Second Additional Financing of Social Protection Support Project (RRP PHI 43407-017)

SOCIAL AMELIORATION PROGRAM GUIDELINES

(as of 13 April 2020)

1. Potential increase in poverty, hunger, and other vulnerabilities. While the poverty rate
in the Philippines declined from 25.2% in 2012 to 23.3% in 2015 to 16.6% in 2018,1 the absolute
level of poverty and inequality remains high. Nearly 17.6 million people continue to live under the
poverty line and 14.2 million just above the line, who are vulnerable to sliding back into poverty.2
The community quarantine initially imposed on Luzon has been progressively extended to other
parts of the country.3 Owing to the sudden loss of livelihoods and strict quarantining, the poor,
indigent elderly, and informal sector workers and daily wage laborers are low on cash and unable
to purchase adequate food and other basic necessities. The loss of income, growing food
insecurity, compounded with the health risk and cost of catching this infection, pose a grim
scenario for these poor households. Unless addressed on an emergency basis, this could even
roll-back the progress made by the Philippine in the fight against poverty so far.

2. The Department of Social Welfare and Development (DSWD) has identified around 6.5
million poor and vulnerable households, and 2.9 million indigent senior citizens as beneficiaries
of ongoing cash transfer programs based on different targeting protocols. In addition, it estimated
some 7.7 million informal sector workers and daily wage earners nationwide.4 In addition, it has
initially identified about 7.7 million informal sector workers and daily wage earners as being
vulnerable due to loss of income from the community quarantine.5

Table 1: Identifying the Poor and Vulnerable

Poor and vulnerable Estimated Targeting protocol Government program providing
segments numbers used support
1. Poor households with 4.3 million Listahanan 1 (2009) DSWD’s 4Ps and Philhealth
children less than 18 years households Listahanan 2 (2015)
old and/or pregnant women Listahanan 3 (2019);
covered under the Pantawid survey, data encoding,
Pamilyang Pilipino Program and validation not yet
(4Ps) complete)
2. Poor households without 2.2 million Listahanan 1 (2009) DSWD’s unconditional cash transfer
any children or with children households Listahanan 2 ( 2015) program where household beneficiaries
older than 18 years (i.e., have received a monthly cash grant of
poor households which are 200 pesos in 2018 and 300 pesos in
not included under the 4Ps) 2019 and 2020, to protect them from the
inflationary effects of the Tax Reform for
Acceleration and Inclusion (TRAIN) Act
or the Republic Act No. 10963 passed in
Dec 2017. The transfers were
implemented in 2018 and will be
continued till 2020
3. Indigent senior citizens 2.9 million LGUs and local social DSWD’s Social Pension for Indigent
beneficiaries welfare and Senior Citizens program provide 500
development offices pesos per month since 2011.
(with age 77 and above

1 Philippine Statistics Authority. National Income Accounts, Labor Force Survey, and Poverty Statistics. Manila.
2 PSA. 2018. Poverty Statistics. Manila..
3 Local governments in Visayas and Mindanao have followed suit and imposed ‘enhanced community quarantine’
measures including regional economic hubs and tourism sites (e.g., Cebu, Iloilo, Bohol, Boracay, Leyte, Davao,
Cagayan de Oro, Bukidnon, among others), which would further impact the poor and vulnerable population in these
island groups as well.
4 The estimate is approximately 60% of total informal workers and daily wage earners who are most likely not receiving
any benefits from social assistance programs.
5 PIDS notes that huge “unprotected” informal sector in the Philippines. Labor Force Survey estimates about 15.6
million informal workers, or 38% of the country's total working population. https://pids.gov.ph/pids-in-the-news/2418.
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Poor and vulnerable Estimated Targeting protocol Government program providing

segments numbers used support
in 2011–2014, 65 and
above in 2015, and 60
and above in 2016.
4. Informal sector workers 7.7 million DSWD estimate. Programs from LGUs, DOLE and DTI
and daily wage earnersa people in
vulnerable
employment

4Ps = Pantawid Pamilyang Pilipino Program, DOLE = Department of Labor and Employment, DSWD = Department of
Social Welfare and Development, DTI = Department of Trade and Industry, LGU = local government unit, Listahanan
= List of poor based on the household targeting system, Philhealth = Philippine Health Insurance Program
a The estimate is approximately 60% of total informal workers and daily wage earners who are most likely not receiving

any benefits from social assistance programs.

