Businesses in Davao City that hire senior citizens and persons with disabilities (PWDs) may soon receive tax incentives under a proposed ordinance filed by City Councilor Lorenzo Benjamin Villafuerte.
Proposed Tax Deductions
Villafuerte, chair of the City Council's Committee on Social Services, said the ordinance would grant tax deductions to encourage more companies to expand inclusive hiring. He hopes to have the measure approved before the National Disability Prevention and Rehabilitation (NDPR) Week, with support from the executive department.
“This will be a deduction from the tax. We are exploring whether or not this would be gross sales minus the salaries of PWDs, which would be the basis of our deduction, or flat rates, we will directly reduce the business tax itself, maybe 10 percent or lower than that, depending on the number of senior citizens and PWDs they would hire,” Villafuerte said during the Pulong-Pulong sa Dabawenyos on June 30 at the Sangguniang Panlungsod.
Ongoing Studies and Hearings
The City Council is still studying the most appropriate incentive scheme before finalizing the ordinance. Two committee hearings have already been held, with another scheduled to determine the tax incentives businesses may receive. Representatives from the City Treasurer's Office, City Legal Office, and the Persons with Disability Affairs Office (PDAO) are expected to participate.
Villafuerte said the ordinance is intended to strengthen the city's Special Employment Program for Senior Citizens and PWDs, which has already provided jobs for several beneficiaries. He also encouraged employers to go beyond the minimum hiring requirements set by law.
Legal Framework
Under Republic Act No. 10524, or the Magna Carta for Persons with Disabilities, government agencies and private companies are encouraged to reserve at least one percent of their positions for qualified PWDs. Meanwhile, Republic Act No. 9994, or the Expanded Senior Citizens Act, provides that senior citizens who remain willing and able to work should be given access to employment information and job-matching services.
Existing Programs and Impact
Earlier, the Public Employment Service Office (Peso)-Davao City reported that about 70 senior citizens joined the second batch of beneficiaries under the city's Senior Citizens Work Opportunity Ordinance beginning Jan. 15, 2026. Their deployment ended in April, making way for the program's third batch.
The initiative was first proposed during a privilege speech in October 2023 and later institutionalized through the Senior Citizens Work Opportunity Ordinance. It aims to help senior citizens and PWDs earn income, remain active, and continue contributing to their communities. The Social Welfare Operations Division estimates that Davao City has about 170,000 senior citizens.
