rimando
programmes that ensure uplifting
everyone’s welfare and leaving no
one behind; and
• Institutional measures consisting

of appropriate policies, laws
and governance mechanisms to
ensure that the rights of workers,
employers and all stakeholders are
not only recognized but effectively
realized.
Concluding note
138
222. Forging the agenda will require

stakeholder participation through
meaningful social dialogue. The
country has functioning social
dialogue mechanisms which, given
the narrow representation base of
unions and employers organizations,
can be further expanded and made
more inclusive to ensure participation
of non-traditional stakeholders
and sectors. The space for social
dialogue should likewise expand
to broader social and economic
policy areas that affect labour
and employment, and to produce
substantive recommendations based
on consensus in the form of concrete
policies, laws, rules and programmes.
Most importantly, all stakeholders
should take responsibility for shared
outcomes.
©ILO M. Crozet
Summary table. Selected statistics on decent work, Philippines

Indicator 2005 2010 2015
Popula on, GDP and Poverty
Total popula on (000) 76 507 92 338 100 981
(2000 Census)
Average annual growth (%) 1.90 1.72 1.84
(1990-2000) (2000-2010) (2010-2015)
Gross Domes c Product at constant 2000 prices (%) 100.0 100.0 100.0
Industry 32.7 32.6 33.4
Services 54.0 55.8 57.1
GDP at constant 2000 prices, annual growth (%) 4.8 7.6 5.9
Agriculture 2.2 -0.2 0.1
Industry 4.2 11.6 6.0
Services 5.8 7.2 6.8
Labour produc vity at constant 2000 prices ('000 Php) 139 158 196
Agriculture 51 55 64
Industry 292 344 404
Services 154 170 205
Labour produc vity, annual growth (%) 2.5 4.7 5.4
Industry 3.7 5.2 3.1
Magnitude of the poor (000)
Families 4 037 (2009) 4 215 (2012) 3 747
Popula on 23 300 (2009) 23 746 (2012) 21 927
Poverty incidence (%)
Families 20.5 (2009) 19.7 (2012) 16.5
Popula on 26.3 (2009) 25.2 (2012) 21.6
Real annual average family income ('000 Php) 180 181 189
Labour Force, Employment, Underemployment and Unemployment
Working age popula on (000) 54 388 60 717 64 936
Labour force (000) 35 286 38 893 41 342
Men 21 646 23 729 25 062
Women 13 641 15 164 16 280
15-24 years old 7 851 8 276 8 531
25-54 years old 22 886 25 526 27 415
55+ years old 4 547 5 091 5 397
Labour force par cipa on rate (%) 64.7 64.1 63.7
Men 79.6 78.5 77.3
Women 49.9 49.7 50.1
15-24 years old 48.0 45.4 43.7
25-54 years old 76.6 76.9 77.3
55+ years old 55.0 54.8 54.2
Employed by sector (000) 32 313 36 035 38 741
Agriculture 11 628 11 956 11 294
Industry 5 025 5 399 6 275
Services 15 661 18 682 21 172
Employed by sector (%) 100.0 100.0 100.0
Industry 15.6 15.0 16.2
Services 48.5 51.8 54.7
Employment, annual growth (%) 2.2 2.8 0.5
Agriculture 2.2 -0.7 -4.9
Industry 0.5 6.0 2.9
105
Concluding note
140
Indicator 2005 2010 2015