3. Bayanihan to Heal as One Act” or Republic Act 11469. On 24 March 2020, the
Philippine congress passed Republic Act 11649 or “An Act Declaring the Existence of a National
Emergency Arising from the coronavirus disease 2019 (COVID-19), otherwise known as the
“Bayanihan Heal as One Act.”6 The law mandated the executive branch, among others, to: (i)
provide an emergency subsidy of between 5,000 and 8,000 pesos ($98-$157) per month to
around 18 million low income households for two months; and (ii) implement an expanded and
enhanced 4Ps responsive to the need posed by the crisis, the provision of cash assistance
program, through the local government units (LGUs) or to directly identify households including
those working in the informal economy, and those who are not currently recipients of 4Ps in this
time of crisis. The law likewise empowered the President to augment resources and programs in
providing support to the poor and most affected population.

4. Social Amelioration Program. Consistent with the law, the government has launched a
Social Amelioration Program (SAP) under the leadership of the Office of the President, with
DSWD as a key implementing agency.7 The law sets an assistance package ranging from $98 to
$1578 per household per month for two months; estimated as the minimum requirement to ensure
that families are able to meet basic needs through the quarantine period. This is close to DSWD’s
Emergency Cash Assistance (ECA) that prescribes a cash transfer equivalent to 75% of the
prevailing minimum daily wage rate per region released on a monthly basis (maximum of three
months).9

5. Target Beneficiaries. In addition to the Bayanihan law, a Joint Memorandum Circular No

1. (JMC No. 1) of the Interagency Task Force of Emerging Infectious Diseases (IATF-EID) and
the DSWD Memorandum Circular (MC) No. 4, Series of 2020, identified the following as target
beneficiary groups:
(i) 4Ps beneficiaries;
(ii) Informal economy workers (helpers, sub contractual workers, homeworkers, drivers
and public utility operators, micro-entrepreneurs, farmers, daily wage earners,
stranded workers); and
(iii) Other vulnerable population consisting of (a) indigent senior citizens; (b)persons with
disabilities; (c) pregnant and lactating women; (d) solo parents; (e) overseas workers
in distress; (f) indigenous peoples; (g) homeless; and (h) other vulnerable population.
6 Accessible at https://www.officialgazette.gov.ph/downloads/2020/03mar/20200324-RA-11469-RRD.pdf.
7 DSWD. Memorandum Circular 4. Series 2020. 30 March 2020.
8 The maximum support is based on the current minimum wage per region. For NCR, the rate is P8,000; Regions III
and IV-A is P6,500; Regions VI, VII, X and XI is P6,000; CAR, I and II is P5,500. The rest of the regions is at P5,000.
9 Minimum daily wage rates per region are prescribed by the National Wages and Productivity Commission of the
Department of Labor and Employment (DOLE).
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6. Identification of beneficiaries and provision of SAP. The following steps have been
laid down by the JMC No.1:
(i) All LGUs shall identify all target beneficiaries of the social amelioration measures within
their area of jurisdiction as defined by a Joint Memorandum Circular (JMC No. 1): senior
citizens; persons with disability; pregnant women; solo parents; informal economy
workers, such as helpers, drivers, vendors; indigent indigenous peoples; homeless and
underprivileged.
(ii) DSWD Field Offices will match the names provided to ensure that there are no duplicates
(from 4Ps and UCT beneficiaries).
a. The final list of beneficiaries will be provided to the LGU.
b. DSWD validates individuals and families identified by and in close coordination with
the LGUs. 10
(iii) LGUs will submit a Budget Proposal to the DSWD.
(iv) DSWD Field Offices will approve the submitted project proposal that will serve as basis
for fund transfer, based on a Memorandum of Agreement and Specific Implementation
Agreement. (City/Municipality) will submit list of potential beneficiaries to the DSWD Field
Offices
(v) The cash or non-cash assistance will be delivered either (a) directly thru DSWD’s servicing
banks, money transfer facilities, or non-bank financial service partners with existing access
to or operations in disaster-affected areas, or (b) through direct cash or non-cash payout
by DSWD personnel designated as Special Disbursing Officers or Local Government
Units. For the latter, the mode of assistance may either be through door-to-door or other
mechanisms available (e.g., cash).
(vi) LGUs will facilitate payment to the beneficiaries upon presentation of the valid ID

