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In the Philippines, there are 8.1 million nanoenterprises—livelihoods run by self-employed individuals or families, usually unregistered, with assets as low as ₱3,000 to ₱150,000. They form the backbone of the informal economy, yet they remain invisible in the eyes of many government policies.

Meanwhile, public funds for “ayuda” or financial assistance have ballooned to nearly ₱430 billion from 2022 to 2025, distributed across various programs under DSWD, DOLE, and DOH. These include unconditional transfers like TUPAD, AKAP, and AICS, many of which have been flagged as tools of patronage politics, especially around election periods.

Ang tanong: Hindi ba panahon na para ayusin natin ang ayuda? What if we stopped using it as a band-aid and started using our public resources to empower the working poor?

A Proposal Rooted in Justice: Wage Subsidy for Nanoenterprises

Instead of short-term cash aid, I propose a landmark legislation: Government wage subsidies for nanoenterprises that cannot afford to comply with mandated minimum wage increases.

You heard that right. Under current proposals to raise minimum wage by ₱200 per day (₱4,000 per month), only businesses with more than 10 employees are required to comply.

I recently brought this up during a financial literacy training I conducted for overseas Filipino workers (OFWs)—mostly domestic workers—in Hong Kong on Sunday, June 8, 2025. I shared:

“So kung ikaw ay nandoon sa isang business na less than 10 ang empleyado, hindi ka kasama doon sa ₱200 per day na increase na ‘yan. Makatarungan nga ba o hindi?”

To which the room, filled with hardworking OFWs, resoundingly replied:

“Hindi!”

That moment reminded me of a powerful insight I shared with them:

“So, ano yung lesson natin ngayon? Ang pagpapayaman pala ay hindi lang tungkol sa kakayahan ko. Mahirap pala na ako lang, sariling sikap ko lang ako yayaman. Hindi. Malaking role nito ay ang gobyerno din.”

This is where real policy change begins—by recognizing that while personal responsibility is key, systemic support is essential.

Why a Wage Subsidy Makes More Sense Than Ayuda

1. Promotes Dignity Through Work
   Unlike ayuda, which is often seen as a handout, wage subsidies preserve the dignity of labor. They help keep jobs, stimulate local economies, and build resilience.
2. Supports the Most Vulnerable Entrepreneurs
   Nanoenterprises are often excluded from formal support systems. By subsidizing wages, the government can directly inject capital where it’s most needed, improving both livelihood sustainability and employee welfare.
3. Counters Dependency and Vote-Buying Tactics
   Ayuda programs—especially those with vague guidelines and LGU-controlled distributions—have become ripe for political manipulation. A wage subsidy based on clear, transparent criteria avoids this.
4. Catalyzes Inclusive Economic Growth
   With 30 million Filipinos living in poverty, uplifting the 8.1 million nanoenterprises could reduce poverty by up to 27%. That’s real inclusive development.

Where to get funding

We don’t need to raise new taxes or borrow more. The money is already there—we just need to redirect it toward smarter programs that lead to sustainable outcomes.

Here’s how much we currently spend on four major ayuda programs:

Rather than repeatedly disbursing one-time cash transfers, these funds can be used to subsidize nanoenterprise wages, reaching the most underserved yet economically active Filipinos.

We propose starting small:
A ₱1,500 monthly wage subsidy per nanoenterprise employer or worker—just a fraction of the ₱4,000 per month wage hike passed by Congress. Multiply that by 8.1 million nanoenterprises, and you get: ₱1,500 x 8.1 million x 12 months = ₱145.8 billion per year

This is doable, especially when compared to the current ayuda budget allocations which already approach this amount.

Rethinking Government’s Role in Pagyaman

It’s time we redefine government assistance. Not as perpetual ayuda, but as transformational support that enables the poor to grow their livelihoods, provide employment, and climb out of poverty.

Wage subsidy for nanoenterprises is not a handout. It’s an investment.

It’s only fair that the government shoulders its share of responsibility by subsidizing the wages of the lower segment of society, while the private sector will support those already covered by the proposed minimum wage hike by congress.

Let us move from short-term relief to long-term resilience. From patronage to productivity. From ayuda to asenso.

Because in a truly inclusive economy, the government doesn’t just give—it empowers.