Empl oyed women, % of total 38.4 39.2 39.6
Empl oyed by class of worker (000)
Wage and salary workers (empl oyees) 16 316 19 626 22 960
Private household 1 474 1 926 1 981
Private establishment 12 261 14 565 17 669
Worked for government/government corporation 2 454 3 025 3 197
Wi th pay i n own family-operated farm or business 128 111 112
Employers 1 520 1 394 1 212
Sel f-employed 10 584 10 858 10 705
Unpaid family workers 3 893 4 157 3 863
Self-employed and unpaid family workers, % of employed 44.8 41.7 37.6
Underemployed (000) 6 785 6 762 7 180
Underemployment rate (%) 21.0 18.8 18.5
Unemployed (000) 2 748 2 859 2 602
Unemployment rate, total (%) 7.8 7.4 6.3
Youth unemployment rate (%) 17.2 17.6 15.0
Unemployment rate by educational attainment (%)
No schooling 2.7 2.2 1.5
Primary 3.6 3.3 2.9
Secondary 9.2 8.4 6.8
Post secondary .. .. 10.3
Tertiary 11.2 10.3 8.5
Youth not in employment, education or traini ng (NEET),
% of youth population 24.5 (2006) 25.2 22.7
Employees in precarious work (000) 4,267 5 276 7 040
% of total employees 26.2 26.9 30.7
Informal empl oyment (000) 18 744 20 291 21 609
% of total empl oyment 58.0 56.3 55.8
Worki ng children (000) 2 290 2 095 1 839
% of children popul ation 9.0 7.2 6.0
Children not in school (000) 4 913 (2006) 4 153 2 707
% of children popul ation 17.9 (2006) 14.4 8.8
Real average daily basi c pay (Php) 258.84 254.38 267.60
Annual growth (%) -1.6 1.5 1.6
Low-paid employees, % of total employees 25.3 26.6 20.0
% of employed with excess hours (more than 48 a week) 23.6 22.3 20.9
Social Insurance
Social security, % of contri buti ng members
Public sector 53.4 45.3 48.7 (2014)
Pri vate sector
Private employees (excludi ng sea-based) 47.2 48.0 52.9
Domestic workers (live-in) 3.4 6.0 13.0
Self-employed 6.5 6.4 9.1
Overseas Filipi no Workers (sea-based and land-based) 27.1 29.1 35.6
% of popul ation covered by National Health Insurance
Program 64.0 74.0 92.0
International Labor Migration
Overseas Filipino Workers (000, survey data) 1 326 2 043 2 447
Deployed workers (000, administrative data) 989 1 471 1 844
Land-based 741 1 124 1 438
Sea-based 248 347 407
Alien employment permits issued 10 823 14 325 28 371
Notes: (a) Figure in parenthesis refers to reference year of the data; (b) Employees in precarious work are defined as wage
and salary workers whose nature of employment is short-term, casual or worked for different employers on day-to-day or
week-to-week basis; (c) Informal employment refers to employees in precarious work, self-employed and unpaid family
workers. There is no institutionalized survey on informal employment; and (d) Low-paid employees are wage and salary
workers whose hourly basic pay in their primary job is below 2/3 of the median hourly basic pay of all wage and salary
workers.
Sources: Philippine Statistics Authority; Government Service Insurance System; Social Security System; Philippine Health
Insurance Corporation; Philippine Overseas Employment Administration; and Department of Labor and
Employment.
106
Glossary
of terms
Adult functional literacy rate – Total adults who possess a higher level of literacy which
includes not only reading and writing skills but also
numeracy skills, as a percentage share of total adult
population 25-64 years old (PSA, DeWS-Phil).
Adult secondary school – Total adults who have completed high school education
graduate rate as a percentage share of total adult household
population 25 years old and over (PSA, DeWS-Phil).
Age dependency ratio – Ratio, expressed in per cent, between children (less
than 15 years old) and the elderly (65 years old and
over) to the economically productive population
(15-64 years old).
Capital formation – Aggregate of fixed capital, changes in inventories and

intellectual property products (PSA, DeWS-Phil).
Certification rate – Total workers certified as job-ready as a proportion

of total workers assessed under the Philippine Technical
and Vocational Education and Training Qualification
and Certification System (PSA, DeWS-Phil).
Child labour – Consist of working children under the age of

