To help workers make sound financial decisions, Senator Jinggoy Ejercito Estrada has filed a bill seeking to require employers nationwide to provide a free financial literacy program for all its employees.
“The role of employers to take a lead in this endeavor cannot be undermined because they provide the most accessible venues and channels for such initiatives. Kung gugustuhin ng mga employers, magagawan ito ng paraan para maitaas natin ang antas sa kaalaman ng ating mga manggagawa kung paano sila makakapag-ipon, mamuhunan at iba pa,” Estrada said in explaining his proposed Personal Finance Education in the Workplace Act contained under Senate Bill No. 2630.
“This will benefit the employees and workers because it will give them the knowledge and skills to effectively and efficiently manage their resources and allow them to be financially stable,” the chairperson of the Senate Committee on Labor, Employment and Human Resources Development explained.
He added that companies will likewise benefit from financially-stable employees who are more focused on their tasks, thus more productive and satisfied in their work.
Under the bill, employers will be mandated to provide a personal finance education program for all its workers which will include topics on behavioral finance, savings, emergency and resilience fund development, debt management, investment, insurance and retirement planning, and other applicable personal finance programs.
The Department of Labor and Employment (DOLE), in consultation with the Bangko Sentral ng Pilipinas (BSP) and other concerned government agencies, shall make available the standard content of the program.
The employer may conduct the program in-house, outsourced, or through other available options.
In filing the bill, which seeks to amend a provision in Presidential Decree No. 442, otherwise known as the Labor Code of the Philippines, Estrada said a survey conducted by the BSP showed that only one percent of surveyed Filipino adults answered the questions on financial literacy correctly.
Further, according to the World Bank, only 25% of adult Filipinos are knowledgeable about basic financial concepts.