The implementation of the “Kasambahay” Law will cause minimal displacement to the 1.9 million local household service workers (HSW) when it takes full effect next month, the Department of Labor and Employment (DOLE) said.
Labor and Employment Secretary Rosalinda Baldoz made the assurance in an interview amid concerns that the additional cost of providing the HSWs with social service and healthcare benefits from the new law will force many employers to dismiss them.
Under the recently passed Republic Act (RA) 10361 or the “An Act Instituting Policies for the Protection and Welfare of Domestic Workers,” if the wage of an HSW is below R5,000 his employers is required to provide him or her full coverage from the Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth), and the Pag-IBIG fund.
If the HSWs receive a monthly pay of P5,000 or higher, he or she is required to shoulder a portion of the membership fees with their employer.
The law will cover service providers, family drivers, and children under foster family arrangement.
Baldoz said the Kasambahay law will not affect the employment of many HSWs since the additional premiums mandated by the law will be affordable for the employers.
Based from the DOLE’s computation, employers, most of which are from the Middle to the Upper class, will only have to shell out a minimum of R85 a day to provide their HSWs with all the necessary social protection benefits.
“We expect very minimal displacement if there will be even any once the bill becomes effective since they (HSW) are already considered part of the family. The employers would only have to pay R85 for the entire coverage,” Baldoz said.
She said this will also benefit the employers in the long run since they will no longer have to pay any incidental expenses for their HSWs.
“Why would they regret paying for their premium? If their workers get sick or had an accident the employers will no longer have additional concerns since it will be already covered by SSS and PhilHealth,” Baldoz said.
However, she said the DOLE will offer livelihood assistance and skills training for HSWs, who might be displaced because of the new law.
The DOLE is currently holding a series of comprehensive town-hall format consultation through its regional offices before it issues the implementing rules and regulation (IRR) for the Kasambahay Law by May 10. .

Source: Manila Bulletin - April 10, 2013