Grab Philippines has launched a pilot program in Metro Cebu, aimed at providing subsidized Pag-IBIG Fund contributions to its drivers and delivery-partners.
The initiative is a key part of Grab’s broader strategy to offer more flexible, tailored solutions for gig economy workers and enhance social protection systems that meet their unique needs.
The pilot, which targets Gold and Platinum-tier drivers and delivery-partners, offers monthly Pag-IBIG contributions subsidized by Grab.
These contributions are intended to help workers save for long-term financial goals, including housing loans, while aligning social protection with the dynamic nature of gig work.
Metro Cebu was selected for the pilot due to its economic significance and strategic role in the Philippines. By launching the program in this key area, Grab aims to refine the model and address potential operational challenges before considering a nationwide expansion.
“This initiative reflects our commitment to supporting drivers and delivery-partners not only in their day-to-day work but also in securing their financial futures,” said Grab Philippines Country Head, Ronald Roda. “We hope to build a more inclusive and flexible social protection model that adapts to the realities of gig economy work.”
Research by the International Labour Organization and the Asian Development Bank has highlighted the gaps in traditional social protection systems for gig workers.
Many prefer flexible, modular systems that can accommodate their irregular work hours and fluctuating income. Grab’s new program addresses these needs by offering a contributory scheme that is adaptable, scalable, and accessible.
Program Highlights:
- Eligibility: Open to Gold and Platinum-tier drivers and delivery-partners, based on performance.
- Real-Time Benefits:Monthly Pag-IBIG contributions for savings and housing loan access.
- Flexibility: Subsidized contributions during the pilot phase to ease financial burden.
In collaboration with Pag-IBIG, Grab will also provide educational sessions to ensure participants understand the program’s benefits and processes, aiming to maximize its long-term impact.
The Cebu pilot is part of Grab’s larger plan to introduce income-linked contributions and modular benefit options tailored to the specific needs of its partners.
These options include health insurance, micro-savings for retirement, and income-loss protection, with contributions adjusted based on earnings.
Though the program is initially limited to Cebu, Grab plans to expand it across the Philippines, aiming to build a comprehensive social protection framework that incorporates dynamic contributions and benefits.
“Grab partners are crucial to the Philippine economy,” Roda said. “As a key partner in nation-building, we’re dedicated to advocating for innovative, scalable solutions that address the unique challenges of gig workers and provide long-term benefits for them and their families.”
Business News Asia
