Making Social Protection Work for the Informal Sector: The Case of PhilHealth and ALKANSSSYA Program for the Self-Employed

Mitzie Irene P. ConchadaMarites M. TiongcoSchool of Economics, De La Salle University

Philippines’ 2015 growth:

5.8% GDP growth

5.6% unemployment rate

17.7% underemployment rate

As of 2012

940,886 registered micro, small and medium enterprises

(MSMEs)

Research question and objectivesAre people in the informal sector better-off in availing

PhilHealth and the ALKANSSSYA program?

• Provide an overview of the coverage of the Philhealthunder the ALKANSSSYA program in the informal sector

• Identify barriers to access Philhealth and the ALKANSSSYA program in the informal employment

• Determine whether PhilHealth and ALKANSSSYA members experienced an improvement in the income of the poor who are part of informal sector.

Need for social security insurance

• Poverty incidence • magnitude of poor families:

• 3.8 million in 2006 • 4.2 million in 2012

Key findings: social protection for the poor• PhilHealth Individual Paying Progam

• Self-employed, self-earning, part of other occupations

• Informal sector: street hawkers, market vendors, pedicab and taxi drivers, small-time construction workers, and home-based industries and services

• Coverage (Silfverberg, 2014) • 56% national rate as of 2014 • 57% regional average as of 2014

• AlkanSSSya Program• self-employed professionals, owners of business, farmers and

fisherfolk, and workers in the informal sector such as market and ambulant vendors, public utility transport drivers, tourism industry-related workers, and others in a similar situation

• 122,387 members as of 2014

• 1,236 informal sector groups

• P167m in contributions

Key findings: PSM results• CBMS 2015 database: Informal sector in NCR, Batangas, Cavite,

Misamis Occidental, and Negros Occidental

• PhilHealth Individual Paying Program• Beneficiaires: 2010 individuals & Non-Beneficiaries: 2015 individuals

• Profile: male, married, high school graduates, belong to family size of 5

• Beneficiaries are better off: • average monthly income per individual is PhP 1,581.25 higher• average monthly income from entrepreneurial activities is PhP

1,196.75 higher

Key findings: PSM results• AlkanSSSya

• Beneficiaires: 71 individuals & Non-Beneficiaries: 75 individuals• Profile: female, married, grade school graduates, average age 32

• Retail business: sari-sari stores, food vendors (44%)

• Services: divers, carpenters, stylists, manicurists etc. (25%)

• Beneficiaries are better off• Average monthly income per individual is PhP 1,486.95 is

higher

Conclusion and policy recommendations• Both programs are effective for poor individuals involved in

the informal sector in terms securing their income for more productive use• help augment the financial needs

• Expand membership of the program

• Promote awareness• Famous personality to help advertise

• Improve accessibility of payment facility• E-load facility• Additional payment centers “Bayad Centers”