15 years; children aged 5-14 years old working more
than 20 hours per week, or working during the evening
or at night or any types of employment that are
hazardous irrespective of working hours; children
15-17 years old working more than 40 hours a week or
working during the night or are exposed to hazardous
forms of work irrespective of working hours
(Republic Act No. 9231).
Consists of children aged 5 to 11 years engaged in any

economic activity; children aged 12-14 years engaged in
an economic activity that could not be considered as
permissible light work, where permissible light work is
defined as any non-hazardous work of less than
14 hours during the reference week; and children
aged 15-17 years engaged in hazardous work, where
hazardous work consists of work in designated
hazardous industries and occupations, work of more
than 43 hours per week, and work involving exposure to
other hazardous conditions (ILO).
Collective bargaining – Total employees covered by CBAs as a percentage share

of total employees (PSA, DeWS-Phil).
Discouraged workers – Unemployed persons who did not look for work in the
belief that no work is available (PSA, LFS).
Glossary of terms
144
Duncan index of dissimilarity – Summary indicator of occupational segregation. It

ranges From zero to one, with zero meaning no
occupational segregation and one being complete
segregation between the two sexes. An increase in the
index will mean a greater tendency of men or women to
do different jobs (PSA, DeWS-Phil).
Economic activity rate of – Total working children as a percentage share of total

children household population of children 5-17 years old
(PSA, DeWS-Phil).
Employed – Persons 15 years old and over who during the reference
period were reported at work even for an hour. Also
included are persons with a job/business even though
not at work because of temporary illness/injury, vacation
or other leave absence, bad weather or strike/labour
dispute or other reasons. Likewise, persons who
are expected to report for work or to start operation of a
farm or business enterprise within two weeks from the
date of the enumerator’s visit are considered employed
(future starts) (PSA, DeWS-Phil).
Employed with excessive – Total employed who worked more than 48 hours per
hours week in primary job (PSA, DeWS-Phil).
Employment elasticity – Percentage change in employment associated with a

percentage change in GDP.
Gender wage gap – Difference between the average daily basic pay of men
and women, expressed as a percentage of the average
daily basic pay of men (PSA, DeWS-Phil).
Gini coefficient – Measure of the extent to which the distribution of

income or expenditure among families/individuals
deviates from a perfectly equal distribution, with limits
zero for perfect equality and one for perfect inequality
(PSA, DeWS-Phil).
Green jobs – Employment that contributes to preserving or restoring

the quality of the environment, be it in the agriculture,
industry or services sector. Specifically, but not
exclusively, this include jobs that help to protect
ecosystems and biodiversity, reduce energy, materials
and water consumption through high efficiency
strategies, decarbonize the economy, and minimize
or altogether avoid generation of all forms of waste
and pollution. Green jobs are decent jobs that are
productive, respect the rights of workers, deliver a fair
income, provide security in the workplace and social
protection for families, and promote social dialogue
(ILO).
Gross domestic product – Value of all goods and services produced domestically
(PSA, DeWS-Phil).
Human development index – Summary measure for assessing long-term progress in

three basic dimensions of human development: a long
and healthy life, access to knowledge and a decent
standard of living, measured by life expectancy, mean
years of education among the adult population, and
access to learning and knowledge by expected years of
schooling for children of school-entry age (UN).
Indigenous peoples – A group of people or homogenous societies identified

by self-ascription and ascription by others, who have
continuously lived as organized community on
communally bounded and defined territory, and
who have, under claims of ownership since time
immemorial, occupied, possessed customs, tradition
and other distinctive cultural traits, or who have,
through resistance to political, social and cultural
inroads of colonization, non-indigenous religions
and culture, become historically differentiated from the
majority of Filipinos (PSA, Official Concepts and
Definitions for Statistical Purposes).
Informal employment – Proportion of vulnerable employment and employees

in precarious work, to total employed. This is a crude
measure in the absence of a regular survey on informal
employment (DWCD report).
Labour force – Sum of the employed and unemployed (PSA, DeWS-

Phil).
Labour force participation – Total labour force as a percentage share of total

rate working-age rate population. For purposes of
determining the labour force, OFWs are excluded (PSA,
DeWS-Phil).
Labour productivity – Gross Domestic Product divided by total employed

