By: Atty. Euney Marie Mata-Perez on October 31,2024

For this article, we examine the benefits granted under existing laws and regulations to senior citizens in the Philippines.

In recognition of the need to provide special care and privileges to senior citizens, Republic Act (RA) No. 9994, also known as the Expanded Senior Citizens Act of 2010, grants to Filipinos aged 60 years and above a wide array of benefits and privileges.

An immediate and apparent benefit that is legally mandated under RA No. 9994 is the entitlement to priority in queues.  RA No. 9994 also mandates the grant of the popular 20% discount to senior citizens for the sale of the following goods or services:

1. Medicines and Vaccines: Senior citizens enjoy the incentive when purchasing medicines, including vaccines for influenza and pneumococcal diseases and other essential medical supplies.

• Professional Fees: The incentive also applies to professional fees of physicians, whether in hospitals, clinics, or home health care services, including professional fees of other licensed professional health workers providing health care services as endorsed by private hospitals or employed through home health care employment agencies.

• Medical and Dental Services: The incentive applies to their medical and dental services, including diagnostics and laboratory tests, whether such services are rendered in private hospitals, medical facilities, outpatient clinics, and home health services.

• Transportation: The benefit applies to fares on public land transportation, including buses, jeepneys, taxis, public rail services, as well as to air and sea travel within the Philippines.

• Accommodation and Recreational Services: When staying in hotels, dining in restaurants, or using recreational facilities like cinemas, theaters, and concert halls, senior citizens are eligible for the discount and VAT Exemption.  In some municipalities, senior citizens are entitled to free entrance fees to theaters and parking areas.

• Funeral and burial services: The incentive also applies to funeral and burial expenses for the death of the senior citizen, which covers the purchase of casket or urn, embalming, hospital morgue, transport of the body to intended burial site in the place of origin but shall exclude obituary publication and the cost of the memorial lot.

The VAT exemption on the foregoing sale of goods and services to senior citizens has also been codified in the National Internal Revenue Code (Tax Code), pursuant to RA No. 19063, the Tax Reform for Acceleration and Inclusion or the TRAIN Act.

Under RA No. 9994, senior citizens are entitled to a 5% discount on utility bills for water and electricity, for consumption that does not exceed 100 kWh for electricity and 30 cubic meters for water. The utility accounts must be under the senior citizen’s name.

The other benefits which senior citizens are entitled to include:  (a) exemptions from training fees for socioeconomic programs, (b) free medical and dental services in all government hospitals and clinics,  including diagnostics and laboratory tests, (c) free vaccinations against the influenza virus and pneumococcal disease for indigent senior citizens[JS1] , (d) a monthly stipend in the amount of PHP1,000.00, and (e) death benefit assistance of at least PHP2,000 to the nearest surviving relative of a deceased senior citizen.

Interestingly, RA No. 9994 also provides educational assistance to senior citizens who wish to pursue post-secondary, tertiary, or vocational education, whether in public or private school, through scholarships, financial aid, subsidies, and other incentives. This includes learning materials, such as books and uniforms.  Thus, it is never too late for senior citizens to pursue their education.

RA No. 9994 further mandates the continuation of benefits to senior citizens from the Government Service Insurance System (GSIS), Social Security System (SSS), and PAG-IBIG “to the extent practicable and feasible.”

As mentioned, RA No. 9994 also requires the creation of express lanes in establishments, and in their absence, for citizens to be given priority in queues to prevent them from waiting for extended periods. 

Another law, RA No. 10645, provides that all senior citizens are automatically covered by PhilHealth, even if they have not made prior contributions.

Undoubtedly, the foregoing laws reflect the government’s commitment to protecting and enhancing the welfare of senior citizens in the Philippines. However, there was a question as to whether or not the mandate of all those benefits, which in the end are shouldered by the establishments providing the aforementioned services and goods, are constitutional. The establishments granting the 20% discounts are entitled to claim the same as income tax deductions, not as tax credits. Unlike a tax credit, a tax deduction does not offer full reimbursement of the senior citizen discounts granted. As such, it raised the question whether the State, in promoting the health and welfare of a special group of citizens, can impose upon private establishments the burden of partly subsidizing a government program. 

In several decisions, the Supreme Court has ruled that the grant of 20% discount and the tax deduction scheme is a valid exercise of the police power of the State. The Supreme Court also recognized that the duty to care for the elderly and the disabled lies not only upon the State, but also on the community and even private entities. (Carlos Superdrug Corp. v. Department of Social Welfare and Development, G.R. No. 166494, (29 June 2007), 553 Phil 120-135; Southern Luzon Drug Corporation, Petitioner, vs. The Department of Social Welfare And Development, et., al., G.R. No. 199669. April 25, 2017.)

Euney Marie J. Mata-Perez is a CPA-Lawyer and the Managing Partner of Mata-Perez, Tamayo & Francisco (MTF Counsel).  She is a corporate, M&A and tax lawyer and has been ranked as one of the top 100 lawyers of the Philippines by Asia Business Law Journal and is the incoming Chair of the Tax Committee of the Management Association of the Philippines. She acknowledges the contribution of Joshua Rizlan A. Simbillo in this article. This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. If you have any question or comment regarding this article, you may email the author at info@mtfcounsel.com or visit MTF website at www.mtfcounsel.com.

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 [JS1]“Indigent senior citizen” refers to any elderly who is frail, sickly, or with disability, and without pension or regular source of income, compensation or financial assistance from his/her relatives to support his/her basic needs, as determined by the DSWD in consultation with the National Coordinating and Monitoring Board (NCMB). [Section 5.26 of Article 5 of the IRR of RA 9994].

Examining the benefits, privileges of senior citizens | The Manila Times