LEGAZPI CITY, Albay, Philippines -- The provincial accountant of Albay has advised the Government Service Insurance System (GSIS) that starting this October payroll, the province will not be deducting installment payments from provincial government employees who have outstanding loans.
Albay Gov. Joey Salceda said in a text message Sunday that he had instructed the provincial accounting office to make the move after President Macapagal-Arroyo approved his demand-side relief package to take effect immediately.
Salceda said his office had also advised companies in Albay not to deduct installment payments of employees with pending loans with the Social Security System.
“On the average, the monthly take-home pay should increase by P600 to P900,” he said.
In the recent Cabinet meeting, President Arroyo approved for implementation Salceda's proposal for an P86-billion relief package for victims of storm Ondoy and typhoon Pepeng.
Salceda argued that a one-year deferment of installment payments for salary and housing loans of Social Security System (SSS) and GSIS members affected by the two weather disturbances would result in higher take-home pay for 700,000 GSIS and 4.8 million SSS members.
“This would amount to P32 billion additional cash flow for ordinary households, P4 billion for GSIS and P28 billion for SSS,” he explained.
According to Salceda, “this effectively overrides original plans of the GSIS and SSS for incremental loans to members who need to apply while this plan would require less effort from members and less paper work for the two pension agencies.”
He said a similar package was approved for Albay in 2006 by the President to counter the adverse impact of Mayon eruption and typhoons Milenyo and Reming.
According to Salceda, the measures, combined with the Bicol Calamity Assistance for Rehabilitation Efforts, were instrumental in lifting the province to a stronger platform for recovery.
He added that demand-side interventions that involve providing direct cash benefits to citizens have been emerging as an important tool for disaster response to mitigate the social damage and overturn the potential economic drag of major calamities.