(PSA, DeWS-Phil).
Low paid employees – Wage and salary workers whose hourly basic pay in their
primary job is below 2/3 of the median hourly basic pay
of all wage and salary workers (PSA, DeWS-Phil).
Maternal mortality ratio – Ratio between the number of women who died (for
reasons of pregnancy, childbirth and puerperium) to the
number of reported livebirths in a given year, expressed
as the number of maternal deaths per 100,000 live births
(PSA, Official Concepts and Definitions).
Glossary of terms
146
Micro, small and medium – Relative to employment: micro enterprises - nine or less;
enterprises small enterprises - ten to 99; medium enterprises -
100 to 199 (Medium Enterprise Development Council
Resolution No. 1, s. 2003).
Net enrolment ratio – Ratio of the enrolment for the age group corresponding
to the official school age in the elementary/secondary
level to the population of the same age group in a given
year. Also known as participation rate (PSA, Official
Concepts and Definitions).
Net foreign direct investments– Refer to non-resident placements less non-resident

withdrawals of equity, reinvestment of earnings and
other capital (BSP).
Non-fatal occupational – Work-related injuries resulting to permanent or

injuries temporary incapacity for work
(PSA, DeWS-Phil).
Occupational diseases – Abnormal conditions or disorders other than those

resulting from occupational injuries caused
by exposure over a period of time to risk factors
associated with work activity such as contact with
certain chemicals, inhaling coal dust, carrying out
repetitive movements (PSA, DeWS-Phil).
Overseas Filipinos – Refer to:

a) Permanent migrants – immigrants, dual citizens;
b) Legal permanent residents abroad whose stay do not
depend on work contracts;
c) Temporary migrants – those whose stay overseas,
while regular and properly documented, is temporary,
owing to the employment-related nature of their status
in their host country; these include land-based and sea-
based Filipino workers, intra-company transferees,
students, trainees, entrepreneurs, businessmen, traders
and others whose stay abroad is six months or more, and
their accompanying dependents; and
d) Irregular migrants – those who are not properly
documented or without valid residence or work permits,
or who are overstaying in a foreign country (CFO).
Poverty incidence – Proportion of families (or individuals) with per capita

income/expenditure less than the per capita poverty
threshold to the number of families (or individuals)
(PSA, DeWS-Phil).
Poverty threshold – Minimum income/expenditure required for a family/

individual to meet the basic food and non-food
requirements (PSA, DeWS-Phil).
Precarious employment – Workers with short-term or seasonal or casual jobs

including some forms of fixed term or project
employment contracts, seasonal employment and
contracting or subcontracting (DWCD report).
Prevalence of underweight – Number of children aged 0-59 months whose weights

children below five for age are less than two standard deviations below the
median weight for age of the World Health
Organization-Child Growth Standards (WHO-CGS) in
a given time period expressed as a percentage ofb all
children aged 0-59 months who were weighed in the
same time period (PSA, Official Concepts and
Definitions).
Proportion of births attended – Number of deliveries attended by skilled health

by skilled health personnel personnel as a percentage of all livebirths
(PSA, Official Concepts and Definitions).
Real daily basic pay – Daily basic pay of wage and salary workers in nominal
terms deflated by the Consumer Price Index
(PSA, DeWS-Phil).
Remittances – Current transfers in cash or in kind by overseas Filipino

workers with work and other household-to-household
transfers between Filipinos who have migrated abroad
and their families in the Philippines (BSP).
Subsistence incidence – Proportion of families (or individuals) with per capita

income/expenditure less than the per capita food
threshold to the number of families (or individuals)
(PSA, DeWS-Phil).
Under five mortality rate – Probability of dying between exact age one and age five,
expressed as the number of deaths of children from
exact age one to less than age five during a given period
per 1,000 children surviving to age 12 months at the
beginning of the period (PSA, Official Concepts and
Definitions).
Underemployed – Employed persons who wanted additional hours of work

