House OK’s financial literacy bill
THE HOUSE of Representatives has approved on second reading a proposed measure that requires employers to establish a financial literacy program for all their workers and employees.
During the plenary session on Tuesday, House Bill No. 9875, the proposed Personal Finance Education in the Workplace Act, was approved through voice voting.
As a proposed amendment to the Labor Code of the Philippines, the bill mandates that the program include topics on behavioral finance, savings, fund development, debt management, investment, insurance, and retirement planning.
In his sponsorship speech, Bukidnon Rep. Jose Manuel F. Alba said “enlightened and financially secure workers and employees contribute more effectively, fostering a more robust and stable economy.”
According to the Bangko Sentral ng Pilipinas’ (BSP) 2021 financial inclusion survey, only 2% of Filipinos can correctly answer basic financial literacy questions.
The poll showed that 7% have attended a financial literacy seminar or webinar, and around half of the respondents, or 54%, said they were interested in attending the BSP’s financial literacy training session.
Less than half of the respondents (42%) noted the impact of inflation to their purchasing power, the central bank said.
“A lack of financial acumen leads to debilitating debt, stress-induced decision making, and consequently, a ripple of negative outcomes,” Mr. Alba told the plenary.
He added that the lack of financial literacy results in poor work performance, increased absences, financial dissatisfaction, and even violence in the workplace or at home. — Beatriz Marie D. Cruz