Linking social protection initiatives with financial inclusion can reduce poverty.
This was the idea presented by George Royeca, president and CEO of motorcycle taxi provider Angkas as he signed a memorandum of agreement with the Social Security System (SSS) to extend social security protection to the more than 50,000 Angkas riders in Metro Manila, Cebu and Cagayan de Oro.
"We saw that there's a large informal sector, with millions working and using motorcycles for business but not receiving government benefits. We sought to ensure they become part of the economy," Royeca said during the MOA signing, insisting that social protection has played a critical role in reducing poverty and financial inequality.
The MOA, dubbed "AngkaSSS na sa Protektadong Bukas," authorizes Angkas to collect and remit the monthly contributions from its partner bikers.
Angkas riders will qualify as self-employed members and will enjoy a range of benefits, including sickness, maternity, disability, retirement, funeral, and death benefits.
In addition, SSS president and CEO Rolando Ledesma Macasaet said that Angkas riders are also eligible to apply for social security programs, such as calamity and salary loans. Macasaet added that the SSS Employees' Compensation (EC) Program offers extra coverage and benefits for work-related sickness, disability, or death.
The SSS chief explained that the current monthly SSS contribution is 14%, and the salary credit used for self-employed members ranges between P4,000 and P30,000.
The lowest monthly contribution is pegged at P570, consisting of P560 for the regular SSS contribution and P10 for the EC contribution.
Angkas rider Richard Cañete used to be an SSS member but stopped contributing six years ago. With this opportunity, he can now resume his contributions.
"Since 2019, I haven't been able to make contributions... there isn't enough time because you have to wait in line and go through a lot of processes, of course," he said
"In their old age, they will receive a lifetime pension. If they pass away, these benefits will be transferred to their spouse and minor children," said Voltaire Agas, executive vice president of the Branch Operator Sector at SSS.
Indeed, the latest Angkas-SSS partnership, which applies social insurance initiatives to Angkas riders, helps prepare the ground for assessing infrastructure requirements and making national decisions on designing and implementing programs on a broader scale to include all informal workers.
As linking financial inclusion to social protection programs gains momentum, there is an increasing need for clear demonstrations of success. Globally, the initiative is beginning to gather steam through identifying opportunities to implement and experiment with financially inclusive social protection models.
Let us hope the Angkas-led partnership, as envisioned by Royeca, will accumulate evidence of positive results, enhance and extend the impact of social protection programs through financial inclusion, and gradually transform from a promising idea to a tested solution.
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