The Senior Citizens Act

Republic Act No.7432

(as amended by R.A. 9257 and 9994)
Policies and Objectives

• 1987 Constitution

• Article II
• Section 9. Social Order.
• Section 10. Social Justice.
• Section 11. Full respect of Human Rights and Dignity of Person.

• Article XIII, section 11. Integrated and Comprehensive approach to

Health and Development.

• Article XV, section 4. Duty of the Family and the State to Elderly.
Carlos Superdrug Corp. v. DSWD, DOH, DOF,
DOJ, and DILG,
G.R. No. 166494, June 29, 2007
• The Court is not oblivious of the retail side of the pharmaceutical
industry and the competitive pricing components of the business.
While the Constitution protects the property rights, petitioner must
accept the realities of business and the State, in the exercise of police
power, can intervene in the operations of the business which may
result in an impairment of property rights in the process.
 Carlos Superdrug Corp. v. DSWD,
DOH, DOF, DOJ, and DILG,
G.R. No. 166494, June 29, 2007

• Article XIII of the Constitution provides the precept for the protection of
property, various laws and jurisprudence, particularly on agrarian reform
and the regulation of contracts and public utilities, continuously serve as
a reminder that the right to property can be relinquished upon
command of the State for the promotion of public good.
Privileges of Senior Citizens:

1. 20% discount and exempted from VAT;

2. Exemption from payment of individual income taxes;

3. 5% discount on the monthly utilization of water and electricity;

 4. Free medical and dental services in all
government facilities

Free medical and

dental services in
all government
facilities, subject
to the guidelines
to be issued by the
DOH in
coordination with
the Philhealth.
5. Exemption from training fees
6. Educational
privileges

Educational
assistance shall be
granted to senior
citizens to pursue
post secondary, post
tertiary, as well as
vocational or
technical education in
both public and
private schools.
7. Benefits and
privileges for retirees

To the extent practicable and

feasible, the senior citizen
shall be granted the
continuance of the same
benefits and privileges given
by the Government Service
Insurance System (GSIS),
Social Security System (SSS)
and PAG-IBIG.
8. Privileges on granting special discounts in special
programs
9. Express lanes privileges
10. Death Benefit
Assistance

Assistance of a
minimum of P2, 000
shall be given to the
nearest surviving
relative who took care
of the deceased
senior citizen
Additional notes on purchases by Senior
Citizens
1. Credit card payments
The 20% discount and VAT exemption shall also apply

2. No double discounts
In the purchase of goods and services which are on promotional
discount, the senior citizen can avail of the establishment’s offered
discount or the 20% discount provided herein, whichever is higher and
more favorable.
Conditions for availment of the senior citizens’
privileges

In the availment of the senior citizens’ privileges, the senior citizen or

his/her authorized representative shall present any of the following:
a) Senior citizens’ identification card issued by the Office of the
Senior Citizen Affairs (OSCA)
b) Philippine passport
of the senior citizen;
and

c) Other documents
showing the age and
Filipino citizenship.
Additional tax for PRIVATE ENTITIES that
employ Senior Citizens (SC)
• 15% of the total amount paid as salaries/wages to SC

• Requirments:
- At least 6 months;
- Annual Income.
The Senior Citizen’s Discount can be claimed
as Tax Deduction
The discounts granted by the establishments to senior citizens
based on the cost of goods sold or services rendered may be claimed
as deductions from the gross income for the same taxable year that
the discount is granted.
(IRR of RA 9994 – Art. 10)
NIRC requirement:
The amount of sales that must be reported for tax purposes is the
undiscounted selling price and not the amount of sales net of the
discount.

For example C, a senior citizen, bought a rice meal to Jolli-B amounting

to P50.00, the entry to record the transaction in the books of the Jolli – B
should be as follows:

(It must be remembered that the sale to Senior Citizens is exempt from
VAT)

Cash P40.00
Senior Citizen Discount Expense P10.00
Sales P50.00
Additional Privileges for Indigent Senior Citizens

• Free vaccination against the influenza virus

and pneumococcal disease.

• Monthly stipend from the government

amounting to Five Hundred Pesos
(Php500.00).

• Mandatory PhilHealth Coverage

•Death benefit assistance from the government
of a minimum of Two Thousand Pesos
(Php2,000.00)
• Given to:
• Nearest surviving relative of a deceased senior citizen
who took care of the deceased senior citizen until his
death;
• In his absence, the benefactor;
• Licensed foster family of the deceased indigent senior
citizen
Discount for DSWD – Accredited Senior Citizens
Center

The accredited Department of Social Welfare and Development

centers, residential care institutions, or group homes are entitled to
50% discount on all electricity, water, telephone consumption.
Requirement:

The senior citizens centers, residential

care, or group homes must have been in
operation for at least six (6) months and
must have a separate meter for said
utilities/ services.
 Criminal Offenses and Penalties
• Refusal to honor the Senior Citizen card;
Penalties:
First Violation:
- imprisonment 2 to 6 years;
- fine of P50,000 to P100,000;
Subsequent Violation
- imprisonment 2 to 6 years;
- fine P100,000 to P200,000.
Criminal Offenses and Penalties

• Abuse of Senior Citizen Privileges

- Senior Citizen
- Representative
- Medical Practitioner
Penalties:
- Imprisonment for 6 months;
- fine P50,000 to P100,000.
The Office for Senior Citizens Affairs

• All Cities and Municipalities

• Mayor – Senior Citizen
• General Assembly
• Term of 3 years
• Death, Permanent disability or Ineffective Performance of his duties.
 The Office for
Senior Citizen Affairs
The Office of Senior Citizen Affairs

• All cities and municipalities are required to have an OSCA

• It must be headed by a Senior Citizen

• Appointed by the mayor

The Office of Senior Citizen Affairs

• Shall be chosen from 3 nominees recommended by a general

assembly of senior citizens organization in the city or municipality
Qualifications of OSCA Head

• Filipino citizen resident of the municipality for at least 2 years

• Registered voter of the municipality

• Able to read and write

Qualifications of OSCA Head

• Physically and mentally capable of performing the tasks of the OSCA

head

• Member of a registered senior citizen organization

• Good moral character and high school graduate

The Office of Senior Citizen Affairs

• The head of the OSCA cannot be removed or replaced except through

• Death
• Permanent disability
• Ineffective performance to the detriment of his fellow senior citizens
Functions of the OSCA

• To plan, implement, and monitor yearly work programs in pursuance

of the objectives of the Senior Citizen act

• To create a list of available and required services which can be

provided by the senior citizens
Functions of the OSCA

• To serve as a general information and liaison center for senior citizens

• To maintain a list of senior citizens and to issue identification cards

• To monitor compliance of the provisions of the Act

Functions of the OSCA

• To report to the mayor anyone found violating any provision of the

Senior Citizen Act

• To assist in the filing of complaints/charges to anyone refusing to

comply with the privileges under this Act before the proper
authorities