7. To avoid duplication, beneficiary information and current assistance (from national and
LGUs) being received by beneficiaries will be taken into account. This information will be recorded
in a Social Amelioration Family Card to be distributed by LGUs and DSWD, after the process of
validation and deduplication. The Inter Agency Task Force on COVID-19 will schedule a national
registration day to facilitate the filling in and issuance of family cards by those who are in need of
emergency assistance.

8. To facilitate compliance by LGUs, the Department of the Interior and Local Government
issued Memorandum Circular No. 2020-056 (30 March 2020) providing guidelines for local
government units in the provision of social amelioration measures by the national government to
the most affected residents of the areas under enhanced community quarantine. Its key provisions
are to: (i) require local governments to identify target beneficiaries and prepare master list for
SAP; and (ii) guide LGUs strict compliance of SAP, and ensure that the distribution of grants is
subject to “strict observance of home quarantine and prohibition of mass gatherings.”

9. The DSWD, as the lead agency for SAP, has issued a series of Memoranda Circular (MC)
providing guidelines to execute the SAP as mandated by the Bayanihan Law. Table 2 summarizes
the MCs related to the implementation of SAP under the overall direction of DSWD.

10 The list of beneficiaries from LGUs and other agencies will be subjected to “deduplication” against the Listahanan 2
list to ensure non-duplication. This validated list will form the basis of unique identifiers for the issuance of social
amelioration family cards. The DSWD has been designated by the Inter Agency Task Force established under the
Bayanihan Act to host the database for the COVID-19 social amelioration program of the government.
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Table 2: Guidelines for the SAP

Policy SPSP-AF II Related Features
DSWD MC 4, Series of 2020.Special (i) DSWD-wide emergency program subsidy through its various
Guidelines on the Provision of Social programs including 4Ps, Assistance to Individuals in Crisis
Amelioration Measures by the Department of Situation (AICS), Social Persons for indigent Senior Citizen,
Social Welfare and Development to the Most Food and non-food items, livelihood assistance, among
Affected Areas under Community Quarantine others.
and Continuation of the Social Pension for (ii) Target beneficiaries and, i.e., collaborative role of DSWD and
Indigent Senior Citizens and the local governments from targeting, delivery (e.g., door-to-door)
Supplementary Programs and reporting arrangements for Social Amelioration Program
(SAP).
DSWD MC 5, Series of 2020. Supplemental (i) Identify 4Ps households eligible to the receive emergency
Guidelines to Memorandum Circular NO. 4 subsidy
Series of 2020 on the Provision of Social (ii) Prescribe amount for emergency subsidy following the
Amelioration Measures by DSWD regional rates and in consideration of cash grants and rice
subsidy;
(iii) Clarify “expanded and enhanced” 4Ps
DSWD MC 6, Series of 2020. Supplemental (i) Clarify procedures for the transfer of AICS to LGUs and
Guidelines for Memorandum Circular No. prescribe emergency assistance on a regional basis for non-
Series of 202 on the provision of social 4Ps beneficiaries
amelioration measures by DSWD to provide (ii) Provide guidelines monitoring, reporting, compliance, and
further guidance on the provision of AICS to liquidation of emergency assistance by LGUs, DSWD field
the most affected residents of the areas offices, and DSWD to the Office of the President
under quarantine
DSWD MC 7, Series 2020. Amendment and (i) Clarify target beneficiaries to include informal economy
Supplemental Guidelines to Pertinent workers (e.g., independent, small scale produces and
Provisions of the MC Nos. 04, 05 and 06, distributors of goods and services) such as fisherfolks, and
Series of 2020 other vulnerable groups as identified by the National Anti-
Poverty Commission to be at risk.
(ii) Set parameter for computing emergency subsidy for AICS
including 4Ps based on regional minimum wage rate but will
not exceed the amount determined by JMC 1 No. 1, series
2020.
(iii) Identify distribution scheme of cash assistance as following:
(a) direct cash payment, (b) payment through electronic or
digital means, (c) cash card payments, (d) transfer of funds
through other national government agencies and LGUs, or
(e) any other mode of expedite distribution of assistance.
4Ps = Pantawid Pamilyang Pilipino Program; AICS = Assistance to Individuals in Crisis Situation; DSWD = Department
of Social Welfare and Development; JMC = Joint Memorandum Circular; LGUs = local government units; MC =
memorandum circular; SAP = Social Amelioration Program.

