Labor and Employment Secretary Rosalinda Dimapilis-Baldoz, Chairman of the Board of the Employees Compensation Commission, an attached agency of the DOLE, yesterday reminded employers who employ persons with work-related disabilities (PWRDs) to avail of tax incentives under R.A. 7277, otherwise known as Magna Carta for Persons with Disabilities (PWDs).
“The Employees’ Compensation Program’s primary beneficiaries–persons with work- related disabilities–are entitled to the benefits provided under R.A. 7277, thus, their employers can avail of the tax incentives accorded them by the said law,” Baldoz said.
Relative to this, Secretary Baldoz had directed the ECC to include in its ECP advocacy seminars nationwide the benefit of the tax incentive to employers to encourage their active participation in promoting the welfare of PWDs and to ensure gainful employment for qualified persons with disabilities, including persons with work-related disabilities.
ECC Executive Director Stella Zipagan-Banawis, in an update report to the Secretary, said that persons with work-related disabilities who availed of EC benefits through ECC’s implementing agencies, the GSIS and SSS, and those who availed of the ECC’s Katulong at Gabay sa Manggagawang may Kapansanan (KaGabay) Program were either re-hired by their previous employers or hired by new employers. On these cases, the ECC has informed the employers that they can avail of tax incentives provided under R. A. 7277.
Section 8 of RA 7277 provides that private entities employing persons with disabilities (PWDs) who meet the required skills or qualifications, either as regular employee, apprentice, or learner, shall be entitled to an additional deduction from their gross income, equivalent to 25 percent of the total amount paid as salaries and wages to persons with disabilities.
However, such entities must present a certification from the Department of Labor and Employment that the PWDs are under their employ and a certification from the Department of Health as to his disability. The DOLE’s regional offices issues the DOLE certification.
The said law further provides that entities that improved their physical facilities in order to provide reasonable accommodation for PWDs shall also be entitled to an additional deduction from their net taxable income, equivalent to 50 percent of the direct costs of the improvements or modifications. This, however, does not apply to improvements or modifications of facilities required under Batas Pambansa Bilang 344, also known as the Accessibility Law.