in their present job, or to have additional job, or a new
job with longer working hours (PSA, DeWS-Phil).
Underemployment rate – Total underemployed as a percentage share of total

employed (PSA, DeWS-Phil).
Unemployed – Persons who are 15 years and over, who during the
reference period are reported without work and
currently available for work and seeking work.
Also considered as unemployed are those without work
and available for work but not seeking work due to valid
Glossary of terms
148
reasons (relaxation of the seeking work criterion). These valid

reasons are: (a) tired/believed no work available, i.e., the
discouraged workers; (b) awaiting results of previous job
application; (c) temporary illness/disability; (d) bad weather;
and (e) waiting for rehire/job recall (PSA, DeWS-Phil).
Unemployment rate – Total unemployed as a percentage share of total labour force

(PSA, DeWS-Phil).
Union density rate – Total employees who are union members as a percentage share
of total employees (PSA, DeWS-Phil).
Vulnerable employment – Proportion of self-employed and unpaid family workers to total

employed (DWCD report).
Wage share in GDP – Total compensation of employees as a percentage share of GDP

(PSA, DeWS-Phil).
Working age population – Household population 15 years old and over. The LFS excludes
OFWs in the determination of the working age population to
measure Philippine labour force (PSA, DeWS-Phil).
Working poverty – Total employed living in a household whose members are

estimated to be below the poverty threshold, as a percentage
share of total employed. It is assumed that a household cannot
have poor and non-poor members; either all members are poor
or all members are non-poor since poverty is a characteristic of
the household (PSA, DeWS-Phil).
Youth not in employment, – Total unemployed youth who are not currently attending school
education or training plus total youth not in the labour force who are not currently
attending school, as a percentage share of total youth household
population 15-24 years old (PSA, DeWS-Phil).
Youth unemployment rate – Unemployed youth as a proportion of total youth labour force
15-24 years old (PSA, DeWS-Phil).
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Decent work country diagnostics: Philippines 2017
The Philippines experienced relatively strong economic growth over the last
decade. However, this was not inclusive as it did not translate to massive
creation of decent work and had limited effect on reduction of poverty,
inequality and vulnerability. A new national decent work agenda aligned with
the development framework of the Constitution and the administration’s
“0 + 10” socio-economic agenda, the medium-term Philippine Development
Plan (PDP 2017-2022) and the long-term AmBisyon Natin 2040 as well as
with the UN’s Sustainable Development Goals (SDGs), is important to help
achieve the goal of inclusive growth. Developing and pursuing this agenda
represents a huge challenge, as it must consider multiple and complex factors
such as inadequate infrastructure, support facilities and high costs of doing
business; a pattern of “job-slow” growth and the structural disconnect between GDP growth and employment
growth; a large though decreasing informal sector; low quality of employment and high incidence of precarious
work, underemployment, unemployment and labour underutilization especially among women and the
youth; skills and job mismatches; and low productivity especially in agriculture and in MSMEs. Further, a
working age population with relatively low labour force participation rate persistently skewed against women,
a high dependency ratio, and shifting demographics, underscore the urgency for human capital development
interventions with the core components of education, training and health. On labour and employment,
the Philippines has incorporated in its national laws the fundamental principles and rights at work, as well
as a wide range of general labour standards, OSH standards, social security and protection, including a
well-developed regulatory system for overseas migrant workers. Be that as it may, significant policy,
implementation and enforcement gaps in specific areas remain. Strategic widening, deepening and
modernization of labour institutions should be continuously pursued, especially with a view of covering
the informal sector and new and future work arrangements. The new agenda, to be evolved through social
dialogue, tripartism and multi-stakeholder consensus, should help focus development efforts on achieving
growth with employment, employment with rights, and social protection for all. Practical initial steps can
be taken by the social partners and other stakeholders, such as identifying and acting on policy as well
implementation, enforcement and coordination gaps; giving more attention to the informal sector and highly
vulnerable groups of workers; continuously balancing regulatory and facilitative or allocative interventions in
the labour market to make it more competitive; aiming for reforms that are productivity-enhancing, adaptive
and transformative; correcting institutional weaknesses and failures; and setting up an integrated decent work
information management and monitoring system. The agenda may be organized around four central points of
action, namely supply side measures to improve the economy’s capacity to produce, particularly in continuously
developing and optimizing the utilization of human resources for productive and remunerative work; demand
side measures to create adequate opportunities for and equal access to productive, remunerative and decent
work within the domestic economy; social protection measures to provide a balanced, accessible and effective
mix of active and passive labour market measures and social programmes; and institutional and governance
measures consisting of updated and appropriate policies, laws and governance mechanisms to ensure that the
rights and opportunities of workers, employers and all stakeholders are not only recognized but effectively
realized.
ILO Country Office for the Philippines

