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RMC No. 45-2020: Circularizes Joint Memorandum Circular No. 001-2020 (Guidelines for the Availment of the Small Business Wage Subsidy Measure)

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Summary

RMC No. 45-2020, issued April 30, 2020, circularizes Joint Memorandum Circular (JMC) No. 001-2020, the Guidelines for the Availment of the Small Business Wage Subsidy (SBWS) Measure.

Key points

  1. Coverage and amount. The SBWS covers small business employers and their eligible employees, employed as of March 1, 2020, who are affected by the ECQ or other quarantine in Luzon and other parts of the country. Eligible employees get a wage subsidy of Five Thousand Pesos (₱5,000) to Eight Thousand Pesos (₱8,000), largely based on the regional minimum wage, in two (2) tranches.
  2. Eligible employers. Employers are small businesses in an industry classified as Non-essential or Quasi-essential. They must be registered in the BIR and compliant with tax obligations for the past three years up to January 2020. They must also be registered with the SSS and have paid SSS contributions for the past three years up to January 2020.
  3. Eligible employees. Employees were employed by an eligible employer as of March 1, 2020 and were prevented from working for at least two weeks due to work suspension, temporary closure or a flexible work arrangement.
  4. Disqualified employees. Employees working from home or part of the skeleton force are disqualified. So are employees on leave for the entire ECQ duration, with or without pay, and recipients of SSS unemployment benefits or those with unsettled or in-process SSS final claims.
  5. DOLE benefits. Employees who received benefits from the DOLE COVID-19 Adjustment Measures Program or similar programs may still be eligible. The second tranche is net of any amount received from those programs.
  6. Application. The BIR notifies pre-qualified employers on its website (www.bir.gov.ph), but this does not by itself entitle them to the SBWS. They apply through My.SSS, or by email to sbwscertifications@sss.gov.ph if SSS so advises, and applications are accepted until May 8, 2020. The employer certifies that the employee meets all eligibility requirements.

Who is affected

  • Small business employers classified as Non-essential or Quasi-essential
  • Eligible employees employed as of March 1, 2020

Deadlines and effectivity

  • Employees employed as of March 1, 2020
  • SSS accepts applications until May 8, 2020

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.

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