Legislative lifeline for working seniors

Money and health top the list of stressors for Filipinos, according to a recent Social Weather Stations survey. Fifty-three percent of respondents reported experiencing “big” stress over their financial situation, while 42 percent cited health concerns as a major source of stress.

For senior citizens, this burden is even heavier. In a country with limited social safety nets, many older Filipinos face soaring medical costs and dwindling savings, forcing them to keep working well beyond retirement age- not by choice, but out of sheer necessity to meet basic needs.

A 2025 study published by the Asian Development Bank called “A Descriptive Analysis of Poverty Among Older People in the Philippines” showed that there are a number of older Filipinos living below the poverty line.

“As individuals move into older age brackets, their ability to participate in the workforce decreases, resulting in decreased income and greater dependence on pensions, savings, or family support,” the report noted.

Prevailing economic and social challenges in the Philippines have prompted many senior citizens to continue working even in old age. Recognizing this growing reality is the first step in helping ease the financial burdens of many elderly Filipinos who continue to be part of the workforce out of necessity.

Let us not look at these as mere statistics. Let this be a wake-up call for stronger policies, better health care access, and real support systems that uphold dignity in aging.

To help ease their financial challenges, Senior Citizens party-list Rep. Rodolfo “Ompong” Ordanes filed House Bill 2563, seeking to grant income tax exemption to Filipinos aged 60 and above earning P800,000 or less annually. The proposed exemption covers senior citizens who are employed either full-time or part-time, as well as contract workers and those working as consultants.

“Many senior citizens continue working not because they want to, but because they have to  — either to support their families, pay for medicines, or keep up with the rising cost of living. After decades of service to our nation, they deserve relief — not additional financial burdens from income tax deductions,” Ordanes said.

This proposal is not just a fiscal incentive for the elderly, it is a matter of social justice.

Under the Expanded Senior Citizens Act, Filipinos aged 60 and above are afforded discounts and exemptions from value-added tax but there are no existing tax incentives for the elderly who remain employed.

Rep. Ordanes correctly argued that if the government can offer tax incentives to corporations and foreign investors, it should also extend similar compassion to senior citizens who have already paid their dues but continue to work even after retirement age.

The proposed exemption is targeted, applying only to working senior citizens earning P800,000 or less annually,  ensuring that those who need it most benefit, while avoiding blanket exemptions for high-income earners.

Contrary to concerns that such a proposed exemption might hurt government tax collection, allowing working senior citizens to retain more of their income can actually help stimulate the “silver economy” since they can spend more on goods and services.

An income tax exemption can also encourage more Filipinos aged 60 and above to remain as productive contributors to the economy. This will also allow seniors to remain active and mentally engaged, which is linked to better health outcomes. Likewise, by enabling seniors to earn and save more, the government can ease pressure on social assistance programs and healthcare subsidies.

Passing House Bill 2563 is more than a financial adjustment, it is actually a strategic investment in people and in the economy. For seniors, it means immediate relief from financial strain, allowing them to keep more of their hard-earned income for essentials like medicine, food, and utilities. This translates to better health, dignity, and independence in their later years.

It would send a clear message that our nation values its senior citizens not just in words, but in policy.

Let us not penalize productivity in old age; rather, we should reward it.