19th floor, Yuchengco Tower, RCBC Plaza
6819 Ayala Avenue 1200 Makati City, Philippines
Tel.: +63 2 580 9900, Fax: +63 2 586 7597
Email: manila@ilo.org
978-92-2-130374-9
www.ilo.org/manila

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Decent Work Country Diagnostics:

International Labour Organization

Copyright © International Labour Organization 2017

Decent work country diagnostics: Philippines 2017

Printed in the Philippines

Mabuhay tayong lahat!

Silvestre H. Bello III

D.2 Quality of employment 39

Section V. Social protection 91

Concluding note 131

Table 44. Top ten most availed TVET courses, 2013 98

MWRs Minimum Wage Rates

The Report diagnoses the situation,

Realizing decent work and inclusive

On social dialogue and tripartism,

of human resources for productive and

A. The national development framework

1. The 1987 Philippine Constitution

• A just and dynamic social order

• Protection and promotion of the rights and welfare• of

http://www.un.org/ga/search/view_doc.asp?symbol=A/RES/70/1&Lang=E, p. 14. The 17 SDG goals are:

human capital development; accelerating annual infrastructure spending; promoting rural

countries.15 The transformation will

©ILO Joseph Fortin

10. From• the standpoint

• Poverty incidence of the population at over 20 per cent in 2015.

Source: Philippine Statistics Authority, Labor Force Survey.

A. Demographic structure and dynamics

1.59 per cent is Lessprojected.

Table 1. Philippine human development index

A.2.1 Opportunities and access to education and technical-vocational training

A.2.1 Opportunities and access to education and technical-vocational training

Table 4. Education and health service facilities, 2015

23. The economy posted Growth

Source: Philippine Statistics Authority, National Accounts of the Philippines.

Table 6. Expenditure shares in GDP

B.2 Employment growth lags behind GDP growth

Agriculture Industry Services

Source: Philippine Statistics Authority, Labor Force Survey.

28. 28. The disconnectbetween

Figure 8. GDP and employment sectoral shares

Figure 8. GDP and employment sectoral shares

20.0 Figure 7. Sectoral shares in employment

© ILO R. Dela Cruz

SECTION II. EMPLOYMENT BY STATUS, INFORMAL EMPLOYMENT AND THE

A. Labour force participation

Figure 9. Employment-to-population-ratio by sex and age group

Total Men Women 1 5-24 2 5-54 5 5+

Source: Philippine Statistics Authority, Labor Force Survey.

Wage and salary workers Employers

Source: Philippine Statistics Authority, Labor Force Survey.

B.2.1 Formal sector employment and precarious employment increasing

B.2.1 Formal sector employment and precarious employment increasing

38. Formal sector employmentFigure 10. Employment

Table 12. Employees in precarious work by sex, sector and

Figure 11. Underemployment rate by sector and sex

Location/work schedule concer n

Note: The surveys covered establishments employing 20 workers or more.applicants

Table 13. Discouraged unemployed by sex and age group

Table 13. Discouraged unemployed by sex and age group

Figure 15. Youth not in employment, education or training (NEET)

Total Men Women

Source: Philippine Statistics Authority, Labor Force Survey.