SMALL BUSINESS WAGE SUBSIDY PROGRAM (SBWS)

The national government is providing a wage subsidy for affected employees of small
businesses to help mitigate the impact of the quarantine in Luzon and various local
government units. This wage subsidy shall be given for up to two months so that affected
small businesses are able to retain their employees during the quarantine period.

The government, through the Social Security System (SSS), shall provide a wage subsidy.
The amount shall be between Php 5,000 to 8,000 (based on the prevailing regional
minimum wage) per month per eligible employee.

Note that the SSS will only be accepting applications from April 16, 2020 to April 30, 2020.

Eligibility Requirements of Businesses

The business MUST meet two (2) eligibility requirements to avail the SBWS:
1. Size of Business – The small business — whether a corporation, partnership, or
sole proprietorship — must not be in the BIR’s Large Taxpayer Service (LTS) list.
2. Impact of the Enhanced Community Quarantine (ECQ) – Small businesses under
both Category A (non-essentials) that are forced to stop operations (i.e., temporary
closure or suspension of work) and Category B (quasi-essentials) that are allowed
to operate a skeleton force can apply for the wage subsidy for employees who are
not able to work and did not get paid during the ECQ.

Category A (Non-Essential) Small Businesses – The following falls under Category A:

1. Non-food raw materials/Non-essential manufacturing
2. Tobacco
3. Construction
4. Airlines
5. Non-essential services
6. Hotels and restaurants
7. Rental and leasing of personal goods
8. Entertainment

Category B (Quasi-Essential) Small Businesses – The following falls under Category B:

1. Textiles, wearables, and leather for export
2. Electronics manufacturing
3. Retail trade
4. Public transportation/trucking and cargo hauling
5. Business process outsourcing
6. Banks
7. Personal service & domestic activities (eg. salons, laundry, funeral, domestic help)

Priority on Certain Businesses

The following businesses will be prioritized:
 1. BIR-Registered AND Tax-Compliant during the past three (3) years, up to Jan 2020.
2. SSS-Registered and SSS-Compliant for the past three (3) years, up to Jan 2020.

Eligibility Requirements for Employees to be Beneficiaries

To be eligible, an employee must fulfill ALL of the following criteria:
1. An employee of an eligible small business;
2. Employed and active as of March 1, 2020 but unable to work due to the ECQ;
3. Did not get paid by their employer for at least two weeks during the temporary
closure or suspension of work, in accordance with Labor Advisory 1, s.2020;
4. Can be of ANY of the following contract status (eg. Regular, Probationary, Regular
seasonal, Project-based, Fixed-term); and
5. Certified by the Employer as having met all of the above-criteria.

*Note: Employees who have received a subsidy from the DOLE CAMP shall be eligible for
only the first month of the SBWS Program to avoid duplication.

**Note: The following employees are NOT eligible:

1. Those working from home, or part of the skeleton force
2. Those who went on the following types of leave, namely: maternity, paternity,
study, sabbatical, and leaves of the same type, for the entire duration of the ECQ,
whether with or without pay
3. Those who are already a recipient of SSS unemployment benefits due to Covid-19
4. Those who have settled or in-process of SSS Final Claims (ie. funeral, retirement,
death, and total disability)

***Note: Additional requirements for the qualified employees:

1. MUST HAVE A MY.SSS ACCOUNT; and
2. BANK ACCOUNT DETAILS ARE ENROLLED IN THE BANK ENROLMENT
MODULE (BEM) FOUND IN THEIR MY.SSS ACCOUNT AT THE SSS WEBSITE.

Qualified employees may enrol their payroll account PROVIDED that the bank is
included in the PESONet-accredited banks.

****Note: If the qualified employee has no bank account, the following may be done:
1. The SSS shall notify the Employer so that the latter may remind the Employees to
open a bank account and enrol it with his My.SSS account. The Employee is
required to have a My.SSS account.
2. The Employee may open an E-Wallet Account with PayMaya and enrol it with
their My.SSS Account.