10. More recently, DSWD issued Memorandum Circular 09, Series 2020 providing an
omnibus guidelines on the implementation of the emergency subsidy program through ECA. It
further clarifies that the SAP target beneficiaries include 4Ps registered beneficiaries; low income
families (e.g., directly hired or occasional workers, subcontract workers, homeworkers, house
helpers, drivers of public utility vehicles and tricycle operators, micro-entrepreneurs, farmers,
fisherfolks, etc.); and indigent families of indigenous peoples and other vulnerable groups as
determined by DSWD.11 The LGUs, in collaboration with DSWD, will identify and prepare a
master list of eligible beneficiaries among informal sector workers, daily wage workers, and other
vulnerable segments. LGUs in collaboration with DSWD will use a Social Amelioration Card (SAC)
for non-CCT target beneficiaries to avoid duplication of emergency assistance from other
government programs during the COVID-19 crisis, e.g., COVID-19 Adjustment Measure Program
grant or Tulong Panghanapbuhay para sa Displaced/ Disadvantaged Worker (TUPAD) of the

11 DSWD. 2020. Memorandum Circular No. 09, Series 2020. Omnibus Guidelines in the Implementation of the
Emergency Subsidy Program of the Department of Social Welfare and Development. 9 April 2020.
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labor department. 4Ps beneficiaries do not have to fill-out SAC forms, but are not eligible to
receive other cash assistance from other programs as well.

11. Database management and deduplication. In view of the lack of time required for
completing and integrating a beneficiary list with the Listahanan 3, Listahanan 2 will be used by
the DSWD in the interim to verify beneficiaries in a deduplication process to identify households
that are eligible for receiving the emergency cash transfers under the Bayanihan Law.

12. To ensure that the proposed ADB emergency assistance reaches all the needy segments,
it is necessary to create a master list of beneficiaries drawing on existing and credible government
targeting system, and data sources with established protocols.

13. Full amount of ECA and delivery. Non-CCT beneficiaries will get the full amount of ECA
following the regional wage rate (footnote 8), while the 4Ps beneficiaries will be given ECA as top
up, net of the health cash grant and rice subsidy which are usually included under the CCT
program. Effectively, 4Ps will receive the same benefit level as non-CCT or other low-income
households affected by the economic impact of the COVID-19 outbreak. 4Ps beneficiaries with
cash card will receive the full amount of their ECA as top up to their regular cash grant and rice
subsidy. Non-CCT ECA beneficiaries will receive their grants through (i) over the counter
transaction at the Land Bank of the Philippines, (ii) transfer thru LGUs as guided by DSW MC 04,
Series of 2020; and (iii) direct cash payout by DSWD special disbursing officers. 12

12 DSWD. 2020. Memorandum Circular No. 10. Amendments to Memorandum Circular No. 5 Series of 2020 on the
Provision of Social Amelioration to Pantawid Pamilyang Pilipino Program (4Ps) Households. 13 April 2020.