Incentives for PWDs’ employment
In a recent job fair exclusively held for persons with disabilities (PWDs), Labor Secretary Silvestre Bello III said companies that hire PWDs that constitute not less than one percent of their work complement would be granted a yearlong “immunity from inspection” for compliance with labor laws.
This immunity, however, comes with a caveat: the companies may still be charged with violation of labor laws if they are later found to have committed them.
Bello did not give any reason for making that unprecedented offer to employers, but it is most welcome considering the poor record of compliance with Republic Act 10524, the law expanding the positions reserved for PWDs.
The law aims to make PWDs useful members of our society by providing them equal opportunity for employment and equal remuneration for work of equal value.
To accomplish this objective, all government agencies, offices or corporations are required to reserve one percent of their work positions to PWDs.
This requirement, however, does not apply to private companies. Instead, they are encouraged to reserve at least one percent of their job positions to PWDs if they have more than 100 employees.
The relaxation of the reservation rule for companies is understandable. Since private capital is involved in these businesses, the government cannot dictate on their owners what employment strategies (or who to or not to employ) to adopt as long as they do not violate our labor laws.
The physical and financial constraints that often accompany the employment of PWDs have discouraged many companies, although willing, to reserve some work positions for PWDs in spite of their qualifications for the job.
For example, if the PWD is wheelchair-bound, the employer has to make some adjustments in the width of the office corridor, his or her work station, and comfort rooms. These improvements do not come cheap, aside from the fact there is no assurance the PWD employed will live up to expectations.
Among the companies that have aligned its employment practices with the spirit of the law is Lamoiyan Corp., a manufacturer of personal health products.
For years, it has employed people with hearing disabilities in its assembly line and other areas of operation. Its good karma probably explains why it continues to give foreign-made toiletries a run for their money in terms of customer patronage.
Although the moral satisfaction of being able to help the less physically-abled members of our society may suffice as an incentive, the law provides two financial benefits to companies that employ PWDs as regular employees, apprentice or learners.
First, they shall be entitled to an additional deduction from their gross income of the amount equivalent to 25 percent of the total amount paid to the PWDs as salaries or wages.
Second, if they had to modify their physical facilities in order to provide some reasonable accommodation to PWDs, they shall be allowed to claim additional deduction from their net income an amount equivalent to 50 percent of the direct costs of the improvements or modifications.
This deduction shall not be allowed though if the improvements or modifications are required to be made under Batas Pambansa 344, or the law that requires buildings and facilities for public use to be accessible to disabled persons, such as the installation of ramps for wheelchair users.
To be able to avail of these tax privileges, the companies concerned are obliged to present proof from the Department of Labor and Employment (DOLE) on the employment status of the PWDs, and that the latter have been accredited by the DOLE and the Department of Health as to their disability, skills and qualifications.
Although significant strides in the treatment of PWDs have been made in recent years, a lot of work still has to be done in giving them the respect and care they rightfully deserve in our society.