Conditions of the SBWS

The following conditions must be fulfilled to qualify for the SBWS Program:
1. Small businesses must maintain the employment status of all eligible employee
beneficiaries before the ECQ and throughout the SBWS period.
 2. Employees cannot resign during the ECQ period.

*Note: Condition No. 1 will be checked during the monitoring and evaluation stage. Non-
compliance with this condition shall result in the employer refunding to the government
the wage subsidy amount.

Date of Subsidy Distribution

For the first tranche of payout, it shall be distributed from May 1 to 15, 2020. For the
second tranche, it shall be from May 16 to 31, 2020.

Mode of Subsidy Distribution

The employee-beneficiary will receive the subsidy through any of the following modes:

1. Withdrawal via employee’s SSS UMID cards enrolled as ATM

2. Withdrawal from employee’s bank account for PESOnet participating banks
3. Employee’s Union Bank Quick Card (partnership with SSS)
4. Employee’s E-wallet: PayMaya
5. Cash pick-up arrangement through remittance transfer companies

Process
Step 1: Determine your eligibility. Go to the BIR website (www.bir.gov.ph) – click on the
SBWS Icon found in the Home Page – click “List of Pre-Qualified Businesses” – Type in
your Business’ TIN Number (Refer to your Certificate of Registration).

If you are qualified, a green prompt will appear showing your registered name/business
name and a passcode. COPY THE PASSCODE.

A red prompt will appear if you have entered an invalid TIN Number or not qualified. If
you wish to question your non-qualification, you may send an email to
SBWS_BIRquery@bir.gov.ph with the following information: TIN, Registered/Business
Name, RDO Code, and your message.

Step 2: Go to the SSS website (www.sss.gov.ph). Log in to your “My.SSS” account. Click
on the “Small Business Wage Subsidy” Tab. Enter the Passcode and the TIN Number.
Click “Proceed” to enter the application portal.

Step 3: SSS shall display a list of its Employees. If an employee is not in the SSS list, it
means the worker is not registered in the My.SSS portal or the information in the My.SSS
account is not sufficient.

The Employer will determine who the qualified employees are based on the SBWS
Program Guidelines. Click the box at the left side of their name. If the Employee
concerned was also a beneficiary of the DOLE CAMP, the corresponding box must also be
ticked. Enter the Employee’s respective TIN Numbers.
Step 4: The employer must click “I Agree” with the Employer’s Undertaking that the
information provided in the application are complete, true, and correct; employees were
notified of the application and has given explanation for those who qualified and did not
qualify for the wage subsidy program; and all employees know why their personal and
sensitive information were shared with the SSS, BIR, and DOF and that they have given
their full consent for this.

Step 5: The Employer must submit a “Certification Attesting to the Work and Pay Status
of Employee” to SBWSCertification@sss.gov.ph upon accomplishing the application. A
template may be downloaded by clicking “Employer Certification Template”.

Step 6: From here the SSS automated system shall check and validate employee details
and qualifications to the program. The SSS will then inform the employer through email
the employees who are qualified, those qualified but lacking credentials, and those
disqualified along with an explanation.

For qualified employees, the SSS will also provide the employer with the details when the
subsidy shall be credited to their bank accounts or available for disbursement through
remittance agents.

Eligible employees will likewise receive an email notification from the SSS that their
employers have confirmed their qualification for the SBWS program. The beneficiary will
also be provided with the details on when and how they will receive their cash aids in
their bank accounts or if it is available for pick-up through remittance agents.

Other Matters: If the Employer fails to apply due to System Downtime, or does not
want to apply, or unjustifiably chooses the qualified employees or that the
Employee was not yet reported by the Employer to the SSS prior to the ECQ
declaration, they may file an appeal/complaint at SBWSQueries@sss.gov.ph which will
be forwarded to the SBWS Appeals Task Force for appropriate action.

References:
https://www.dof.gov.ph/small-business-wage-subsidy-program/
https://www.bir.gov.ph/index.php/small-business-wage-subsidy-sbws-program.html
https://www.gmanetwork.com/news/news/nation/734425/how-to-avail-of-the-govt-s-cash-aid-for-
small-business-wage-subsidy-program/story/