Cebu City Pioneers Weekly Payroll to Shield Workers from Debt
In a significant move to protect its workforce from financial distress, the Cebu City Government has officially launched a weekly salary release system for its casual and job order employees. This initiative, now actively benefiting more than 2,006 workers, is designed to prevent them from falling into the trap of high-interest loans from informal lenders.
A Direct Response to a Long-Standing Problem
The city's Human Resource Development Office (HRDO), under the leadership of Henry Tomalabcad, confirmed the implementation of this new payroll schedule. The decision stems from a City Council resolution that mandated the HRDO to streamline payment procedures, ensuring that employees receive their wages on time. For years, the City Hall has observed the troubling pattern of its employees accumulating unmanageable debts and turning to loan sharks due to the long gaps between the standard semi-monthly payouts.
To finalize the rollout, a consultative meeting was held on October 27 with the Management Information and Computer Services (MICS) and the City Treasurer’s Office (CTO). Following this, a memorandum was issued on the same date, directing all city departments to strictly adhere to the new weekly schedule, which applies to casual employees with at least 22 days of accumulated leave credits.
Weekly Payouts Every Friday
The new system schedules salary disbursements for every Friday. Henry Tomalabcad highlighted that Cebu City is currently the only Local Government Unit (LGU) in the Philippines to adopt a weekly payroll for its casual workers, setting a new standard for employee welfare. While other LGUs continue with the traditional twice-a-month payment scheme, Cebu City embraces this change despite the potential for increased administrative tasks.
Tomalabcad acknowledged that the policy might require additional paperwork and compliance efforts from various departments. However, he firmly stated that the long-term advantages for the employees' financial health far outweigh these initial adjustments.
The HRDO reports that nearly all eligible casual employees have already received their first weekly payout under this updated system. This proactive measure not only promotes financial stability among the city's workforce but also empowers them, ensuring they are no longer "beholden" to predatory lenders who charge exorbitant interest rates.
